Development

Multilateral aid

More than 200 multilateral agencies - such as the United Nations, the World Bank and the global funds - receive about one third of total ODA. When including earmarked funding provided to multilaterals, this goes up to two fifths.

The scale at which the multilateral system is used reflects donors' views of it as an important aid channel. However, a clearer picture of the multilateral system is needed to analyse this channel, and the DAC report on multilateral aid - the only one of its kind - aims to address this gap. The report provides a snapshot of the multilateral aid architecture, from the funding of multilateral organisations by DAC members to their own multilateral aid strategies and policies. The report also highlights issues such as fragmentation, multilateral effectiveness, reform processes and partner country views.

	Making earmarked funding more effective: Current practices and a way forward The use of the multilateral aid system grew in real terms by 31% between 2007 and 2012. This growth was primarily driven by increased funding provided to multilateral organisations as earmarked resources for specific themes, sectors, regions or countries (+79% in 2007-12). While earmarked funding can help meet specific needs and evolving development challenges, it can also make the co-ordination and coherence of the international development co-operation system more difficult and undermine the strategic and coherent allocation of resources for individual multilateral organisations. This paper sheds light on how multilateral organisations and bilateral providers are attempting to better manager earmarked funds. It also provides suggestions on how these efforts can be taken forward to ensure financing for the multilateral system that is sustainable and conducive to better development results.
	Concept Note: Multi-stakeholder Approaches for Enhancing Multilateral Organisations' Contribution to Development Results The Concept Note for the focus session on multilateral organisations, held during the Mexico HLM in April 2014. Summary: Multi-stakeholder Approaches for Enhancing Multilateral Organisantions' Contribution to Development Results A summary of the conclusions, key messages and way forward drawn from the focus session on multilateral organisations' held during the First High-Level Meeting of the Global Partnership in Mexico, April 2014.
	Bilateral Providers' and Multilateral Organisations' Practices on Earmarked Funding The use of the multilateral aid system grew in real terms by 31% between 2007 and 2012. This was primarily driven by increased funding from bilateral providers to multilateral organisations (MOs) as earmarked resources for specific themes, sectors, regions or countries (+79% in 2007-2012). While earmarked funding can help meet specific needs (e.g., humanitarian crisis) and evolving development challenges, it can also make coordination and coherence of the international development co-operation system more difficult. Building on a forthcoming OECD paper, this flyer sheds light on how MOs and bilateral providers are attempting to better manage earmarked funds. It also provides suggestions on how these efforts can be taken forward to ensure financing for the multilateral system that is sustainable and conducive to better development results.
	2013 DAC Report on Multilateral Aid This fourth DAC Report on Multilateral Aid examines recent trends in multilateral development co-operation. It asks how multilateral co-operation affects the fragmentation of aid, gives an overview of bilateral and joint assessments of multilateral organisations, and outlines guiding principles to limit the proliferation of multilateral aid channels. Only available in English

‌	What Do We Know About Multilateral Aid?: The 54 billion dollar question This policy brief provides an overview of the multilateral aid system over the past 5 years.
	2011 DAC Report on Multilateral Aid This third DAC Report on Multilateral Aid covers recent trends in multilateral aid and total use (core and non-core) of the multilateral system. It investigates and highlights how countries make decisions to allocate aid bilaterally or multilaterally, and how they allocate this aid to different multilateral agencies. Click here to access the report in French.
	2010 DAC Report on Multilateral Aid This second DAC Report on Multilateral Aid covers recent trends in multilateral aid and total use (core and non-core) of the multilateral system, with a special focus on UNDP and World Bank trust funds. It explores development perspectives of the climate change funding architecture, and provides an overview of the response of multilaterals to the financial and economic crisis. It also includes an update on members’ multilateral strategies and assessment approaches. Click here to access the report in French.
	2008 DAC Report on Multilateral Aid (pdf, 2.6 MB) »Summary of the Report (pdf, 272 KB) Multilateral aid accounts for over a third of total ODA. The scale at which the multilateral system is used reflects donors’ views of it as an important aid channel. However, a clearer picture of the multilateral system is needed to analyse this channel, and the first ever DAC report on multilateral aid aims to address this gap. The report provides a snapshot of the multilateral aid architecture, from the funding of multilateral organisations by DAC members to their own multilateral aid strategies and policies. The report also highlights issues such as fragmentation, multilateral effectiveness, reform processes and partner country views.

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‌Composition of Gross ODA Disbursements (2012)

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