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Multilateral Aid Effectiveness

Background

DFID is strongly committed to working through the international system to reduce poverty in developing countries. In 2005/06 DFID channelled 38% of its aid through multilateral organisations. We are increasingly asked to provide evidence that this is a good use of resources and is contributing to improved results on the ground. In response to this DFID has been actively involved in a number of initiatives to improve our understanding of multilateral effectiveness issues, including

DFID is also working closely with other donors to develop a common multilateral effectiveness assessment approach. This, and other related financing issues, were discussed at a senior-level bilateral donor meeting hosted by DFID on June 20, 2007.

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The Multilateral Development Effectiveness Summaries

DFID has recently devised a new approach to understanding multilateral effectiveness: the Multilateral Development Effectiveness Summaries (MDES). The purpose of the MDES is to provide an overall picture of organisational effectiveness using a “Balance Scorecard” approach. The MDES are short publications which are aimed at providing senior managers and staff working on multilaterals with a concise summary of all available information in the public domain on the effectiveness of a particular multilateral organisation.

The MDES collate existing information across four dimensions of organisational effectiveness, namely:

  • Building for the Future - “How is the organisation building for the future through sharing information, learning and innovating?” This area considers whether the organisation is committed to a culture of continual learning and improvement, how it manages information and its results and whether it is investing in its staff.
  • Managing Resources - How is the organisation managing its activities and processes? This area looks at how the organisation uses its financial and human resources. It includes indicators such as disbursement ratios, resource allocation criteria, staff recruitment, postings and promotions processes and degree of decentralisation.
  • Partnerships - “How is the organisation engaging with other development partners?” This area looks at how the organisation works with other development partners including developing country governments themselves. It encompasses Paris Declaration Indicators on alignment and harmonisation.
  • Country/Global Performance - “How well is the organisation performing either at the country level and/or at the global level?” The final area considers any information which is available on actual performance either at the country level or at the global level. This includes results of any evaluations, by the organisation themselves or by other organisations, information on portfolio quality, any data on programme targets and any other indicators on outcomes and impact.

It is important to note that while the MDES include a number of indicators on how multilaterals monitor and evaluate their results on the ground, they do not in themselves measure actual development impact.

For individual summaries, see attached links:

 

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Framework

The Multilateral Effectiveness Financing

In 2004 DFID introduced the Multilateral Effectiveness Financing Framework (MEFF). The MEFF looked at the extent to which multilateral agencies had results based management systems in place covering internal performance, country level results and partnership. In total 23 organisations were assessed including five Multilateral Development Banks, 12 UN organisations, five humanitarian agencies and the European Commission. While the MEFF provided a useful snapshot on systems compliance, it did not look at the extent to which this was translating into improved results on the ground.

For further information on the MEFF, see:

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The Multilateral Organisations Performance Assessment Network (MOPAN)

DFID is actively involved in the Multilateral Organisations Performance Assessment Network (MOPAN), which is a group of ten bilateral donors with a common interest in monitoring multilateral effectiveness. MOPAN conducts an annual perception survey of 3 multilateral organisations in 8-10 countries. In each country, MOPAN members complete questionnaires which feed into a country report and an overall synthesis report for the agencies concerned. In 2007 the MOPAN survey is looking at the UNDP, WHO and the AfDB.

The focus of the Survey is on multilateral partnership behaviour towards national stakeholders (governments, NGOs, private sector) in developing countries as well as towards other international development agencies. The purpose of the survey is to contribute to

  • better information on and understanding of the performance of multilaterals
  • a more informed dialogue with agencies at both headquarters and country level
  • the involvement of MOPAN country offices in the surveying of multilateral cooperation d. the improvement of overall multilateral performance at country level

Related Links

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Overseas Development Institute (ODI) client survey

While the MOPAN survey looks primarily at donor perceptions of multilateral performance, there is no systematic mechanism for gauging partner country views. In 2007 DFID commissioned the Overseas Development Institute to conduct a pilot survey of a broad group of recipient country perceptions of the effectiveness of seven multilaterals.

The countries covered were Bangladesh, Ghana, India, South Africa, Tanzania, and Zambia.

The stakeholder groups were: Business Leaders, Civil Servants, Civil Society Leaders, Government Ministers and Parliamentarians.

The selected organisations were: the African/Asian Development Bank, The European Commission, the Global Fund to Fight AIDS, TB and Malaria, The United Nations Development Programme, The United Nations Children’s Fund and the World Bank.

Findings from the client surveys will be published by ODI later in 2007.

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Developing a common assessment approach

DFID is working with other members of the MOPAN group to develop a common assessment approach for measuring multilateral effectiveness. A number of donors have developed their own methodologies for assessing effectiveness in recent years. While this has helped to increase the knowledge base amongst donor agencies, it has imposed high transaction costs on multilaterals. The MOPAN group recently commissioned a study to look at the strengths and weaknesses of existing methodologies and explore the potential for improved harmonisation, ideally through a common approach. Findings are due to be produced later in 2007.

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Multilateral Effectiveness and Financing Meeting, June 20, 2007

DFID hosted a senior-level bilateral donor meeting in London on June 20th to address Multilateral Effectiveness and Financing issues. The purpose of this meeting was to:

  • to share experience, tools and methodologies for assessing multilateral effectiveness;
  • to explore the potential for streamlining some of various tools into a joint approach;
  • and to discuss the possibility of developing clearer criteria for making decisions on aid allocations between multilaterals.

 The meeting, which was conducted under the Chatham House rule, confirmed an interest by a number of bilateral donors in taking forward work to develop a common multilateral effectiveness assessment tool.

Last updated 3 December 2007