PARTNERSHIP WITH GAZPROM

Global partnershipfor development

United Nations Development Programme Annual Report 2006

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UNDP at a glanceUNDP is the UN’s global development network,

advocating for change and connecting countries

to knowledge, experience and resources to help

people build a better life. We are on the ground

in 166 countries, working with them to strengthen

their capacities and create their own solutions to

global and national development challenges.

40 years of development experience

Programmes in 166 countries

135 offices around the world

Foreword: A trusted partner in development

The UN’s global development network

Developing capacity, creating opportunities

Building stronger democraciesGenerating equitable growthPreventing conflict and supporting long-term recoveryProtecting our planet to benefit the poorHalting the spread of HIV/AIDSEmpowering women to transform societiesBrokering partnerships for development

Strengthening national strategies to achieve the MDGs

Supporting the UN agenda for reform

UNDP resources: growing, but fragile and complex

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Contents

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Since its creation in 1966, UNDP hasbeen at the centre of the United Nations’operational development system, work-

ing both at the grassroots level to help buildnational capacities for sustainable develop-ment, and as a leader in development thinking,as demonstrated by its flagship Human Devel-opment Reports and its contributions to criti-cal issues such as global public goods and

democratic governance. In many ways, it is thisimportant nexus—connecting countries toknowledge and ideas and working with them tostrengthen the capacity needed to tackle devel-opment challenges—that is UNDP’s hallmark.

With the advent of the Millennium Devel-opment Goals (MDGs), the last few years haveseen UNDP scale up its activities in a majorway. UNDP is working at the conceptual levelwith a wide range of partners to advocate forthe policy and institutional changes needed tofight poverty more effectively and achieve theMDGs. From elections support in Liberia andHaiti, to recovery efforts after decades ofconflict in the Democratic Republic of Congo(DRC), to helping countries deliver services totheir citizens in countries with much strongereconomies but huge social challenges such asBrazil and Indonesia, UNDP also works withcountries in a very practical way to help buildthe institutional capacity needed to promote,support and accelerate human developmentand sustainable growth.

Recent years have seen a significantincrease in the volume of resources given tosupport UNDP’s work. The greatest amounthas come from a rise in country level non-coreco-financing, an important affirmation of theconfidence partners have in UNDP’s role and

performance. But we face the challenge of aratio of un-earmarked regular resources to ear-marked resources that is too low to supportthe unity of strategic management and theflexibility required to respond to the challengesand opportunities UNDP faces. Public financetheory, as well as lessons learned around theworld, are clear on the need to protect publicexpenditure and the budgetary process fromexcessive earmarking; indeed, it is somethinginternational development organizations andexperts always warn developing countriesagainst. I, therefore, hope that UNDP can havethe support of donors in our efforts tostrengthen the integrity of our resource base.

Despite these constraints, UNDP contin-ues to make an important contribution toachieving the MDGs, working increasinglyclosely with our sister organizations in the UNsystem. Such cooperation should not mean alack of competition in ideas or methods, but itshould mean that there is a synergy in ouractions which allows each organization to takeadvantage of its comparative strengths, poolresources when needed, and work in partner-ships, which enable developing countries tosteer their own development.

2005 was an important year for the devel-opment agenda, with the international com-munity reaffirming its commitment to theMDGs. In 2007, we will be mid-way towardsthe 2015 deadline. UNDP remains committedto doing its part to translate the ambitious newpartnership for development launched in 2000into better policies, stronger institutions andgreater resources more effectively deployed, allwith the aim of achieving concrete improve-ments in the lives of those who need anddeserve our strong support.

Kemal Dervis

UNDP Administrator

In October 2005, for his

first visit to Africa as UNDP

Administrator, Mr. Dervis

travelled to Niger, a coun-

try that has been facing

a serious food crisis.

Beyond pressing humani-

tarian needs, Mr. Dervis

stressed that in order for

such recurring crises to be

overcome, long-term

development challenges

need to be addressed.

A trusted partner in development

1 A trusted partner in development

Working at the heart of the UN sys-tem, and on the ground in 166countries around the world, UNDP

plays a unique role in global development. Atthe country level, we are often the “partner of choice” for governments grappling withnational and global development challenges.This is because UNDP does not represent anyone approach to development; rather, ourcommitment is to assist partner governmentsin finding their own approaches, according totheir own unique national circumstances. It isalso because UNDP, with a long-term presencein almost all developing countries, and exten-sive networks at the national, regional andglobal levels, is by its very nature an impartialbroker, convenor and facilitator. In particular,we often play a pivotal role in helping coun-tries to access development assistance and

other forms of support, and to form strategiclinkages, including, for example, with theglobal private sector.

UNDP also has a special set of responsibil-ities within the UN family, where it is chargedwith a coordinating role in the wider group of UN entities involved in development, viathe UN Development Group (UNDG). At thecountry level, this means that the UNDP

Resident Representative is at the same time theUN Resident Coordinator, with responsibilityfor promoting coherence among the variousparts of the UN development system operatingin any given country. This is a difficult task,especially in countries with large or complexUN programmes and given the essentialautonomy of UN funds and programmes aswell as specialized agencies. In 2005, theimportance of this challenge came to the forein the aftermath of the devastating earthquakethat hit South Asia in early October, in planning for the recovery phase in tsunami-affected countries, and in coping with thespread of avian flu. At present, UNDP is leading efforts to create joint UN offices, tostrengthen the role of the Resident Coordinator,to bring more overall coherence to the work of country teams, and to promote knowledgenetworking within the wider UN system. Allthese issues are being addressed by the High-Level Panel on UN System-Wide Coherence,of which the UNDP Administrator is an ex-officio member.

Hand in hand with its brokering and coordinating functions—within the UN system,on behalf of partner governments—is UNDP’sadvocacy for the Millennium DevelopmentGoals (MDGs), the concept of human devel-opment, the need to empower women, thecritical role of the private sector and civil society, and other important developmentissues. UNDP advocates for equitable growthand sustainability at the global, regional andnational levels, including through its series ofglobal, regional and country-focused HumanDevelopment Reports.

At the same time, UNDP is also the UNdevelopment system’s largest operationalagency, focused on strengthening the capacitiesof its national partners. Development requires

2 ANNUAL REPORT 2006

The UN’s global development network

“UNDP is the driving force behind reforms

aimed at enabling the UN to operate as

a single team at country level in efforts

to help achieve the Millennium Develop-

ment Goals.”

Agnes van Ardenne-van der Hoeven, Minister for Development Cooperation, The Netherlands

both “hardware”—the ports, roads, irrigationsystems and production facilities that areessential to economic growth and develop-ment—as well as “software”—trained civil servants, effective electoral processes and parliaments, appropriate environmental andenergy policies and other elements of nationalcapacity that are financed and supported byUNDP and others. UNDP understands that

countries must guide their own development,which is why developing national capacity is at the heart of our mission and the unifyingthread that runs through everything we do.

UNDP’s commitment to developingnational capacity finds expression in its interconnected development practices:democratic governance, poverty reduction,crisis prevention and recovery, energy andenvironment, and HIV/AIDS. The largest ofthese is democratic governance, accounting for 47 percent of our operational activities in2005, followed by poverty reduction (25 per-cent) and crisis prevention and recovery (12percent). These practices are not objectives inthemselves but rather conduits for UNDP’swork in capacity development. They are, ofcourse, interrelated, which means that UNDP’ssupport helps developing countries addressunderlying cross-sectoral capacity constraints.This, in turn, can lead to more effective use ofofficial development assistance and, morebroadly, can help accelerate progress towardsachieving the MDGs.

It is the bringing together under the sameroof of these various roles—broker, coordina-tor and advocate, as well as on-the-groundefforts to strengthen institutions and capaci-ties, that make UNDP such an effective partnerfor developing countries. In the area of trade,for example, UNDP works in global foratowards an open and development-friendlymultilateral trading system, and at the country

level, to help ournational partnersovercome institu-tional bottlenecks and build capacity tonegotiate trade agree-ments. Another exam-ple is our work on theMDGs: we have beena leading advocate forthe MDGs, throughour support of theMillennium Projectand the Millennium Campaign, as well as ahost of MDG reportsat the global, regionaland national levels. At

the same time, we are working actively to helpcountries anchor the MDGs in their nationaldevelopment strategies and strengthen capac-ity to ensure that their policies and budgetsmatch the demands of meeting the goals. Thefollowing pages explain in greater detail howUNDP—at the centre of the UN system and asthe trusted partner of developing countries—helps to address multi-dimensional develop-ment challenges around the world.

3 The UN’s global development network

In the run-up to the

February 2006 elections

in Haiti, United Nations

Volunteer (UNV) Alejan-

dro Philion of Mexico

distributed pamphlets

on voter registration to

help ensure that eligible

voters in rural communi-

ties were included on the

electoral roll.


UNDP works to strengthen the capacity of national partners to manage their own development

effectively. This means empowering people and giving them tools to chart their owncourse and working to establish the largerinstitutional frameworks that will help totransform societies. It also means targetingdeveloping countries’ abilities to deal withregional and global issues, enabling them, forexample, to respond to threats such as avianflu, and to benefit from a more development-oriented world trading system.

UNDP helps strengthen national capacitythrough its interconnected development prac-tices: democratic governance, poverty reduc-tion, crisis prevention and recovery, energyand environment and HIV/AIDS. Many of ourinterventions are pilot exercises, designed toincrease capacity in ways that may be replica-ble on a larger scale elsewhere. And all of ourcapacity strengthening work can draw uponour global development network, where a les-son learned, for example, in Brazil, may beapplicable to a development challenge inMozambique or Bangladesh.

Developing capacity,creating opportunities

Investing in capacity

UNDP practice area expenditures 2005$US millions

25% Poverty reduction $744

47% Democratic governance $1,395

5% HIV/AIDS $161

11% Energy & environment $326

12% Crisis prevention & recovery $374

Source: Bureau of Management, UNDP

5 Developing capacity, creating opportunities

The world has seen an unprecedented expan-sion of democratic freedoms since the end ofthe Cold War. As the 2002 Human Develop-ment Report shows, during the 1990s, some 81 countries made significant progress towardsdemocracy. Today, 140 countries in the worldhold multiparty elections. Despite theseachievements, however, in many countries,democracy is taking root very slowly. Out of

the 140 countries that hold elections, morethan 100 still limit important civil and politicalfreedoms.

In many parts of the world, confidence indemocracy’s power to change lives is also beingeroded. The ‘dividends of democracy’ oftenseem elusive to those who, having gained theright to vote, still struggle to feed themselvesand their families. As UNDP’s 2004 Democracyin Latin America report shows, more than halfof all Latin Americans—54.7 percent—saythey would opt for an “authoritarian” regimeover democratic government if authoritarian-ism could “resolve” their economic problems.In many parts of the world, disillusionment isalso fuelled by increased cynicism about thepolitical process and the lack of transparencyof political institutions.

Reversing this trend is a crucial challenge,not least because strong democracies are key to advancing human development, with itsessential component of human empowerment.Democratic governance is also associated with peaceful resolution of disputes; and pro-

moting peace is, of course, at the heart of theUN’s mission.

Over the past six years, UNDP, in collabo-ration with the UN Department of PoliticalAffairs, has been helping countries developtheir capacity to build stronger democracies.We have been working with national partnersto implement better electoral and legislativesystems, improve access to justice and publicadministration, and develop greater capacity todeliver basic services to those most in need. In2005, we helped strengthen democratic gover-nance in over 130 countries and devotedUS$1.4 billion in resources to these efforts.UNDP supports one in three parliaments inthe developing world and an election some-where around the globe every two weeks.

In Liberia, UNDP was on the ground tohelp the country prepare for the poll that sawthe election of Africa’s first woman president,Ellen Johnson-Sirleaf, in November 2005. For a country that only recently emerged from 14years of violent civil war, organizing electionspresented major challenges. UNDP teamed upwith the UN Mission in Liberia, the UnitedStates Agency for International Developmentand the International Foundation for ElectoralSystems to train more than 915 community-based voter educators from 22 civil societyorganizations. They learned how to conductworkshops and other outreach activities, includ-ing those designed for women and specialgroups, such as the physically challenged,internally displaced persons, ex-combatants,and refugees who had returned to Liberia. TheEuropean Commission provided $3.6 million,including $500,000 to computerize voter rolls.UNDP managed the contribution to developthe National Elections Commission’s capacityto enforce electoral rules and put in place thesystems and procedures needed for transparentand democratic elections.

Elections constitute but one step in theprocess of developing a strongly rooted demo-cratic culture. Legislatures play an importantrole and UNDP is currently helping countriesto strengthen their Parliaments and ensure fair and inclusive democratic participation.Through its Global Programme on Parliamen-tary Strengthening, UNDP is working to helpArab parliaments develop the capacity,

Building stronger democracies

Making history:

In November 2005, Ellen

Johnson-Sirleaf won

Liberia’s presidential elec-

tions, becoming Africa’s

first woman Head of State.

She was sworn in on

16 January 2006.

resources, and independence to carry out theirfunctions effectively. For example, in Algeria,UNDP helped train Members of Parliamentfrom both houses, as well as parliamentarystaff, on writing and initiating laws, carrying

out research and ensuring that new lawsadhered to the Constitution. The key skillsacquired will allow legislators and staff toimprove the effectiveness of Parliament andincrease their capacity to support the needsand interests of their constituents.

To build strong and stable democracies,countries must ensure that young people havethe opportunity to take part in the democraticprocess. In Nicaragua, UNDP helped set up aPolitical Youth Forum, aimed at encouragingyoung party members to articulate their ideasand vision to political leaders and their fellowcitizens. In collaboration with a number of regional and international partners, includ-ing the Swedish International Development Cooperation Agency, the United KingdomDepartment for International Developmentand the Netherlands Ministry of Foreign Affairs(Development Cooperation), UNDP helped to develop the political skills of young parlia-mentarians and strengthen their capacity toinfluence public debate.

For many citizens living in newly-emerg-ing democracies, casting their vote in an elec-tion is still a novel experience. Ahead of theJuly 2005 presidential elections in Kyrgyzstan,

In Kyrgyzstan, a UNDP-

supported pre-election

newspaper helped ensure

that people living in the

remotest areas of the

country were fully

informed ahead of the

July 2005 elections.


Collective endeavors to advance human develop-ment and achieve the MDGs benefit significantlyfrom the efforts of United Nations Volunteers(UNV), a fund administered by UNDP. Fromhelping to rebuild communities shattered by waror natural disasters to assisting in the fightagainst HIV/AIDS and creating new job oppor-tunities, UNV volunteers make a distinctive con-tribution to national capacity building.

In 2005, UNV played a vital role in helpingto organize national elections. For example, inpreparation for the February 2006 elections inHaiti, UNV volunteers were stationed in thecountry’s 10 departments to help register some3.5 million voters. In a difficult environmentmarked by violence and rioting, they workedclosely with Haiti’s Provisional Electoral Com-mission, setting up counting centres and puttingtogether voting material.

Through its expanding range of activities,UNV also helps ensure that those who are toooften seen exclusively as recipients of aid areempowered to contribute to the development of

their own communities. In Ethiopia, for exam-ple, UNV volunteers are supporting communi-ties in their own development planning andimplementation as well as the improved moni-toring of progress towards the MDGs. In part-nership with UNDP and the central government,more than 100 Ethiopian UNV volunteers areworking to strengthen the capacities of regionaladministrations to deliver services and developinfrastructure. They have also designed systemsto improve access to information, including thecreation of an e-government platform provid-ing key social and economic data, and a web-based network linking 200 high schools in thecountry to foster interactive communication and learning.

In 2005, more than 8,100 women and menfrom 168 countries served as UNV volunteers in144 countries. The majority of UNV volunteerswere from developing countries, and nearly 40percent took up an assignment in their homecountry—eloquent examples of successfulSouth-South cooperation.

UNV programme: A vital role in fighting poverty

UNDP worked with the country’s ElectoralCommission to launch a wide-ranging votereducation campaign. An eight-page pre-election newspaper was produced, providinginformation about the six candidates and theirelectoral programmes. Well over a millioncopies were printed and distributed to 46 dis-tricts across Kyrgyzstan—the largest singleprinting venture in the country’s history.Electoral broadcasts encouraging voter partici-

pation were aired onover 30 national andlocal stations and rein-forced the campaign’sunprecedented out-reach. UNDP alsohelped strengthen the Electoral Com-mission’s independ-ence by providing

infrastructure support, including a new mediacentre and a national computer network,which was used to establish voter lists andtransmit results. By highlighting the vital rolethat access to information can play in develop-ing a strong and vibrant democratic culture,the Kyrgyzstan experience is just one exampleof a successful model that could be replicatedin other emerging democracies.

UNDP is a leading provider of technicaladvice on the modernization of state institu-tions. We help countries develop professional


civil services through performance-basedmanagement, which, in turn, promotes equalopportunities for women and minority groups.We also help strengthen countries’ capacity todevelop anti-corruption legislation and codesof conduct, and we train civil servants, partic-ularly in public service delivery to vulnerablecitizens. Throughout Africa, internationalpartners continue to support initiatives toclamp down on corruption and strengthengovernments’ capacity to deliver for the people.One such initiative is the African Peer ReviewMechanism developed under the New Part-nership for Africa’s Development (NEPAD).This programme allows African governmentsto evaluate their peers in a manner that willcollectively raise the bar on governance standards and performance. Some 27 countrieshave so far agreed to be reviewed and more are expected to join the process. A key partnerin this initiative, UNDP has been instrumentalin developing the tools to carry out peerreviews in Algeria, Ghana, Kenya, Mauritius,Nigeria and Rwanda. UNDP also manages theAfrican Peer Review Mechanism Trust Fund,to which it has contributed $2.7 million. Inaddition, we have been supporting NEPADthrough a $3.5 million project aimed at bolstering countries’ capacities to strengthendemocratic governance and budgeting for theMDGs, as well as to improve communications.

ESTABLISH LEGAL FRAMEWORK

STRATEGICPLANNING

TRAINING ANDEDUCATION

VOTERREGISTRATION

ELECTORAL CAMPAIGN

ELECTION DAY VERIFICATIONOF RESULTS

THE STEPS NEEDED TO HOLD AN ELECTION:

CH

ALL

ENG

ES T

O E

AC

H S

TEP

accurately determine

time needed

set realistic budget

recruit personnel

train large staff in short time

reach out to all voters

overcome voter apathy

and high illiteracy level

find appropriateand affordable

technology

verify and completevoter lists

avoid accidentaldisenfranchise-ment of voters

address constitutional

problems

reform electoral

system

are freedoms of speech and

assembly guaranteed?

results tabulation free of fraud

or manipulation

establish unbiased complaints and appeals process

manage post-election transition

and reform

ensure access toall voters

need appropriate,sustainable technology

avoid fraud or irregularities

ensure respect for procedures

overcome biased coverage by

media

enforce publicfinancing

regulations

minimize potential

for conflict

The electoral process: getting to an accurate vote

UNDP helps provide the knowledge, infrastructure and logistics needed to hold elections.

”Democracy does not belong

to any country or region but

is a universal right.”

from In Larger Freedom: Towards Development,Security and Human Rights for All

Source: Bureau for Development Policy, UNDP


Ours is a world of extremes. The poorest 40 percent of the world population—the 2.5billion people who live on less than $2 a day—account for five percent of global income, whilethe richest 10 percent account for 54 percent.Never before has the goal of abolishing povertybeen within our reach: there are no longer anyinsurmountable technical, resource or logisti-cal obstacles to achieving it. Yet, more than 800

million people suffer from hunger and mal-nutrition, 1.1 billion people do not have accessto clean drinking water and, every hour, 1,200children die from preventable diseases. Despitea growing world economy and significantadvances in medicine and technology, manypeople in developing countries are not reapingthe potential benefits of globalization.

UNDP works with governments in devel-oping countries to design and implement policies and initiatives that address the needsof the poor. We help countries lay the founda-tions for pro-poor economic growth, and backefforts to develop the skills, knowledge andresources that will lead to sustained progressagainst poverty.

Trade can be one of the most effectiveengines of economic growth. Many producersin poor countries remain, however, cut offfrom international markets because they can-not compete with heavily subsidized goodsproduced in the developed world or because

they lack the basic infrastructure and know-how needed to participate in the global economy. Opening up rich countries’ marketsto poor nations could help lift millions ofpeople out of poverty. But market access is not enough. More must be done to supportcountries in developing their trade capacity.

UNDP works towards helping countriesparticipate more effectively in the multilateraltrading system through the Integrated Frame-work for Trade-Related Technical Assistance toleast developed countries (LDCs). Workingalongside other international partners including the UN Conference on Trade andDevelopment, the World Bank and the WorldTrade Organization, UNDP helps LDCs overcome some of the challenges they faceincluding lack of adequate infrastructure,institutional bottlenecks and burdensome regulations. We also support countries in theirability to negotiate and implement trade agreements that reflect human developmentconcerns. Finally, we back governments’ effortsto incorporate pro-poor trade policies innational development strategies.

In 2005, for instance, UNDP teamed upwith the Azerbaijan Export and InvestmentPromotion Foundation in a bid to strengthenthe country’s capacity for export promotion.Under this partnership, UNDP helped formu-late the government’s export strategy for thedevelopment of the non-oil sector and estab-lish an Export Information Centre to provideadvice to potential local exporters. In Yemen,UNDP is backing the government’s efforts topromote the country’s fruit and fisheriesexports. A $1 million project provides techni-cal advice to fruit and vegetable farmers on the proper use of pesticides as well as on packaging and transportation. It also aims atimproving Yemen’s competitiveness in the areaof fisheries through the establishment ofquality control procedures and the training of fishermen.

Much progress can be achieved in alleviat-ing poverty by supporting local entrepreneur-ship and business initiatives. In SoutheasternAnatolia, one of Turkey’s most disadvantagedregions, UNDP partnered with the RegionalDevelopment Administration to increase thecompetitiveness of small- and medium-sized

Generating equitable growth

25%

20

15

10

5

0

25%

20

15

10

5

0DRC

GDP=$6.6China

GDP=$1,931Brazil

GDP=$604Germany

GDP=$2,740USA

GDP=$11,711

share of global population

share of global merchandise exports

GDP in US$billions

Contrasting shares of global exports and population, 2004

Source: the World Trade Organization, the World Bank, and the UN Statistics Division

enterprises (SMEs). We opened BusinessDevelopment Centres in four cities (Adiyaman,Diyarbakir, Mardin and Sanliurfa) to helpSMEs improve their managerial, operational

and administrative capacities. We also advisedand trained budding entrepreneurs, who oftenlack the skills, knowledge and networks to gettheir ideas off the ground. Efforts to reduceeconomic disparities in Southeastern Anatoliahave also targeted young people. UNDP sup-ported the launch of a National ApprenticeshipProgramme, which provides young peoplefrom the region with internship opportunitiesin a number of companies nationwide. Theprofessional experience gained in accounting,sales and marketing will help bring muchneeded skills and knowledge to the region. Andelements of the overall initiative can serve asmodels for replication by other regionaladministrations, in Turkey and elsewhere.

In Moldova, UNDP is helping to em-power communities economically through itsLocal Agenda 21 initiative. By involving citi-zens in local-level decision making and pro-moting partnerships between the public andprivate sectors, this effort aims at integratingsustainable development principles into localauthorities’ policies. UNDP helped develop aneconomic free zone in Moldova’s region of

Many countries in Asia,

including the Philippines,

have made steady

progress in reducing

poverty rates. But growth

in urban poverty threat-

ens to reverse some of

these achievements.


The majority of women in developing countriesare in informal employment. In developed coun-tries, part-time work and self-employment are amore important source of income for womenthan for men. Moreover, women generally earnless than men, have less access to quality jobs,and fewer opportunities for the education thatcould help them find better, safer means of in-come. These are some of the findings of Progressof the World’s Women 2005: Women, Work andPoverty, published by the UN Development Fundfor Women (UNIFEM). The report makes thecase for an increased focus on women’s economicsecurity and argues that more should be done toachieve appropriate legal and social protectionfor women in the informal economy and ensurethat their work is valued and supported in pol-icy-making.

UNIFEM promotes women’s empowermentand gender equality through a network of 15 sub-regional and two national offices. During2005, UNIFEM, which is administered by UNDP,continued its efforts to strengthen women’s economic security. Through its initiative in

support of women migrant workers in the ArabStates and Asia, for example, the Ministry ofLabour in Jordan is now evaluating its internalregulations and investigating violations againstwomen migrant workers, monitoring labourrecruitment offices and working closely with theMinistry of the Interior and the Police Depart-ment. In Indonesia, a local law on the protectionof migrant workers is awaiting passage in Blitar;similarly, in Nepal, a Foreign Employment Billhas been drafted.

UNIFEM’s efforts to promote budget analy-ses that look into how the allocation of publicresources benefit women and men also showednew and promising results in 2005. In Morocco,the national budget for 2006 included, for thefirst time, a special annex on how gender equalitypriorities will be addressed. In India’s state ofKarnataka, elected local women leaders usedtraining on gender-responsive budgeting to advo-cate successfully for a doubling of resources toreintroduce a women’s health insurance schemein the city of Mysore.

UNIFEM: Strengthening women’s economic security

Programme (UNEP) and the World Bank,women in Gaza have been able to acquiresolar-powered machines to dry fruits andherbs more quickly and efficiently. This environmentally-friendly initiative has enabledwomen in Gaza to expand their businesses and sell their produce in local Gazan markets.This is just one of many projects fundedthrough GEF that help improve the livelihoodsof the poor while contributing to the protec-tion of the environment.


Ungheni, a former industrial area. The newzone now hosts 33 businesses from severalcountries. It has helped develop new enter-prises in the region, such as plastic containermanufacturers, luxury furniture businesses,as well as fruit and vegetable juice producers.In addition to generating $15.8 million worthof investments, the Ungheni Business zone

has created 1,250 jobs and increased the levelof exports from the region.

Some small-scale projects can deliver bigresults. In Gaza, UNDP helped women fruitproducers secure small grants to boost theirproduction. Traditionally, women have driedfruits and herbs in the sun, but this process canaffect the quality and freshness of the products.From grants obtained through the GlobalEnvironment Facility (GEF), which is runjointly by UNDP, the UN Environment

These Palestinian women

have used small loans to

jump-start their food busi-

ness and turn it into a

profit-making venture.

“Massive poverty and obscene inequality

are such terrible scourges of our times…

that they have to rank alongside slavery

and apartheid as social evils.”

Nelson Mandela, former President of South Africa

Armed conflicts and natural disasters can havea crippling effect on a country’s progresstowards human development. The human cost is enormous—in the 1990s, 3.6 millionpeople died in violent conflicts, while in 2005natural disasters caused 91,900 deaths in dif-ferent parts of the world. Moreover, the impacton the development and growth prospects ofa country can be devastating. A civil war can

erase decades of development. In a single hour,a hurricane or an earthquake can wipe outentire communities and further entrenchpoverty and inequality.

As the 2005 Human Development Reportshows, of the 32 countries at the bottom of theHuman Development Index (HDI), 22 haveexperienced conflict at some point in time since1990; and of the 52 countries in which childmortality statistics are stagnant or even going inthe wrong direction, 30 have experienced con-flict since 1990. Failure to break the vicious circle of poverty and conflict can have regionaland global consequences. As recent history hasshown, the destructive impact of civil wars oftencrosses national boundaries and can have rippleeffects on the lives of people around the world.

Developing national capacities to preventconflicts and achieve sustainable peace is oneof UNDP’s highest priorities. With a long-termpresence in almost all developing countries,we are on the ground before, during and afterconflicts occur. We provide significant support,especially through our Bureau for Crisis Prevention and Recovery, to strengthen thecapacities of governments, civil society andother actors to resolve disputes constructively.In 2005, as in previous years, we were calledupon to assist countries in post-conflict situa-tions by supporting early efforts to consolidatepeace, reintegrate combatants, jump-start economic recovery and re-establish the rule oflaw. UNDP also works to develop long-termnational capacities to sustain peace, includingthrough the strengthening of economic andpolitical governance.

Increasingly, UNDP’s work focuses on prevention. We help countries address the root causes of conflict, such as inequality,injustice and discrimination, and we strive tostrengthen institutions and mechanisms thatcan help defuse tensions before they degen-erate into full-blown conflicts. We also helpsecure the foundations of justice and provideemployment to ex-combatants to ensure thatcountries that have just emerged from conflictdo not descend back into civil strife.

In Somaliland, an area recovering fromdecades of conflict, a groundbreaking UNDPinitiative, the Rule of Law and Security Pro-gramme (ROLS), offers a path for significantreform. In addition to supporting disarma-ment, demobilization and the removal oflandmines, this programme has helped create a more reliable form of governance by traininglegal professionals and providing free legal aidto vulnerable groups including women andchildren. Another achievement is the ManderaPolice Academy, which is the linchpin of theadministration’s efforts to establish a profes-sional community police force aware ofhuman rights standards. ROLS supports theacademy’s training programme, as well as its operating costs and upkeep, while the gov-ernment covers the staff ’s salaries. The successof this initiative provides valuable lessons that could help design future crisis and recovery programmes in the areas of justice


Preventing conflict and supporting long-term recovery

When there is war, infants are more likely to die

In 2002, as conflict was raging in the eastern provinces of the DRC, the

destruction of infrastructure and lack of services drove the infant mortality

rate up to nearly double the sub-Saharan African average.

deaths per 1,000 live births

............................................................................................................

....................................................................................................................

..................................................................................................................................................................................................................sub-Saharan African average: 108

West Congo: 116 East Congo: 210

Source: 2004 Human Development Report; International Rescue Committee, DRC Mortality Survey 2004

. infant deaths across sub-Saharan Africa. additional infant deaths in the DRC


and security. Based on the model in Somali-land, UNDP also trains police officers in thefederal state of Puntland in northeast Somalia.In April 2006, 151 officers, 19 of whom arefemale, graduated from the recently-establishedArmo Police Academy, following a challengingtraining course covering law enforcement,international standards of human rights,community policing and disarmament.

Natural disasters threaten human develop-ment prospects in many parts of the world.Today, 85 percent of the people exposed to natural disasters live in countries with mediumor low levels of human development. UNDP

helps disaster-affected countries by coordinat-ing donor assistance, as it did in the aftermathof the earthquake that hit South Asia on 8 October 2005. One of the main challenges in dealing with natural disasters is to put theaffected region back on a development track as quickly as possible and in a manner whichreduces future risk. UNDP is ideally placed tomanage the transition between early recoveryand long-term development. In Pakistan, onemonth after the earthquake, UNDP spear-headed the preparation of a Strategic Frame-work for Early Recovery in collaboration withthe wider UN System, civil society and the

The existence of small arms and light weaponsnot only represents a threat to countries that areemerging from conflict; it can also continue toblight the lives of people long after the crisis hassubsided. Four years after the end of a conflictthat brought it close to civil war in 2001, the Former Yugoslav Republic of Macedonia is strug-gling with armed crime, a depressed economy,and ethnic tensions between Albanians andMacedonians. Approximately 170,000 illegalsmall arms are thought to remain within FYRMacedonia’s borders. UNDP has been support-ing national and local authorities in reducing

the supply of illegal small arms, improving security and fostering national reconciliation.More than 13,000 weapons have been collectedand destroyed by authorities, thanks in part to a UNDP-supported awareness-raising campaign.Security has improved considerably in Macedon-ian cities. In Tearce and Vratnica, there have been no murders since the initiative began andno armed incidents in 2005. Moreover, the government adopted a new weapons law andnational action strategy to further advance thedisarmament process.

Tackling small arms in FYR Macedonia

At the Maputo Police

Academy in Mozambique,

UNDP provides training to

young officers as part of a

broader effort to secure

stability and human

development in the

country.

Government of Pakistan. A UN Early RecoveryPlan for Pakistan was launched in May 2006,laying out programmes in priority sectors suchas education, health, water and sanitation,housing, shelter and camp management, aswell as disaster risk reduction. In order toensure a safer future for the residents of thedevastated areas, UNDP worked with Nepal’sNational Society for Earthquake Technology to

raise awareness and build local national capac-ity for earthquake-resistant construction.

In the tsunami-hit region of Aceh, inIndonesia, UNDP has teamed up with theInternational Labour Organization to helptrain the workers needed to meet increaseddemand in the construction industry. Con-struction spending in Aceh and Nias jumpedfrom $50 million to nearly $2 billion a year,

opening up new opportunities for local workers. UNDP helped set up an employmentservices network and is providing vocationaland technical training. To date, more than40,000 job seekers have joined the network andmore than 7,000 have found employment.UNDP is also working with Austcare, a refugee agency, to introduce easy-to-use brickmachines in order to increase brick makers’

output and improvethe quality of con-struction materials.

In Sri Lanka,efforts to supportlong-term develop-ment following the2004 tsunami havefocused on developingthe capacity of publicadministration, localgovernment, civilsociety and the privatesector. With $4.6 million funding fromthe German and Nor-wegian governments,UNDP launched aninitiative aimed atenhancing the capac-ity of local authorities

to improve the sourcing of infrastructure andservices for recovery and reconstruction. Inparticular, we will provide specialized trainingto programme coordinators and selected government employees to strengthen skills inplanning, managing and delivering recoveryand reconstruction services.

In the earthquake-hit

regions of Pakistan,

UNDP helps people

move quickly from the

immediate recovery

phase to long-term

development planning.


Many environmental challenges can only betackled through international cooperation.Climate change, access to sustainable sourcesof energy, the need to safeguard rivers, lakesand coasts from various forms of pollution areall challenges that call for effective multilateralapproaches.

UNDP supports countries’ efforts to protect the environment and manage theirresources efficiently, and promotes cooperationamong countries in tackling common envi-ronmental challenges. One of UNDP’s coreobjectives is to help countries design environ-ment and energy policies that address theneeds of the poor. Inadequate and unequalmanagement of natural resources is a majorimpediment to the transformation of commu-nities in the developing world. When naturalresources are depleted, when pollution threatens the well-being of a country’s popula-tion, the most vulnerable tend to be among the hardest hit. Poor households often dependon access to a diversity of natural resources for their livelihoods; they are often the mostadversely affected by exposure to unsafe water,indoor air pollution, toxic chemicals and other health hazards.

Among natural resources, water plays apivotal role for human development. Today,

over 1 billion people lack access to clean waterand 2.4 billion do not have basic sanitation.The use and abuse of increasingly preciouswater resources have intensified dramaticallyover the past decades, reaching a point wherewater shortages, water quality degradation andaquatic ecosystem destruction are threateningprospects for human development and politi-cal stability. As water resources become scarce,new forms of tension can arise between countries sharing the same rivers and lakes.In order to transform the risks of conflict intoopportunities for cooperation, UNDP estab-lished the Transboundary River Basin Initiative,a platform for dialogue and consensus build-ing for countries that share the same waterresources. Through this initiative, we support36 countries in their efforts to reach agree-ments on the management of shared waters,in partnership with regional and nationalorganizations, including the Mekong RiverCommission, the Nile Basin Initiative and theNiger Basin Authority. Building on this success,UNDP is now expanding its shared waters initiative to the Central Asian Region, where,in collaboration with other UN agencies, it isleading a process that would enable govern-ments to work together on the management of the region’s shared waters.


Protecting our planet to benefit the poor

100%

90

80

70

60

50

40

30

20

10

0

100%

90

80

70

60

50

40

30

20

10

0

Arab States

East Asia & the Pacific

Latin America & the Caribbean

South Asia

Sub-Saharan Africa

population lacking access to clean, drinkable water

population lacking access to sanitation

numbers of people, in millions numbers of people, in millions

36 420 54 212 269 80 932 125 910 407

Populations not receiving clean drinking water or sanitation, by region

Source: Human Development Reports (2004, 2005)

Sound and equitable management ofnatural resources is critical to sustainedpoverty reduction and to the achievement ofthe MDGs. One of the most efficient ways ofensuring that the poor’s environmental concerns are not ignored is to incorporatethese concerns in national policies. Yet, in mostcountries, integrating ‘pro-poor’ perspectiveson the environment into national development

strategies remains a major challenge. UNDP,in partnership with UNEP, is supporting envi-ronment-based policies in Cambodia, Kenya,Nicaragua, Rwanda, Tanzania and Viet Nam.Through this Poverty and Environment Initiative, we helped the Tanzanian governmentintegrate environment into the poverty reduction strategy process. The programmesupported dialogue among policy-makers,NGOs and community groups on poverty-environment linkages and the use of environ-ment indicators in local and national levelplanning. As a result, Tanzania’s new povertyreduction strategy includes actions on usingnatural resources management to alleviatepoverty, empower women and improve government accountability.

Access to affordable sources of energy iskey to poverty alleviation. In Kenya, the high

cost of energy translates into increased pro-duction costs, affecting the competitiveness ofKenyan goods in local and international markets. To help tackle this problem, UNDPhas been assisting small- and medium-sizedenterprises to reduce production costs throughincreased energy efficiency. In particular,UNDP trained managers and engineers on the use of energy-efficient manufacturing

techniques. As a result, many local companieswere able to make significant savings on fuelcosts. This initiative also helps increase accessto financing for profitable projects and pres-ents significant potential for other countries inEastern Africa.

In India, UNDP is supporting governmentefforts to empower poor and disadvantagedcommunities and strengthen their livelihoodsby improving the management of naturalresources. In collaboration with the IndianGovernment and the state governments ofJharkhand, Orissa and Rajasthan, the projectaims at encouraging effective participation ofthe poor—especially women—in the manage-ment and development of natural resources.Working with around 5,000 women’s groupsand 17 civil society partners, the project helpsdisadvantaged women join forces to develop


In a village in Thailand,

families are benefiting

from a UNCDF solar

power pumping station.

The money it generates is

used to send their chil-

dren to school, pay for

food and make essential

repairs to their houses.

Access to sustainable

energy is key to lifting

people out of poverty.

Thanks to the installation

of a hydroelectric micro-

central in the Tirua VIII

region of Chile, the

indigenous community

of Lafquenche de Pallaco

is able to use electricity

for the first time.


sustainable farming practices, run conserva-tion projects and promote the regeneration ofpastures and wastelands. These networks alsolink women with financial institutions andprovide them with the strength and influencethey need to negotiate effectively with localgovernment officials.

Many of the environment issues the worldis facing today, from climate change to ozonedepletion, are global in nature. With fundingfrom the GEF, UNDP supports internationalcooperation to promote sustainable develop-ment. The GEF is a financial mechanism thatsupports action to address critical threats tothe global environment, including biodiversityloss, degradation of land and internationalwaters and persistent organic pollutants.UNDP is one of the implementing agencies ofthe GEF, along with UNEP and the World

Bank. UNDP-GEF has 1,750 projects on theground in more than 155 developing countries.In 2005, in support of these projects, UNDPsecured $284.5 million from GEF and attracted$1.02 billion in co-financing from govern-ments and donors.

Through GEF, UNDP helps countries useenergy more efficiently and reduce greenhousegas emissions. In Viet Nam, where the use of electricity is increasing dramatically as aresult of growing urban populations, UNDPlaunched a $15 million programme in Ho ChiMinh City and in Quy Nhon, in the Binh Dinh Province to promote the use of energy-efficient street lighting. Run in partnershipwith the Vietnamese Academy of Science andTechnology, the project is expected to result inenergy savings of 310 gigawatt hours and green-house gas reductions equivalent to 133 kilotons of carbon dioxide over the next five years.

“The planet does not belong to those in

power.We ought to embrace the Kyoto

Protocol in our own little way. It’s the little

things that we can do that are important.”

Wangari Maathai, 2004 Nobel Peace Prize laureate

HIV/AIDS has a devastating impact on thosewho live with the virus as well as their families.The pandemic also has wide-ranging reper-cussions on all sectors of society and can damage the fabric of entire communities.When teachers die from HIV/AIDS, the children they used to educate lose out; whendoctors and nurses fall ill, hospitals struggle to provide patients with the care they need;

when parents die, their children are often leftto fend for themselves and become vulnerableto exploitation and abuse.

The scale of the crisis points to a majordevelopment challenge. The number of peopleliving with HIV globally has now reached anestimated 40.3 million. In 2005, 3.1 millionpeople died of AIDS-related illnesses; of these,more than 500,000 were children. Even thoughthere is evidence that rates of infection havedecreased in certain countries (includingKenya, Zimbabwe, and some countries in theCaribbean), overall trends in HIV transmissionare still increasing. As a trusted developmentpartner, and co-sponsor of UNAIDS, the JointUN Programme on HIV/AIDS, UNDP worksto prevent the spread of the virus and reduceits impact. We help countries put HIV/AIDS at the centre of national poverty reductionstrategies, we promote coordinated and effec-tive responses to the pandemic and we helpcountries develop the capacity to protect the

rights of people living with HIV/AIDS.In sub-Saharan Africa, where the pandemic

has taken its worst toll, HIV is claiming thelives of society’s most productive members—farmers, doctors, teachers, civil servants,scientists and agriculture workers. A strategydeveloped by UNDP—the Southern AfricaCapacity Initiative (SACI)—aims to helpSouthern African countries address the impactof capacity erosion in key sectors, includingpublic services, agriculture, health, educationand the private sector. This $42 million initia-tive helps governments to develop policies thatrespond effectively to the unique challenges of providing services in the HIV/AIDS era—developing leadership capacity and skills, andempowering institutions to continue func-tioning and delivering services. We also helpcountries cope with the loss of skilled publicsector workers by expanding training oppor-tunities and laying the foundations for long-term human resources strategies.

In Botswana, SACI helped the Directorateof Public Service Management improve theefficiency of human resources management by cutting red tape and simplifying lines ofreporting. A similar approach was adopted inSouth Africa to identify bottlenecks and takeremedial action in the KwaZulu Natal andLimpopo health sectors. Increased efficiency in record-keeping and scheduling led to sig-nificant reductions of hospital waiting times.In Lesotho, Malawi and Zambia, SACI helpedgovernments seize information and communi-cation technology opportunities and assessedthe challenges presented by e-governance toimprove service delivery in the public sector.SACI is also benefiting from UNDP’s corpo-rate partnership with Microsoft through therecently established Shared Solution Networkportal, which facilitates knowledge sharingamong various key stakeholders. The SACIframework has been adopted by the UNRegional Team as a key capacity developmenttool that could be used by several UN agencies.Other African countries are now looking tojoin this initiative.

In Asia—where the number of people liv-ing with HIV/AIDS rose from 7.1 million in2003 to 8.3 million in 2005—a flagship UNDPcapacity development programme, Leadership


Halting the spread of HIV/AIDS

UNDP is helping to tackle HIV/AIDS on all fronts

2005 expenditures go into building leadership, advocating for change

and shaping policies.

$US millions

Advocacy and communication $13.9

Policy formulation andimplementation $108.9

Leadership and capacity development $38.7

Source: Office of Finance, UNDP

for Results, has made a measurable impact onthe fight against HIV/AIDS. In China, the programme helped transform institutionalstructures by giving officials the tools to coordinate HIV/AIDS policy more effectivelyamong different government departments.The programme supported efforts to promotegreater openness about HIV/AIDS, more widespread education about the epidemic,

and increased tolerance for people living withthe virus. In the city of Xintai, in the Shandongprovince, a successful initiative was developedto spread awareness about the pandemic, reachout to vulnerable groups and provide supportfor HIV-positive individuals. These efforts areall the more important given that knowledgeabout HIV/AIDS and the way it is transmittedremains limited in China, particularly amongthe rural population and migrant workers. Ajoint initiative between UNDP and the China-

based EPIN Technologies, a leading player inthe country’s new media industry, contributedto raising awareness about HIV/AIDS byshowing education clips onboard trains inChina. By using EPIN’s plasma advertisementoutlets, this campaign will reach millions ofpassengers, highlighting the basic facts aboutHIV and the need to treat those living with the virus with respect and tolerance.

One of the main hurdles in the fightagainst HIV/AIDS is the stigma and discrimi-nation suffered by those who live with HIV.Fear of rejection often prevents people fromseeking medical help and support services.Moreover, the threat of stigmatization stopspeople at risk from getting tested, thus ham-pering efforts to halt the spread of the virus.In Latin America and the Caribbean, UNDPused its Leadership for Results programme tolaunch a number of sensitization initiatives.In the Dominican Republic, for instance, ourefforts focused on helping to tackle the spreadof HIV/AIDS among the armed forces—ahighly vulnerable group. We supported theestablishment of a Network of Military Educators, the first of its kind, to help promoteunderstanding and tolerance for those who live with HIV/AIDS among officials andrecruits. Building on this success, UNDP alsoworked with a large group of people livingwith the virus to improve their leadership


The number of people living with HIV

globally has now reached an estimated

40.3 million. In 2005, 3.1 million people

died of AIDS-related illnesses; of these,

more than 500,000 were children.

In November 2005, UNDP

trained 30 leaders of

HIV/AIDS groups in the

Dominican Republic to

help strengthen their

skills in promoting greater

tolerance towards people

living with HIV within

their communities.

capacities and help them negotiate effectivelywith government officials and serviceproviders. The training we provided gave them the tools and skills needed to have a significant impact within their communitiesand help bring about a change in attitudestowards the epidemic.

In the Arab region, UNDP has been work-ing closely with governments, civil society andreligious groups to increase awareness aboutHIV/AIDS and build leadership to break thestigma associated with the virus. In collabora-tion with UNAIDS, UNDP mobilized religiousleaders from the Arab region to speak outabout HIV/AIDS. As a result, in December2004, more than 80 key religious figures from18 Arab countries signed the ‘Cairo Declara-tion’ calling for solidarity with those who livewith HIV. Since then, five sub-regional work-shops have been held to help religious leadersgain a better understanding of the reality ofHIV/AIDS in the region and its impact oncommunities. According to Sheikh TuhamyRagy, senior Muslim religious leader inMorocco, “After my participation, I immedi-ately started to contact Imams and Ullama andformed ‘rings’ to train them on HIV/AIDSwork. Each ring has 10 major leaders. Tens ofthousands listen to the messages of these leaders each week. We faced difficulties; leaders

were hesitant to speak about these issues…but we used references from the Koran andgradually the silence is breaking down and theleaders are catching the vision.”

The HIV/AIDS pandemic represents a significant threat to development, stability and growth prospects in many countries.The level of funding mobilized to meet this challenge must therefore be proportionate to the magnitude of the crisis. One of the principal resources for large-scale HIV/AIDSprogrammes on prevention, treatment andcare is the Global Fund to Fight AIDS,Tuberculosis and Malaria. Using its broad-ranging experience in fund management andprocurement, UNDP is responsible for theimplementation of projects financed by theGlobal Fund in 26 countries around the world.In Belarus, for instance, we helped secure a$6.8 million grant from the Global Fund tosupport prevention initiatives among drugusers, commercial sex workers and prisoners.In 2005, UNDP began training over 500 out-reach workers and specialists, who will, for the first time, provide advice and support tothousands of young people whose lives havebeen shattered by the use of drugs. UNDP isalso addressing the issue of HIV/AIDS in prisons through the training of 1,800 medicalpersonnel and volunteers who offer counsel-ing, care and support to prisoners. This is one of many large-scale projects financed bythe Global Fund in which UNDP has beenworking closely with governments to developnational capacities to halt the spread ofHIV/AIDS.


Journalists can play an

important role in counter-

ing AIDS-related stigma

and discrimination. In

Cairo, UNDP supported a

training programme to

sensitize media profes-

sionals who report on

HIV/AIDS.

Empowering women is critical to advancinghuman development and achieving progresstowards the MDGs. Gender equality is and will always remain an end in itself. But we mustalso recognize that when women suffer abuseand discrimination, when they do not play anactive role in shaping the world around them,everyone in society loses out. Making headwayin alleviating poverty and promoting equitable

growth is inextricably linked to improvingwomen’s lives and increasing their participa-tion in decision-making. Women’s empower-ment helps raise economic productivity andreduce infant mortality. It contributes toimproved health and nutrition. It increases thechances of education for the next generation.

The past 12 months have seen significantchanges on the political front, with the election

of Africa’s first woman President in Liberia,Ellen Johnson-Sirleaf, and Chile’s first womanPresident, Michelle Bachelet. There are now 11 women Heads of State or Government,in countries on every continent. But despitethese achievements, progress towards genderequality remains painfully slow. Seventy percent of the 130 million children who areout of school are girls. Women account fortwo-thirds of the 960 million adults in theworld who cannot read. Of the world’s one billion poorest people, three-fifths are womenand girls. With notable exceptions, such asRwanda and the Nordic countries, women areconspicuously absent from parliaments,making up, on average, only 16 percent ofparliamentarians worldwide.

Taking women’s empowerment seriouslymeans putting gender equality at the centre ofthe human development equation. In Ukraine,through UNDP’s Equal Opportunities Pro-gramme, state officials and parliamentarianslearned how to design programmes and budgets that help empower women, and repre-sentatives of law enforcement agencies weresensitized to violence against women. As aresult of these and other initiatives, the impor-tance of women’s empowerment is now beingrecognized in the Ukrainian government. In


Empowering women to transform societies

7,1956,564

6,0315,837

5,6445,2905,044

5,034

20001999 2001 2002 2003 2004 2005 2006

20%

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

0

Women in politics: progress, but slowly

Women as percent of total parliamentarians worldwide, 1999-2006

Women’s empowerment helps raise

economic productivity and reduce infant

mortality. It contributes to improved health

and nutrition. It increases the chances of

education for the next generation.

Source: Inter-Parliamentary Union

actual numbers of womenin parliaments worldwide

2005, the Verkhovna Rada (Ukraine’s Parlia-ment) adopted the “Law on equal rights andopportunities for women and men” and threewomen have since been appointed heads ofregional administrations. UNDP is working onsimilar projects with other parliamentariansand government officials in the region to sup-port women’s political participation.

Gender inequality is a major obstacle toending poverty and meeting the MDG targets.An effective way of tackling this gender gap isby helping governments develop budgets thatreflect the specific needs and interests ofwomen. Analyzing national budgets from theperspective of their impact on women andmen, boys and girls, promotes equity acrossthe development spectrum by identifying whois allocated what in diverse development fields,including education, health and employment—areas that are crucial to empowering people

and reducing poverty. Through a partnershipwith the Japan Women-in-Development Fund,UNDP sponsored the training of developmentpractitioners, economists and representativesfrom ministries of finance from more than 50 countries in gender budgeting. Today, aninternational pool of over 90 specialists areengaged with their own countries in spreadingthe knowledge they have gained and provid-ing technical support to carry out genderbudget audits.


In December 2005, UNDP,

UNIFEM and the UN

Mission in DRC provided

technical and financial

support to the national

Independent Electoral

Commission to ensure

women’s participation in

the country’s constitu-

tional referendum. As a

result of these efforts, over

50 percent of all voters

were women.


Human development is a complex process that requires the participation of many differ-ent players. No organization can do it alone.Strengthening countries’ capacities to developstrong and prosperous societies requires coop-eration among a large network of partners,including donor countries, the private sector,civil society, international financial institutionsand regional bodies. As a natural and impartial

broker and catalyst, UNDP brings people andorganizations together in ways that advancehuman development.

UNDP is expanding its partnerships withcivil society organizations (CSOs) as they areplaying a prominent role both in helping toshape poverty reduction policies and in deliv-ering projects on the ground. Dialogue andcooperation have been enhanced through theCSO Advisory Committee, which provides

UNDP with strategic advice on a range ofhuman development issues. In 2005, CSOs’significant contribution to policy dialogues has been enhanced by a number of UNDP-sponsored activities, including the CommunityCommons Dialogue held at Fordham Univer-sity in New York. In April 2006, the CSO Advisory Committee met with UNDP’s seniormanagement to discuss a range of issuesincluding the UN reform process, trade capac-ity development and conflict prevention.Under a $2 million programme funded by theSNV Netherlands Development Organisation,local civil society groups in 15 countriesreceived funding to enhance their participationin the development of MDG-based povertyreduction strategies. In addition, a small grants programme to help community-based organi-zations support crisis prevention and recoveryactivities was successfully piloted in Colombia,Liberia and Sri Lanka.

UNDP also capitalizes on the strengths ofthe private sector by helping to broker partner-ships among large corporations, governments,NGOs and local entrepreneurs. Through itsinnovative Growing Sustainable Business(GSB) initiative, for example, UNDP workswith the private sector to identify and developconcrete business investments that meet local

As a natural and impartial broker and

catalyst, UNDP brings people and organ-

izations together in ways that advance

human development.

Brokering partnerships for development

Until recently, most Iraqis relied on foreignmedia for news on their own country. Now,thanks to Voices of Iraq, a recently-establishedonline news agency, they have access to up-to-date, professional reporting produced by Iraqisfor Iraqis. In 2004, UNDP teamed up with theReuters Foundation, a charitable trust specializ-ing in journalism training, to set up an online‘news-exchange’ platform to allow Iraqi reportersto share their stories. With additional fundingfrom the Spanish Agency for International Coop-eration, this network has now become a fully-fledged news agency, which provides breakingnews to local, regional and international media.Staffed and run by local journalists reporting ontheir own people and government, this news

agency, the first of its kind in Iraq, constitutes animportant step towards the development of afree, open and transparent democratic debate.Voices of Iraq (www.aswataliraq.info) publishesover 600 news items a month, providing a fullpicture of developments affecting local commu-nities countrywide. The reports, published inArabic, English and Kurdish, are drawn from anetwork of independent reporters and a group ofcontributing media organizations, includingthree of Iraq’s key independent newspapers. Inaddition, last year, training courses were offeredto 51 reporters, 18 of them women, looking tohone their journalistic skills.

The new voice of Iraqi journalists

demands, stimulate local entrepreneurship andhelp reduce poverty. The aim is to encouragebusinesses that target developing countries’markets and improve links between big com-panies and small local enterprises. By seekinginnovative public-private solutions that use the resources large companies already have intheir arsenal, the initiative helps match com-pany interests with country priorities and

appropriate development partners.In line with the Global Compact, a pio-

neering international initiative of the UN Sec-retary-General to fight corruption, promotehuman rights and support labour and environ-mental protection, the GSB is founded on theunderstanding that economic development ofthe poorest countries is of fundamental long-term interest to the global community. It alsoassumes that businesses should be encouragedto participate in pro-poor development by theprospect of long-term expansion of markets.Finally, the GSB initiative recognizes theurgent need to attract more investments andbusiness to the world’s LDCs, a group ofcountries that represents 12.5 percent of thedeveloping world’s population, but only 1.5percent of gross foreign direct investment flows.GSB’s investment projects span a broad range

of sectors, ranging from rural telecommunica-tions to agriculture supply chains and small-and medium enterprise financing. Launched in2002, the programme secured the participationof an array of companies, including Ericsson,Société Générale, Total and Unilever. With aportfolio of investments ranging from$200,000 to $23 million in size, the initiativehas been introduced in El Salvador, Ethiopia,

Kenya, Madagascar, Serbia and Montenegro,Tanzania and Zambia. In Tanzania, for example,Unilever is working with the World Conserva-tion Union, the SNV Netherlands DevelopmentOrganisation and the World Agroforestry Centre to encourage local communities andsmall businesses to cultivate the seeds from theAllanblackia tree—commonly found in partsof west, central and east Africa—for the manu-facture of products such as soap and mar-garine. The aim is to generate income for localfarmers, while benefiting the company in thelong run, as the market for Allanblackia oildevelops. Building on these achievements, theGSB can open significant growth opportuni-ties for developing countries, as more compa-nies put their weight behind the initiative.

The ever closer integration of the globaleconomy has opened up new opportunities for

UNDP supports training

programmes to help

Afghans seize new oppor-

tunities presented by

information and commu-

nication technology.

Until four years ago, the

internet was banned in

Afghanistan.


cooperation among developing countries. Inthe area of trade, over 40 percent of all devel-oping country exports go to other developingcountries and South-South trade is increasingat an annual rate of 11 percent—nearly twiceas fast as total world trade. Stronger collabora-tion among developing countries can also helpaccelerate progress towards the MDGs: fromHIV/AIDS health care provision to world-classresearch centres, developing countries harboursignificant pools of knowledge and excellencethat can be tapped to support human develop-ment efforts. That is why, through its SpecialUnit for South-South Cooperation, UNDPhelps developing countries work together toformulate policies, share information, and

agree on common priorities to create theirown solutions to the problems they face. Forexample, we helped civil society organizationsin Sri Lanka benefit from India’s experience in developing institutional capacity amongNGOs. We have also been fostering South-South initiatives aimed at tackling the spreadof HIV/AIDS. Under a UNDP-sponsored project, Thailand is donating 50,000 condomsto seven African countries. The project is being funded by the Thai government withUNDP facilitating the shipping and distribu-tion to Burkina Faso, Gabon, Ghana, Kenya,Mali, Nigeria and Uganda.


Looking at a satellite picture of the Earth at nightprovides a startling illustration of our planet’sdevelopment inequalities: while much of theindustrial world is awash with bright artificiallight, most developing countries, particularly inAfrica, are drowned in darkness. Without accessto electricity, businesses cannot grow, hospitalscannot run, schools are paralyzed and the hugepotential offered by information and communi-cation technology cannot be seized. Yet, in theareas of the world where the need for develop-ment is most urgent, electricity supply is oftenvery poor. In Madagascar, less than three percentof people living in rural areas have access to elec-tricity. The island’s region of Sava is renownedfor its vanilla production, but the potential bene-fits are far from fully reaped due to chronic

Lighting up Madagascar

energy shortages. In order to tackle this problem,UNDP, through its GSB initiative, helped forge apartnership among three large electricity pro-ducing companies (France’s EDF, Germany’sRWE and Canada’s Hydro-Québec) to provideaffordable electricity to Madagascar’s vanilla-producing area, as well as surrounding villages.With a total investment of $19 million, the par-ticipating companies will use new technologyand distinct pricing structures for small- andmedium-sized enterprises, government and villages, generating a return of 17 percent. Inaddition to injecting new energy into one of themost profitable sectors in Madagascar, the proj-ect will increase access to education, health,water and sanitation for rural populations andwill reduce reliance on diesel and forest wood.

25 Strengthening national strategies to achieve the MDGs

The year 2005 saw renewed global sup-port for the fight against poverty andthe achievement of the MDGs. G8

leaders, meeting in Gleneagles, Scotland, inJuly agreed to write off the debt owed by someof the poorest countries. Fifteen EuropeanUnion countries committed themselves toincreasing aid levels to 0.7 percent of GrossNational Income by 2015 and the United Kingdom-sponsored Commission for Africahelped secure further support for developmenton the continent. The widespread MakePoverty History campaign and the overwhelm-ingly generous public response to the IndianOcean tsunami also pointed to a growing senseof solidarity among people around the world.The 2005 World Summit, held at the UN inNew York in September, produced the “strongand unambiguous commitment by all gov-

ernments, in donor and developing nationsalike, to achieve the Millennium DevelopmentGoals by 2015.”

Meeting the MDGs presents a significantchallenge to developing countries and theinternational community—but not an insur-mountable one. The world has the financial,technical and economic means to achieve theMDGs, and national efforts to meet them arebeing supported by a global coalition ofdevelopment partners—including bilateraldonors, UN agencies, regional developmentbanks and the Bretton Woods Institutions.

Progress now depends on operationalizingthe MDGs at the country level—translatingthe goals into national policies, incorporatingthem into key economic decisions andnational development strategies. The need tofocus national development policies morestrongly on the MDGs within a flexible frame-work, allowing for national priorities andspecificities, was one of the central recom-mendations of the UN Millennium ProjectReport Investing in Development: A PracticalPlan to Achieve the Millennium DevelopmentGoals, published in January 2005. Headed byJeffrey Sachs and supported by UNDP, the Millennium Project is an independent advisory body charged with putting forwardthe best strategies for achieving the MDGs.Its Report stresses the primary importance ofindividual developing countries adoptingstrategies ambitious enough to meet the MDGsat the national level.

The Millennium Project has supportedseveral developing country governments intheir efforts to prepare MDG-based povertyreduction strategies. The lessons learnedformed the basis for a handbook on Preparing National Strategies to Achieve the MillenniumDevelopment Goals, published in 2005.

Strengthening national strategies to achieve the MDGs

Achieving the MDGs requires bold and long-term strategies

Building the MDGs into national development makes success more likely.

Adapted from Preparing National Strategies to Achieve the MillenniumDevelopment Goals: A Handbook, UN Millennium Project, 2005

MDGs

2015

revise

d stra

tegy b

ased

on M

DG n

eeds

ass

essm

ent

typical national development strategy today

MDG needs assessment

capacity development

scaling up resources

pro-poor growth

. . . reaches MDGs

. . . falls short of MDGs

Working backward from the MDG targets todefine the policies and investments neededbetween 2005 and 2015, the handbook putsforward strategies to align existing planningprocesses with the MDGs.

These efforts are now being complementedby an Integrated Package of Services, devel-oped by the Millennium Project and UNDP,and aimed at helping governments translate

the MDGs into reality. The integrated packageconstitutes a ‘one-stop-shop’ that providesgovernments with a range of capacity develop-ment services. It is based on a three-prongedapproach: First, it is designed to help countriesbroadly assess what technical and financialresources are needed to achieve the MDGsover the long term. Using its experience insupporting country-level MDG Reports,

UNDP facilitates the translation of the MDGsinto national policy frameworks by helpingcollect and analyze data on poverty, examiningoptions for expanding the public revenue baseand assessing a country’s capabilities for planning, resource management and policy-making. Second, UNDP helps countries identify and develop the policy frameworksneeded to promote long-term human development. It advises on formulating policies,developing knowledge and skills and buildinglearning networks to support national strate-gies targeted towards the poor. Third, onceMDG-based policies have been developed,the challenge is to implement them. UNDPhelps governments strengthen their capacity todeliver by supporting, for example, publicadministration reforms, enhanced accounta-bility mechanisms and a stronger role for thedomestic private sector.

The integrated package of services alsohelps pull together the UN’s efforts to achieveprogress on the MDGs and incorporate theminto a unified development agenda. It providesa framework for UN Country Teams to capi-talize on their expertise and harmonize theirdevelopment work while offering opportu-nities of closer collaboration with the BrettonWoods Institutions.


Through local development and microfinanceprogrammes, the UN Capital Development Fund(UNCDF) helps reduce poverty in the leastdeveloped countries (LDCs).

UNCDF, in partnership with UNDP, helpsdevelop the capacity of local governments toinvest in infrastructure and services for the poor.In 2005, UNCDF supported Local DevelopmentProgrammes and Local Development Funds in23 LDCs. In collaboration with local govern-ments and communities, nearly 3,000 investmentprojects (including markets, roads, health clinics,schools, wells and small-scale irrigation) werecarried out, benefiting around 4 million people.In 18 LDCs, women’s groups and associationsreceived funds for implementing projects focus-ing on income-generating activities.

In 2005, UNCDF strengthened its focus onbuilding financial sectors that include microfi-

UNCDF: Small investments deliver big returns for the LDCsnance and ensure that the poor have sustainableaccess to financial services. Two new inclusivefinance programmes were launched, with sixcountries now applying UNCDF’s financial sec-tor development approach. Microfinance institu-tions currently supported by UNCDF providedfinancial services to more than 400,000 clients,almost half of them women. Moreover, UNCDFcoordinated the programme of activities for the2005 International Year of Microcredit in closecollaboration with the UN Department of Eco-nomic and Social Affairs and UNDP. This initia-tive helped raise public awareness aboutmicrofinance and promote innovative partner-ships among governments, donors, the privatesector, NGOs and microfinance clients.

The world has the financial, technical and

economic means to achieve the MDGs,

and national efforts to meet them are

being supported by a global coalition of

development partners.

The rollout of this new set of servicesstarted in January 2006. In Niamey, Niger andDar-Es-Salaam, Tanzania, UNDP broughttogether senior government officials, policyspecialists, UN economists, academics, civilsociety leaders and representatives of inter-national financial institutions to work towardseffective planning and implementation ofMDG-based development strategies. Othertraining programmes have been held in Mongolia and Pakistan where governments are now working on MDG-based nationalstrategies, and more will take place in otherregions, based on country demand.

Finally, support for the MDG effort isbeing sustained around the world by the Millennium Campaign and its partners. Aninitiative of the UN, the Campaign brings

together civil society groups, youth organiza-tions, parliamentarians, trade unions and thewider public who use their commitment andcreativity to encourage governments to keeptheir promises to achieve the MDGs. Since itwas created in 2002, the Campaign, which isfinanced by a trust fund administered byUNDP, has generated over 40 national MDGcampaigns. In 2005, it stepped up its action bylaunching a toolkit to assist individuals andcivil society groups in campaigning for theMDGs. In addition to building advocacy skillsand providing practical tips, the manual offersways of achieving enhanced results by linkinggroups together nationally and globally.


Millennium Development Goals

The eight Millennium Development Goals (MDGs), a set of time-bound goals designed to respond

to the world’s main development challenges, are drawn from the Millennium Declaration that was

adopted unanimously by world leaders at the UN Millennium Summit in September 2000.

Source: UNDP Brazil

Over the past decade, the world economy hasexperienced high levels of growth. During thatperiod, expansion in world merchandise tradehas been nearly twice as high as world outputgrowth. In 2005, the value of world merchandiseexports reached the $10 trillion mark for thefirst time. Not everyone, however, has benefitedfrom this progress. Inequality, both globallyand within countries, is rising. In many devel-oping countries where the economy has beengrowing steadily, income gaps have widened.In South Africa, for instance, which hasenjoyed an average growth rate of 3.9 percentover the past three years, the poorest 10 per-cent of the population account for 1.4 percentof national income, and the richest 10 percentfor 44 percent. While economic growth is animportant driver of development, high rates ofGross Domestic Product (GDP) growth,budget surpluses and foreign exchange reservesare of limited value if they are not accompa-nied by a more equitable distribution ofresources, improved access to healthcare andeducation, and sound environment policies.This human development approach has beenat the core of UNDP’s work for over 15 years.By putting people at the centre of the develop-ment process, UNDP helps countries draftpolicies that address the needs of the poor.

UNDP also promotes people-centereddevelopment through the production ofHuman Development Reports (HDRs). Sinceits launch in 1990, the HDR has become one of the most respected and authoritativesources of knowledge and insight about globaldevelopment issues, as well as a valued tool for influencing policy. Commissioned byUNDP, the HDR is independently produced by a select team of leading scholars and devel-opment practitioners. Each Report focuses on a highly topical theme in the current devel-opment debate, providing ground-breakinganalysis and policy recommendations. TheHDR series advocates a shift in the develop-ment debate away from a sole concern witheconomic growth toward a balanced concernfor equity, sustainability, productivity andempowerment. The Report’s signature trade-mark, the Human Development Index,serves as a successful alternative to GDP as ameasure of development.

In addition to the global HDR, UNDPsupports the publication of regional reports—which promote partnerships andregion-specific human development strate-gies—and national reports, which provide platforms for national policy debates and toolsfor measuring progress. To date, more than

Promoting human development


In Brazil, as in other parts

of the developing world,

access to clean, drinkable

water is an everyday

challenge. Focusing on

the growing crisis sur-

rounding access to water,

the 2006 Human Develop-

ment Report will put for-

ward solutions to ensure

that the interests of the

poor are at the centre of

water management.

550 national and sub-national HDRs havebeen produced by 135 countries, in addition to30 regional reports.

Global, national and regional HDRs aremuch more than just publications. They are dynamic advocacy tools created through a process of broad participation and activeengagement within countries—with govern-ments, academics, civil society organizations

and other partners—and across regions.Because they offer flexibility, and because

they are grounded in national and regionalperspectives, the HDRs are ideally placed tomake an impact on policies and practices.Non-governmental groups turn to the reportsto monitor progress and hold governmentsaccountable, while journalists use them as areporting resource. Over the years, the HDRshave resulted in the formation of vibrantnational and international communities with agrowing commitment to human development.

Here are a few concrete examples of the impactof HDRs:

2005 HDR: International cooperation at a

crossroads

Launched in the run-up to the 2005 WorldSummit, this HDR took stock of human devel-opment globally. It examined progress towardsthe MDGs, highlighting the human cost ofmissed targets and identifying inequality as amajor barrier to human development. It was a call for action to the world’s governmentswho signed the Millennium Declaration. Forexample, the government of India decided torevise public expenditure in health in order to tackle the persistently high under-five mortality rate, which was emphasized in the2005 HDR.

Arab states: The power of knowledge

The 2003 edition of the Arab HDR looked at how knowledge deficits hinder humandevelopment in Arab countries. It laid out avision of a future knowledge society built onpolitical freedoms, high-quality education andinnovation. Among the results of the Report,a number of Arab countries are upgrading thetechnology skills of primary school teachers inmathematics and science, and assessing gapsbetween higher education and labour marketdemands. New regional initiatives include thelaunch of an Arab Higher Education QualityAssurance Agency and the establishment of thefirst Arab Regional E-Government Institute,headquartered in Amman, Jordan, as well asthe development of partnerships to strengthensocial science research and science policy in the region.

Kosovo: Mapping participation by the numbers

Produced in an election year, the 2004 KosovoHDR identified wide variations in humandevelopment across different communities.It advocated steps to deepen democracy andimprove living standards, including governancereforms, the closure of growing gaps betweensocial groups and the mobilization of civilsociety. Following the publication of theReport, a new law was passed to carry out apopulation and housing census. The Reportalso helped prompt the adoption of a new lawon decentralization. In addition, the PrimeMinister’s office has created the Office for Public Safety to move towards democraticoversight of the security sector.


Since its launch in 1990, the HDR has become

one of the most respected and authoritative

sources of knowledge and insight about

global development issues, as well as a val-

ued tool for influencing policy.

UNDP is also the funder and manager of theUN Resident Coordinator (RC) system, andpromotes greater synergy in UN operationalactivities in developing countries. UNDP hasbeen working to enhance its ability to fulfil itsmission for the UN development system, bothat the country and headquarters levels.

UNDP is currently taking the lead instrengthening the role of the RC. In particular,it is spearheading efforts to put in place a newappraisal system, which is aimed at giving theRC increased authority to speak as the voice ofthe UN, to promote new development strate-gies and to create partnerships that heightenthe impact of programmes on the ground.

With increased functions and responsibili-ties, there is an urgent need to provide greatersupport to the RC, especially in countries withlarge UN Country Teams, and those with complex UNDP programmes. UNDP hasalready begun appointing Country Directorsto run UNDP’s day-to-day operations in someof these countries. It has identified funding for15 such positions and is mobilizing resourcesto fund another 24. In addition, we are work-ing to strengthen UNDG leadership at theregional level and moving towards the estab-lishment of integrated UN Country Teamsunder the concept of ‘One UN Programme’,which will help rationalize UN activities at the country level.

In response to a call in the 2005 UN World Summit Outcome Document for moreeffective coordination of UN activities, theSecretary-General established the High-levelPanel on UN System-Wide Coherence in theAreas of Development, Humanitarian Assistanceand the Environment, of which the UNDPAdministrator is an ex-officio member. UNDPis supporting the work of this group, whichwill explore a range of options on how best to


Many of the challenges the worldfaces cannot be effectivelyaddressed at the level of individual

nations. From environmental degradation toglobal health crises, from nuclear proliferationto financial volatility, concerted action at aglobal level is clearly needed. That is why theUN, as a truly global organization, has such acrucial role to play. But if it is to addresstoday’s urgent challenges effectively, the UNmust undertake a process of reform andrenewal—as was recognized at the 2000 Millennium Summit and again at the 2005World Summit. Achieving greater UN coher-ence is also the objective of a new high-levelpanel established by the Secretary-Generalearly in 2006. UNDP, at the heart of the UNdevelopment system, has a key role to play insupporting this overall agenda for change.

Shaping tomorrow’s UN: UNDP’s role

UNDP is a leading member of the UN Devel-opment Group (UNDG), the coordinatingumbrella for all UN funds, programmes anddepartments working on development issues,which is chaired by the UNDP Administrator.

Supporting the UN agenda for reform

“We need to ensure greater coherence,

both among the various United Nations

representatives and activities in each

country and in the wider United Nations

system, particularly in the economic and

social fields.”

from In Larger Freedom: Towards Development, Security and Human Rights for All

strengthen the coordination of UN activitiesworldwide.

Greater cohesion is also needed to deliverdevelopment outcomes in countries that haveexperienced conflict. The creation of the newPeacebuilding Commission—a key outcome of the 2005 World Summit—will help the UN and its agencies move towards a moreintegrated approach to post-conflict recovery.UNDP has been working to support the Peacebuilding Commission, and will act as the fund manager for an associated peace-building fund. UNDP is also actively engagedwith the UN Department of PeacekeepingOperations and other parties in improving

the planning process for UN integrated mis-sions and in ensuring a smooth transitionfrom humanitarian to recovery efforts, in collaboration with UNDG and the UN Officefor the Coordination of Humanitarian Affairs.

One of the key challenges UNDP faces ishelping developing countries address under-lying cross-sectoral capacity constraints. In2005, UNDP’s Executive Board agreed to dedi-cate core programme resources for UNDP’sefforts in leading the UN system towardsstrengthening such national capacities. For theperiod 2006-2007, an estimated $210 millionwill be available for such UNDP-led capacitydevelopment initiatives that are expected tosupport the activities of the wider UN systemand other development partners in theirrespective sectoral areas. More broadly, the initiatives should support the work of theinternational development community, help-ing to ensure that official development assistance is used wisely, effectively and effi-ciently—and, as a result, helping to supportdeveloping countries in their efforts to achievethe MDGs.

The mechanisms UNDP has developed to facilitate the sharing of information andknowledge among its staff can also benefit the UN system as it moves to transform itselfinto a knowledge-based organization. A decade ago, UNDP began to create knowledgenetworks that connect staff around commonprofessional interests. Today, there are 22knowledge communities—including threeknowledge networks open to other UN agencies and external partners. With over14,000 participants in total, these are vibrant

31 Supporting the UN agenda for reform

On 19 January 2005, UN

Secretary-General Kofi

Annan and Nigeria’s Presi-

dent Olusegun Obasanjo

inaugurated the UN

House in Abuja. UNDP is

leading efforts to create

joint UN Offices in order

to bring greater coher-

ence to the work of UN

Country Teams.

In Guyana, ethnic tensions during election peri-ods present serious challenges to objectivereporting for the local media. Prior to the 2006elections, UNDP was approached by the Govern-ment and the private media to help create a moreconstructive media environment in the run-upto the polls. Chris Spies, Peace and DevelopmentAdvisor and Mike James, programme Officer at UNDP Guyana placed a query through theknowledge networks and received 22 responsesthat highlighted experiences from a number ofcountries, including Cambodia, Indonesia, Iraq,

Kosovo, Mozambique and Pakistan. One of themost useful responses came from Trinidad andTobago, where a code of conduct on the behav-iour of the media during election time proved of particular interest. “I found that consultingthe global knowledge network provided a goodbalance and gave a broad perspective” said Mr.James. According to Mr. Spies, “the network gaveus a stronger sense of community as we were able to feel that you can receive informationfrom the network and feel a sense of solidarity.”

Sharing knowledge to improve media reporting in Guyana

communities of expertise that operate aroundthe clock. Our ability to provide countries withpractical knowledge is enhanced by our net-work of policy centres—the InternationalPoverty Centre, based in Brasilia, the NairobiDrylands Development Centre and the OsloGovernance Centre. These hubs of knowledgehelp improve the impact of our activities onthe ground by providing our country officeswith the most up-to-date ideas about a widerange of development issues.

UNDP’s own successful experience inknowledge networking means it is now in alead position to support new knowledge-sharing mechanisms within the UN and stim-ulate closer cooperation among UN agencies.UNDP’s pioneering knowledge communities

model is already being used in the UN systemin a number of areas, including human rights,debt management and crisis prevention. Thereare now over 10 UN agencies collaboratingwith UNDP on different approaches to knowledge management. Under the auspices of UNDG, we are leading the work of a newPolicy Network, which provides technical support to 18 UN Country Teams.

The relevance of UNDP’s reform experience

UNDP can help provide useful templates formanaging change based on its own manage-ment reform experience. Over the last sixyears, UNDP has undertaken a programme ofradical transformation, leading to widely-recognized gains in institutional coherence andunprecedented growth in the scale of its activi-ties. The organization has markedly improvedits ability to deliver development results,including through a clearer strategic vision,stronger programme focus and more effectiveUN coordination. The lessons learned fromthat experience can help enhance the UN orga-nizational reform agenda as outlined in theSecretary-General’s Investing in the UnitedNations: for a stronger organization worldwide,and facilitate its implementation.

UNDP’s reforms have made it moreaccountable and transparent. In 1999, it introduced a Multi-Year Funding Framework(MYFF) as a pledging mechanism under whichdonors could link their financial contributionsto results, programme performance and aideffectiveness. The Framework brings togetherprogramme objectives, resources and outcomeswithin a single strategy document. In addition


In 2005, the first joint UN country programmewas developed in Cape Verde. For the first time,the UN team in that country agreed on a com-mon programme document and a single actionplan reflecting the priorities and objectives ofUNDP, the UN Population Fund (UNFPA), theUN Children’s Fund (UNICEF), and the WorldFood Programme (WFP). Bringing UN pro-grammes under one banner not only helps har-monize budgets and activities, it also strengthens

The UN under one roof: the Cape Verde experiencethe UN’s support to Cape Verde by avoiding theduplication of projects and identifying new areasfor complementary interventions on the ground.This new model is also expected to lead to areduction in transaction costs both for the UNjoint office and for its national partners. Thisunified approach constitutes an important steptowards a more integrated and coherent UN sys-tem. Twenty joint offices are being planned inother countries.

Mr. Dervis meets with

high school students dur-

ing a visit to Albania in

April 2006.The students

are taking part in a UNDP-

supported initiative

aimed at increasing coop-

eration between local

communities and the

police.They discussed

with the Administrator

what they had learned,

about the dangers of

human trafficking, drugs

and alcohol abuse.

to being a key instrument for effective internalmanagement, the MYFF also allows donorsand stakeholders to monitor the performanceof the organization and measure its achieve-ments against human development objectives.The introduction of the MYFF transformedUNDP into a results-based organization.At the same time, the MYFF continues to beenhanced based on lessons learned over thepast six years.

UNDP also made significant headway inmoving its operations closer to the people itserves. Through its regional offices in Bangkok,Bratislava, Colombo and Johannesburg,UNDP is now able to support country officesmore effectively. By creating a critical mass ofadvisory, programme and operational capacity

at regional level, UNDP is able to achieveeconomies of scale and pool its resources moreeffectively.

Improved streamlining of UNDP’s workhas been enhanced by the creation of a RiskManagement Group, which advises theAdministrator about making UNDP moreadaptable and more responsive to change.A comprehensive accountability framework isin the process of being finalized. A GenderSteering and Implementation Committee,chaired by the Administrator, has been estab-lished, which is building on UNDP’s gendermainstreaming efforts to make sure that a gender perspective is rooted in all aspects ofthe organization’s work.

33 Supporting the UN agenda for reform

UNDP Global Staff Survey, 2005

UNDP launched its first global staff survey in 1999 to enable staff members to give feedback about

the organization and its management. This dialogue deepened over six years. In the 2005 survey, a

record number of respondents worldwide (over 6,400) declared UNDP as a good place to work

despite the stresses of rapid growth in programmes and a smaller overall staff.

Select questions, % of affirmative responses

I am proud to work forUNDP

All UNDP 87Female 86Male 88

I am treated with respect at work


I would recommend UNDP as a good place to work to my friends and associates


Work pressures in my jobare at acceptable levels


My Management Team acts with honesty andintegrity


In UNDP men and womenreceive equal treatment


My Management Team provides direction andleadership


Source: UNDP Global Staff Survey 2005

The upward trend in regular (core)resources initiated in 2001 continuedin 2005 for the fifth consecutive year.

The $921 million gross regular resource incomeachieved by UNDP in 2005 represents anincrease of $79 million over the level achievedin 2004 and has allowed UNDP to meet theannual interim target ($900 million) set by thenew Multi-Year Funding Framework (MYFF2004-2007) for the year 2005. NeverthelessUNDP is still short of its 2007 $1.1 billionMYFF target and while the achievement of theinterim target in the second year of the MYFFis encouraging, continued support will berequired in order to meet the overall target.Multi-year funding commitments made byseveral donor governments have helped toincrease the predictability of UNDP’s regularfunding base, but the regular resource incomeremains particularly exposed to exchange rate volatility.

The year 2005 saw a very significantincrease in other (non-core) contributions toUNDP. Almost all sources of income grew.Virtually all OECD/DAC donors are active in co-financing UNDP programmes in itsdevelopment practices. Third party co-financ-ing grew to over $2.5 billion in 2005. Localresources, channelled through UNDP by

UNDP resources: growing, but fragile and complex


programme country governments in supportof their own development programmesamounted to $1.02 billion. As aid mechanismsavailable at the country level diversify andmultiply, UNDP is being called on more andmore to support governments to obtain, directand manage different types of funding inaccordance with national priorities.

UNDP support to aid delivery

Top 5 non-bilateral funding sources$US millions

World Bank (direct)

Montreal Protocol

Global Environment Facility

Global Fund to Fight AIDS,Tuberculosis and Malaria

European Commission

0 50 100 150 200 250 300 350 400 450

Source: Division for Resources Mobilization/Bureau for Resources and Strategic Partnerships

Gross income received in 2005 (preliminary)

Ranked by top contributors to regular resources* $US millions

Note: The European Commission is a major source of co-financing forUNDP. In 2005, the EC provided $426.9 million in “Other” (non-core)resources.*All donors to regular resources contributing $1 million or more.

Donors

The NetherlandsNorway United StatesSwedenJapanUnited KingdomDenmarkCanadaSwitzerlandGermanyFranceItaly Finland Belgium Ireland SpainAustralia Austria New ZealandIndia China CubaSaudi ArabiaMexico Portugal LuxembourgRepublic of Korea

111.88108.91105.00

99.4082.4380.7462.3846.6940.3132.0528.0119.4019.1518.3218.30

8.155.305.144.794.423.252.712.002.001.801.551.00

Regular resources

Co-financing

79.4185.82

140.7675.85

131.35173.63

24.6277.8314.4875.7812.9141.1214.3622.3710.82

4.2722.10

5.2911.42

—18.00

—6.162.354.376.452.57

35 UNDP resources

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Other sources of funds, incl. contributions to UNIFEM, UNCDF and UNV

Local resources, channeled through UNDP by programme country

Other donor resources

Regular (core) resources

Income received, 1993-2005 (preliminary)

$US millions

*Includes income from administered funds, extrabudgetary, miscellaneous and management service agreements.

Donor co-financing and local resourcesrepresented an important complement to theregular resource base of UNDP. They have permitted the strengthening of existing pro-grammes and the fostering of partnershipswith a range of actors, including the EuropeanCommission, regional development banks,the Global Fund for Tuberculosis, AIDs andMalaria, and the World Bank. These ‘non-core’resources and regular resources, however, arenot interchangeable. UNDP’s ability to deliver

effective support for capacity development,including with the help of earmarked funding,critically depends on a level of core fundingthat allows flexible and integrated manage-ment systems focused on long-term effective-ness. Development is a long-term challengethat requires a long-term strategic focus,coupled with tactical flexibility and an abilityto respond to both crises and opportunities.This is what UNDP is trying to achieve withsupport from our partners.

*

CSO

Civil Society Organiza-tion

GDP

Gross Domestic Product

GEF

Global EnvironmentFacility

GFATM

Global Fund to FightAIDS, Tuberculosis andMalaria

GSB

Growing SustainableBusiness

HDI

Human DevelopmentIndex

HDR

Human DevelopmentReport

LDCs

Least Developed Countries

MDGs

Millennium Develop-ment Goals

MYFF

Multi-Year FundingFramework

NEPAD

New Partnership forAfrica’s Development

NGO

Non-governmentalorganization

OECD/DAC

Organisation for Economic Co-operationand Development/Development AssistanceCommittee


Photograph credits:Cover Giacomo Pirozzi/UNDP

page 1 Boaz Paldi/UNDP

page 3 MINUSTAH Photo/Sophia Paris

page 5 Jerome Delay/AP Photo

page 6 Michael Unland/UNDP Kyrgystan

page 9 Bullit Marquez/UNDP Philippines

page 10 Steve Sabella/UNDP/PAPP

page 12 Joel Chiziane/UNDP Mozambique

page 13 Boaz Paldi/UNDP

page 15 Adam Rogers/UNCDF

page 16 UNDP Chile

page 18 UNDP Dominican Republic

page 19 Tara Todoras Whitehill

page 21 AP Photo/Anjan Sundaram

Page 23 Wakil Kohsar/UNDP Afghanistan

page 24 C. Mayhew & R. Simmon (NASA/GSFC),NOAA/NGDC, DMSP Digital Archive

page 28 Tina Coelho/UNDP

page 31 UN Photo

page 32 UNDP/Albania

AcronymsRC

Resident Coordinator

ROLS

Rule of Law and Secu-rity Programme

SACI

Southern Africa Capac-ity Initiative

SMEs

Small- and medium-sized enterprises

UNAIDS

Joint United NationsProgramme onHIV/AIDS

UNCDF

United Nations CapitalDevelopment Fund

UNDG

United Nations Devel-opment Group

UNDP

United Nations Devel-opment Programme

UNEP

United Nations Envi-ronment Programme

UNICEF

United Nations Children’s Fund

UNIFEM

United Nations Development Fund for Women

UNV

United Nations Volunteers

WFP

World Food Programme

Front cover: A bold step forward: In the DRC, a woman

voter is registering in preparation for the country’s first

election in 46 years. In addition to supporting DRC’s

electoral process, UNDP is helping the country’s transi-

tion to long-term development by strengthening

national institutions and fostering good governance.

Working with international partners, UNDP coordinates

disarmament and demobilization efforts and supports

the reintegration of women, men and children affected

by the conflict.

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