INCREASING DEMAND, DECLINING RESOURCES FOR UN DEVELOPMENT ACTIVITIES DISCUSSED IN SECOND COMMITTEE

Press Release
GA/EF/2699

INCREASING DEMAND, DECLINING RESOURCES FOR UN DEVELOPMENT ACTIVITIES DISCUSSED IN SECOND COMMITTEE

Matters relating to increasing demand and declining resources for United Nations operational activities for development were discussed this morning as the Second Committee began the triennial policy review of those activities.

Speaking on behalf of the "Group of 77" developing countries and China, the representative of the Philippines emphasized the central role of recipient countries in the management of their own development process. The representative of Algeria called for a frank debate on the criteria for eligibility to receive United Nations development assistance.

On behalf of the European Union, the representative of Spain said the proposal to establish a "regional strategy note" raised many questions and should be approached with caution. The representative of Canada, speaking also on behalf of Australia and New Zealand, agreed that it was premature to discuss the preparation of a regional note.

The representative of Norway questioned whether the operational activities of the United Nations deserved to be called a system at all. Norwegian embassies had reported at the field level instances of competition, rivalry, fragmentation and overlap between the various United Nations development organizations. He added that the Organization provided as many resources for development as did the International Development Association (IDA) of the World Bank, but to a considerably larger number of countries. The challenge was to improve further the effectiveness, efficiency and focus of the United Nations development system.

Statements were also made by the representatives of Trinidad and Tobago (on behalf of the Caribbean Community), Russian Federation and China.

Also this morning, the Administrator of the United Nations Development Programme (UNDP), James Gustave Speth, said UNDP had expanded significantly its country-level work in peace-building, reconciliation and reconstruction.

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It had also made a major commitment to support the Department of Humanitarian Affairs by ensuring that resident coordinators had the training and experience to serve as humanitarian coordinators.

The Executive Director of the United Nations Population Fund (UNFPA), Dr. Nafis Sadik, said "operational activities for development and poverty alleviation are one of the best investments the world can make in its common future". The Executive Director of the United Nations Children's Fund (UNICEF), Carol Bellamy, said the review process should be linked to an improved funding system which ensured predictability of resource flows and timeliness of payments.

The Under-Secretary-General for Policy Coordination and Sustainable Development, Nitin Desai, introduced the Secretary-General's report relating to the triennial policy review.

At the outset of the meeting, the representative of Israel thanked the Committee for the moment of silence and sympathy expressed yesterday at the death of Prime Minister Yitzhak Rabin. He said Israel was fully committed to pursue peace with all its neighbours. Prime Minister Rabin's vision would not be lost.

The Committee will resume its consideration of United Nations operational activities at 10 a.m. tomorrow, 9 November.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to begin the 1995 triennial policy review of operational activities for development of the United Nations system. (For background information, see Press Release GA/EF/2698, of 7 November.)

Statements Made

NITIN DESAI, Under-Secretary-General for Policy Coordination and Sustainable Development, introducing the Secretary-General's report, said special attention had been taken to prepare a report which contained the greatest amount of information to facilitate the review process. The preliminary review held by the Economic and Social Council in July had provided an important output to the report's preparations. The report reflected a broad range of views on the operational activities of the United Nations system and addressed areas requiring immediate action by the Assembly. The recommendations made responded particularly to concerns expressed at the country level about those activities.

He said the report illustrated a paradox -- namely, increasing demand and declining resources in the area of operational activities. It was expected that the negotiations on improving the funding system would be re- invigorated. The United Nations operational activities were at a crossroads. There was a need to ensure that the next three years would witness even greater progress in United Nations development activities. There was no such thing as a United Nations programme or project -- all programmes were national and therefore the need for strong national leadership was essential. The funds and programmes of the Organization were the central core of operational activities, which were also carried out by specialized agencies, including the Bretton Woods institutions. Operational activities were the visible face of the United Nations to people in many countries, he said, adding that the review offered an important opportunity to improve those activities.

JAMES GUSTAVE SPETH, Administrator of United Nations Development Programme (UNDP), said that in path-breaking decisions in 1994 and 1995, its Executive Board had transformed the mandate of UNDP, which now was to help countries develop national capacity to achieve sustainable human development, giving overriding priority to eradicating poverty and building equity. Additional but still vital focus areas, which typically supported poverty eradication, included advancement of women, regeneration of the environment and creation of sustainable livelihoods.

Recognizing the need to overcome fragmentation and improve coordination in the United Nations especially at the country level, he said UNDP had made managing and supporting the system of resident coordinators a top priority. The exercises for assigning resident coordinator representatives had been made more rigorous, with clearer definition of country-by-country needs. The

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overall quality of resident coordinator corps was being upgraded to meet today's circumstances.

For links to be enhanced between the Bretton Woods institutions and the United Nations system, an essential connecting thread should run through the letter of intent, the policy framework paper and the country strategy note, he said. There was a need for complementarity between those three instruments so that the end result would be people-centred sustainable development, which heads of States at the World Summit for Social Development (March 1995) had agreed to implement.

Strengthening UNDP's Emergency Response Division had been made a top priority in order to backstop the resident coordinator system in a variety of pre-crisis, crisis and post-crisis situations, he said. New, more flexible rules and procedures had been adopted. Rosters of specially qualified personnel were being developed. The UNDP had expanded significantly its country-level work in peace-building, reconciliation and reconstruction. Major initiatives had been undertaken or were under way in Central America, Cambodia, Mozambique, Rwanda, Gaza and the West Bank and Angola. The UNDP had also made a major commitment to support the Department of Humanitarian Affairs by working to ensure that the resident coordinator in place in complex situations and in emergencies had the training and experience to serve as humanitarian coordinator.

The context for operational activities for development had changed dramatically over the past three years and would continue to do so, he said. Indeed those activities and emergency operations often coexisted. It was in recognizing those complex interrelationships that a new Assembly resolution on those activities could help guide funds, programmes and the system as a whole in continuing to make the case for confessional resources which were so vital to the United Nations development system programme countries.

Dr. NAFIS SADIK, Executive Director, United Nations Population Fund (UNFPA), said UNFPA had undertaken extensive measures to implement and support the relevant elements of resolution 47/199. The Fund had participated actively in all inter-agency mechanisms seeking greater harmonization, in such areas as national execution, and common premises and staff training. Reporting also on behalf of the Consultative Committee on Programme and Operational Questions, of which she is the current Chairman, she said the Consultative Committee had adopted basic principles and procedures for assisting governments in the preparation of country strategy notes.

A critical part of any discussion about improving the operational activities of the United Nations system related to the issue of financing, she continued. All parties agreed that the current system of financing was no longer tenable. The official development assistance (ODA) had continued to decline overall and now constituted only 0.29 per cent of the gross national product (GNP). The world community had everything to lose by not being able to develop further and agree on the worthy financing proposals that had been

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made, starting some years ago with the Nordic Project on United Nations reform, and continuing with those contained in the Secretary-General's report on the funding of operational activities. There must be agreement on establishing a system of financing that was predictable, continuous and assured. "Operational activities for development and poverty alleviation are one of the best investments the world can make in its common future", she said.

CAROL BELLAMY, Executive Director of the United Nations Children's Fund (UNICEF), said instructions had been sent to UNICEF country offices stressing the importance of the Country Strategy Notes and emphasizing that the national plans of action for children could serve as an important element. The UNICEF country programmes were now being developed within the context of Strategy Notes which many of UNICEF's representatives had found invaluable as a focus for inter-agency collaboration. The offices of UNICEF in 30 countries shared common premises with other United Nations organizations. The UNDP and UNICEF had reviewed the financial and organizational implications of expanding the number of common premises and 45 country-based offices had been identified for possible consolidation in common premises in the next biennium.

The UNICEF also continued to be closely involved in the various follow- up activities for summits and conferences to work with the Bretton Woods institutions, particularly the World Bank. She said the effectiveness of UNICEF was in no small measure the result of its decentralized field-based approach with all activities developed in the context of a multi-year country programme. Cost effectiveness remained a concern with respect to common premises and shared facilities. The UNICEF believed that the triennial review process should be linked to an improved funding system which ensured predictability of resource flows, timeliness of payment, the broadest possible base of support and a focus on general or core resources.

She said UNICEF would continue to emphasize the development and deepening of collaborative relationships and new partners, in the United Nations system, in civil society and at the local and global levels. It would participate in the joint monitoring and evaluation projects, and lessons learned would be applied to future programmes. The UNICEf intended to become a centre of excellence with people, skills, structures and procedures appropriate to the challenge of strengthening capacity to ensure the survival, protection and development of children towards the year 2,000.

CECILIA BALTAZAR REBONG (Philippines), speaking on behalf of the "Group of 77" developing countries and China, said they wished to emphasize the central role of recipient countries and their governments in the management of their own development process. The real test was how operational activities impacted on the overall economic and social development and growth of the developing countries and more important, their people.

The Group of 77 and China reiterated, he said, that national governments should have the paramount role in the planning, coordination, monitoring and

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review of all United Nations development assistance and other external assistance. They called for meaningful support for the enhancement of the national capacity of developing countries in priority areas, in particular, in programme planning and programme execution. The United Nations system should use, to the fullest extent possible, available expertise and indigenous technologies.

He went on to underline the distinct role of the General Assembly and the Economic and Social Council in the decision-making process of the Executive Boards of the funds and programmes. He also expressed concern that the level of resources for operational activities for development, particularly the core resources, continued to decline while demand from developing countries for assistance increased. The Group of 77 and China were disappointed that the restructuring and rationalization of the management and functioning of the funds and programmes had not been matched by a substantial increase in resources for operational activities for development. He urged donor countries to increase their development assistance substantially.

Like their partners in the donor community, he continued, developing countries supported all efforts towards greater efficiency and effectiveness of operational activities, as well as the introduction of the Country Strategy Note and other reforms and mechanisms to make the funds and programmes more efficient.

ARTURO LACLAUSTRA (Spain), speaking on behalf of the European Union, said the Union was pleased with the progress achieved in several areas although there was room for further improvement in certain critical areas. The Union believed that the triennial policy review should aim at reaching even more well defined policy decisions and, as far as possible, set time- frames for their implementation. The principles guiding the United Nations operational activities for development at the field level should also be reflected in the work done at Headquarters. Further strengthening of those activities required adequate resources and the Union reiterated its willingness to continue, as early as possible, separate consultations on the matter.

He said the European Union had identified three priority areas: coordination at the field level; capacity building; and accountability, monitoring, and evaluation where the United Nations system must have greater overall impact. United Nations funds and programmes, should concentrate their efforts on a limited number of areas of intervention for which they were best suited. At the headquarters level of the agencies concerned, they should develop a basis for mutual support and complementarity. The European Union stressed the critical role of the resident coordinator system for enhancing coordination at the field level. It shared the view that the United Nations development system as a whole should support the resident coordinator. It called for the widening of the pool of candidates for resident coordinator positions, improvement in training for all candidates for such positions and utilizing staff performance criteria on coordination achievements for all

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staff members. There was a need to promote more collaboration among agencies on programming activities to establish a single review committee. There should be more focus on expanding national ownership of development, capacity building and its sustainability, the European Union said.

It also said the United Nations system should make the promotion of national ownership and capacity building a central objective of its activities. Monitoring activities should ensure timely identification of problems and encourage remedial action where appropriate. Formal responsibility for monitoring and following up recommendations should be clearly and formally assigned to increase the effectiveness of the monitoring process and improve accountability.

The European Union said the proposal to establish a Regional Strategy Note raised many questions and should be approached with caution. The European Union would be distributing a document containing in some detail, the elements of its position on this year's triennial policy review.

ALEX VOLKOFF (Canada), speaking also on behalf of Australia and New Zealand, called for greater effort to be made to widen the circle of institutional collaboration. Although there had been efforts in the case of voluntary funds and programmes to harmonize their work which had borne some fruit, those needed to be expanded to include more participation by specialized agencies. It was recognized that some of the responsibility for promoting that harmonization rested with member governments. But consistent messages must be given in the Second Committee and in the governing bodies of all funds, programmes and agencies.

Addressing the issue of harmonizing rules and procedures, she said members of executive boards must ensure that there was coherence of methodology across programmes. A welcome start had been made to review the country programmes of different agencies in one particular country. That effort should be furthered, preferably in the context of the Country Strategy Note. She supported the Secretary-General's recommendation that a time-bound programme for harmonization be submitted to the Economic and Social Council in 1996. The identification of resident coordinators and of senior representatives of individual programmes in the field required the careful formulation of selection criteria and strict adherence to them. It was premature to engage in an exercise of preparing a regional strategy note, she added.

JAKKEN BIORN LIAN (Norway) questioned whether the operational activities of the United Nations deserved to be called a system at all. As part of his Government's preparations for the triennial review, Norwegian embassies were asked to assess the various aspects of United Nations operations at the field level. "Almost half of our embassies reported instances at the field level of competition, rivalry, fragmentation and overlap between the various United Nations development organizations." Compared with, for instance, the World Bank, the United Nations development activities were perceived by many as less

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effective and having much less impact. That notwithstanding the United Nations provided as many resources for development as did the International Development Association (IDA) of the Bank, but to a considerably larger number of countries than IDA. "Our challenge is, therefore, to improve further the effectiveness, efficiency and focus of the United Nations development system."

There was a need to agree on clearer, more binding resolutions, particularly for the funds and programmes, but there was also a need to find ways to extend cooperation and coordination more firmly to the specialized agencies, he said. Firm timetables should be established. Urgent action was needed for those recommendations that the Committee was about to repeat for the second or third time. It was necessary to improve the feedback in the cases of constraints and bottlenecks, so that remedial action could be taken. He expressed concern about the slow rate of implementation of many recommendations of the previous triennial policy reviews. There was a need to put those recommendations into effect globally and on a more urgent basis.

He said there was also a need to develop new instruments for effective development cooperation at the field level by, among others, creating a common field-level committee to review programmes. More effective coordination within the United Nations system was the responsibility of all the Organization's agencies. He supported the proposal that all agencies should contribute resources to the resident coordinator, either in cash or with personnel. Norway believed that development cooperation remained one of the core mandates of the United Nations, and it would maintain its high level of support for those activities. All countries shared the responsibility to equip the United Nations with sufficient resources for development activities. There should be an improved burden-sharing among donors. The work of finding models to secure a sound and stable resources base for United Nations development activities, preferably at a higher level than today, must be continued.

KHEIREDDINE RAMOUL (Algeria) said that despite the process of wide reform of operational activities launched at the forty-fifth session of the General Assembly, the lack of adequate financing for those activities was one of the obstacles, if not the only one, to impair the capacity of the United Nations system to play fully its role in the implementation of the various development strategies adopted by the Assembly in favour of developing countries. Three years after the adoption of resolution 47/199, no progress whatsoever had been registered in the negotiations that ensued after the adoption of resolution 48/162, on further measures for the Organization's restructuring in the economic and social fields; included was the matter of resources as an integral part of the overall reform process.

Concerning the Country Strategy Note, in spite of its voluntary character as set out in the Secretary-General's report, it tended to become an unavailable tool in the provision of assistance, he continued. He went on to reaffirm that the principle of the formulation of a document such as the

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Country Strategy Note should remain subject to the initiative only of the country concerned and in accordance with its needs and national priorities.

The end of the cold war had reinforced the universality of the United Nations by enlarging its presence particularly in central and eastern Europe and the former Union of Soviet Socialist Republics, he said, thus bringing about an enlarged geographic range of the operational activities. The Secretary-General's report did not indicate on what basis and according to which criteria a number of countries could benefit from the assistance provided in that framework. The report seemed to amalgamate the notions of "developing countries" and "recipient countries" thus giving the impression that both concepts were synonyms. He called for a frank debate to be launched on the criteria for eligibility. The credibility and effectiveness of the United Nations were at stake because, as foreseen in several Assembly resolutions, the handling of certain problems called "specific" and "transitory" should not be detrimental to the needs of developing countries. The end of the cold war should not consecrate "privileged countries" as had happened at the end of the Second World War, whatever the reasons might be.

EVANS KING (Trinidad and Tobago), speaking on behalf of the member States of the Caribbean Community (Antigua and Barbuda, Barbados, Belize, the Commonwealth of the Bahamas, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago), said they associated themselves with the statement made by the Philippines on behalf of the "Group of 77" developing countries and China. They said programming at the national level should be based on national plans and priorities and governments should have the prerogative to select the priority areas. Governments also had the responsibility to take into account other sources of multilateral and bilateral inputs during the programming process as part of the government's overall coordinating strategy.

Improved coordination of the United Nations systems activities should have a significant impact on programme activities, he continued. At the headquarters level, the Administrative Committee on Coordination (ACC) and its subsidiary machinery constituted an effective system, while at the field level, the resident coordinator system should continue to operate within important institutional restrictions. The relations between governments and individual organizations within the United Nations system should not be compromised. The Caribbean Community countries felt that the process of formulation of the Country Strategy Note had a positive impact on coordination at the field level.

They shared the view that the United Nations system should be refined for operational activities to meet the current needs of developing countries in an effective and more efficient manner, he said. Also, they supported the recommendations to re-energize the negotiations on an improved funding system, linking the negotiations with the triennial review process.

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YURI CHULKOV (Russian Federation) said the Russian Federation viewed operational activities as one of the fundamental areas of economic and social activities of the United Nations. Operational activities had undergone significant changes in recent years, with new areas emerging and others strengthened. While devoting priority attention to the needs of poor and vulnerable countries, the United Nations development system had also been involved in countries with economies in transition such as his. As concerned development activities in the Commonwealth of Independent States (CIS) countries he welcomed them and commended the decisions of the UNDP/UNFPA Executive Board to strengthen their programmes and to adopt a number of new programmes in the last two years.

The Russian Federation attached priority to the reform of operational activities. It supported recommendations on administrative improvements, heightened accountability, and monitoring and evaluation of programmes. It also welcomed the recommendations on financial resources and cost sharing. He said the guidelines on programme approach and national execution must be clarified. He noted with satisfaction the trend towards the broadening of cooperation between the United Nations system and the Bretton Woods institutions, adding that there should be more of such involvement.

He also stressed the importance of coordination at Headquarters and supported the strengthening of the role of the Economic and Social Council, as well as the coordinating functions of ACC. Consistent steps were required to strengthen the resident coordinator system. He called for discussion of the staffing of UNDP offices in the CIS countries and in others where there had been an increase in the volume of work.

WANG XUEXIAN (China) said the formulation of a country's development strategy and programmes as well as the selection of priority areas for cooperation with the relevant bodies of the United Nations development system fell within a States's sovereignty. Those bodies should fully respect the wishes of governments in formulating assistance programmes. He believed that coordination at the country level should be the responsibility of the recipient government, with the government-designated department taking overall charge of coordinating of external assistance.

The resident coordinator should respect the institutional arrangement made by the recipient government. An important role the resident coordinator could play was to enhance cooperation and partnership with field representatives of the relevant organs and organizations of the United Nations development system. At Headquarters, the relevant organs and organizations should ensure proper division of labour and cooperation to avoid unnecessary functional duplications and thus improve efficiency.

To achieve a more predictable, sustainable and stable increase in resources for operational activities for development, China called on the developed countries to demonstrate their political will on the funding issue and increase their contribution to the United Nations development system.

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