1

Impact of funding on system-wide coherence of UN operational activities for development

New York, 4 November 2011

UNITAR Workshop

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

2

A. Fragmentation of funding(a) Contributions

(b) Expenditures

B. Possible options to strengthen the funding architecture for enhanced system-wide coherence

Presentation outline

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

3

(a)Contributions

Diversification of funding sources

Competition for resources among UN development system entities

(b)Expenditures

UN universal character (present in 135-140 programme countries)

Modest share of total ODA (18 per cent of total ODA excl. debt relief)

A. Fragmentation of funding

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

4

(a) Contributions

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

51%

45%

0

2

4

6

8

10

1995 2000 2005 2009

Cont

ributi

ons

(bill

ions

of c

onst

ant 2

008

Uni

ted

Stat

es d

olla

rs)

DAC Governments Non-DAC Governments European Commiss ion Others

Figure 1 - Sources of non-core funding (DEV only, major groups, 1995-2009)

5

(a) Contributions

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

0

5

10

15

20

25

1994 1999 2004 2009

Cont

ribu

tion

s

-40

0

40

80

120

160

200

240

Real

cha

nge

(bas

e ye

ar is

199

4)

Core Non-core

Core

Non-core

(Billions of constant 2008 United States dollars)

Figure 2 - Trends in contributions (DEV & HA, 1994-2009)

6

(a) Contributions

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

Non-core (DEV) 43%

(Based on 2009 contributions which totalled $21.9 billion)

Core (HA) 5%

Non-core (HA)30%

Development-related activities

(DEV)

Humanitarian Ass is tance

(HA)

Core (DEV)22%

Figure 3 - Total DEV & HA funding in 2009

7

(a) Contributions

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

Thematic funds5%

Local resources

11%

Programme- and project-specifi c

Other multi-donor trust funds 6%

(Total non-core funding for development-related activities: $9.4 billion)

One UN funds 1%

Single-donor, programme- and project-specifi c

77%

Figure 4 - Non-core funding modalities (DEV only, 2009)

88

(a) Contributions

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

30%27%29%26%

17%13%12%11%

53% 60% 59% 63%

0

25

50

75

100

125

2006 2007 2008 2009

OD

A

Core-multi latera l Multi -bilatera l Bilatera l Aid

(Source: OECD Creditor Reporti ng System and DAC Table 1)

Figure 5 – DAC multilateral aid flows as share of total ODA

(billions of constant $US, 2006-2009)

9

# UN development entities

36 UN entities delivered operational activities for development in 2009

The top 8 entities of UN development system accounted for some 86 per cent of total expenditures in 2009, with the remaining 14 per cent divided among 28 entities

(b) Expenditures

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

10

(b) Expenditures

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

0

10

20

30

40

50

60

70

Over 40% 30% - 40% 20% - 30% 10% - 20% Under 10%United Nations share of total ODA

Num

ber

of c

ount

ries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cum

ulati

ve s

hare

of e

xpen

ditu

res

United Nations data excludes local resources. Information on ODA obtained from OECD DAC Statistics, DAC Table 2a

31%

8%14%

3%

44%

Figure 6 - Concentration/fragmentation of UN

development system

11

(b) Expenditures

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

Less priority, less significant: 830 (47%)

Priority, less significant: 837 (47%)

Priority, Less priority,significant: significant106 (6%) 6 (0%)

Figure 7 – Concentration/fragmentation of UN development

system (entities)

12

Possible models to strengthen the funding architecture for enhanced system-wide coherence include:

(a) Reform the funding system

Negotiated replenishment system

Negotiated voluntary core contributions

Global thematic funds managed by lead agencies in respective sectors

(b) Strengthen existing funding system

One UN Funds, one budgetary framework, one programme at country-level

B. Possible options

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

1313

B. Possible options

Kristinn Sv. Helgason, Office for ECOSOC Support and Coordination, UNDESA

  Total ODATotal UN 

expendituresOne UN Fund expenditure

Share of Total ODA

Share of total UN expenditures

Recipient country (millions of United States dollars) (percentage)

Albania 358 19 3.6 1.0 18.5

Cape Verde 196 11 2.4 1.2 20.9

Malawi 772 123 1.1 0.1 0.9

Mozambique 2013 141 10.9 0.5 7.7

Pakistan 2781 586 1.7 0.1 0.3

Rwanda 934 96 5.8 0.6 6.1

United Rep. of Tanzania 2934 165 16.4 0.6 9.9

Uruguay 51 36 6.7 13.3 18.4

Viet Nam 3744 84 19.7 0.5 23.5

Total/Average 13784 1262 68.3 0.5 5.4

Table 1 – One UN Funds in 2009

(Source of ODA data: OECD/DAC statistics, DAC Table 2a)