EVENT: On Wednesday, February 21st, the Center for Universal Education at Brookings and AidData will co-host a presentation and panel discussion on Toward data-driven education systems: What information do education leaders want and need?, with Samantha Custer (AidData), Elizabeth King (Brookings), Tamar Manuelyan Atinc (Brookings), Shaida Badiee (Open Data Watch), Deon Filmer (World Bank), Liesbet Steer (Education Commission), and Nathaniel Heller (Results for Development). A recording will be made available online after the event. RSVP via Brookings or follow the discussion on Twitter with the hashtag #data4education.

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.

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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