Why a New Multidonor Trust Fund in Liberia Works
Wednesday, February 9, 2011
Many countries are struggling to meet the Millennium Development Goals because their governments are unwilling or unable to fulfill core functions. Sudan and Afghanistan are examples of fragile states that are receiving billions in foreign aid every year but are unlikely to reach the MDGs.
Among the classic repertoire of approaches to providing development assistance, few funding instruments can effectively channel resources through governments of fragile states and help them to become better at providing efficient basic services. International donors need new approaches that enable partner governments to “own” their country’s development and sustainably deliver utilities.
In Liberia, an innovative multidonor trust fund was used and it increased the overall resources and accountability of government, breathed life into dormant national systems and enabled continuity of basic services provided by NGOs during the relief-to-development transition.
This unique model, where the recipient government managed its ownMDTF, could be used in similar contexts where recipient ownership and national systems are development priorities.