Donor funding of multilateral aid agencies : determining factors and revealed burden sharing

Addison, Tony, McGillivray, Mark and Odedokun, Matthew 2004, Donor funding of multilateral aid agencies : determining factors and revealed burden sharing, The World Economy, vol. 27, no. 2, pp. 173-191.

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Title Donor funding of multilateral aid agencies : determining factors and revealed burden sharing
Author(s) Addison, Tony
McGillivray, Mark
Odedokun, Matthew
Journal name The World Economy
Volume number 27
Issue number 2
Start page 173
End page 191
Publisher Wiley-Blackwell Publishing Ltd.
Place of publication London, England
Publication date 2004-02
ISSN 0378-5920
Summary This paper reports an empirical study of the factors affecting burden sharing among OECD's 22 DAC members in 'bankrolling' the multilateral aid agencies. Annual data over 1970–2000, pooled across the donor countries, form the basis for the empirical estimation of each donor's share in the ODA aid receipts for each multilateral agency. Our findings suggest the existence of reverse exploitation, i.e., the financial burden of the agencies is disproportionally carried by the smaller donors. The study also finds that factors such as inherent donor generosity, donor concern for domestic egalitarianism, and the extent to which donors are pro-poor in their bilateral aid policies have an impact on their readiness to support multilateral agencies financially. Size of the donor government and its budgetary balance positively influence burden sharing of contributions to other multilateral agencies. But neither the phase of economic cycle nor the rate of economic growth affects the burden-sharing responsibility of donors. It was also observed that contributions by EU members to the EC do not appear to crowd-out their contributions to other multilateral aid agencies and that right-wing donor governments are generally more parsimonious with regard to financial assistance to multilateral aid agencies. The preferred alternative, particularly among EU member countries, appears to be the EC.
Language eng
Field of Research 169999 Studies in Human Society not elsewhere classified
Socio Economic Objective 970116 Expanding Knowledge through Studies of Human Society
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©Journal compilation 2010 Blackwell Publishing Ltd
Persistent URL http://hdl.handle.net/10536/DRO/DU:30028868

Document type: Journal Article
Collection: Alfred Deakin Research Institute
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