Powerful global trends demand a wholesale rethinking of the system of international development assistance. A key issue is the future of concessional aid provided by multilateral development banks. What should be the future role of MDB concessional aid? And what is needed to maintain donor countries' support?
In a rapidly changing global environment there is still a strong case for maintaining MDB concessional aid. But that case only holds provided a new approach is taken which adapts the roles of MDB aid to development lessons of the recent past and changing global conditions -- and does so in a way that improves aid's effectiveness.
This study argues that without these conditions, continued donor country support cannot and should not be expected. The study lays out a new framework for future decision-making in MDB funding, based on: (1) a new performance-based approach to aid allocations among countries; (2) an expansion of MDB investments in regional and global problem solving; (3) the resolution of specific operational issues that stand in the way of greater effectiveness in delivery of aid; and (4) changes in the burden-sharing and governance arrangements of individual MDBs.
About the Author, Stephen Eccles, Catherine Gwin
Stephen D. Eccles is former vice-president and controller of the World Bank. Catherine Gwin is senior vice president of the Overseas Development Council.
Argues that to sustain donor support, as well as serve the needs of developing countries, aid from multilateral development banks (MDBs) must be used more effectively. Stresses that greater effectiveness requires MDB aid to be allocated more selectively based on performance in economic management, commitment to poverty eradication, and good governance. Recommends that MDB aid programs be more sharply tailored, and that both the World Bank and regional development banks increase support to resolve regional and global problems. Distributed by Johns Hopkins U. Press. No index. Annotation c. Book News, Inc., Portland, OR (booknew.com)
