ECONOMIC AND SOCIAL COUNCIL REVIEWS OPERATIONAL ACTIVITIES FOR FOSTERING DEVELOPMENT
Press Release
ECOSOC/5702
ECONOMIC AND SOCIAL COUNCIL REVIEWS OPERATIONAL ACTIVITIES FOR FOSTERING DEVELOPMENT
19970702 'Tragic Decline' in Development Funding Lamented(Reissued as received.)
GENEVA, 1 July (UN Information Service) -- A decline in international development aid to the poorest nations of the world was decried by a series of speakers this morning before the Economic and Social Council, with the representative of the United Republic of Tanzania, speaking on behalf of the "Group of 77" developing countries and China, calling for the Council to create an "alternative mechanism" for such funding.
The meeting, part of a high-level discussion on operational activities of the United Nations for international development cooperation, began with review of trends in development aid by James Gustave Speth, Executive Director of the United Nations Development Programme (UNDP), in which he noted a "tragic decline" -- especially in what he termed "core funding" for basic programmes.
The representative of Luxembourg, speaking on behalf of the European Union and seven other countries, said that an increase in core resources was essential, but that better impact and effectiveness of operational activities at the country level was the way to encourage such a resurgence. His remarks were echoed by those of the Russian Federation, which said it was precisely low efficiency in use of resources by some recipient countries that was one of the main reasons for the decrease in core resources.
Dr. Nafis Sadik, Executive Director of the United Nations Population Fund (UNFPA), told the meeting that by the year 2000, unless increased funding targets were met, at least 300,000 women would die from pregnancy-related causes, there would be millions more unwanted pregnancies, and many more girls would suffer the consequences of harmful traditional practices, including female genital mutilation.
And a representative of Indonesia claimed that if the current "untenable situation" in relation to development aid was allowed to persist, the "already deplorable state of human conditions" would further deteriorate.
Also addressing the meeting were representatives of the Russian Federation, Finland, Bulgaria, Thailand, Switzerland, Republic of Korea, Japan, United States, Australia and China, as well as a representative of the United Nations Children's Fund (UNICEF).
The Council will reconvene at 3 p.m. today to continue its discussion of international development assistance.
Operational Activities for International Development Cooperation
Among the documents before the Council during the high-level segment on operational activities of the United Nations for international development cooperation is a progress report from the Secretary-General on the implementation of General Assembly resolution 50/120 on operational activities for development (document E/1997/65). According to the report, there are two basic considerations to keep in mind when assessing the implementation of policy directives for development. First, that the activities for development undertaken through the United Nations system continue to play a unique and critical role in supporting developing countries to manage their own development process, says the report. The neutrality of multilateral development cooperation, and its capacity to respond flexibly to the needs of developing countries, is perceived as a distinct and major asset by developing countries. Even as requirements change and new programme needs are defined, operational activities remain a key ingredient in the development process, although they must continue to evolve in scope and coverage. Second, reform of operational activities is a continuous process: it has been given renewed impetus by the policy directives established by the General Assembly (in resolutions 47/199 and 50/120) in the context of the triennial policy reviews of 1992 and 1995.
The progress report focuses on the three themes retained by the Council for this substantive session: capacity-building, field and regional-level coordination and resources (resolution 1996/42, para 11). In dealing with these questions, the report also provides an assessment and recommendations on related subjects within the ambit of the resident coordinator system (Country Strategy Note, programme approach, national execution, harmonization of cycles, common premises and shared services, simplification and harmonization of procedures, etc). Among its recommendations, it states that the Council may wish to reaffirm that, the United Nations system should continue to pursue and develop a common understanding of capacity-building. It also states that the core resource base for development activities, dependent on less than 10 per cent of Member States for over 90 per cent, needs to be broadened.
To this end, it adds, the potential of additional sources of funding for core resources might be explored further, including possible concerns of Governments concerning this source of funding. Furthermore, private flows now
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far exceed official flows and NGOs, private sector and international foundations are actively engaged in a few countries in areas similar to those that the United Nations Funds and Programme are focusing. It is useful to explore the extent to which bridges can be built to private sources. Organizations like UNICEF are already engaged in this task. The possibility of attracting more contributions from non-governmental sources additional to those provided by governments, including from private international foundations and the private sector and the policy adjustments to do so may need to be reviewed.
In an addendum to the report (E/1997/65/Add.3), focusing on capacity-building, it is noted that building, nurturing and strengthening national capacities in policy-making, programming and implementation are important elements of the global consensus on people-centred development. The emergence of capacity-building as a major dimension of development effort is partly a reflection of a conclusion that international development cooperation has not yielded commensurate returns and partly as a response to changing needs. Capacity-building is increasingly seen as the missing link in development and the key to break the vicious cycle of mass poverty, population explosion, environmental degradation and political instability. The document concludes, among other things, that external assistance for developing national capacity has to be far more selective, sensitive and has to be better internalized and integrated into domestic processes and move away from short-term results and narrow accountability. A new profile is needed in the presence and representation of external development partners. National capacities to monitor and evaluate development activities have to be strengthened and relevant criteria designed.
Statements
NITIN DESAI, Under-Secretary-General in Charge of the Economic and Social Department, said this item of the agenda allowed delegations to make an overview of all funds and programmes; it was a chance to provide the Council with overall guidance. Three teams had studied over the year the topics of capacity-building, trends in resources, and field-level coordination in an effort to identify the status of operational activities. The trend in resources fell short of what was needed to fulfil mandates of various programmes.
JAMES GUSTAVE SPETH, Administrator of the United Nations Development Programme (UNDP), said trade and investment could not completely supplant development assistance. The future funding strategy of the Programme rested on three basic concepts: making UNDP more efficient and transparent so as to increase its attractiveness at a time when major donors were downsizing their own aid infrastructure; showing emerging donors that countries targeted for core funding by UNDP were potential economic partners; and seeking additional
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core contributions from net recipient countries. Solid financial support for UNDP and for United Nations' development work was of particular importance at this junction. Major donors needed to be encouraged to increase their contributions, and other countries which could now contribute should also play a role.
Mr. SPETH noted that while the needs of the poorest programme countries were enormous and continued to grow, the availability of core resources continued their "tragic decline". The current estimate of total resources, core plus non-core, for 1997 was some $2 billion dollars, of which only $800 million were core resources. Non-core resources could not replace core resources if UNDP and multilateral cooperation was to survive. It was UNDP's "fervent hope" that the Council would take an enhanced measure of responsibility for increasing the commitment of Member States to help UNDP and other funds and programmes reach agreed funding targets.
GEORGES WOHLFART, Secretary of State for Foreign Affairs of Luxembourg, speaking on behalf of the European Union, along with Cyprus, Bulgaria, Czech Republic, Estonia, Lithuania, Slovakia and Slovenia, said a major challenge of the coming century would be to achieve sustainable development, especially in the world's poorest countries. It was critical for the United Nations system to offer both donor and recipient countries a high-quality system for fostering development, and to achieve that major reforms were needed; the first set of reforms undertaken by the Secretary-General was laudable, and the second set of reforms -- affecting operational activities in the field -- was awaited eagerly.
Funding for the most important development programmes remained stable despite the negative trend in public aid for development, Mr. WOHLFART said; and there was a notable diminution of core resources in comparison to non-core funding; non-core funding now accounted for more than 50 per cent of development assistance. Adequate and predictable resources should be assured, and the European Union was striving to achieve the goal of 0.7 per cent funding for development; meanwhile there should be a clear, shared assessment of United Nations goals in the development field, coupled with a more equitable contribution of resources, including participation of countries that could no longer be described as "developing". An increase in core resources was essential, but on the other hand all resources should be used in line with the mandates of the programmes concerned, and the impact and effectiveness of operational activities at the country level should be increased -- that would be the way to encourage a resurgence of core funding.
ALI MCHUMO (United Republic of Tanzania), on behalf of the Group of 77 and China, said he welcomed the opportunity to discuss the issues of resources, capacity-building, as well as field and regional level coordination. Great importance was attached to operational activities for
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development, and adequate, predictable and regular funding could play a unique and critical role in supporting development countries to manage their own development process. Unfortunately, for many years, funds and programmes of the United Nations development system had failed to fulfil their respective mandates due to lack of resources, with a "drastic decline" of both core and voluntary resources.
Mr. MCHUMO said that a proposal had been made to abolish pledging conferences. The Group of 77 and China maintained that before such a decision was taken, it was important to put in place "an alternative mechanism" for fund-raising. The Council should look into this issue and recommend to the General Assembly appropriate measures. Progress in strengthening the resident-coordinator system was pleasing, and using resident coordinators as the focal points for dialogue at the country level was essential to ensure programme success. The enhancement of the effectiveness of country programmes was very important, however, countries should be given enough time to produce good country strategy notes arising from broad-based consultations.
SERGEY ORDGIONIKIDZE (Russian Federation) said the use of non-core resources had sometimes got beyond the control of executive boards of United Nations programmes, and could endanger the balanced and universal character of United Nations operational activities. At the same time, changing the ratio between core and non-core resources was not a goal in itself; if the latter served the same purpose, such as eradication of poverty, there was no need to change non-core to core resources. It was important, rather, to be sure that increases in resources were coupled with corresponding improvements in programme delivery -- to build trust and understanding between donors and recipients with a view to ensuring that most effective use of resources in accordance with national plans and priorities. It was precisely low efficiency in use of resources by some recipients that was one of the main reasons for the decrease in core resources. Funds and programmes should be better guided at establishment of favourable national policy environments for more effective use of technical assistance and national capacity-building. Any proposals to increase core funding should be based on fundamental characteristics of operational activities -- their universal, neutral, voluntary and grant nature.
MARJATTA RASI, Director General of the Department for International Development Cooperation, Ministry of Foreign Affairs of Finland, said all Governments were responsible for their development process through their commitment. All countries should also demonstrate their commitment to the funds and programmes and all countries should contribute to the financing of the system. Everyone shared the responsibility to optimize the use of existing funds.
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Ms. RASI said that reforms were called for to make the operational activities of the United Nations as efficient and effective as possible; reform of funding of operational activities should be firmly linked to programming. Transparency of all United Nations activities was also essential to gain public and governmental support and achieve adequate levels of funding. Finland was concerned about the stagnation of core resources, a situation which called for "urgent continuation" of work to improve the funding of operational activities for development on a predictable, continuous and stable basis. Some suggestions were given in resolution 50/227, such as assessed, negotiated and voluntary contributions. These mechanisms merit examination. Funds and programmes should also identify new ways of funding core resources and reviewing funding possibilities from non-governmental and private sector sources. Finland provided support for the operational activities through funds and programmes.
NIKOLAY MARIN (Bulgaria) said United Nations development programmes were essential, and as a country with an economy in "transition" that had benefitted from such programmes, Bulgaria wished to articulate the case for increased assistance. The future of development cooperation was important to countries in "transition", and Bulgaria hoped that United Nations reforms would increase efficiency and resources for development aid, and that the aims of the various development programmes would be faithfully followed. Bulgaria supported further strengthening of the resident-coordinator system; the coordinator based in Bulgaria had provided useful service to the country.
SURAPONG POSAYANOND, Director General of the Department of International Organizations, Ministry of Foreign Affairs of Thailand, said United Nations development agencies should be encouraged to continue considering the restructuring and rationalization of the governance and functioning of their funds and programmes as an important part of the overall reform process. Thailand was interested in the proposal to consolidate the functions of UNDP, UNICEF, UNFPA and WFP with the aim of creating a single United Nations development group. This proposal was very challenging and should be studied. United Nations development agencies needed a substantive increase in their funding on a predictable, continuous and assured basis. Thailand noted with "serious concern" the steady decline in contributions to core resources, which inhibited the capacity of funds and programmes to carry out their role. New sources of funding should be developed, especially in the private sector.
WALTER FUST, observer for Switzerland, said that while some countries had made great progress and no longer needed development aid, others needed such assistance more than ever; development programmes were being exposed to more and more demands, and becoming responsible for more complex and difficult tasks, at the same time as funding had stagnated or even declined. Meanwhile, duplication the international community could not afford occurred in some cases; development programming should be part of a system in which it was
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carried out efficiently, without overlapping; the measures taken recently to improve the quality and cost-effectiveness of such activities were impressive, at least on paper; Switzerland had followed and supported these reform efforts, but it was important to translate them into fact and to intensify coordination and cooperation, especially at country level. A strengthened resident-coordinator system was necessary. Meanwhile, a minimum level of continuity and predictability in funding was necessary or development programmes would lose some credibility, and Switzerland continued to support core funding of such programmes.
Dr. NAFIS SADIK, Executive Director of the United Nations Population Fund (UNFPA), said development assistance must respond to the needs of individual women and men; the challenge was for the international community to match the commitment of developing countries to their own development. Reforms had had positive effects -- more coordinated and harmonized country programmes, and more significant dialogue and guidance by the UNFPA executive board, in the case of the Population Fund. While UNFPA welcomed all kinds of funding possibilities, it believed that general funding was most useful and should be increased; a specific set of development objectives had been established to ensure accountability and efficiency. Most of UNFPA's major contributing parties had maintained their basic core funding levels even at a time of recession for many of them; however, funding had not increased, and additional resources were needed to satisfy existing unmet needs for reproductive health, especially family planning. Developing countries would need support from the rest of the world for population and reproductive health projects.
By the year 2000, unless increased funding targets were met, at least 300,000 women would die from pregnancy-related causes, Ms. SADIK said; there would be millions more unwanted pregnancies, and many more girls would suffer the consequences of harmful traditional practices, including female genital mutilation.
MYUNG-CHUL HAHM (Republic of Korea) said the importance of strengthening operational activities for development had increased with the rise of interdependence of national economies and the threat of marginalization for vulnerable developing countries. Globalization had brought great benefits and economic progress to much of the world, but it had left many people behind. That was why capacity-building should continue to be a major priority of operational activities. Assistance for developing national capacity needed to focus more on long-term results, and system-wide criteria should be established to evaluate and guide capacity-building efforts. The Republic of Korea had placed high priority on promoting capacity-building in developing countries in its efforts to strengthen South-South cooperation. It was concerned about the stagnation of funding for operational activities for development, and welcomed various recommendations on seeking additional funds
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and making the use of existing ones more efficient. It supported broadening the core resource base for operational activities to supplement the traditional donor countries. Member States should also do all they could to muster the political will needed to increase their contributions. And non-governmental sources, such as the private sector and international foundations, should be sought.
MASAKI KONISHI (Japan) said Japan had been promoting a "new development strategy" stressing the importance of ownership of development, output-oriented development targets, and a comprehensive approach, including mobilization of the private sector; regrettably, multilateral cooperation organizations had not fully benefitted from increasing private flows of funding, and Japan strongly encouraged funds and programmes of the United Nations to review and adjust their funding arrangements to facilitate the participation of the private sector. South-South cooperation should be encouraged further -- the resources, technologies, and experience of such new development partners often responded more effectively to the specific needs of individual countries.
It was important that savings accrued as a result of improvements in the cost-effectiveness of activities of funds and programmes be reallocated for more productive purposes, Mr. KONISHI said; and utmost efforts in general should be made to enhance the cost-effectiveness of operational activities. Japan, moreover, had been promoting so-called multilateral-bilateral cooperation, which included cost-sharing and parallel financing, in conjunction with such funds and programmes as UNDP and UNFPA; multi-bi cooperation allowed greater resource mobilization and created an effective synergy for tackling development issues by using the relative expertise and comparative advantages of the partners.
VICTOR MARRERO (United States) said the United Nations played a unique and pivotal role in fostering sustainable development through its funds and programmes. However, operational agencies had to deliver resources efficiently and effectively to people who really needed them. Harmonized budgeting, programming and priority-setting for development agencies, and common premises where cost-effective, were favoured. The strengthening of the resident coordinator system was also supported, while maintaining the independent access to the host government and programme accountability of individual agencies. There was no conflict of interest in having the resident coordinator also serve as UNDP resident representative as long as clear instructions were issued to ensure the resident coordinator represented the mandates and interests of all funds and programmes. In the future, candidates from other operational agencies should be encouraged to compete for resident coordinator positions.
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Mr. MARRERO said that changes at Headquarters were also needed to complement stronger coordination in the field, and welcomed the decision to merge the three Secretariat departments that deal with sustainable development. Organizational refinements could not be divorced from the fundamental question of resources. Core contributions to funds and programmes were important, but individual agencies should also explore new ways to encourage voluntary contributions to their core resources from new sources such as non-governmental organizations, corporations and private individuals. Non-core resources could effectively supplement core resources without detracting from the neutrality of United Nations agencies. Core contributions should be more predictable, but multi-year commitments or negotiated pledge levels could present difficulties to some member states. The United Nations also did not see the logic of targets for official development assistance, and strongly objected to any notion of international taxation. Any new funding arrangements had to conform to the elements which had made the development operations successful, with attention centred on efficient and effective utilization of resources at hand.
HERIJANTO SOEPRAPTO (Indonesia) said the country was concerned that total resources available for operational development had been diminishing and that core resources had plummeted; the total resources available were not commensurate with the increasing needs of the developing countries; and the growing imbalances between core and non-core resources were a great concern. The proportion of core resources should be increased -- if this need was not fulfilled and the current untenable situation was allowed to persist, the already deplorable state of human conditions would further deteriorate. Indeed, the worsening levels of deprivation, poverty, and hunger that blighted the lives of the majority of human beings could severely undermine and jeopardize the major purposes and principles of the United Nations. New approaches were required, and despite the efforts of many recipient countries, who were fulfilling their commitments admirably, the problem of lack of adequate funding could not be resolved without a strengthening of global partnership; efforts to enhance efficiency and transparency should invoke confidence in the donor community and attract increased resources, which must be based on the fundamental characteristics of being voluntary, neutral, and multilateral.
ALAN MARCH (Australia) said his country was strongly committed to the development programme to eradicate poverty, and endorsed capacity-building as a means of implementation. However, funds and resources were needed to carry this out. It was pertinent to ask why funding was decreasing: Could it be that the current model was not perfect? United Nations funds and programmes need to embrace reform, but it was a pity and a shame that one of the most recent New York Times articles on development was news that one agency of the United Nations system was distancing itself from reform. Australia did not support reform for reform's sake, but some measure of reform was vital.
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Australia wanted a well-funded and cohesive United Nations that effectively addressed poverty eradication in countries with the greatest needs.
YUAN SHAOFU (China) said that while some developing countries had achieved rapid economic growth mainly through their own efforts, that number was few and their development was yet to be balanced and sustained; for other countries the international community, and the developed countries in particular, should provide funds, transfer technology, and increase development aid. The expectations that peace dividends might be used to help poor countries still remained an illusion.
China believed that United Nations operational activities for development should be strengthened rather than weakened, he said; the level of resources had fallen far short of established targets in recent years, and many aid programmes had been repeatedly cut; if the situation was not improved soon, United Nations operational activities would lose their inherent vitality. The Chinese delegation appealed to all developed countries to demonstrate their political will on the funding issue by increasing their contributions. China, meanwhile, was in favour of conducting appropriate reform to the current financing modalities; it believed that the core resource, being the basic resource for operational activities, should be fundamentally guaranteed, and that voluntary contributions from developed countries should continue to be the primary source of core funding.
CAROL BELLAMY, Executive Director of the United Nations Children's Fund, said adequate funding for operational activities on a regular basis was needed, especially for current reform. New resources should also be tapped, and the burden broadened. Indeed, developing countries were increasingly mobilizing their resources and offering help. Some form of a multi-year programme should be looked into. Core funding was the essence of multilateralism and allowed for the most efficient use. To enhance it, efficiency and transparency of activities should be carried out. Private funding was a new source; however, it took a long time to develop relations and private donors might impose conditions, so it was not the simple answer.
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