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DAC Work on Multilateral Aid

This report from the DAC Network on Development Evaluation examines the state of multilateral aid through various lenses, including aid predictability and fragmentation. Key findings highlight insufficient ambition for 2010 aid targets and a concerning outlook for 2011. The report emphasizes the role of multilateral agencies in supporting low-income countries while addressing increased donor fragmentation. Comprehensive data, including multilateral ODA disbursements and allocations, provides crucial evidence for more effective aid distribution, focusing on improving the impact of multilateral funding strategies.

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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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