Multilateral Development Finance

Towards a New Pact on Multilateralism to Achieve the 2030 Agenda Together

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This report contributes to the broader international debate on why we need multilateralism and how to make it more effective to achieve the 2030 Agenda. At a time when the value of multilateralism is being questioned, the report provides new evidence and recommendations for a new “pact” on multilateralism. This pact would be founded on recognition of the mutual responsibility of sovereign states and multilateral institutions to create a stronger, more effective multilateral system.

The report offers a detailed overview of official development assistance (ODA) spending through the multilateral system. This year’s edition introduces three innovations. First, it examines the growing role of China, other sovereign states, philanthropy and the private sector as funders of multilateral organisations. Second, it analyses concessional and non-concessional spending by multilateral institutions, and discusses how multilateral action needs to adapt to the new development agenda. Third, it presents a new multi-dimensional metrics to measure the quality of multilateral funding, using financing to the World Health Organisation as a case study. Building on this evidence, the report outlines policy recommendations that provide a sound basis for principles of good multilateral donorship to deliver on the 2030 Agenda.



Building an evidence base on good multilateral funding

Through an innovative multi-dimensional metrics, this chapter develops new evidence for a cornerstone of good multilateral donorship: good multilateral funding. This multi-dimensional approach represents a pioneering attempt to quantify and operationalise elements that have been broadly acknowledged as key components of good multilateral funding. Both the literature and policy discourse identify these components as predictability, flexibility, alignment to the mandate and the agreed programme of work of a multilateral organisation. This new OECD metrics is developed from a case study on the World Health Organization (WHO). The health sector and WHO’s funding situation can act as a “tracer” on effectiveness, offering insights and lessons for other sectors and institutions that face similar funding challenges. Based on the findings from the new metrics, the chapter closes by offering evidence-based building blocks on good multilateral funding for good multilateral donorship in the era of the 2030 Agenda for Sustainable Development.




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