United Nations Capital Development Fund

1
United NationsCapital Development Fund
Summary of Strategic Partnership Between UNDP and
UNCDF Moving Closer Together in the Context of
the UNDP Strategic Plan 2008-2011
Executive Board Meeting January 2007
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Presentation Overview

• Executive Board Decisions.
• Steps Taken Since Executive Board Decisions.
• UNDP-UNCDF Strategic Partnership.
• The Partnership Framework.
• Recommendations of the High-Level Panel.
• UNCDF and the UNDP Strategic Plan.
• Next Steps.
• Key Challenges Associated with Strategic
  Partnership.

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Executive Board Decisions

• At the First Regular Session in 2006, Executive
  Board Decision 2006/04 requested

• the Administrator of UNDP and the Executive
  Secretary of UNCDF to work closely to finalize
  a memorandum of understanding between the two
  organizations setting forth the key elements of
  their strategic, operational and financial
  partnership, and report their arrangements to the
  Board at its annual session in June 2006.

• At the Annual Session in June 2006, the Executive
  Board Decision 2006/15 requested

• the Administrator of UNDP and the Executive
  Secretary of UNCDF to work closely to finalize
  the strategic agreement between UNDP and UNCDF,
  setting forth the key elements of their
  strategic, operational and financial partnership,
  and to report their arrangements to the Board at
  its first regular session 2007.
• the Administrator of UNDP and the Executive
  Secretary of UNCDF to explore ways to cooperate
  on strategic planning, funding, programming
  arrangements and the results framework in the
  context of the preparation of the UNDP MYFF for
  the period 2008-2011.

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Steps Taken Since Executive Board Decisions

• April 2006 UNCDF presented Framework for
  Strategic Partnership for discussion with UNDP.
• April June 2006 Framework was considered
  within UNDP but not finalized due largely to
  factors related to UN Reform and initiation of
  High-Level Panel deliberations.
• September 2006 Based on Executive Board Decision
  2006/15, UNCDF presented Proposed Cooperation
  Framework for UNDP and UNCDF in the Context of
  UNDPs MYFF for 2008-2011.
• September November 2006 Proposed Cooperation
  Framework considered within UNDP but decision to
  wait for Final Report of High-Level Panel before
  determining the way forward.
• November 2006 Based on High-Level Panel
  recommendations, UNDP and UNCDF agreed that basic
  elements of Proposed Cooperation Framework
  should be basis for integrating the work of UNCDF
  into UNDPs 2008-2011 Strategic Plan.
• September-December 2006 UNCDF actively
  participated in process for developing UNDP
  Strategic Plan and integrating UNCDF Practice
  Areas and results.

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UNDP-UNCDF Strategic Partnership

• Aim of the Strategic Partnership is to bring UNDP
  and UNCDF closer together strategically,
  operationally, and financially.
• Outcomes expected
• Greater coherence, simplicity, and harmonization
  within the UN system.
• Improved efficiency, effectiveness and coherence
  of both organizations.
• Enhanced developmental impact of both
  organizations in the Least Developed Countries
  (LDCs) and in other developing countries.
• More predictable, stable funding for UNCDFs
  investment activities in the LDCs.
• More equitable burden sharing among Member
  States.
• Strategic Partnership will build on
• Unique investment mandate of UNCDF as
  complementary and supplementary to UNDP Poverty,
  Governance and Post-Conflict Focus Areas.
• UNCDFs ability to provide effective and
  efficient service delivery in the LDCs.

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Strategic Partnership
(continued)

• Strategic Objectives of the Partnership include
• Achieving programmatic synergies based on the
  comparative advantages and added value of each
  organization.
• Achieving greater efficiency and effectiveness of
  Joint Programmes with UNDP and Joint Programming
  within the UN system.
• Sharing knowledge on good practices in
  Microfinance (which includes building inclusive
  financial sectors) and Local Development (which
  includes decentralization) for the benefit of
  programme countries, through UNDP and the UN
  Country Teams (including those outside of LDCs).
• Contributing to ongoing efforts to simplification
  and harmonization among UN agencies as part of UN
  Reform and follow-up to the Paris Declaration on
  Aid Effectiveness.
• Operational Objectives of the Partnership
  include
• Clarifying respective roles and functions to
  support the strategic objectives, especially at
  Regional and Country Office levels.
• Assuring management, operational and financial
  alignment with UNDP, including maximizing UNCDF
  participation in all appropriate UNDP planning
  and management frameworks and systems and the
  facilitation of effective resource mobilization.

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Partnership Framework

• Proposed Partnership Framework provides that UNDP
  and UNCDF should
• Integrate their strategic planning and results
  frameworks through the UNDP Strategic Plan
  2008-2011.
• Establish Joint Programmes as the primary
  programming modality for working together at
  Country Level.
• Integrate their results frameworks, reporting and
  evaluation policies and methodologies.
• Rationalize their management and operations at
  Headquarters, Regional, and Country Levels.
• Jointly mobilize Core and Non-Core Resources at
  Headquarters and Country Levels.

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Partnership Framework
(continued)
Subject and Source Level of Cooperation UNDP UNCDF
Legal Mandates (GA) Separate Complementary Broad Development Agenda. Global Presence. Coordinating UN System. Capacity Building Focus. Grants and Loans (Investments) for General Development Assistance. Focus on LDCs.
Focus Areas (EB) Aligned Complementary Poverty Reduction and Sustainable Development. Democratic Governance. Crisis Prevention and Recovery. Energy and Environment. Microfinance / Inclusive Financial Sectors. Decentralization and Local Development.
Development Outcomes (EB) Aligned TBD Increased sustainable access of low income households and small enterprises to a broad range of financial products and services. Increased sustainable access to pro-poor infrastructure, social services and local economic development by working through Local Authorities.
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Partnership Framework with UNDP
(continued)
Subject and Source Level of Cooperation UNDP UNCDF
Multi-year Planning Framework (EB) (M) Joint Strategic Plan 2008-2011 Strategic Plan 2008-2011
Regional and Country-level Programming Framework (EB) (M) Joint UNDAF CPAP Joint Programmes UNDAF CPAP Joint Programmes
Measuring and Reporting Results (EB) (M) Joint Strategic Plan Report Strategic Plan Report
Evaluation (EB) Common Evaluation Policy. Separate Evaluation Units. Joint Evaluations of Joint Programmes Joint Evaluations of Joint Programmes
Evaluation (EB) Common Evaluation Policy. Separate Evaluation Units. Focus on Strategic and Country Office Evaluations Focus on Programmatic Evaluations
UNCDF Administrative Funding (EB) Joint UNDP BSB UNDP BSB
UNCDF Core Funding (EB) (M) Joint Core Funding Targets. Established by Mutual Agreement. Joint Core Resource Mobilization Joint Core Resource Mobilization
UNCDF Core Funding (EB) (M) Joint Core Funding Targets. Established by Mutual Agreement. Programmatic Arrangements Through Strategic Plan Programmatic Arrangements Through Strategic Plan
UNCDF Non-Core Funding (EB) (M) Joint Non-Core Funding Targets Based on Programme Requirements. Joint Non-Core Resource Mobilization Joint Non-Core Resource Mobilization
UNCDF Non-Core Funding (EB) (M) Joint Non-Core Funding Targets Based on Programme Requirements. Programming Arrangements Based on Programme Requirements Programming Arrangements Based on Programme Requirements
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Recommendations of the High-Level Panel

• Principal recommendation of the High-Level Panel
  was that the UN should deliver as one and
  establish one UN at country level, with one
  leader, one programme, one budget, and, where
  appropriate, one office. 1
• One UN is to be based on a consolidation of
  the UNs programme activities at the country
  level 2
• UNDP-UNCDF Partnership Framework would integrate
  UNCDF activities into UNDP programming and
  management at Country Level.
• UNCDF management, operational and financial
  arrangements at Country Level would be part of
  One UN arrangements.
• UNCDF Local Development and Microfinance
  programmes would be part of the UNDAFs and CPAPs
  at Country Level.
• Thus, UNCDF will participate eagerly and fully in
  the One UN Programme.
• UNCDFs unique programmatic contributions to
  UNDPs Strategic Plan will make clear that UNCDF
  is not providing duplicative functions and that
  its work is complementary to the activities of
  UNDP and other UN organizations.
• 1 Report of the High-Level Panel, p. 2.
• 2 Ibid.

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UNCDF and the UNDP Strategic Plan

• UNCDF actively, productively participating in
  development of Strategic Plan
• Working closely with Associate Administrator and
  OSG.
• Working closely with Regional Bureaus, BDP
  Poverty and Governance Practice Leaders, and
  BCPR.
• Most recent version of UNDP Strategic Plan
  provides for integration of the contributions
  fromUNCDF.
• UNDP Poverty Reduction and Sustainable
  Development Focus Area will highlight UNDPs
  partnership with and the contributions of UNCDF
  (inclusive financial services)
• UNDP Democracy and Good Governance Focus Area
  will take into consideration the contributions
  of UNCDF (Local Governance).
• Considerable progress expected in finalizing
  UNCDF integration into Strategic Plan during next
  few months.
• Detailed joint presentation to Executive Board
  expected at June 2007 session.

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Next Steps

• UNCDF will work closely with the Associate
  Administrator, OSG, and other UNDP colleagues in
  the next few months to address the following
  issues in more detail
• Developing a mechanism for ensuring more
  management coherence, coordination and synergy
  between UNDP and UNCDF with regard to
  programming, planning, reporting, and evaluation
  functions
• Developing an appropriate structure and process
  for conducting joint resource mobilization
  between UNDP and UNCDF
• Developing appropriate and mutually agreed
  funding arrangements for UNCDF within the context
  of the Strategic Plan and
• Developing a method and process for UNCDF to more
  fully engage in sharing knowledge within UNDP and
  the UN system.

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Next Steps
(continued)

• UNCDF will participate actively with UNDP
  colleagues in the process for finalizing the
  Strategic Plan.
• UNDP target completion date Q2 2007.
• UNDP and UNCDF will jointly report progress to
  the Executive Board at the June 2007 Regular
  Session and seek the Boards guidance and advice.
• UNCDF will explore with UNDP any additional steps
  that might be required to finalize the Strategic
  Partnership and will develop with UNDP an
  implementation plan once the Strategic Plan and
  the Strategic Partnership are finalized.
• Target completion date Q3 2007.

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Key Challenges Associated with Strategic
Partnership

• Assuring UNCDF programmatic focus and technical
  excellence in Local Development and Microfinance.
• Assuring UNCDF continued geographic and
  investment focus on LDCs.
• Assuring UNCDF ability to pilot, take
  programmatic and financial risks, and make rapid
  management and investment decisions.
• Assuring clarity and consistency of reporting and
  management structures for UNCDF personnel
  integrated in UNDP Regional Centres and Country
  Offices.
• Assuring that UNCDF programmes are adequately
  supported through stable, multi-year funding
  arrangements in the context of the Strategic
  Plan.
• Assuring that Strategic Partnership structure
  attracts new Donors and Development Partners and
  accomplishes burden sharing objectives.

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United NationsCapital Development Fund
Summary of Strategic Partnership Between UNDP and
UNCDF Moving Closer Together in the Context of
the UNDP Strategic Plan 2008-2011
Executive Board Meeting January 2007