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Multilateral Aid 2015

Better Partnerships for a Post-2015 World

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This 2015 OECD report on multilateral aid contributes to the broader debate on how to implement the post-2015 development agenda. It argues that multilateral organisations have a fundamental role to play to forge and strengthen inclusive partnerships that will provide the collective, cross-border solutions needed to eradicate absolute poverty and foster a new era of economic progress, environmental sustainability, and peaceful and inclusive societies. But to be fit for purpose, multilateral organisations will need to implement a challenging reform agenda to both address the unfinished business of internal changes and respond to a fast-changing global environment.

Multilateral Aid 2015 identifies how bilateral providers can support multilateral organisations in implementing the necessary changes and fostering effective partnerships that (i) make best use of all resources available for development, including earmarked funding, and (ii) leverage knowledge and resources from partners beyond the “traditional donors”.

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Making earmarked funding more effective: practices and reforms of bilateral providers and multilateral organisations

In 2007-13, funding provided to multilateral organisations as earmarked resources (for specific themes, sectors, regions or countries) has been the fastest growing part of total funding to these organisations and it has come to represent 31% of all funding to multilateral organisations. While earmarked funding can help meet specific needs and evolving development challenges, it can make the co-ordination and coherence of the international development co-operation system more difficult. It can also undermine the strategic and coherent allocation of resources for individual multilateral organisations and providers alike. This chapter discusses steps being made by multilateral organisations and by bilateral providers to better manage earmarked funds. It provides suggestions on how such efforts can be taken forward to ensure financing for the multilateral system that is sustainable and conducive to better development results.

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