Although foreign aid can be classified and decomposed along several dimensions, bilateral aid and multilateral aid
seem [to be] two major components that are likely to differ significantly in terms of their characteristics and effects," Rati Ram, "Roles of Bilateral and Multilateral Aid
in Economic Growth of Developing Countries," Kyklos 56, no.
16) Data for multilateral aid
are also from the same source.
from the World Bank, as an example, is driven by shareholder interests--the US and G8 holding 17% and 40% of the shares respectively.
The time-period covered is 1960-2002, and both bilateral as well as multilateral aid
flows are included in the analysis.
agencies have also been more selective than bilateral agencies in allocating aid based on poverty and sound policy criteria (Dollar and Levin 2004), although such programs may not serve the political or development objectives of a given donor.
He admits that bilateral aid may be a cornerstone for success, but he wants us to see bilateral and multilateral aid
as one effort in the field.
The report is to be launched at the Sri Lanka Development Forum, a two-day conference expected to be attended by more than 100 representatives from donor countries and multilateral aid
For example, in pressing the case for global taxes governments should not allow these to substitute for increasing their bilateral and multilateral aid
And it has inspired multilateral aid
efforts in other areas, too, from the Global Fund to Fight AIDS, TB, and Malaria, which pools funds from 45 countries and 13 corporations and private donors, to the Education for All "Fast Track Initiative" for basic education, which invites selected developing countries to submit national education plans to a consortium of donors who fund them collectively.
Equally, as set out in the document made public today, we stress the importance of improving the effectiveness of our bilateral and multilateral aid
, including by focusing on poor countries committed to reforms, setting and achieving measurable objectives, adopting growth-oriented policies and reducing transaction costs of assistance.
Where governments are truly rotten, the report suggests channeling assistance primarily through nongovernmental sources, working with other bilateral aid donors and multilateral aid
agencies to establish clear governance standards for aid and coordinating pressure on bad, recalcitrant governments.
intended to reduce poverty and to promote market reforms, for example, in practice has reduced prosperity and slowed the move to world capitalism.