Transcript United Nations Capital Development Fund

United Nations
Capital Development Fund
Preliminary 2006 Results and Outlook for 2007
Executive Board Meeting
January 2007
0
Presentation Overview

Review of UNCDF 2006 Development Results.

2006 Programme Highlights.

Additional UNCDF Activities in 2006.

Organization and Management: 2006 Restructuring Results.

2006 Resource Mobilization Highlights.

2004-2006 Resources Mobilized.

Budget Results 2005-2007: Expenditures.

2006-2010 Growth Summary.

2007 Business Plan: Development Results.

2007 Business Plan: Management Results.

Key Challenges.
1
Review of UNCDF 2006 Development Results
UNCDF Activities in Local Development in 2006 (Preliminary)
Number of LDCs
33
Number of LDCs with investments
23
Estimated number of direct beneficiaries
4.5 Million
Geographic distribution of investments
66% Africa
24% Asia
5% Latin America
5% Arab States
Total UNCDF financing required for Current Investments
Approx. $115m*
Indicative key data for 2006
•
•
•
•
Number of local governments supported
Number of investments made in infrastructure and access to social services
Average amount per investment
Average investment per capita
*Includes projected investments from Development Partners through UNCDF.
450
3,008
$3,520
$2.35
2
Review of UNCDF 2006 Development Results
Local Development Investments by Sector in 2006
13% Roads, Bridges,
Culverts
1
…continued
33% Education
15% Markets &
Agriculture
19% Water
2% Community
Facilities
18% Health
(1) Reflects preliminary results based on 80% of country programmes reporting to date.
3
Review of UNCDF 2006 Development Results
…continued
UNCDF Activities in Microfinance in 2006 (Preliminary)
Number of LDCs
14
Number of LDCs with investments
9
Geographic distribution of investments
89% Africa
11% Arab States
Total UNCDF financing required for Current Investments
Approx. $40 million*
Indicative key data for 2006
• Number of Inclusive Financial Sector Assessments:
• Number of Investment Committees:
• New MFI investments in 2006:
• Number of Post-Conflict Countries, including Pipeline:
4 countries
5 countries
$2.2 million; 20 MFIs
13 countries
*Includes projected investments from Development Partners through UNCDF.
4
2006 Programme Highlights
Bangladesh

Government of Bangladesh approved $200 million+ “Local Government Support
Programme (LGSP)” scaling up and replicating UNCDF/UNDP pilot to 4,500
Union Parishads.

World Bank, EU, DANIDA, SDC join LGSP.

UNCDF retains Technical Support Role, continues learning and innovation in 6
Union Parishads and begins technical management of Social Protection pilot.
Yemen

National Decentralization for Local Development Strategy elaborated and adopted
by the Local Authorities National Conference.
 Strategy scheduled for approval by Parliament in February 2007.

“Decentralization and Local Development Support Program” (DLDSP) coverage
continued to expand and reached 48 districts (from the original 6 in 2003).

Donor support continued to grow: 9 donors have harmonized approach and total
budget now exceeds $12 million.
5
2006 Programme Highlights
Nicaragua

Nicaraguan Government adopted “National Strategy for Decentralization and
Local Development” based on UNCDF Local Development model and technical
support.

UN Resident Coordinator seeking technical assistance to align and harmonize UN
and development partner support for decentralization reform that will use local
authorities for cross-sectoral service delivery to reduce poverty and achieve the
MDGs.
Senegal

UNDP, UNCDF and CIDA approved $ 9 million to support national strategy for
building inclusive financial sectors with focus on rural areas.

IFAD, KfW, AFD and EU approved specific funding to support national strategy.
 Donor funding reached 95% of Action Plan ($40 million) for implementation of
national strategy.
6
2006 Programme Highlights
Mozambique
•
Government of Mozambique replicating UNCDF pilot and Local Development
methodology with support of World Bank, DCI and GTZ.
•
UNCDF, UNDP, World Bank and GTZ jointly evaluated prior Local Development
collaboration and used results to jointly advise Government of new National
Decentralized Planning and Finance Programme (NDPFP).
•
Government decided “in principle” to establish NDPFP and resource-pooling or
common-funding arrangement.
 UNCDF working with other Development Partners and Government to
develop appropriate programming and financial arrangements.
Benin

UNCDF pilot (begun in 2003) for Decentralization and Local Development
pioneers Public Expenditure Management process using National Treasury for
investment funding.

Government and Development Partners (EU and Belgium) agree to replicate and
scale up UNCDF model to additional provinces.
7
Additional UNCDF Activities 2006
UN Conference on Inclusive Financial Sectors in Africa

A forum for multiple stakeholders to discuss the challenges, constraints, and
opportunities for building inclusive financial sectors in Africa.

More than 300 participants from Governments, Central Banks, Development
Agencies, Microfinance Institutions (MFIs) and Financial Service Providers
(FSPs), private sector financial institutions, academia, civil society, donors and
investors, UN Agencies and Bretton Woods Institutions.

About 80% of participants from Africa.

The Dakar Declaration on Building Inclusive Financial Sectors in Africa issued and
Steering Committee formed to ensure follow-up.
 First Steering Committee meeting to be held in Madagascar in February
2007.
 Steering Committee members include representatives from Governments,
Central Banks, IFIs, MFIs, FSPs and Development Partners.
 UNCDF hosting Steering Committee.
8
Additional UNCDF Activities 2006
UN Advisors Group on Inclusive Financial Sectors

Established in June 2006 for a term of 2 years:
 To increase global access of poor and low income households and micro
and small enterprises to a broad range of financial products and services
on a sustainable basis.
 To raise global public awareness regarding financial inclusion and to place
inclusive finance on the global development agenda.

Consists of 25 individuals representing the UN, Governments, IFIs, Central
Banks, MFIs, FSPs, private sector financial institutions and academia.

Four Working Groups: Regulation and Supervision, Engaging the Private
Sector, Research and Public Policy, and Advocacy.

Two meetings in 2006: June and November.

Secretariat formed at UNCDF consisting of Senior Policy Advisor, Programme
Manager, and Programme Associate.

Key Events in 2007: Global Conference on Regulation & Supervision;
Conference for Institutional Investors sponsored by Goldman Sachs; Regional
Meetings in Asia, Latin America and Eastern Europe; Advisors Group meetings
in Amsterdam, Nairobi, and Asia-Pacific region.
9
Organization and Management: 2006 Restructuring Results
Consistent with UN Reform initiatives, UNCDF has restructured to
achieve greater decentralization and improved operating efficiency
and effectiveness:


Streamlined HQ to focus exclusively on strategic functions and management: 41%
reduction in HQ posts.
 Addition of Business Development and Operations Advisors in 2006.
Expansion of presence at Regional and Country levels.
HQ
Regional Country Offices
2005
37
5
42
2006
24
16
53
2007
(P)
24
19
54
JPOs
Totals
9
93
5
98
10
107
10
Organization and Management: 2006 Restructuring Results
…continued
 Principal benefits of restructuring:
 More field presence closer to LDCs and supported by programme funds.
 Closer alignment with UNDP resulting in more cost-effective structure for
delivering services.
 Reduced HQ overhead costs.
 Enhanced capability to mobilize resources and manage operations
efficiently.
 HQ and Regional restructuring completed in 2006.
 2007 restructuring activities:
 Revise roles and responsibilities in Country Offices to strengthen project
management and collaboration with UNDP.
 Review Change Management process to identify lessons learned and
assess need for adjustments.
11
2006 Resource Mobilization Highlights
 18% increase in Core Contributions from $10.7 million in 2005 to $12.7 million
in 2006.
 22% increase in Non-Core Contributions from $10.8 million in 2005 to $13.1
million in 2006.
 20% increase in Total Contributions from $21.5 million in 2005 to $25.8 million
in 2006.
 Total Contributions in 2006 exceeded 2004 Contributions by $2 million.
 45% increase in number of Donor Countries from 11 in 2005 to 16 in 2006.
 New Core Donors include Andorra, Ireland, Liechtenstein and USA.
 Approximately $2 million mobilized for UN Advisors Group over two years.
 It is not expected that UNCDF will draw upon its reserves in a significant
way in 2006.
12
2004-2006 Resources Mobilized
Number of Contributing Member States1
UNCDF Contributions: 2004-2006
+45%
-15%
+20%
-10%
16
$25.82
$23.8
$21.5
13
NonCore
11
Core
2004
2005
(1) Includes OECD/DAC countries only.
2006
2004
2005
2006
(2) Includes (i) certain pledges for 2006 not received as of
31/12/2006 but expected in early 2007 and (ii) an amount
for support of certain UNCDF activities held in a Trust
Fund in BDP.
13
Budget Results 2005-2007: Expenditures
$47m
$31m
$23
million
+ 23 %
$41 million
$19.5
million
$26 million
$27.8m
$21.1 million
50
45
40
35
30
25
20
15
10
5
0
$38
million
Investments
Country Investment
Support
Regional Investment
Support
$6.7
million
$5
million
2005
2006
2007
Actual
Preliminary
Projected
- 25 %
$5
million
Admin (UNDP
since 2006)
14
2006-2010 Growth Summary
2006
(preliminary)
2007
(projected)
2010
(projected)
$26m
$41m
$60m
Local Development
$22m
$32m
$40m
Microfinance
$4m
$9m
$20m
28
37
45
Local Development
23
33
42
Microfinance
9
16
25
98
107
112
Total annual programme
expenditures1
Total number of LDCs
UNCDF Personnel
(1) Includes projected investments from Development Partners through UNCDF.
15
2007 Business Plan: Development Results
Decentralization and Local Development
Number of Programme Countries:
33
Local Governments Supported:
600
New Programme Countries:
10
Total Programme Investments:
$32 million
 Complete next stage of scale-up and replication: Bangladesh, Nepal, Mozambique,
Timor Leste, Yemen, Ethiopia, Benin and Senegal.
 Initiate Local Economic Development programmes: Benin, Senegal, Tanzania,
Uganda and Malawi.
 Establish methodology and documentation with UNDP and Development Partners
for Decentralization and Local Development Sector-wide Approach (SWAP).
 Work closely with UN colleagues to establish UN approach to Local Development
through Local Authorities and localizing the MDGs.
 Complete Joint Programme with UNIFEM on Gender-Sensitive Budgeting at Local
Level.
16
2007 Business Plan: Development Results
Inclusive Financial Sectors and Microfinance
Number of Programme Countries:
16
New Programme Countries:
7
Total Programme Investments:
$9 million




Investment Committees operational in 12 Countries.
Total investments in MFIs and FSPs: 44 investments amounting to $7.5 million.
Increase in clients obtaining loans: 670,000, including at least 50% women.
Establish methodology and documentation with UNDP and donors for Inclusive
Financial Sector SWAP.
 Organize and manage Steering Committee for follow-up to Dakar Conference on
Building Inclusive Financial Sectors in Africa.
 Support operations of the Secretariat of UN Advisors Group on Inclusive Financial
Sectors.
 New Microfinance Director assumes leadership and management role.
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2007 Business Plan: Management Results
Cooperation Framework with UNDP
 Conclude Cooperation Framework with UNDP and establish UNCDF participation in
UNDP Strategic Plan 2008-2011.
 Participate actively in development of “One UN” at Country Level.
 Develop Joint Programme methodology, documentation, and management
processes for working with UNDP and Development Partners at Country Level.
 Develop Joint Resource Mobilization Strategy with UNDP.
 Conclude funding arrangements with UNDP for period of Strategic Plan.
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2007 Business Plan: Management Results
Human Resources
• Complete and implement revised roles and responsibilities for Progamme Officers
and Programme Assistants in Country Offices.
• Fill remaining vacant posts.
• Complete and implement Talent Management Plan for retiring UNCDF Staff.
• Develop and implement Learning and Career Development Programme for all Staff.
Management Systems
• Complete definition and implementation of UNCDF Management Tools: Monthly
Management Dashboard, Quarterly Project Management and Financial Reports.
• Complete Management Information System and integration of programme and
financial information into ATLAS.
• Assure availability, comparability and high quality of project data for measuring
Development Results and implement Results Based Management system.
• Complete upgrade of ATLAS and prepare for 2008 implementation of International
Public Sector Accounting Standards (IPSAS).
19
2007 Business Plan: Management Results
Knowledge Sharing and Knowledge Management
• Collect, publish and disseminate Best Practices and Case Studies from UNCDF
Practice Areas.
• Establish broader knowledge-sharing and utilization of UNCDF technical expertise
and experience with UNDP and the UN system.
• Enhance UNCDF Web Site for broader public access and dissemination of
information.
Communications
• Conclude and implement Marketing and Communications Plan to increase
awareness of UNCDF activities within UNDP and the UN system.
• Coordinate Marketing and Communications Plan with UNDP and address
“branding” issue on all communications material.
• Complete 2006 Annual Report and disseminate broadly to key target audiences.
20
2007 Business Plan: Management Results
Resource Mobilization and Strategic Partnerships


Increase Core and Non-Core Resource Mobilization by 40% to $36 million.
Increase contributions from Member States who made initial contributions in 2006
and from contributing Member States with increasing ODA allocations.
Further diversify donor base of Member States, including Emerging Donor Countries,
based on discussions initiated in 2006.
Provide professional Resource Mobilization support to Country and Regional Offices,
focusing on Country-Level Joint Programmes.
Pursue Strategic Partnerships with foundations, private sector and multilateral and
bilateral development partners.



Evaluation




Complete Phase I of mandatory Project Evaluations using outsourcing model.
Complete remaining mandatory Project Evaluations.
Assure adherence to new UNDP Evaluation Policy.
Implement and monitor recommendations of External Evaluations.
21
Key Challenges

Completing Cooperation Framework with UNDP.

Integrating UNCDF contributions into UNDP Strategic Plan 2008-2011.

Developing funding mechanism for UNCDF within context of UNDP Strategic
Plan.

Mobilizing resources: HQ, Regional and Country Level.

Finalizing revised roles and responsibilities for UNCDF personnel in Country
Offices within the context of “One UN” and UNDP Strategic Plan.

Managing growth and expansion plan.
22
United Nations
Capital Development Fund
Investing in the Least Developed Countries
Executive Board Meeting
January 2007
23