Bilateral and Multilateral Aid

Question 1

What is bilateral, or government-to-government, aid?

Answer 1

Most donors give the majority of their aid directly to developing countries

Question 2

What is multilateral aid?

Answer 2

Most donors channel some of their funds through multilateral organizations such as the World Bank or UN agencies like UNICEF

Question 3

What does DAC stand for?

Answer 3

Development Assistance Committee

Question 4

What does OECD stand for?

Answer 4

Organization for Economic Cooperation and Development

Question 5

What does ODA refer to?

Answer 5

Flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25%

Question 6

What is necessary to qualify as ODA?

Answer 6

Funding must be provided by governments and its main purpose must be improving economic or social well-being in developing countries
Can be provided in the form of a grant or a loan

Question 7

What does donor motivation consist of?

Answer 7

Charity (rich helping the poor, ethical/moral obligation)
Solidarity (south-south aid, rags to riches)
Compensation (colonial exploitation, international obligation)

Question 8

What is the self-interest side of donor motivation?

Answer 8

Foreign policy objectives
Cold war-ideological conflict
Post-cold war

Question 9

What are the trends and controversies of aid?

Answer 9

Tied aid (considered hypocritical)
Bilateral aid (more grants and less loans)
Multilateral aid (primarily loans)
Obvious debt (who is responsible for indent news)

Question 10

Where should aid go?

Answer 10

Poorest countries
Countries with good governance
Synergy
To governments
To NGOs
To private sector