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The Monterrey Consensus agreed at the UN summit on Financing for Development in 2002 promised a breakthrough in terms of donor generosity, aid effectiveness and new means of financing. However, the development orientation of world leaders proved to be short-lived. This is even though our evaluation reveals progress since Monterrey in some areas, notably debt relief and private (FDI) flows. Calls for substantially scaling-up regular aid had less effect than envisaged, and financial innovations have contributed only marginally to overall development financing so far. Nor is there much progress from the perspective of critics focusing on the quality of aid. In particular, the targeting of aid according to need and merit leaves much to be desired. The gap between words and deeds continues to be wide with regard to aid proliferation and donor co-ordination as well. [ABSTRACT FROM AUTHOR]

This paper analyses whether foreign direct investment (FDI) has contributed to employment generation in Mexico's non-maquiladora manufacturing sector. Drawing on highly disaggregated FDI and employment data, we estimate dynamic labour demand functions for blue and white collar workers, including FDI as well as its interaction with major industry characteristics. FDI has a significantly positive, though quantitatively modest impact on manufacturing employment in Mexico. This applies to both white collar and blue collar employment. The employment enhancing effects of FDI are larger in export oriented industries. In more capital-intensive industries, the employment effect of FDI remains positive for blue collar workers but not white collar ones. [ABSTRACT FROM AUTHOR]