The rapid growth of trust funds at multilateral development organizations has been widely neglected in the academic literature so far. Using a simple illustrative model, this paper examines the choice by sovereign donors among various trust fund options. The authors contend that the choice among...

In recent years, donor countries have increasingly used different aid allocation channels to boost aid effectiveness. One delivery channel that has grown tremendously is "multi-bi aid" - contributions to multilateral organizations earmarked for specific development purposes. This article...