The Role of Multilateral Agencies
Financing Development to Achieve
The Millennium Development Goals Meeting
Doha, Qatar
June 17-18, 2007
1
Outline of the Presentation
1. Aid architecture: some key features.
2. Other financial flows.
3. The roles of and challenges facing the
multilateral system.
2
Multilateral ODA by channel
(net disbursements, $ million at 2004 prices, 1960-2005,
period averages)
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Regional Banks
Other Agencies
IDA
UN Agencies
EC
1960-69
1970-79
1980-89
1990-00
2001-05
3
Private Flows to Sub-Saharan Africa
(billions US$)
30
25
Remittances
20
15
Private debt
and portfolio
equity
Foreign
direct
investment
Remittances
10
Official
development
assistance
5
0
1995
2004
4
Entry of Many New Actors
• China’s commitments in Africa are
more than any other donor
• International private philanthropy
(Gates Foundation) providing
significant funding
5
Proliferation of Donors

The number of bilateral donors has grown
from 5-6 in the mid-1940s to at least 56 today

There are currently over 230 international
organizations, funds, and programs - in
addition to NGOs and private philanthropy.
6
Paris Declaration on Aid
Effectiveness:
From donor-led to country ownership
Development Results
4
2 Alignment
(Donors - Partner)
3 Harmonization
(Donors - Partner)
Partners
set the
agenda
Aligning with
partners’
agenda
Establishing
common
arrangements
Using
partners’
systems
Simplifying
procedures
Sharing
information
Managing for Results
1 Ownership
(Partner countries)
7
Main Areas of Effort in the Paris
Agenda Towards Accra
• Improve predictability of aid.
• Enhance division of labor among
development partners.
• Rely more on country systems.
• Increase use of sector-wide approaches.
• Progress in untying aid.
• More decentralization of decision making.
Three Key Roles for the
Multilateral System
• Finance
 Private flows remain highly concentrated
 Even well performing countries often face constraints
in mobilizing resources.
• Knowledge
 Aid alone cannot bridge gaps in knowledge and
capacity that keep countries from applying successful
best practices.
• Policy coordination to address global
challenges
9
Challenges to support and
strengthen the role of multilateral
institutions
• Financial support to MDBs concessional arms.
• Efficiency of MDBs delivery services to better
tailor individual client demand.
• Improving coherence, harmonization and
cooperation among multilateral players.
• Considering options for strengthening
voice/participation in multilateral institutions.
10
Thank you for your
attention
11