How dependent are multilaterals on earmarked funding?

By Anna Patricia Valerio 24 July 2015

One-dollar bills in bundles. A 2013 survey by the OECD-DAC on multilateral aid allocations reveals that DAC members earmark fund to multilateral organization for two main reasons: to shape a multilateral organization’s development agenda and to raise a higher profile for their resources. Photo by: Barta IV / CC BY

The multilateral aid landscape is seeing a subtle, but significant, shift.

In 2013, the latest year for which detailed aid figures from the Organization of Economic Cooperation and Development are available, core resources channeled to multilateral organizations amounted to $41 billion, while earmarked funding reached an all-time high of $18.2 billion.

But while core funding — contributions from donors that are not allocated for a specific purpose — still exceeds noncore resources, the rise of earmarked funding in the past decade has prompted a rethink of resource mobilization for many multilateral groups, which expect core contributions to further decline in the future.

According to a 2013 survey on multilateral aid allocations conducted by the OECD’s Development Assistance Committee, DAC members choose to earmark the funds they direct to multilateral organizations for two main reasons: to shape a multilateral organization’s development agenda and to raise a higher profile for their resources.

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About the author

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Anna Patricia Valerio

Anna Patricia Valerio is a Manila-based development analyst focusing on writing innovative, in-the-know content for senior executives in the international development community. Before joining Devex, Patricia wrote and edited business, technology and health stories for BusinessWorld, a Manila-based business newspaper.


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