What are the pros and cons to bilateral versus multilateral aid - Essay Example

PAPER OUTLINE Question: 2. Thesis ment: Although countries adopt both the bilateral and multilateral approaches to aid, multilateral aid is more efficient in enhancing international development. Bilateral aid gives more control to state development policies hence is more effective in national development. However, it involves tied aid hence serving the interests of donor countries and is also susceptible to political pressures. Multilateral aid gives more power to international institutions hence is less prone to tied aid.

It also involves many stakeholders hence less susceptible to political pressures and also encompasses a wide range of developmental goals. Finally, research reports reveal that the top ranking agencies in best practice are multilateral donors with World Bank’s International Development Bank (IDA) leading. 3. Theories/Cases/Concepts3.1 Bilateral Aid-Definition 3.1.1. Advantages 3.1.2. Disadvantages3.2 Multilateral Aid-Definition 3.2.1 Advantages 3.2.2 Disadvantages3.3 Best Approach3.4 Case3.

5 Concepts 3.5.1 Efficiency-definition 3.5.2 Tied Aid-definition 3.5.3 World Bank (WB) 3.5.4 International Monetary Fund (IMF) 3.5.5 Non-Governmental Organizations (NGOs)4. Section Breakdown 4.1 Introduction: Question, Thesis Statement, importance to international development 4.2 Section One 4.2.1 Explain Bilateral Aid 4.2.2 Explain Multilateral Aid 4.3 Section Two 4.3.1 Differential Impact of Bilateral and Multilateral Aid Advantages and Disadvantages of Bilateral Aid Advantages and Disadvantges of Multilateral Aid 4.

4 Section Three 4.4.1 Introduce Case Describe the Case Importance in understanding practices in Foreign Aid Relationship to International Development 4.5 Conclusion: Restatement of Thesis, summary of main points.5.0 BibliographyATI. 2012 Aid Transparency Index. Publish What You Find. N.d. Web. November 6, 2014. www.publishwhatyoufind.org/index/2012-indexThe article ranks agencies according to their effectiveness in transparency. The World Bank group is ranks in the “good and “fair” category while bilateral agencies rank in the “poor” category with exception of UK’s DFID which ranks as good.

This is important to the research in supporting the effectiveness of multilateral aid.Easterly, William and Pfutze, Tobias. Where Does the Money Go? Best and Worst Practices in Foreign Aid. Journal of Economic Perspectives, 22.2 (2008).The article discusses “best practices” in the way official aid is given and how an ideal agency behaves. It looks at issues such as transparency, specialization, selectivity, ineffective aid channels like tied aid and overhead costs. These agencies are classified into bilateral and multilateral agencies and multilateral agencies were found to rank high while UN agencies were ranked the worst.

The article is important in helping to understand the aid agencies and their role in international development.Fleck, Robert K & Kilby, Christopher. World Bank Independence: A Model and Statistical Analysis of U.S Influence. Vassar College Economics Working Paper # 53. June 30, 2005The article discusses the influence of the U.S or donors on multilateral institutions such as the World Bank thus hindering their achievement of millennium development goals and development effectiveness. It is helpful in understanding the workings of Bretton Wood institutions and the disadvantages they have due to donor influence.

Haslam, Paul Alexander., Schafer, Jessica and Beaudet, Pierre. Introduction to International Development: Approaches, Actors, and Issues. 2nd ed. Oxford Universty Press, 2012.The book contains articles by leading scholars and practitioners and has chapters dedicated to actors and aid agencies hence it is important in understanding bilateral and multilateral aid and importance to development.Kilby, Christopher. Donor Influence in Multilateral Development Banks: The Case of the Asian Development Bank.

Vassar College Economics Working Paper # 70. January, 2006.The article highlights the influence of Japan and U.S over geographical distribution of ADB funds.Randel, Judith and German, Tony (eds). The Reality of Aid 1996: An Independent Review of International Aid. London: Routledge, 2009.The book gives an account of difficulties faced by countries due to bilateral aid from many sources and neglect of some countries. It is important for the research in assessing the disadvantages and advantages of bilateral id.

Yifu, Lin Justin & Pleskovic, Boris. Annual World Bank Conference on Development Economics Global 2009: People, Politics, and Globalization. Washington, DC: WB. The book explains the relative effectiveness of various flows and this is vital for the research.