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Earmarking in the multilateral development system: Many shades of grey

Author

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  • 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, July.
    • Handle: RePEc:zbw:diestu:101
    DOI: 10.23661/s101.2020
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    Cited by:

    1. 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).
    2. Sebastian Haug & Rosemary Foot & Max‐Otto Baumann, 2024. "Power shifts in international organisations: China at the United Nations," Global Policy, London School of Economics and Political Science, vol. 15(S2), pages 5-17, May.
    3. 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).
    4. 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).
    5. 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).
    6. 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.
    7. Max‐Otto Baumann & Sebastian Haug & Silke Weinlich, 2024. "From developing country to superpower? China, power shifts and the United Nations development pillar," Global Policy, London School of Economics and Political Science, vol. 15(S2), pages 51-61, May.

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