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DAC Work on Multilateral Aid

DAC Work on Multilateral Aid. Emily Bosch DAC Network on Development Evaluation 10 February 2010. Multilateral Aid and the DAC. 1. Aid Predictability : Forward Spending Survey 2. Division of Labour: Global Fragmentation & Concentration 3. Annual Multilateral Aid Report.

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DAC Work on Multilateral Aid

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  1. DAC Work on Multilateral Aid Emily BoschDAC Network on Development Evaluation 10 February 2010

  2. Multilateral Aid and the DAC 1. Aid Predictability: Forward Spending Survey 2. Division of Labour: Global Fragmentation & Concentration 3. Annual Multilateral Aid Report

  3. Forward Spending Survey • Only global survey on donors’ future aid • Survey shows little sign of raised levels of ambition for 2010 targets, outlook for 2011 no more encouraging. • Multilateral agencies account for most of increased allocations to LICs

  4. Global Fragmentation & Concentration Bilateral and Multilateral donors Donor fragmentation across countries is increasing Allocation rules do not internalise aid from other donors

  5. Non-significant donor relationships: Opportunities for concentration

  6. Multilateral Trends • +/- 30% share of multilateral ODA • 2008: 82% ML aid to IDA, EC, UN, Global Fund • Even greater concentration when non-core or funds channelled through multilaterals is included, special topic in 2010 report

  7. Gross ODA provided by DAC members countries 1987 – 2008

  8. Multilateral ODA disbursements by DAC member 2006 - 2008 annual average(in USD billions, excluding debt relief)

  9. Trends of Multilateral Aid Allocation

  10. UN agencies ODA Gross disbursements (core contributions) and reflows 1999-2008, cumulative (excluding debt relief) Constant 2007 USD billion Source: DAC aggregated statistics Total multilateral inflows = 276 bn Total flows to ODA recipients (bilateral aid + multialteral outflows) = 957 bn DAC countries Total ODA-eligible inflows = 61 bn; inflows to agencies reporting to the DAC = 36 bn 25 bn 37 bn 54 bn 99 bn EC IDA Other multi Regional banks 2 bn 643 bn ( 87 bn) 2 bn (18 bn) (9 bn) (1 bn)* ( 9 bn) (4 bn) IDA 100 bn 40 bn** 87 bn 33 bn 26 bn ODA recipients * Reflows to IFAD. * Outflows based on proportion of UN agencies that report to the DAC ( ) Reflows (not including interest payments)

  11. Conclusions • Objective of work is to provide evidence for more rational allocation of aid. • Multilateral work so far looks more in-depth at how bilateral donors fund multilateral agencies. To what extent does the perceived or real effectiveness of multilateral agencies affect the allocation of multilateral aid?

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