2024 Organisation and Management of Aid Analysis

Swedish Multi-Bi Aid and Development Effectiveness

Anna Sjöberg Tibblin, Lennart Wohlgemuth

Development effectiveness is crucial to ensure that aid leads to sustainable results. The internationally agreed effectiveness principles– local ownership, focus on results, inclusive partnerships, transparency and mutual accountability – are part of the Global Partnership for Development Effectiveness. This report examines Sweden’s work with development effectiveness in its so-called multi-bi aid, the bilateral aid that is channeled via multilateral organizations.

The findings are based on a review of documentation regarding multilateral organizations and aid effectiveness, as well as an empirical analysis of Sida’s ongoing work with development effectiveness in its multi-bi support in a number of partner countries.

The report shows that:

  • Swedish multi-bi aid has increased sharply as a share of bilateral aid in recent years.
  • There are challenges in the work with the development effectiveness principles in the cooperation with the multilateral organizations at the country level.
  • A shift in focus from coordination and ownership to results and transparency has not been fully reflected in Sweden’s aid policies, which risks reducing the effectiveness of efforts.

The report highlights challenges and opportunities associated with abiding by the different effectiveness principles. The authors point to the importance of:

  • Strengthening the dialogue regarding the principles with the multilateral organizations and clarifying expectations concerning development effectiveness in the agreements between Sida and the organizations.
  • Encourage the organizations to take a stronger role in donor coordination, to strengthen domestic institutions to promote ownership and to systematically follow up and evaluate Sweden’s multi-bi support.