EVENT:

On October 24th, 2017, the AidData-hosted event, Tyranny of Averages: Are we worsening inequality within countries?, brought together Amanda Glassman (CGD), Caroline Heider (World Bank), Selim Jahan (UNDP), Kevin Croke (World Bank), Bradley C. Parks (AidData) and Samantha Custer (AidData) for an engaging panel discussion on issues of inequality and aid targeting addressed by the report. Watch the recording or read a summary of the remarks.

AidData Working Paper

What Determines Earmarked Funding to International Development Organizations?

Date Published

May 3, 2016

Authors

Vera Z. Eichenauer, Bernhard Reinsberg

Publisher

Citation

Eichenauer, Vera Z. and Bernhard Reinsberg. 2016. What Determines Earmarked Funding to International Development Organizations? Evidence from the New Multi-Bi Aid Data. AidData Working Paper #25. Williamsburg, VA: AidData. Accessed at http://aiddata.org/working-papers.

Update: A revised version of this paper has been published in the Review of International Organizations.

AidData Working Paper

What Determines Earmarked Funding to International Development Organizations?

Date Published

May 3, 2016

Authors

Vera Z. Eichenauer, Bernhard Reinsberg

Citation

Eichenauer, Vera Z. and Bernhard Reinsberg. 2016. What Determines Earmarked Funding to International Development Organizations? Evidence from the New Multi-Bi Aid Data. AidData Working Paper #25. Williamsburg, VA: AidData. Accessed at http://aiddata.org/working-papers.

Earmarked aid to international development organizations has quadrupled over the last two decades and now represents almost twenty percent of total aid. This paper introduces a new dataset on earmarked aid, which alternatively has been referred to as multi-bi, restricted, non-core or trust fund aid. The data makes it possible to track the rise of the new aid channel over an extended period of time and in greater detail regarding, e.g., the implementing multilateral organizations. The data include more than 100,000 earmarked projects of 23 OECD donors to 290 multilateral institutions from 1990 to 2012. We graphically illustrate the distribution and patterns of this new aid channel for all actors involved, namely donor governments and their aid-providing agencies, multilateral organizations, and recipient countries, and highlight promising avenues for further research. In a first empirical application of the data, we analyze donors’ heterogeneous use of earmarked aid, and test three lines of argument for the provision of earmarked aid: official donor motives regarding specific recipient needs, public opinion in donor countries, and ‘market-oriented’ donor economies’ use of earmarked aid to ‘bypass’ recipient countries with weak governance. We show that earmarked aid is associated with different donor- and recipient-level factors than traditional or ‘pure’ bilateral aid.

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