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
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
Multilateral ODA disbursements by DAC member annual average (in USD billions, excluding debt relief)
Trends of Multilateral Aid Allocation
DAC countries ODA recipients IDA Regional banks 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 , cumulative (excluding debt relief) Constant 2007 USD billion Source: 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?