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The significance of multilateral cooperation
The problems of developing countries – such as debt or poverty – cannot be solved by individual countries alone. International organizations such as the UN, the World Bank and regional development banks provide effective assistance thanks to their extensive knowledge, their longstanding experience and substantial resources.
In the era of globalization,
development questions are becoming more and more complex. Serious problems such as poverty or environmental pollution no longer stop at borders – a fact which calls for solidarity among all
countries, peoples and organizations. Multilateral cooperation plays a central role in this process because it channels the powers of individual donors and streamlines political coordination.
Combined Effort
Compared to a small country like Switzerland, organizations such as the World Bank, regional development banks and the UN have substantial financial
resources, giving them considerable political leverage and allowing them to pursue expensive projects and programs. By backing these multilateral institutions financially, Switzerland can also
support and participate in such larger undertakings. The pooled knowledge of individual countries and of international organizations helps to ensure that any money invested is used effectively, while
at the same time improving project quality.
Another advantage of multilateral aid is the fact that its projects do not depend on individual donor countries and are thus less subjected to particular national interests: Partner countries profit from so-called untied aid. In other words, they can procure the goods and services needed within the scope of a given project at the best possible conditions through international bidding.
Global Impact
Multilateral cooperation also allows Switzerland to support those countries not considered for direct (bilateral) aid. Multilateral organizations are active in practically all needy countries so that
innovative ideas (including Swiss bilateral aid) as well as global knowledge are made available to all developing countries. Moreover, cooperating with multilateral organizations facilitates the
participation of Swiss trade and industry in the international tenders of various financial institutions and gives them the opportunity of being awarded orders.
Generally, multilateral aid helps to solve problems in developing countries which exceed the scope of bilateral aid due to their complexity, delicate political nature, global relevance or the required financial volume. While bilateral development cooperation mainly deals with local problems, the strength of multilateral institutions lies in their ability to participate in global reform projects, comprehensive programs, and projects of national or regional significance.
Additional Information and Documents
- UNO
Increasingly, development and humanitarian challenges are being met on the global level with the UN ... - International Financial Institutions
Most developing countries depend on foreign capital and know-how to make progress in their developme...