This book analyses the role of development finance in international development cooperation. The author explains the current transformations in the global development finance architecture and discusses new concepts for development finance proposed by multilateral and bilateral donors. The book is divided into three parts. The first part is devoted to the theoretical foundations of development finance and its impact on socio-economic development and aid effectiveness in partner countries. The second part presents insights on the current trends in multilateral and bilateral development finance. In the last section, the book examines the ramifications of development finance in partner countries and evaluates its impact in private and public sectors. The book will appeal not only to academics in the field but also to practitioners working in aid development and finance.