Bilateral Donors

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					Donor Trends by Donor Types
PBDD Annual Meeting March 2007

Bilateral Donors
Aid is increasing:
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Real terms: 106.78 billion USD (2005) 32% increase from 2004 ODA/GNI: 0.33%/GNI (DAC members‟ average) Administration: 4-8% of total ODA Debt Relief: Over 20% of total ODA Technical Cooperation Humanitarian Assistance

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Project and Program Aid is decreasing:

Only 38% of Total ODA (2005)

Bilateral Donors Asset Allocation
To Who? Allies: “War on Terrorism”: Pakistan, Indonesia, the Philippines “Good governance” countries: Countries with trade ties to donors: Australia, Italy, France To Where? Afghanistan, Iraq: 37% of new ODA resources from 2000-4 Nigeria: debt relief Sub-Saharan Africa: 32.6 % of total ODA (2004)

Bilateral Donors Asset Allocation (2005)

Bilateral Donors Asset Allocation
To What? Project and Program Aid Breakdown Social and administrative (2005)


Education: 6.1% Health: 3.8% Govt & Civil Society: 9.7%

Economic Infrastructure: 10.2 % Production: 5.2% Of this, MDG-related ODA: 11.3%

Bilateral Donors
Current Trends „Big Push‟: idea from the 1950s back in the spotlight Commitments to increase: 0.7% by 2015 Aid Concessionality: Since 2000 share of grants up 7% per year New Aid Architecture
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New Distribution Mechanisms: Swaps, PRSPs, PBAs Partnerships: MDGs as a common goal, Paris Declaration Untying Aid: DAC agreement to fully untie aid for the LDCs

Supporting Good Governance

Philanthropic Foundations: Origin of Assets
Where is the $ coming from? Increase in the number of wealthy
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691 Billionaires (2005) 77,500 Families with 30 million + 8.3 million Millionaires Technology Finance (Hedge Funds)

“Hot” Sectors:
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Intergenerational transfer of wealth

Philanthropic Foundations: Origin of Assets
Emergence of Foundations Worldwide
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US: 38, 807 in 1995, 75,953 in 2006 Brazil: 157 % increase in Foundations (1996 and 2002) Emerging Economies: China and India

Increase in Spending

US: $32.4 billion (2004), approx $3 billion to international causes

Philanthropic Foundations: Golden Age of Philanthropy
Expected/Trendy: If you got the money, you got to give/ Want to be
on the giving list

Media: Bill and Melinda Gates voted Time Magazine‟s People of the Year Governments: pro-philanthropy policies and tax incentives

Philanthropic Foundations: Asset Allocation
To Where? (US data only) Africa: 19 % of international funding Europe: 22% of international funding
In 2002, 71% of the funding allocated to Western Europe was earmarked for the implementation of international programs orchestrated by Europe-based IOs or research centres (mainly went to Africa in the end)

Philanthropic Foundations: Trends
The “new philanthropist”: young and involved Under the microscope: increased media & government interest Business Ethos
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Managed like a business: measure those impacts Leverage: find your niche Reduce and Rationalize: focus your programs

Hybridization: corporate non-profits? e.g., Omidyar Network International Giving: going up but will overseas regulations (war on
terrorism) bring it down?

Partnerships and Networks: very desirable

Private Sector Giving
US Economy Dependent: US in 2004, strong profits in a number of
industries resulted in a 13.4 percent increase in gifts to corporate foundations from parent companies

2002-4: 0.3 decrease in US corporate giving 2005: Rebounded by 22.5 % Corporate foundations: 29% of total corporate giving EU 2005: EU's top 25 corporate foundations 1.7 billion Euros

Private Sector: Asset Allocation
Allocation by Sector (2005) Health and Human Services: 43.47% International: 18.36 % Education: 14.11% Community: 8.33% Tsunami: 4.7% Arts and Culture: 3.79% Environment: 1.37% Corporate International Giving by Region:

73% to Asia (China 27 %, India 23 %) (US Allocations 2006)

Private Sector Trends
Good for Business
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Image: CSR Opens new markets Improves community and shareholder relations Increases labour pool: retention tool

Strategic Philanthropy: Leverage Impact and Scrutiny:
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good for business? no longer a sleazy slush fund for corporate board members‟ pet causes?

Remittances Origin of Assets
$167 billion (US) in 2005 North-South Remittances
41% increase in outflows from 2001-2005  US is the largest source: $39 billion (2004)

South-South Remittances
161% increase in outflows from 2001-2005  $24 billion (2004)

Remittances Asset Allocation
Top recipients: China, India, Mexico, and the Philippines Latin America/Caribbean: 53 billion (2006) Sub-Saharan Africa: 7 billion (2006)

All underestimated because of lack of data

Trends: Remittances for Development
Donors: USAID, DFID researching remittances  Recipient countries implementing matching and banking policies to attract and utilize remittances:

Mexico, The Philippines, Pakistan, Bangladesh, Sri Lanka and India

Private Sector Origin of Assets
North America
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Canada 8.9 billion (CAD) (2004) US 199 billion (US) (2004-5)

Europeans and Japanese give primarily through governments Private giving/philanthropy accounts for only 12% of the revenue raised by the civil society sector (Global Average). The majority of funding comes from fees, followed by government grants.

Private Giving Asset Allocation
Global Average: 1% of CSOs active in international work. Private Giving: Primarily Domestic
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Germany: 75% of contributions to top 16 charities went to international dev‟t UK: 25% to international dev‟t Netherlands: 15% to international dev‟t Canada: 4% US: 2.5 %

Private Giving Trends
Tax carrots and sticks:



Tax carrots: Full Tax Deductions: Australia, Belgium, Denmark, Greece, Ireland, Japan, Netherlands, Norway, Switzerland, UK, US No Tax Deductions: Austria Finland Sweden Tax sticks: Ceilings: Low ceiling: Denmark (5000 DKK), high ceiling: Canada (60 percent of income) Overall France‟s tax code creates the largest price incentive while those of Austria, Finland, and Sweden offer none
21 Americans donated at least $100 million to charitable causes, nearly doubling the number that did so in 2005.

Mega philanthropy: Buffett, Branson

Truly wealthy under the eye of the media:

Multilateral Donors Origin of Assets (US million, 2005)
Gross Concessional Flows: $ 26,730 million (2005) Gross Non-Concessional Flows: $ 24,410 million (2005) Bilateral share to Multilateral Donors:

30% of Bilateral ODA.

Multilateral Donors


Multilateral Donors Trends
Bilateralization of multilateral aids: donor countries began to use
multilateral institutions in the mid-1980s to manage their own bilateral aid programs, primarily by establishing trust funds and co-financing projects. This has reduced the amounts of „core‟ resources available to multilateral institution, increased the proportion of „non-core‟ resources provided by donor countries for specific purposes and led to hidden subsidies as donors rarely pay the full administrative costs associated with the use of non-core resources.

Banks in the Black: World Bank and the three major long-established Regional
Development Banks have moved over the past decade to a position where not only do they no longer require capital increases but they are also routinely spending less than they are