Multilateral aid agencies and strategic donor behaviour

This paper builds on recent empirical evidence on the importance of strategic donor behaviour in aid allocation. The document shows how strategic donor behaviour is damaging to the aid-recipient.

The authors highlight how other donors not sharing foreign policy goals similar to the strategic, influential donors will, in fact, reduce their aid contributions to the multilateral organisations. It warns that such a situation may have profound implications for the volume of total aid flows and may crucially undermine current efforts to substantially increase ODA to meet the Millennium Development Goals by 2015. [adapted from the author]