IDEAS home Printed from https://ideas.repec.org/b/zbw/diestu/101.html
   My bibliography  Save this book

Earmarking in the multilateral development system: Many shades of grey

Author

Listed:
  • Weinlich, Silke
  • Baumann, Max-Otto
  • Lundsgaarde, Erik
  • Wolff, Peter

Abstract

Earmarking financial contributions for specific geographic, thematic or other priorities has emerged as an important modality for funding multilateral development organisations. Earmarking has had positive consequences, such as the mobilisation of resources for multilateral organisations and new partnership modalities, including with non-state actors. Yet, there has been a rising concern about challenges relating to the effectiveness, efficiency and legitimacy of multilateral development cooperation. Understanding and addressing these negative aspects has gained a new urgency. The 2030 Agenda for Sustainable Development and the crisis of multilateralism make it imperative to tackle the downsides of earmarked funding and bring out its positive forces. This study was commissioned by the German Ministry for Economic Cooperation and Development. Germany is a latecomer to earmarking - the government has begun only in recent years to make use of earmarked funds at a larger scale. The study analyses the most important instruments of earmarked funding, studies practices of selected donors that supply large shares of earmarked funding, and analyses practices and consequences of earmarked funding with regard to the UN Development System and multilateral development banks. The study concludes with recommendations to the German government on how to improve its earmarking practices.

Suggested Citation

  • Weinlich, Silke & Baumann, Max-Otto & Lundsgaarde, Erik & Wolff, Peter, 2020. "Earmarking in the multilateral development system: Many shades of grey," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 101, number 101.
    • Handle: RePEc:zbw:diestu:101
    DOI: 10.23661/s101.2020
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/215769/1/1694324303.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.23661/s101.2020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Klaus H. Goetz & Ronny Patz & Eugénia Heldt & Henning Schmidtke, 2017. "Measuring the Empowerment of International Organizations: The Evolution of Financial and Staff Capabilities," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 51-61, August.
    2. Bigsten, Arne & Tengstam, Sven, 2015. "International Coordination and the Effectiveness of Aid," World Development, Elsevier, vol. 69(C), pages 75-85.
    3. Holzapfel, Sarah, 2014. "Boosting or hindering aid effectiveness? An assessment of systems for measuring agency results," IDOS Discussion Papers 31/2014, German Institute of Development and Sustainability (IDOS).
    4. repec:bla:glopol:v:8:y:2017:i::p:46-50 is not listed on IDEAS
    5. Klaus H. Goetz & Ronny Patz & Katharina Michaelowa, 2017. "Resourcing International Organisations: So What?," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 113-123, August.
    6. Klaus H. Goetz & Ronny Patz & Jörn Ege & Michael W. Bauer, 2017. "How Financial Resources Affect the Autonomy of International Public Administrations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 75-84, August.
    7. Reinsberg, Bernhard & Michaelowa, Katharina & Knack, Stephen, 2017. "Which Donors, Which Funds? Bilateral Donors' Choice of Multilateral Funds at the World Bank," International Organization, Cambridge University Press, vol. 71(4), pages 767-802, October.
    8. Lundsgaarde, Erik, 2014. "Bureaucratic pluralism in global development: challenges for Germany and the United States," IDOS Discussion Papers 16/2014, German Institute of Development and Sustainability (IDOS).
    9. Baumann, Max-Otto, 2018. "Mission impossible? Country-level coordination in the UN development system," IDOS Discussion Papers 7/2018, German Institute of Development and Sustainability (IDOS).
    10. Bernhard Reinsberg, 2017. "Organizational reform and the rise of trust funds: Lessons from the World Bank," The Review of International Organizations, Springer, vol. 12(2), pages 199-226, June.
    11. Klaus H. Goetz & Ronny Patz & Karolin Seitz & Jens Martens, 2017. "Philanthrolateralism: Private Funding and Corporate Influence in the United Nations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 46-50, August.
    12. Katharina Michaelowa & Bernhard Reinsberg & Christina Schneider, 2017. "Multi-bi Aid in European Development Assistance: The Role of Capacity Constraints and Member State Politics," Development Policy Review, Overseas Development Institute, vol. 35(4), pages 513-530, July.
    13. AfDB AfDB, . "African Development Bank Group - Annual Report 2018," Annual Report, African Development Bank, number 2445.
    14. Honig, Dan, 2019. "When Reporting Undermines Performance: The Costs of Politically Constrained Organizational Autonomy in Foreign Aid Implementation," International Organization, Cambridge University Press, vol. 73(1), pages 171-201, January.
    15. 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.
    16. Klaus H. Goetz & Ronny Patz & Erin R. Graham, 2017. "Follow the Money: How Trends in Financing Are Changing Governance at International Organizations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 15-25, August.
    17. repec:bla:glopol:v:8:y:2017:i::p:51-61 is not listed on IDEAS
    18. Axel Dreher & Katharina Michaelowa, 2008. "The political economy of international organizations," The Review of International Organizations, Springer, vol. 3(4), pages 331-334, December.
    19. Klaus H. Goetz & Ronny Patz & Klaus H. Goetz & Ronny Patz, 2017. "Resourcing International Organizations: Resource Diversification, Organizational Differentiation, and Administrative Governance," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 5-14, August.
    20. W. Pauw & R. Klein & P. Vellinga & F. Biermann, 2016. "Private finance for adaptation: do private realities meet public ambitions?," Climatic Change, Springer, vol. 134(4), pages 489-503, February.
    21. Ashoff, Guido, 2015. "Die Global Governance-Qualität der internationalen Aid Effectiveness Agenda: eine theoretische Analyse und Bewertung der Systemreform der internationalen Entwicklungszusammenarbeit," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 87, number 87.
    22. Devi Sridhar & Ngaire Woods, 2013. "Trojan Multilateralism: Global Cooperation in Health," Global Policy, London School of Economics and Political Science, vol. 4(4), pages 325-335, November.
    23. Weinlich, Silke, 2011. "Reforming development cooperation at the United Nations: an analysis of policy position and actions of key states on reform options," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 59, number 59.
    24. Helen Milner & Dustin Tingley, 2013. "The choice for multilateralism: Foreign aid and American foreign policy," The Review of International Organizations, Springer, vol. 8(3), pages 313-341, September.
    25. repec:bla:glopol:v:8:y:2017:i::p:15-25 is not listed on IDEAS
    26. Bruce Jenks, 2014. "Financing the UN development system and the future of multilateralism," Third World Quarterly, Taylor & Francis Journals, vol. 35(10), pages 1809-1828, November.
    27. Dietrich, Simone, 2016. "Donor Political Economies and the Pursuit of Aid Effectiveness," International Organization, Cambridge University Press, vol. 70(1), pages 65-102, January.
    28. Sebastian Paulo & Janus, Heiner & Holzapfel, Sarah, 2017. "Thematic aid allocation: what are the benefits and risks?," Briefing Papers 19/2017, German Institute of Development and Sustainability (IDOS).
    29. W. P. Pauw & R. J. T. Klein & P. Vellinga & F. Biermann, 2016. "Private finance for adaptation: do private realities meet public ambitions?," Climatic Change, Springer, vol. 134(4), pages 489-503, February.
    30. Nilima Gulrajani, 2014. "Organising for Donor Effectiveness: An Analytical Framework for Improving Aid Effectiveness," Development Policy Review, Overseas Development Institute, vol. 32(1), pages 89-112, January.
    31. repec:bla:glopol:v:8:y:2017:i::p:113-123 is not listed on IDEAS
    32. repec:bla:glopol:v:8:y:2017:i::p:75-84 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lundsgaarde, Erik, 2021. "The EU-UNDP partnership and added value in EU development cooperation," IDOS Discussion Papers 20/2021, German Institute of Development and Sustainability (IDOS).
    2. Haug, Sebastian, 2021. "Mainstreaming South-South and triangular cooperation: Work in progress at the United Nations," IDOS Discussion Papers 15/2021, German Institute of Development and Sustainability (IDOS).
    3. Max‐Otto Baumann, 2021. "How earmarking has become self‐perpetuating in United Nations development co‐operation," Development Policy Review, Overseas Development Institute, vol. 39(3), pages 343-359, May.
    4. Baumann, Max-Otto & Lundsgaarde, Erik & Weinlich, Silke, 2020. "Earmarked funding for multilateral development cooperation: Asset and impediment," Briefing Papers 16/2020, German Institute of Development and Sustainability (IDOS).
    5. Weinlich, Silke & Baumann, Max-Otto & Cassens-Sasse, Maria & Hadank-Rauch, Rebecca & Leibbrandt, Franziska & Pardey, Marie & Simon, Manuel & Strey, Anina, 2022. "New rules, same practice? Analysing UN development system reform effects at the country level," IDOS Discussion Papers 3/2022, German Institute of Development and Sustainability (IDOS).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaus H. Goetz & Ronny Patz & Katharina Michaelowa, 2017. "Resourcing International Organisations: So What?," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 113-123, August.
    2. repec:bla:glopol:v:8:y:2017:i::p:113-123 is not listed on IDEAS
    3. repec:bla:glopol:v:8:y:2017:i::p:85-95 is not listed on IDEAS
    4. Klaus H. Goetz & Ronny Patz & Jörn Ege & Michael W. Bauer, 2017. "How Financial Resources Affect the Autonomy of International Public Administrations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 75-84, August.
    5. Vera Z. Eichenauer & Simon Hug, 2018. "The politics of special purpose trust funds," Economics and Politics, Wiley Blackwell, vol. 30(2), pages 211-255, July.
    6. Klaus H. Goetz & Ronny Patz & Klaus H. Goetz & Ronny Patz, 2017. "Resourcing International Organizations: Resource Diversification, Organizational Differentiation, and Administrative Governance," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 5-14, August.
    7. Klaus H. Goetz & Ronny Patz & Bernhard Reinsberg, 2017. "Trust Funds as a Lever of Influence at International Development Organizations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 85-95, August.
    8. Klaus H. Goetz & Ronny Patz & Erin R. Graham, 2017. "Follow the Money: How Trends in Financing Are Changing Governance at International Organizations," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 15-25, August.
    9. repec:bla:glopol:v:8:y:2017:i::p:15-25 is not listed on IDEAS
    10. repec:bla:glopol:v:8:y:2017:i::p:75-84 is not listed on IDEAS
    11. Maria Josepha Debre & Hylke Dijkstra, 2021. "COVID‐19 and Policy Responses by International Organizations: Crisis of Liberal International Order or Window of Opportunity?," Global Policy, London School of Economics and Political Science, vol. 12(4), pages 443-454, September.
    12. Balázs Szent-Iványi & Bernhard Reinsberg & Simon Lightfoot, 2019. "Small Donors in World Politics: The Role of Trust Funds in the Foreign Aid Policies of Central and Eastern European Donors," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 663-683, July.
    13. Klaus H. Goetz & Ronny Patz & Klaus Hüfner, 2017. "The Financial Crisis of UNESCO after 2011: Political Reactions and Organizational Consequences," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 96-101, August.
    14. Reinsberg,Bernhard Wilfried & Michaelowa,Katharina & Knack,Stephen, 2015. "Which donors, which funds ? the choice of multilateral funds by bilateral donors at the World Bank," Policy Research Working Paper Series 7441, The World Bank.
    15. Klaus H. Goetz & Ronny Patz & Steffen Eckhard & Hylke Dijkstra, 2017. "Contested Implementation: The Unilateral Influence of Member States on Peacebuilding Policy in Kosovo," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 102-112, August.
    16. Maria J. Debre & Hylke Dijkstra, 2023. "Are international organisations in decline? An absolute and relative perspective on institutional change," Global Policy, London School of Economics and Political Science, vol. 14(1), pages 16-30, February.
    17. Erasmus Kersting & Christopher Kilby, 2021. "Do domestic politics shape U.S. influence in the World Bank?," The Review of International Organizations, Springer, vol. 16(1), pages 29-58, January.
    18. Mao, Ruipeng, 2020. "China's growing engagement with the UNDS as an emerging nation: Changing rationales, funding preferences and future trends," IDOS Discussion Papers 2/2020, German Institute of Development and Sustainability (IDOS).
    19. Bernhard Reinsberg, 2017. "Xu, Jiajun. 2017. Beyond US Hegemony in International Development: The Contest for Influence at the World Bank. (Cambridge: Cambridge University Press)," The Review of International Organizations, Springer, vol. 12(3), pages 491-495, September.
    20. Bernhard Reinsberg, 2019. "Do countries use foreign aid to buy geopolitical influence?: Evidence from donor campaigns for temporary UN Security Council seats," WIDER Working Paper Series wp-2019-4, World Institute for Development Economic Research (UNU-WIDER).
    21. Klaus H. Goetz & Ronny Patz & Eugénia Heldt & Henning Schmidtke, 2017. "Measuring the Empowerment of International Organizations: The Evolution of Financial and Staff Capabilities," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 51-61, August.
    22. Jen Iris Allan & Graeme Auld & Timothy Cadman & Hayley Stevenson, 2022. "Comparative Fortunes of Ecosystem Services as an International Governance Concept," Global Policy, London School of Economics and Political Science, vol. 13(1), pages 62-75, February.
    23. repec:bla:glopol:v:8:y:2017:i::p:102-112 is not listed on IDEAS
    24. Katharina Michaelowa & Bernhard Reinsberg & Christina Schneider, 2017. "Multi-bi Aid in European Development Assistance: The Role of Capacity Constraints and Member State Politics," Development Policy Review, Overseas Development Institute, vol. 35(4), pages 513-530, July.
    25. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:diestu:101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ditubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.