Today the IFC announced a step forward in its transparency around the use of aid resources to finance private companies. That’s right and proper: When scarce aid, and scarce tax resources, are used to support private firms, citizens of donor countries and recipient countries alike ha...
Trust funds are often regarded within donor agencies, such as DFID, as a useful mechanism to bypass lack of consensus within the multilateral, or to circumvent bureaucratic obstacles. But trust funds should properly be regarded as second or third best solutions.
This paper revisits earlier analyses of the pros and cons of so-called “Multi-bi” funding, or earmarked bilateral funding channelled through a multilateral development institution like the World Bank.