The Implications of Multi-Bi Financing on International Development Organizations: The Example of the World Bank

Abstract

Over the last decade, multi-bi financing has become a significant source of funding for international development organizations. This paper discusses how multi-bi financing channeled through trust funds shapes the organizational practices of multilateral agencies, using evidence from a large number of interviews conducted at the World Bank. The analysis covers seven issue areas, including differences in the portfolio allocation of trust funds and core resources, potential for misalignment with development needs, donor influence upon agency operations, recovery of maintenance costs, long-term budget implications, transaction costs and administrative burdens, and institutional fragmentation inside the organization.