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Which Donors, Which Funds? The Choice of Multilateral Funds by Bilateral Donors at the World Bank
- Source :
- World Bank Policy Research Working Paper
- Publication Year :
- 2015
-
Abstract
- The rapid growth of trust funds at multilateral development organizations has been widely neglected in the academic literature so far. Using a simple illustrative model, this paper examines the choice by sovereign donors among various trust fund options. The authors contend that the choice among the different trust funds involves a fundamental trade-off: larger funds provide donors with the benefit of burden sharing. Conversely, each donor can better assert its individual preferences in a fund with fewer other donors. The theoretical considerations yield testable implications on a range of factors affecting this fundamental tradeoff, most notably the area of intervention of the trust fund and competing domestic interests of donor countries. Using a sample of World Bank trust funds, the paper examines the participation decisions of Organisation for Economic Co-operation and Development/Development Assistance Committee donors over the past decade. In line with the theoretical argument, preference homogeneity among donors as well as indicators for global activities and fragile states assistance are robust determinants of participation in (large) multi-donor funds. In contrast, donors tend to prefer single-donor trust funds in areas in which their national interests dominate. Although they could use bilateral aid for the same purpose, they often prefer to channel their contributions through trust funds at multilateral agencies. Donors thereby reduce their own administrative costs, while benefiting from the expertise of the multilateral agency. These findings confirm prior qualitative case studies and evidence from donor reports, suggesting that reduced reliance on single-donor trust funds—a costly instrument from the perspective of multilateral agencies—can improve the development effectiveness of aid.
- Subjects :
- INVESTMENT
AID FINANCING
PARTNERSHIP
PROJECTS
TRANSACTION COSTS
EMPLOYMENT
TECHNICAL ASSISTANCE
DONOR COUNTRY
BILATERAL DONORS
050207 economics
IMF
health care economics and organizations
ASSOCIATIONS
LENDING
TERRORISM
MIDDLE-INCOME COUNTRY
NATIONS
FOREIGN POLICY
COMPROMISE
GOVERNMENTS
TACTICS
LEADS
RESOURCE MOBILIZATION
DISEASES
BANK
IFC
HEALTH
WAR
DEVELOPMENT BANKS
ORGANIZATIONS
STRATEGIES
MULTILATERAL AID
BILATERAL AID
FOUNDATIONS
SOCIETY
FOREIGN POLICIES
DONOR
LIMITED
PUBLIC SERVICES
MULTILATERAL DEVELOPMENT BANKS
FINANCE
LEAD
PEACE
ADMINISTRATIVE COSTS
0502 economics and business
320 Political science
MULTILATERAL AGENCIES
RECONSTRUCTION
ALLOCATION DECISIONS
DONOR COUNTRIES
CONFLICT RESOLUTION
UNITED NATIONS SYSTEM
SERVICES
AID INSTITUTIONS
VOLUNTARY CONTRIBUTIONS
INTERNATIONAL AFFAIRS
STATES
TRUST
DEVELOPED COUNTRY
CLIMATE CHANGE
DEVELOPMENT ASSISTANCE
DONORS
GOVERNANCE ARRANGEMENTS
PARTNERSHIPS
PROBABILITY MODELS
PORTFOLIO
AID
NEGOTIATION
MIC
ACCOUNTING
TAXATION
VALUE
RISK
050208 finance
INTERNATIONAL NEGOTIATION
ECONOMIES
FOOD SECURITY
05 social sciences
1. No poverty
INTERNATIONAL DEVELOPMENT
GOVERNANCE
CONSTRAINT
INTERNATIONAL TRADE
STATE
AIDS
INTERNATIONAL COMMUNITY
10113 Institute of Political Science
BILATERAL AGENCIES
NATION
BANKS
UNION
ECONOMY
PRIVATIZATION
ORGANIZATION
INTERNATIONAL STUDIES
INTERNATIONAL BANK
AGREEMENTS
MIDDLE-INCOME COUNTRIES
UNDP
DIVERGENCES
CONFLICT
EXPERT
PARTNER COUNTRIES
MICS
MEMBER STATES
INTEREST
FOREIGN AID
BILATERAL DONOR
HEALTH SERVICES
DIRECTORS
TRUST FUNDS
WORLD DEVELOPMENT
UNIVERSITY
ACCOUNTABILITY
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Journal :
- World Bank Policy Research Working Paper
- Accession number :
- edsair.doi.dedup.....2b525f23ffa6fbcccfa00421c106b55d