Conflict of Interest over Official Development Assistance (ODA) and Its Influence on Shifting Paradigm in Development Financing: Learning from Multi-Bi ODA

Abstract

This study investigates why conflict of interest occurs in multi-bi ODA – a hybrid form of bilateral

ODA and multilateral ODA – and focuses on the bilateral relations between donor countries and

multilateral organizations for analysis. Significantly, donor countries and multilateral organizations

can each have their respective interests due to the hybrid nature of multi-bi ODA, and consequently, the

relationship of donor countries and multilateral organizations is not always cooperative and mutually

beneficial in multi-bi ODA. In Particular, this study focuses on the reason why conflict arises in multibi

ODA based on the ‘Principal-Agent Model’ to analyze the conflict-based relationship of donor

countries and multilateral organizations.