Publication:
Which Donors, Which Funds?: The Choice of Multilateral Funds by Bilateral Donors at the World Bank

dc.contributor.author Reinsberg, Bernhard
dc.contributor.author Michaelowa, Katharina
dc.contributor.author Knack, Stephen
dc.date.accessioned 2015-11-05T18:54:20Z
dc.date.available 2015-11-05T18:54:20Z
dc.date.issued 2015-10
dc.description.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. en
dc.identifier http://documents.worldbank.org/curated/en/2015/10/25155022/donors-funds-choice-multilateral-funds-bilateral-donors-world-bank
dc.identifier.uri http://hdl.handle.net/10986/22872
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 7441
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject LIMITED
dc.subject TERRORISM
dc.subject EMPLOYMENT
dc.subject BILATERAL AGENCIES
dc.subject MULTILATERAL AID
dc.subject ACCOUNTING
dc.subject DEVELOPMENT ASSISTANCE
dc.subject DONOR
dc.subject INTEREST
dc.subject PRIVATIZATION
dc.subject AID FINANCING
dc.subject NATIONS
dc.subject STRATEGIES
dc.subject SERVICES
dc.subject PUBLIC SERVICES
dc.subject PORTFOLIO
dc.subject HEALTH
dc.subject PROJECTS
dc.subject MULTILATERAL DEVELOPMENT BANKS
dc.subject VOLUNTARY CONTRIBUTIONS
dc.subject ASSOCIATIONS
dc.subject NEGOTIATION
dc.subject PARTNER COUNTRIES
dc.subject CONFLICT
dc.subject INTERNATIONAL BANK
dc.subject GOVERNANCE ARRANGEMENTS
dc.subject EXPERT
dc.subject CONSTRAINT
dc.subject STATES
dc.subject AID
dc.subject TECHNICAL ASSISTANCE
dc.subject DISEASES
dc.subject LEADS
dc.subject PARTNERSHIPS
dc.subject FOREIGN AID
dc.subject UNION
dc.subject AGREEMENTS
dc.subject RESOURCE MOBILIZATION
dc.subject FOREIGN POLICIES
dc.subject WORLD DEVELOPMENT
dc.subject TRUST
dc.subject ORGANIZATIONS
dc.subject INTERNATIONAL DEVELOPMENT
dc.subject MIDDLE-INCOME COUNTRIES
dc.subject DIVERGENCES
dc.subject MIC
dc.subject TRUST FUNDS
dc.subject FINANCE
dc.subject ADMINISTRATIVE COSTS
dc.subject DIRECTORS
dc.subject ALLOCATION DECISIONS
dc.subject MICS
dc.subject BANKS
dc.subject UNDP
dc.subject DONOR COUNTRIES
dc.subject PROBABILITY MODELS
dc.subject IMF
dc.subject LEAD
dc.subject FOOD SECURITY
dc.subject ACCOUNTABILITY
dc.subject CLIMATE CHANGE
dc.subject MEMBER STATES
dc.subject INTERNATIONAL AFFAIRS
dc.subject INTERNATIONAL TRADE
dc.subject FOUNDATIONS
dc.subject COMPROMISE
dc.subject VALUE
dc.subject DEVELOPMENT BANKS
dc.subject BANK
dc.subject PARTNERSHIP
dc.subject AID INSTITUTIONS
dc.subject ECONOMY
dc.subject TACTICS
dc.subject NATION
dc.subject TRANSACTION COSTS
dc.subject MIDDLE-INCOME COUNTRY
dc.subject INTERNATIONAL COMMUNITY
dc.subject INTERNATIONAL STUDIES
dc.subject IFC
dc.subject GOVERNANCE
dc.subject TAXATION
dc.subject STATE
dc.subject WAR
dc.subject INVESTMENT
dc.subject BILATERAL DONORS
dc.subject RISK
dc.subject ORGANIZATION
dc.subject BILATERAL AID
dc.subject DONORS
dc.subject MULTILATERAL AGENCIES
dc.subject INTERNATIONAL NEGOTIATION
dc.subject UNIVERSITY
dc.subject DEVELOPED COUNTRY
dc.subject LENDING
dc.subject SOCIETY
dc.subject FOREIGN POLICY
dc.subject CONFLICT RESOLUTION
dc.subject GOVERNMENTS
dc.subject AIDS
dc.subject UNITED NATIONS SYSTEM
dc.subject HEALTH SERVICES
dc.subject PEACE
dc.subject RECONSTRUCTION
dc.subject ECONOMIES
dc.subject BILATERAL DONOR
dc.subject DONOR COUNTRY
dc.title Which Donors, Which Funds? en
dc.title.subtitle The Choice of Multilateral Funds by Bilateral Donors at the World Bank en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.date.disclosure 2015-10-14
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2015/10/25155022/donors-funds-choice-multilateral-funds-bilateral-donors-world-bank
okr.identifier.doi 10.1596/1813-9450-7441
okr.identifier.externaldocumentum 090224b083145961_1_0
okr.identifier.internaldocumentum 25155022
okr.identifier.report WPS7441
okr.imported true
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/10/14/090224b083145961/1_0/Rendered/PDF/Which0donors000rs0at0the0World0Bank.pdf en
okr.topic Finance and Financial Sector Development
okr.topic Macroeconomics and Economic Growth :: Development Economics & Aid Effectiveness
okr.unit Human Development and Public Services Team, Development Research Group
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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