How we are helping
Australia engages with Multilateral Banks at both a policy and program level. At a policy level, Australia is an active member of the governing bodies of the Banks. Australia engages at a program level with the Banks as delivery partners implementing development programs. Australia provides core funding to the Multilateral Development Banks (the World Bank Group and the Asian Development Bank) in support of their development and poverty alleviation mandate. Australia is also a prospective founding member of the Asian Infrastructure Investment Bank, which is not a development bank in the style of the World Bank Group or Asian Development Bank but will complement their work by focusing on infrastructure investment in Asia.
Why we give aid
Multilateral Banks have significant convening power and presence in many partner countries where Australia delivers aid.
As a multilateral organisation, they often have the advantage of being perceived as a relatively neutral player. Australia’s partnerships with Multilateral Banks allow us to access their significant expertise, leveraging their analytical, financial and human resources.
They are recognised as global leaders in performance-based aid and results measurement and are often well-placed to lead donor coordination efforts.
How we give aid
Australia provides core funding support to the World Bank Group and the Asian Development Bank through replenishments to their highly concessional lending arms that assist low-income countries. Core funding includes financial contributions given to the Banks in support of their development and poverty mandate. Australia also often partners with Multilateral Banks through the provision of non-core funding for targeted assistance consistent with the Australian aid policy framework. Non-core funding refers to financial support for projects administered by a Multilateral Bank in a region, country or sector. Co-financed programs are managed by the relevant country, regional or thematic area.