UNITAR Seminar

1

Funding for operational activities for development

of the United Nations system

New York, 25 May 2011

UNITAR Seminar

Kristinn Sv. Helgason and Andrew MacPherson, OESC, UNDESA

2

A. Review of key funding trends

B. Predictability of core and non-core funding

C. Recovery of support cost of non-core funding flows

D. Concentration and/or fragmentation of UN development system

Presentation outline


3

A. UN system-wide activities (2009)

Humanitarian Ass is tance

22%

(Based on 2009 contributions to UN system-wide activities ($34.3 billion)

Peacekeeping21%

Norm-setti ng & other16%

Development-related activities

41%

Operational activities for development


4

A. Operational activities for development

(DEV & HA, 2009)

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%


5

A. Largest UN entities (DEV & HA, 2009)

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

0 200 400 600 800 1 000 1 200 1 400

Core contributions

Non

-cor

e co

ntri

buti

ons

(Millions of current United States dollars)

UNDP

FAO

UNHCR

UNFPA

WHO

UNRWA

UNICEF

WFP

50% core share


6

A. Sources of funding (DEV & HA, major groups, 2009)

European Commiss ion 8%

Others19%

(Total funding in 2009: $21.9 billion)

Non-OECD/DAC Governments

9%21%

OECD/DAC Governments

63%21%


7

A. Sources of total funding (DEV & HA, major groups, 1995-2009)

63%

76%

0

5

10

15

20

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


8

A. Sources of non-core funding (DEV only, major groups, 1995-2009)

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


9

A. Sources of funding (DEV & HA, top DAC donors, 2009)

Rank Donor Core Non-core Total Core share

1 United States of America 754 3 443 4 197 18.0

2 European Commission 146 1 639 1 785 8.2 3 Japan 405 769 1 174 34.5

4 United Kingdom of Great Britain and Northern Ireland 376 696 1 073 35.1

5 Netherlands 558 476 1 034 53.9

6 Spain 298 676 973 30.6

7 Norway 421 480 901 46.7

8 Sweden 389 480 869 44.8

9 Canada 161 541 703 23.0

10 Germany 294 330 624 47.1

Total of top 10 contributors 3 802 9 530 13 333 28.5


10

A. Sources of funding (DEV only, DAC donors, 2009)

0

100

200

300

400

500

600

700

800

900

1 000

- 50 50 150 250 350 450 550 650

Core

Non

-cor

e


United States

Japan

Netherlands

Germany

SwedenNorway

United Kingdom

European Commiss ion

Canada

Spain

50% core share


11

A. Sources of funding (DEV only, non-DAC countries,

2009)

86% core

70%

47%

95%

74%

32%

47%

37%

47%

99%

0 20 40 60 80 100

Algeria

United Arab Emirates

Turkey

Brazi l

Argentina

India

Mexico

Russ ian Federation

China

Saudi Arabia

Contributions

Core Non-core



12

A. Trends in contributions (DEV & HA, 1994-2009)

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)


13

A. Core funding ratios (1994 and 2009)

54%

69%62%

72%

47%42%

34%27%

0%

20%

40%

60%

80%

100%

Tota lcontributions

Development -related

activities

Al lgovernments

(DEV)

DACgovernments

(DEV)

Core

rati

o

1994

2009


14

A. Non-core funding modalities (DEV only, 2009)

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%


15

A. UN share of OECD/DAC multilateral aid

(DEV & HA, 2006-2009)

33%32%31%30%

0

10

20

30

40

50

60

2006 2007 2008 2009

Mul

tila

tera

l aid

United Nations European Commiss ion World Bank Group

Regional Dev. Banks Other

(Source: OECD Creditor Reporting System)


16

A. Destination of funding (DEV & HA, 2009)

Africa33%

(Total expenditures in 2009: $22.1 billion)

Americas8%Asia/Pacifi c

18%

Europe 2%

Western As ia 8%

Regional and global 11%

Not attributed 7%

Programme support and management

activities 13%


17

A. Top recipients (DEV & HA, 2009)

Rank Recipient

Expenditures (millions of United

States dollars)

Expenditures per capita (United

States dollars)a

1 Sudan 1 182 28.0

2 Afghanistan 1 065 35.7

3 Dem Rep of the Congo 693 10.5

4 Occupied Palestinian Territory 673 179.1

5 Ethiopia 673 8.1

6 Pakistan 586 3.5

7 Kenya 463 11.6

8 Somalia 420 45.9

9 Zimbabwe 343 27.4

10 Chad 315 28.2


18

A. Destination of funding by major cost groups (DEV only, 2009)

Country programmable

resources57%

(Development-related expenditures excluding local resources in 2009: $13.6 billion)

Global and regional

19%

Not attributed 7%


activities 17%


19

A. Country programmable resources by income group (DEV only, 2009)

Low-income countries

71%

(Total CPR in 2009: $7.7 billion)

Upper-middle income countries

6%

Low-middle income countries

23%


20

B. Fluctuations in voluntary funding

(selected entities, 2005-2009)

-40%

-20%

0%

20%

40%

60%

2005 2006 2007 2008 2009

UNDP core

UNDP non-core

UNICEF core

UNFPA core

WHO

UNESCO

ILO

UNICEF non-core


21

B. Fluctuations in core contributions to UNDP

(2005-2009)

-20%

-10%

0%

10%

20%

30%

40%

50%

2005 2006 2007 2008 2009

Totalindividual donors


22

B. Fluctuations in non-core funding to UNDP

(2005-2009)

-20%

-10%

0%

10%

20%

30%

40%

50%

2005 2006 2007 2008 2009

individual donors

Total


23

B. Currency exchange rate movements(major currencies, 2005-2009)

-30%

-20%

-10%

0%

10%

20%

30%

Jan-

05

Apr-

05Ju

l-05

Oct

-05

Jan-

06

Apr-

06Ju

l-06

Oct

-06

Jan-

07

Apr-

07Ju

l-07

Oct

-07

Jan-

08

Apr-

08

Jul-0

8O

ct-0

8

Jan-

09

Apr-

09

Jul-0

9O

ct-0

9

Jan-

10

Apr-

10

Jul-1

0O

ct-1

0

Jan-

11

USD/EUR USD/GBP USD/JPYUSD/NOK USD/DKK USD/CHFUSD/CAD USD/SEK


24

B. Change in donor currency and US$ equivalent (UNICEF, core contributions, 2008-2009)

0%

0%

17%

11%

0%

0%

13%

22%

2%

6%

-18%

-4%

-9%

-13%

-5%

1%

2%

-30% -20% -10% 0% 10% 20% 30%

BEL

CHE

DNK

ESP

FIN

GBR

NLD

NOR

SWE

USA

change donor currency change USD change total core contributions


25

C. Non-core funding and support cost recovery

Programme activities


activities Other Total

Core resources 2 334 1 454 219 4 007

Share 58% 36% 5% 100%

Non-core resources 8 557 656 214 9 427

Share 91% 7% 2% 100%

Total resources 10 891 2 110 433 13 434

Share 81% 16% 3% 100%


26

D. Concentration and/or fragmentation of UN development system (as a whole)

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%


27

Priority versus less priority

Is the entity’s share of country-level expenditures higher or lower than its share of global average for operational activities for development?

Significant versus less significant

Is the entity among the larger contributors that together account for at least 80 per cent of this recipient’s total ODA?

D. Concentration and/or fragmentation of UN development system (individual entities)


28

D. Concentration and/or fragmentation of UN development system (individual entities)

Less priority, less significant: 830 (47%)

Priority, less significant: 837 (47%)

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


Documents

UNITAR Seminar