UN UNDP DP Str tructure uctured d Fun unding ing Di Dial alogue ogue Ex Exec ecutiv utive e Boar oard d Inf nforma ormal l Bri rief efing ing 19 August ust 2020
Age genda nda 1 Impact of COVID-19 2 UNDP’s Response to COVID -19 3 Key 2019 Highlights 4 Funding Gap Analysis 5 Main Takeaways 2
Impac mpact t of COVID-19: 9: on gl global l ec econom omy 1 3
Impac mpact t of COVID-19: 9: on de devel elopm pmen ent t fin inance 1 Contraction in national budgets due to global economic contraction Economic recovery likely to be prolonged Repurposing of ODA towards humanitarian assistance Decrease in ODA (in absolute terms) due to shrinking economies 4
The UN and UNDP’s Response to 2 COVID-19 19 The UN’s evolving response UNDP’s COVID -19 crisis response is designed to help decision-makers look beyond recovery, towards 2030, making choices and managing complexity and uncertainty in four main areas: governance, social protection, green economy, and digital disruption. It encompasses our role in technically leading the UN’s socio -economic response. 5
UNDP’s Response to COVID -19 19 2 6
UNDP’s Response to COVID -19 19 2 7 https://open.undp.org/our-approaches/undpcr
Key 2019 9 Hig ighlig ights: hts: Fundi ding Co g Compact mpact 3 8
Key 2019 9 Hig ighlig ights: hts: Per erformance ormance 3 UNDP remains the most st transp spare rent nt UN agency Institutional bud udge get t balanc nced ed for a third consecutive year Un Unqua ualif lified ied financial statements audit reports for 15 consecuti cutive year ars 9
Key 2019 9 Hig ighlig ights: hts: Fundi ding S g Sit ituati tion on 3 $5m increase in core 15% decrease in total revenue to contributions from $624m in $4.8b and 3% decrease in total 2018 to $629m 9m expense to $4.9b. Core to non-core ratio Annual contributions remains at 13 13%, making declined by 7% to $4.8b, earmarked resources the with $0.16b attributable predominant form of to foreign currency contributions to UNDP fluctuations 58% of core resources 58% 3.3% increase in received came from multi- proportion of regular year commitments resources allocated to development programmes to 65.9% 9% 54% increase in thematic 28% 28% increase in 10 Funding Windows to engagement with pooled $103m 3m, the largest funds to $477m from amount received since $372m in 2018 inception
Fundi ding Gap Analysis is 4 2018-2019 Programme Expenditure by Signature Solution (100% Stacked Column Chart) 100% $161 90% $42 80% $197 $43 $2,037 70% $2,082 60% 50% $93 $557 $132 40% $17 $258 $583 29% 30% $94 20% $847 $24 $629 $25 12% 10% $76 10% 6% 6% 6% $55 $18 $203 $211 $51 0% 11 Solution 1 Poverty Solution 2 Governance Solution 3 Resilience Solution 4 Solution 5 Energy Solution 6 Gender Environment Regular Resources Programme Government Vertical Fund Third-party Cost Sharing
NEW - Costi ting ng for r Res esul ults ts Exer erci cise se for Fun undi ding ng Gap ap A Ana nalysis sis 4 Cost sting ng for r Results ults Ex Exercis cise For the first time, UNDP conducted the Costing for Results Exercise, bottom-up country office • led estimation of the cost to achieve programmatic results planned in the CPDs, RPDs and Global Projects. Fun undi ding ng Gap An Analys ysis is • In response to the EB Decision 2019/18, UNDP conducted the first Funding Gap Analysis for programmatic results areas. • Funding gap is calculated as follows: Estimated Costs for results 2020 -2021 – Available Resources (budget as proxy) for 2020 and 2021 • As the exercise was conducted in February 2020, the bottom-up costs do not include the estimated resources required for UNDP’s COVID -19 response work - $700M for the next 12 to 12 18 months.
Fundi ding Gap Analysis is 4 Funding Gap Analysis for 2020-2021 By Signature Solution (USD Millions) 4,500 4,500 39% 39% 4,000 4,000 3,500 Overall Funding Gap 3,500 (Programmatic Areas) 3,000 3,000 27% 2,500 2,500 2,000 2,000 1,500 33% 1,500 23% 1,000 1,000 26% 500 500 63% - 13 - 1 - Poverty 2 - Governance 3 - Resilience 4 - Environment 5 - Energy 6 - Gender 2020-2021 Budget 2020-2021 Estimated Cost
Fundi ding Gap Analysis is 4 2018-2021 Resource Plan vs. 2018-2019 Expendigure, 2020-2021 Budget and Funding Gap (In USD Millions) 9,000 9,000 8,000 8,000 7,000 7,000 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 - - Outcome 1 - Advancing poverty Outcome 2 - Accelerate structural Outcome 3 - Strengthen resilience Legacy / New Areas 14 eradication in all its forms and transformations for sustainable to shocks and crisis dimensions development 2018-2021 Resource Plan 2018-2019 Expenditure 2020-2021 Budget 2020-2021 Funding Gap
Fundi ding Ga g Gap An p Analysis is – Key Fi Findi dings gs 4 • Estimated funding gap to achieve SP targets by 2021 is approximately $2.8B. • Funding gap for Signature Solution 6 (Gender) is largest in terms of proportion (63%). • Funding gap for Signature Solution 1 (Poverty) and Signature Solution 2 (Governance) is the largest in terms of absolute values - approximately $1.6B and $1.5B, respectively. • At SP output level, UNDP mobilized sufficient resources for some outputs while other are at risk of underachieving the 2021 targets. Flexible/predi xible/predicta ctable ble regula ular r resou sources ces are critical cal for UNDP to fill the funding gaps and quickly respond to new and emerging needs, such as the COVID-19 response. • The data and lessons learned from the first Costing for Results Exercise and Funding Gap Analysis will inform the resource plan for the new Strategic Plan and Integrated Budget for 2022-2025. 15
Mai ain T n Tak akea eaways ys 5 COVID-19 underscored the e value ue and vul ulnerabi nerability lity of the e mul ultilat ilatera eral l system em and the importance of flexible funding for UNDP’s agile programmatic and operational response UNDP takes the Fun unding ding Com ompac act t seriously, making progress on 77% of its entity-specific indicators while contributing to the realization of UNDS collective commitments UNDP continued to drive imp mproveme ements nts in key perform ormance ance areas as – in transparency and accountability, efficiencies, balancing its budget, securing an unqualified audit opinion, and allocating more core funds to development programmes Lack ck of qua uality y fun unding ding limits UNDP’s ability to allocate resources to underfunded areas and address funding gaps of the Strategic Plan UNDP values struc uctu tured red fun unding ding dialogues ogues as key to shif ift fun unding ding beha havior vior and acceler elerate results ts on the ground nd, realizing the mutual commitments of the funding compact 16
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