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Poverty and Policy Selectivity of World Bank Trust Funds

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  • Vera Z. Eichenauer
  • Stephen Knack

Abstract

Over the past decade, donors of foreign aid quadrupled their annual contributions to trust funds at the World Bank. This earmarking of contributions to donors' preferred recipient countries and issues has raised concerns about the alignment of trust funds with the performance†based aid allocations by the International Development Association, the World Bank's concessional lending arm. This study finds that the cross†country allocations of aggregate trust fund aid are poverty†selective and policy†selective but reveals differences between types of trust funds. Overall, the evidence indicates that trust funds administered by the World Bank do not undermine the International Development Association's allocation criteria. Copyright © 2018 John Wiley & Sons, Ltd.

Suggested Citation

  • Vera Z. Eichenauer & Stephen Knack, 2018. "Poverty and Policy Selectivity of World Bank Trust Funds," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(4), pages 707-712, May.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:4:p:707-712
    DOI: 10.1002/jid.3356
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    Cited by:

    1. Philip Keefer & Christopher Kilby, 2021. "Introduction to the special issue: In memoriam Stephen Knack," The Review of International Organizations, Springer, vol. 16(3), pages 473-493, July.
    2. Erasmus Kersting & Christopher Kilby, 2019. "The rise of supplemental lending at the World Bank," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1655-1698, November.
    3. Vera Z. Eichenauer & Bernhard Reinsberg, 2017. "What determines earmarked funding to international development organizations? Evidence from the new multi-bi aid data," The Review of International Organizations, Springer, vol. 12(2), pages 171-197, June.
    4. Axel Dreher & Jenny Simon & Justin Valasek, 2021. "Optimal decision rules in multilateral aid funds," The Review of International Organizations, Springer, vol. 16(3), pages 689-719, July.
    5. Dreher, Axel & Simon, Jenny & Valasek, Justin, 2018. "The Political Economy of Multilateral Aid Funds," CEPR Discussion Papers 13297, C.E.P.R. Discussion Papers.
    6. Eugenia Baroncelli, 2021. "Cooperating Through Competition: EU Challenge and Support to the World Bank Focality in Multilateral Development Finance," Global Policy, London School of Economics and Political Science, vol. 12(S4), pages 80-89, May.

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