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Today the world is more prosperous and peaceful than at any other time in human history. The multilateral system has been central to the success stories behind this progress, from the post-war reconstruction of Europe to the eradication of smallpox and the ongoing battle against HIV/AIDS and malaria.

Though there are deficiencies in the multilateral system, it works. Today – as we face challenges that are bigger and more urgent than ever before – this system needs to work better than ever. At the United Nations General Assembly this September, the global community will agree on a new set of inclusive global goals for sustainable development. The multilateral system needs to evolve to meet these challenges.

In a recent discussion on the soon-to-be-released OECD DAC report to be launched in Addis Ababa on 14 July 2015, Jeffrey Sachs noted that inaction could put our collective well-being and our ability to develop at risk, as it did after the Rio Summit in 1992. We must make sure that we have the instruments in place that will enable us to follow through on our commitments.

, takes a frank and honest look at the multilateral aid system based on the broadest and most robust data currently available. It paints a picture of a system that is diverse and complex – and becoming increasingly so. The strength of the system could lie in this diversity – as do its biggest challenges.

One challenge we need to address is the growing tendency for governments to provide development support in the form of earmarked funding to multilateral organisations. Earmarking allows donors to decide where the funding they channel through multilateral organisations will be used in terms of projects, sectors, countries or regions. It also gives them oversight of programmes and makes it easier to tie funding to specific reporting requests, an important issue for accountability to their constituencies. However, earmarked funding makes it hard for recipient countries to count on long-term predictability of funding. This is of particular concern to least developed countries – and in particular fragile states – who receive a larger share of multilateral funding than other income groups. Least Developed Countries are the countries that have found it hardest to make progress toward the Millennium Development Goals and their citizens have seen the fewest tangible improvements in areas such as healthcare, access to clean water and education. Receiving more stable and predictable funding will be essential to their ability to develop.

Earmarking is also challenging for multilateral organisations, increasing the administrative burden and reducing the flexibility to focus on their broader priorities. If we imagine a football club where one person pays for the grass, another for the ball, and yet another for a player – not the player picked by the coach but the player favoured by the sponsor – it is hard to imagine that team will ever win. Someone needs to bring the resources together around a plan.

A marked change in the multilateral development architecture happened recently with the establishment of the BRICS New Development Bank and the Asian Infrastructure Investment Bank. The founders of these organisations are demanding greater voice and influence over the multilateral system. The multilateral system must be reformed to reflect the rise of the South. China, India, Brazil, Arab donors and African nations must have a much greater say in how multilateral institutions are run. However, with reform comes responsibility: countries whose economies have developed at unprecedented rates over recent years need to contribute more to the system.

We all need to do our part to ensure that our multilateral organisations can realise their fullest potential in carrying out the reforms that are so urgently needed to make sustainable development a lasting, global reality. is a key resource for enabling us to do so.