The multilateral development system is undergoing significant strain as geopolitical divisions deepen and aid budgets come under pressure.
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Following decades of steady growth, funding dropped sharply in 2024 and is expected to decline further in the coming years. This shift is bringing long-standing structural weaknesses into clearer view, including fragile funding models and an increasingly complex institutional landscape. While disbursements remain relatively strong for now, this resilience is unlikely to last without more reliable and predictable financing. The impact of funding cuts also depends on where they fall, as reductions in key parts of the system can have wider knock-on effects. In this context, the fifth edition of the Multilateral Development Finance report outlines practical options for reform and calls for more strategic engagement, while underscoring the need to safeguard the system’s unique strengths—its capacity to mobilise resources, operate globally, and support the most vulnerable.
Suggested citation:
OECD (2026), Multilateral Development Finance 2026, OECD Publishing, Paris, https://doi.org/10.1787/0720370a-en.
