dac work on multilateral aid
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DAC Work on Multilateral Aid
Emily BoschDAC Network on Development
Evaluation10 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
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
Global Fragmentation & Concentration
• Bilateral and Multilateral donors
• Donor fragmentation across countries is increasing
• Allocation rules do not internalise aid from other donors
Non-significant donor relationships: Opportunities for concentration
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
Gross ODA provided by DAC members countries 1987 – 2008
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 03 '04 '05 '06 '07 '08
Multilateral ODA as share of total ODA 1987-2008(disbursements )
(DAC Members, excluding EC and including Korea)
multilateral as share of gross ODA excluding bilateral debt relief (%)
multilateral as share of gross ODA (%)
Multilateral ODA disbursements by DAC member 2006 - 2008 annual average
(in USD billions, excluding debt relief)
Trends of Multilateral Aid Allocation
Total bilateral ODA = 116 bn
Bilateral, Non-core and Core Multilateral Aid in 2008 (Disbursements from DAC members in USD)
Multi-bi/non-core = 16 bn
Multilateral ODA = 36 bn
Bilateral ODA (excluding multi-bi) = 100 bn
Total use of multilateral organisations = 52 bn
DAC countries
ODA recipients
IDA Regionalbanks
EC UN agencies
Other multi
99 bn 54 bn 25 bn 37 bn
( ) Reflows (not including interest payments)
643 bn
100 bn 40 bn** 87 bn
(18 bn)
33 bn
(9 bn)
26 bn
Total multilateral inflows = 276 bn
Total flows to ODA recipients (bilateral aid + multialteral outflows) = 957 bn
( 9 bn)(4 bn) (1 bn)*
( 87 bn)
ODA Gross disbursements (core contributions) and reflows 1999-2008, cumulative (excluding debt relief)
Constant 2007 USD billionSource: DAC aggregated statistics
2 bn
* Reflows to IFAD. * Outflows based on proportion of UN agencies that report to the DAC
IDA
2 bn
Total ODA-eligible inflows = 61 bn; inflows to agencies reporting to the DAC = 36 bn
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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