Project

Back to overview

The rise of multi-bi aid

English title The rise of multi-bi aid
Applicant Reinsberg Bernhard
Number 155506
Funding scheme Doc.CH
Research institution
Institution of higher education University of Zurich - ZH
Main discipline Political science
Start/End 01.08.2014 - 31.03.2016
Approved amount 117'092.00
Show all

All Disciplines (2)

Discipline
Political science
Economics

Keywords (6)

multi-bi aid; earmarked voluntary contributions; international organizations; multilateral aid; trust funds; global funds

Lay Summary (German)

Lead
Seit fünfzehn Jahren befindet sich die multilaterale Entwicklungsfinanzierung durch das massive Wachstum gebergebundener Beiträge in einem fundamentalen Umbruch. Das Dissertationsprojekt untersucht die Determinanten dieser Entwicklung aus der Perspektive von Geberländern und multilateralen Organisationen.
Lay summary

Multilaterale Entwicklungsorganisationen finanzieren sich traditionell durch Mitgliedsbeiträge, über deren Verwendung deren formale Kontrollgremien entscheiden. Seit etwa fünfzehn Jahren stellen bilaterale Geber vermehrt Beiträge bereit, die nicht der Kontrolle der formalen Gremien unterliegen und auf bestimmte Länder, Sektoren, Themen oder Modalitäten beschränkt sind.

 

Obwohl gebergebundene Beiträge ein Vielfaches der Kernbeiträge ausmachen, spielt das Phänomen in der wissenschaftlichen Debatte nahezu keine Rolle. Dieses Dissertationsprojekt ermittelt zunächst auf der Grundlage eigens kodierter Daten die Determinanten der gebergebundenen Finanzierung. Insbesondere wird geklärt, warum der Trend erst seit 15 Jahren eingesetzt hat und warum verschiedene Geber das neue Instrument unterschiedlich nutzen. Ein weiteres Papier untersucht die möglichen Anreize für gebergebundene Finanzierung für multilaterale Organisationen. Die Vorhersagen dieses Modells werden anhand von Interviews und Treuhandfondsdaten bei der Weltbank getestet. Schließlich analysiert das dritte Papier mittels multipler Methoden das Phänomen, dass Treuhandfonds in einigen Fällen kaum noch Beiträge erhalten oder die anvertrauten Mittel nicht an entsprechende Entwicklungsprojekte weiterleiten.

 

Aus wissenschaftlicher Sicht sind die Ergebnisse für verschiedene Literaturstränge relevant, darunter Theorien der internationalen Organisationen, sowie zur Allokation und Effektivität der Entwicklungszusammenarbeit. Darüber hinaus sollen die Ergebnisse eine wissenschaftliche Perspektive auf weit verbreitete Befürchtungen liefern, zum Beispiel dass sich multilaterale Organisationen von ihren eigentlichen Kernaufgaben abwenden sowie mit höheren Transaktionskosten konfrontiert sind, in deren Folge die Effektivität der Entwicklungsprogramme sinken könne. Die Arbeit zielt darauf ab, durch ein besseres Verständnis der zugrundeliegenden Anreizstrukturen die möglichen Probleme des Phänomens zu vermeiden.

Direct link to Lay Summary Last update: 12.08.2014

Responsible applicant and co-applicants

Employees

Publications

Publication
The rise of multi-bi aid
Reinsberg Bernhard (2016), The rise of multi-bi aid, Dissertation, Universität Zürich.
The rise of multi-bi aid and the proliferation of trust funds
Reinsberg Bernhard, Michaelowa Katharina, Eichenauer Vera (2015), The rise of multi-bi aid and the proliferation of trust funds, in Arvin Mak, Lew Byron (ed.), Edward Elgar, Northhampton, 527-554.
Which donors, which funds? The choice of multilateral funds by bilateral donors at the World Bank
Reinsberg Bernhard, Michaelowa Katharina, Knack Stephen (2015), Which donors, which funds? The choice of multilateral funds by bilateral donors at the World Bank, in World Bank Policy Research Working Paper, (7441), 1-36.
Multi-bi aid : tracking the evolution of earmarked funding to international development organizations from 1990 to 2012 (codebook)
Reinsberg Bernhard, Eichenauer Vera (2014), Multi-bi aid : tracking the evolution of earmarked funding to international development organizations from 1990 to 2012 (codebook), CIS Working Paper No. 84, ETH Zürich.
The implications of multi-bi financing on multilateral agencies: The example of the World Bank
Reinsberg Bernhard, The implications of multi-bi financing on multilateral agencies: The example of the World Bank, in Klingebiel Stephan, Negre Mario, Mahn Timo (ed.), Palgrave McMillan, London, --.

Collaboration

Group / person Country
Types of collaboration
International organizations Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Industry/business/other use-inspired collaboration
Heidelberg University Germany (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Exchange of personnel
Université de Genève Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Publication

Scientific events

Active participation

Title Type of contribution Title of article or contribution Date Place Persons involved
Political Economy of International Organizations conference Talk given at a conference What determines earmarked funding to international development organizations? Evidence from the new multi-bi aid dataset 08.01.2016 Salt Lake City, United States of America Reinsberg Bernhard;
Development Economics conference of the German Economic Association Poster What determines earmarked funding to international development organizations? Evidence from the new multi-bi aid dataset 12.06.2015 Kiel, Germany Reinsberg Bernhard;
Political Economy of International Organizations conference Talk given at a conference Which donors, which funds? The choice of multilateral funds by bilateral donors at the World Bank 13.02.2015 Berlin, Germany Reinsberg Bernhard;


Self-organised

Title Date Place
Doctoral research colloquium of the Development Economics group of the German Economic Association 11.11.2015 Zürich, Switzerland

Knowledge transfer events



Self-organised

Title Date Place

Communication with the public

Communication Title Media Place Year
Media relations: print media, online media Hilfsgelder auf Umwegen UZH News Rhaeto-Romanic Switzerland International Italian-speaking Switzerland Western Switzerland German-speaking Switzerland 2014

Abstract

Over the last decade, Official Development Assistance has witnessed massive growth in multi-bi aid, earmarked voluntary donor contributions to international development organizations such as the World Bank and the United Nations. While this trend has gone almost unnoticed by the academic research community, international development practitioners have been vividly debating the growing importance of this new type of aid. Proponents expect donors to unleash additional financial resources for specific development purposes, since multi-bi aid enables donors to combine the effectiveness of multilateral aid with the visibility of bilateral aid. Skeptics argue that multi-bi aid dilutes the focus of multilateral organizations and increases their transaction costs, which eventually threatens to undermine development effectiveness.Building on initial work in the interdisciplinary research project The proliferation of multilateral funds: Explaining the shift towards multi-bi aid and related institutions, funded by the Swiss Network for International Studies, my dissertation project seeks to investigate three distinct puzzles related to the rise of multi-bi aid. First, I revisit the tremendous growth of multi-bi aid over the last two decades using statistical methods. The econometric analysis will be based on a dataset on multi-bi aid activities that we have built up during the first year of the interdisciplinary project. My analysis will shed light on yet unexplored questions such as why multi-bi aid has grown most significantly since the millennium, why some donors use multi-bi aid to a larger extent than others, and why some donors more tightly earmark their contributions than others. Second, I will address why international organizations have embraced multi-bi financing in spite of opposing this type of funding in their official announcements. To resolve this puzzle, I assume that these organizations are collective actors with heterogeneous interests, and I will develop a formal model to keep track of these various incentives. The model will be tested using data from a survey experiment and qualitative interviews with World Bank staff. After calibrating the structural parameters of the model, model predictions can also be tested on a larger population of organizations, using information from our own original dataset. Third, I will address the puzzle that a significant number of trust funds, once being created, do not receive contributions or do not disburse their funds to recipients. This phenomenon of dormant funds has been a nuisance for international development agency staff by increasing transaction costs. It may even eventually undermine aid effectiveness by keeping staff busy with administrative tasks. Using panel data on all trust funds at the World Bank, I will proceed with econometric analysis, enriched by qualitative evidence from interviews with staff.My own dissertation will contribute to the emerging research on multi-bi aid. The findings will speak to various branches of literature, including principal-agent theory, aid allocation literature, and theories of international organization. In addition, I hope that my findings will inform policy advice for international aid practitioners regarding how to best harness the potential of multi-bi aid for global development.
-