Full Funding of Resident Coordinator System Essential in Delivering on Sustainable Development Goals, Says Deputy Secretary-General

Following are UN Deputy Secretary-General Amina Mohammed’s remarks at the first plenary meeting of the Resident Coordinator System Funding Model and the Funding Compact, in New York today:

I am pleased to welcome you to the first of three informal plenary consultations on the resident coordinator system funding model and the Funding Compact between Member States and the UN Sustainable Development Goals (SDGs).

This is one of many opportunities we have had over the last few months to discuss the progress made repositioning the UN development system.  And there has been significant progress indeed.

As we have heard through numerous fora and data points, the system is demonstrating results.  To evidence this, we have worked with you to develop a resident coordinator results framework and provided case studies to demonstrate the impact of the resident coordinators.

We have to ensure all our reports draw on independent assessments, surveys and evaluations.  A system-wide evaluation office is now in place.

As we meet, resident coordinators are working around the clock and across the world to support countries in accelerating action to achieve the SDGs.

The repositioned development system has passed litmus test after litmus test.

Resident coordinators stepped up during the COVID-19 response to support in addressing the health and socioeconomic impact.  For the first time, development was treated as an emergency. Moreover, resident coordinators help country teams respond to emergencies in unprecedented ways, with development and humanitarian imperatives at the centre from day one.  This was evident in responses ranging from the Pakistan floods to the Saint Vincent and Grenadines volcano eruption.

Earlier this year, 87 per cent of host countries reported that the resident coordinators had become a more effective entry point to United Nations country support.  These results did not happen in isolation.  They result from the joint investments made by Member States and the UN.

Those in this room have served as the architects of the repositioned development system.  Not only have you, as Member States, provided guidance — but you have also invested financially in it.  These contributions have helped to put the resident coordinator system on a solid footing.  However, we are still falling far short of what the system needs to perform as you envisaged in a sustained manner.

In the SDG Summit, Member States — in response to meeting only 15 per cent of the SDG targets — issued a call for urgent and transformative action to deliver on the Sustainable Development Goals.

The UN system is stepping up to accelerate country level action on the SDGs.  Resident coordinators are serving as the conductor in the UN country teams — driving action in over 160 countries and territories.

They are focusing on the key areas of transition — fostering scale and accelerating action in food systems; energy; digital; climate and biodiversity; jobs and social protection; and education.

Resident coordinators are also coordinating critical actions required to enable this transformational change — strengthening policy and regulatory frameworks, building pipelines of national projects with public and private sector, convening actors to leverage means of implementation and supporting capacity-building of public institutions.

For example, resident coordinators have worked with the United Nations Development Programme (UNDP) to develop capacity in developing the integrated national financing frameworks.

There is a clear need for urgent and accelerated action to support developing countries.  Despite this, the resident coordinator system has never been fully resourced.

Our development vehicle is running out of fuel just as we press our foot on the pedal.  The current funding model for the resident coordinator system has not generated the volumes nor predictability we all aspired.

Since the repositioning, the resident coordinator system has been consistently underfunded.  Member States committed to providing adequate, predictable and sustainable funding in 2018 and 2021.  Member States explored different models when the General Assembly established the reinvigorated resident coordinator system in 2018 and extended the current funding model in 2021.  The UN development system has stepped up and done their part.  Agencies, funds and programmes paid their portion of the cost-sharing formula and administered the levy when applicable.

Since the last discussion on the Funding Compact, and the resident coordinator system in 2021, we have engaged at the highest levels, we have listened carefully and sought to address your requests for more information — including through providing dedicated briefings, sharing the Development Coordination Office budget, efficiency gains and providing more detailed information on results.  But we have been unable to find a way forward.

In 2022, we had a shortfall of $85 million and a similar gap is projected for this year.  We are grateful to all contributors, and we were humbled to see efforts by several countries to increase your voluntary contributions — but so far, we have been unable to yield sufficient funding.

Since 2018, the target of $154 million in voluntary contributions has never been met.  The two other streams — the 1 per cent levy applied to tightly earmarked funds and the UN SDG cost-sharing arrangement have largely continued to meet their targets.

The UN SDG cost-sharing formula provides the only consistent source of funding for the Resident Coordinator system — $77 million per annum.  The levy provided $50 million in 2022.

While largely consistent, the funding raised through the levy varies year over year and relies on donors and agencies administering it faithfully.  The levy is also falling short of the $80 million target set by member states in 2018; but has also consolidated as an important funding stream, with $50 million projected for this year as well.

With budget of $281 million, the Development Coordination Office is already as lean as possible, providing support for coordination and convening, economics, data and monitoring, communications and partnerships.

The system has stretched as far as possible to operate without full funding but it is no longer a tenable option.  And the cost of failure is high.

In the past year, the Development Coordination Office has paused recruitment of some positions.  Many of which are roles for national staff.

In some countries, they have not been able to submit applications for pooled funds as they lack the staff to coordinate the proposals.

The Development Coordination Office has had to limit their surge capacity, with the risk of delaying support to developing countries struck by crises.

Resident coordinator’s offices have had their capacity to convene reduced — resulting in fewer opportunities to bring together Member States and other stakeholders, including international financial institutions and the private sector, as we look at investments.

In the course of these dialogues, you can count on us to provide many other examples and evidence of the impact that the current $85 million shortfall is having.

While the concept of coordination may be abstract, the benefits are tangible.  This is why the Secretary-General has raised alarm at the funding context and set out his intention to find a definitive solution to the unpredictable and inadequate funding.

The Secretary-General requested me to lead the consultations for the resident coordinator system funding model before he presents a formal proposal to the General Assembly.  Development Coordination Offices will lead the dialogue between Member States and the UN development system to re-energize the Funding Compact.

Both processes will conclude in December.  The Secretary-General’s report will be presented in January 2024 and we will look to present the outcomes of the Funding Compact consultations at the Economic and Social Council Operational Activities for Development Segment in the spring.

On both fronts, we have to act swiftly.

These are two distinct, but mutually reinforcing processes.  Improving the quality of funding as envisioned in the Funding Compact and ensuring full and sustainable funding for the resident coordinator system are critical for the UN development system to deliver on the 2030 Agenda and the SDGs.

In his 2023 report on quadrennial comprehensive policy review implementation, the Secretary-General proposed that the time had come for us to review how the Funding Compact was driving commitments from Member States and the UN SDG towards better results for countries.  He identified a need to identify steps that can be taken to further accelerate progress in this regard.

The Funding Compact aims to shift the quality of Member States’ funding against increased transparency and accountability for results by the UN development system.

Over the last few years, we have seen progress towards meeting some Funding Compact commitments, particularly on the side of the UN development system, and also from Member States.

However, renewed effort is needed to strengthen the quality of funding in support of SDG acceleration and system-wide efficiencies.  For example, Member States have not significantly shifted their funding to meet the core funding target of 30 per cent.  Likewise, further steps are needed, too, on the part of the UN system.

The aim of the dialogue between Member States and the UN SDG is to jointly develop proposals for a forward-looking Funding Compact.  A Compact that reflects the urgent need for funding modalities to drive necessary transformation, accompanied by better and clearer results.

Ideally, we would like to see a simplification of the number of commitments, strategically focusing on those that are most critical, while also reinvigorating monitoring and accountability around the Compact.

In today’s consultation, I would welcome your initial views and inputs about possible elements and priorities for a strengthened Funding Compact.

The Secretary-General and I are looking forward to your robust engagement in this discussion and in subsequent consultations.

I am committed to working with you in the coming months to find a realistic and definitive solution.

Today, I am seeking your views on the process we are undertaking.  In particular, I welcome your reflections on the guiding questions circulated earlier in the week.

Please engage actively.  Ask the tough questions ‒ we need them.  Keep fire under our feet.  But please engage in the same spirit of partnership and with the same sense of urgency that has marked the reforms and their successful implementation so far.

What brings us together is the determination to protect the gains and find a solution to ensure the UN can adequately support countries in the second half of the SDGs.

There is simply too much at stake.

Today, we are particularly interested in your guidance and views regarding the process that will unfold in the next few months.  In particular:

1. What are your expectations regarding the consultations to be conducted by December 2023?

2. What additional information would you like to see in order to facilitate fulsome discussions on the resident coordinator system funding modality and the Funding Compact?  What information would support you when engaging with your capitals in support of the resident coordinator system?

3. What are lessons learned from the 2021 resident coordinator system review which should be applied in this context?

4. What are your ideas and suggestions on the way forward and how we can best support a sustainable modality on resident coordinator funding?

5. How can we ensure meaningful engagement in the discussions on the resident coordinator system funding modality and the Funding Compact?  Including the focus of different groups and different levels.

I just returned from Brussels where we engaged with European Union partners on the Global Gateway and the immense opportunities we have for collaboration on the ground as countries accelerate action to meet the SDGs.

Addressing the issue of funding of the UN development system will, however, remain essential to ensure we can continue to rise up and offer optimal support.

The road ahead will be intense, but we are confident that it will take us further.  My team and I are at your disposal and as we look forward to finding lasting solutions.