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Which donors, which funds? Bilateral donors' choice of multilateral funds at the World Bank


Reinsberg, Bernhard; Michaelowa, Katharina; Knack, Stephen (2017). Which donors, which funds? Bilateral donors' choice of multilateral funds at the World Bank. International Organization, 71(4):767-802.

Abstract

The rapid growth of trust funds at multilateral development organizations has been widely neglected in the academic literature. We examine sovereign donors' choices among various trust fund options and contend that the choice among the different trust funds involves a fundamental trade-off: larger funds provide donors with “burden-sharing” benefits, but each donor can better assert its individual preferences in a fund with fewer other donors. The theoretical considerations yield testable hypotheses on a range of factors affecting this fundamental trade-off, most notably the area of the trust fund's intervention and donor countries' competing domestic interests. A large-N analysis of participation decisions of OECD/DAC donors in trust funds over the past decade mostly corroborates these hypotheses. In particular, ex ante preference alignment among donors as well as indicators for global activities and fragile states aid are robust determinants of participation in (large) multi-donor funds. In contrast, a donor tends to prefer a single-donor fund in areas where its national interests dominate.

Abstract

The rapid growth of trust funds at multilateral development organizations has been widely neglected in the academic literature. We examine sovereign donors' choices among various trust fund options and contend that the choice among the different trust funds involves a fundamental trade-off: larger funds provide donors with “burden-sharing” benefits, but each donor can better assert its individual preferences in a fund with fewer other donors. The theoretical considerations yield testable hypotheses on a range of factors affecting this fundamental trade-off, most notably the area of the trust fund's intervention and donor countries' competing domestic interests. A large-N analysis of participation decisions of OECD/DAC donors in trust funds over the past decade mostly corroborates these hypotheses. In particular, ex ante preference alignment among donors as well as indicators for global activities and fragile states aid are robust determinants of participation in (large) multi-donor funds. In contrast, a donor tends to prefer a single-donor fund in areas where its national interests dominate.

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Other titles:Which donors, which funds? The choice of multilateralf funds by bilateral donors at the World Bank
Item Type:Journal Article, refereed, original work
Communities & Collections:06 Faculty of Arts > Institute of Political Science
Dewey Decimal Classification:320 Political science
Scopus Subject Areas:Social Sciences & Humanities > Sociology and Political Science
Social Sciences & Humanities > Political Science and International Relations
Social Sciences & Humanities > Organizational Behavior and Human Resource Management
Social Sciences & Humanities > Law
Language:English
Date:2017
Deposited On:10 Jan 2018 10:34
Last Modified:01 Apr 2021 15:49
Publisher:Cambridge University Press
ISSN:0020-8183
OA Status:Green
Publisher DOI:https://doi.org/10.1017/S0020818317000340

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