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Home»GSDRC Publications»Trust Funds and the Private Sector

Trust Funds and the Private Sector

Helpdesk Report
  • Oliver Walton
January 2012

Question

Provide examples where private sector actors have either managed MDTFs in post-conflict contexts or where the private sector has been supported to assist recovery through MDTFs. What evidence is there for the effectiveness of these arrangements? If possible, identify examples where MDTFs have been used to raise funds from the private sector or from foundations.

Summary

A ‘Trust Fund’ or ‘Multi Donor Trust Fund’ (MDTF) is a multi-agency funding mechanism, designed to receive contributions from more than one donor (and often also the recipient government), that is held in trust by an appointed administrative agent. This report focuses primarily on trust funds in conflict or crisis-affected contexts that have been designed to support recovery of basic services and local economies. Trust funds have been utilised to support recovery goals in a number of contexts including Afghanistan, Iraq, the West Bank/Gaza, Sudan, South Sudan, Liberia, Sierra Leone, Aceh and Nias, and Timor Leste.

The report focuses on three main aspects of private sector engagement with MDTFs. First, it looks at examples where private sector actors have either managed or supported the administration of MDTFs. Second, it examines cases where MDTFs have supported the private sector. Third, it identifies examples where MDTFs have raised funds from private sector companies or private foundations. This report covers a range of MDTFs – including country-level trust funds designed to support a range of reconstruction activities in the aftermath of war or disaster, sector-level trust funds, and global level funds that are partly or fully focused on supporting recovery. No research studies that focus specifically on PS engagement with MDTFs were identified in the preparation of this report. Instead, the findings presented are drawn from a range of isolated examples.

 

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Enquirer:

  • Australian Government

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