Medium- and Long-term Financing/Multilateral Organizations
|Unit 8.1-Medium- and Long-term Financing|
Multilateralism is a term defined by Webster’s Collegiate Dictionary (11th edition) as “involving or participated in by more than two nations or parties (such as agreements).” Most international organizations, such as the United Nations and the World Trade Organization, are multilateral in nature.
Multilateral Development Banks
Multilateral development banks were established to stimulate and foster international economic activity by financing strategic projects around the world. Some examples include:
- the World Bank
- the Inter-American Development Bank
- the Asian Development Bank
- the Caribbean Development Bank
- the African Development Bank
- the European Bank for Reconstruction and Development
All have a specific regional focus with the exception of the World Bank. The banks operate with funds contributed by the member countries and distribute the funds for specific developmental projects. Each year project priorities and funding programs are established by the banks. Once established, companies and/or other government agencies are encouraged to submit proposals for funding.
United Nations Development Program
The United Nations Development Program (UNDP) is affiliated with the United Nations (UN) to provide multilateral development. One hundred thirty countries are contributors to the program which provides a network of specialized international agencies that give technical assistance and financing support to underdeveloped countries. A developing country will review offers or bids from companies interested in providing the services needed and award contracts accordingly with funding the UNDP. The suppliers must keep in close contact with the UNDP and its affiliated executing agencies in order to know what contracts are coming up for bid.