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Multilateral Aid Agreements

Moving from statistics to society, public opinion is also divided on the issue of bilateral and multilateral aid. The two main arguments in favour of aid preference are control and burden-sharing. Supporters of bilateral aid are overwhelmingly conservative, and of those who support bilateral aid, 52% support it because of its control over the country. Most liberals supported multilateral aid, 32% of which were in favour, because of the element or illusion of burden-sharing, by sharing responsibility for aid to developing countries with other developing countries (economically developed countries). In theory, multilateral aid seems more appropriate for development purposes, due to increased country participation, high resources, political neutrality, and needs-based projects and global governance; However, in practice, not all of these needs are met. We have seen an increase in bilateral aid and a stagnation of multilateral aid; An OECD report, which shows the period 1960-2008, shows that 71% of aid was bilateral, compared to only 29% of multilateral aid. Does this show a perceived effectiveness of bilateral aid or simply a preference of donor countries to maintain control or responsibility towards their people rather than for the people of developing countries? Multilateral aid is generally more important and, at least in theory, remains politically neutral and therefore needs to be pushed. Multilateral aid tends to focus on major infrastructure projects and has a lower percentage than bilateral humanitarian aid. Historically, however, multilateral organizations such as the United Nations have a reputation for financial inefficiency by setting adverse conditions, focusing on economic prosperity through human rights, and abusing resources as much of the funds never reach recipient countries. Bilateral and multilateral aid is part of the broader ideological debate on the means and purposes of development. The main objective of aid is to promote economic development and the well-being of developing countries. There have been many different statistical studies, with very different results in terms of the link between aid and economic growth, and that is why the debate continues.

External aid is an instrument of international development and is part of a great ideological debate about the processes and outcome of this aid. Promised 35 years ago, the world`s richest and most prosperous countries have pledged to meet the UN`s external aid target of 0.7% of GDP. Only 7 countries have ever achieved this goal; Norway; Sweden; Netherlands; Luxembourg; Denmark; and the United Kingdom. Two of these types of aid are bilateral and multilateral aid. The main theoretical difference between these two types of aid is the way in which funds are transferred. Bilateral aid refers to money given directly by one government to another, whereas multilateral aid comes from many different governments and organizations and is generally organized by an international organization such as the World Bank or the United Nations.