Chapter 5 | Page 197
findings which confirm that multilateral co-operation generally works well in
maximising efficiency, fostering institutions, reducing the burden on recipients,
and providing transparency and learning quality.45 In this approach, resources
for development aid from multiple sources can be pooled and, thus, better
managed.46 Broader participation also gives more legitimacy.47 The process is
usually more transparent and less politicised,48 which helps to create positive
developmental outcomes.
Another positive aspect of the multilateral mode is the ability of multilateral
agencies to better coordinate and share norms and knowledge of aid
management.49 Given the challenges to multilateral effectiveness, including
fragmentation, economies of scale, coordination, and norms knowledge,
increased competition among multilaterals should become the focus of future
work to strengthen their effectiveness and innovation.50 Multilateral
institutions, with their larger capital and knowledge-bases, can be more
effective than bilateral donors in making strategic decisions at the global level
for maximum impact.51 Domestic political and institutional factors are also
relevant to the State’s engagement with multilateral donors.
It can be argued that the large number of actors in the multilateral system
makes it susceptible to the creation of excessive bureaucracy and delays. The
fact that donors have less control over the process could make it less
attractive, and the power relations between donors and recipients may also be
more complicated. Nonetheless, the multilateral system is more likely to
45
For example see, Nancy Birdsall and Homi Kharas, Quality of Official Development
Assistance Assessment (Center for Global Development, Washington, D.C., 2010),
<http://www.ifad.org/governance/replenishment/external/QuODA.pdf>.
46
Klingebiel, above n 3.
47
Ibid.
48
Ibid., 28.
49
Homi Kharas and Michael Blomfield, 'Rethinking the Role of Multilateral Institutions in an
Ever-Changing Aid Architecture' in Hany Besada and Shannon Kindornay (eds),
Multilateral Development Cooperation in a Changing Global Order (Palgrave Macmillan,
2013) 63, 64.
50
Ibid., 64.
51
Ibid.
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