Earmarking in the multilateral development system: many shades of grey

Bonn: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

ISBN: 978-3-96021-112-9
DOI: https://doi.org/10.23661/s101.2020
Price: 10 €

Earmarking financial contributions for specific geographic, thematic or other priorities has emerged as an important modality for funding multilateral development organisations. Earmarking has had positive consequences, such as the mobilisation of resources for multilateral organisations and new partnership modalities, including with non-state actors. Yet, there has been a rising concern about challenges relating to the effectiveness, efficiency and legitimacy of multilateral development cooperation. Understanding and addressing these negative aspects has gained a new urgency. The 2030 Agenda for Sustainable Development and the crisis of multilateralism make it imperative to tackle the downsides of earmarked funding and bring out its positive forces.

This study was commissioned by the German Ministry for Economic Cooperation and Development. Germany is a latecomer to earmarking – the government has begun only in recent years to make use of earmarked funds at a larger scale. The study analyses the most important instruments of earmarked funding, studies practices of selected donors that supply large shares of earmarked funding, and analyses practices and consequences of earmarked funding with regard to the UN Development System and multilateral development banks. The study concludes with recommendations to the German government on how to improve its earmarking practices.

About the authors

Weinlich, Silke

Political Science

Baumann, Max-Otto

Political Science

Wolff, Peter

Economics

Further experts

Berensmann, Kathrin

Economy 

Bergmann, Julian

Political Science 

Dang, Vy

Political Science 

Erforth, Benedikt

Political Science 

Fasold, Maximilian

Political Economy 

Friesen, Ina

Political Science 

Furness, Mark

Political Science 

Grimm, Sven

Political Science 

Hackenesch, Christine

Political Science 

Hilbrich, Sören

Economy 

Keijzer, Niels

Social Science 

Koch, Svea

Social Science 

Löpelt, Sarah

International relations and Sustainability policy 

Mchowa, Chifundo

Development Economics 

Sommer, Christoph

Economist 

von Haaren, Paula

Development Economics 

Walle, Yabibal

Development Economics