A Vital Partnership for the 2030 Agenda — Global Issues

  • Opinion by Ulrika Modeer, Steve Utterwulghe (united nations)
  • Inter Press Service

The UN has estimated that the world will need to spend between US$3 trillion and US$5 trillion annually to meet the Sustainable Development Goals (SDGs) by 2030, while the COVID-19 pandemic has already increased that estimate by an additional US$2 trillion annually.

In addition, the highly fragile global economic outlook, impacts of climate change and rising geopolitical tensions, have led to a major deterioration in international public finance, resulting in 51 developing economies being highly indebted, with the spectre of defaults looming on the horizon for over-indebted developing countries.

Considering this dark scenario of compounded crisis, the multilateral system is being called upon to become more fit-for-purpose to support global public goods and overcome global challenges.

It is therefore imperative that institutions such as the UN and International Financial Institutions (IFIs) need to bolster their partnership to provide coordinated, effective, and targeted support to developing countries’ widening needs for SDG financing.

Against this backdrop and in response to the Addis Ababa Action Agenda and UN Secretary-General’s Roadmap for Financing the 2030 Agenda for Sustainable Development, the UN System and IFIs have strived to work more closely together to promote sustainable and innovative financial systems at country level, and to catalyse more private finance.

In 2018, for example, UN Secretary-General António Guterres and former World Bank Group President Jim Yong Kim signed a Strategic Partnership Framework, which consolidated their joint commitment to cooperate in helping countries implement the 2030 Agenda for Sustainable Development.

UN agencies have developed financial and non-financial partnerships with IFIs with the aim to support governments to leverage financing, technical expertise, and advocacy from a wider range of sources.

By joining forces, UN agencies and IFIs can use and complement their respective comparative advantages in support of national development priorities and maximize development impact on the ground.

Last week, the Executive Board of the United Nations Development Programme (UNDP) held its first regular session of the year in New York. It was clear that Member States are keen to see greater engagement with IFIs to deliver on sustainable development results at scale.

As we are gearing towards the SDG Summit, there is a reckoning that we cannot do business as usual. We need all hands on deck to make progress towards 2030.

This call for joint action should also be an opportunity for Member States – usually the same donors funding the UN system and IFIs – to reflect on the global funding architecture of the United Nations Development System (UNDS). The UNDS needs predictable, un-earmarked, and flexible resources to perform its core functions and preserve the core values of multilateralism, universalism, and development effectiveness.

Nevertheless, a report by the Dag Hammarskjöld Foundation points out that OECD-DAC countries’ funding to the UNDS is more projectized and highly earmarked than the World Bank and the International Monetary Fund, or regional development banks.

In this moment of immense global uncertainty, following the UNDP Strategic Plan, UNDP is scaling up its engagement with IFIs to support countries access the capital, technical expertise, and partnerships required to achieve the SDGs.

Since 2017, UNDP has mobilized over US$1.85 billion from IFI partners, both directly through grant contributions and indirectly through government financing to support loan implementation.

In many fragile and conflict-affected states, UN agencies, such as UNDP, stay and deliver, sometimes on behalf of IFIs who cannot always fully operate in these settings. UNDP works in close cooperation with the humanitarian system and across the development, peace, and human rights pillars of the UN system.

Flexible and predictable funding allows UN agencies to respond promptly and with agility in times of crisis. In countries such as Afghanistan, Yemen, and Ukraine, UNDP implements projects and programmes that help protect livelihoods and enhance the resilience of vulnerable communities.

Member States and shareholders of Multilateral Development Banks and other IFIs recognize the synergistic and complementary mandates of many UN agencies and IFIs. The partnership is or should be obvious in areas such as sustainable finance, climate action, crisis and fragility, and poverty alleviation.

But as the world is faced with unprecedented global challenges that require unparalleled levels of partnerships and a strong multilateral system, Member States should enable a deeper engagement between the UNDS and IFIs through robust political commitment backed by a funding architecture befitting a world racing towards 2030.

Ulrika Modeer is UN Assistant Secretary-General and Director of the Bureau of External Relations and Advocacy, UNDP. Steve Utterwulghe is Director of Public Partnerships, UNDP

Source: UNDP

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The Value of Strong Multilateral Cooperation in a Fractured World — Global Issues

  • Opinion by Ulrika Modeer, Tsegaye Lemma (united nations)
  • Inter Press Service

Without coordinated and timely collective global action in recent years to respond to the COVID-19 pandemic, global suffering would have been far greater.

Initiatives such as COVAX and the UN’s socio-economic response to COVID-19 not only helped mitigate the public health emergency, but also help decision-makers look beyond recovery towards 2030, managing complexity and uncertainty.

The devastating war in Ukraine has been a colossal blow to multilateral efforts by the international community to maintain peace and prevent major wars. However, multilateral cooperation cannot be declared obsolete – it is crucial in efforts to put human dignity and planetary health at the heart of cross-border cooperation.

The recent Black Sea Grain Initiative agreement represents a key testament to the value of multilateral cooperation working even in the most difficult circumstances, ensuring the protection of those that are most vulnerable to global shocks.

Without this agreement, global food prices would have risen even further, and vulnerable countries pushed further into hunger and political unrest.

The multilateral system is faced with the ostensible imbalance in matching humanitarian and development needs with Official Development Assistance (ODA) commitments. Despite some donors’ efforts to maintain – and even increase – their ODA commitments, others are faced with increasing politicization of aid – and it is part of the political calculus.

With the war in Ukraine still raging, there is real possibility that several donors will tap into ODA budget to cover the partial or entire cost of hosting Ukrainian refugees and rebuilding the devastated Ukrainian infrastructure and economy.

The UN system, a core part of the rule-based international order, is funded dominantly by voluntary earmarked contributions. Ultimately, this gives donor countries influence over the objectives of global public good creation.

Funding patterns tend to be unpredictable, making it hard to strategize and plan for the long term. Although earmarked funding allows the system to deliver solutions to specific issues with scale, the system’s lack of quality funding support risks eroding its multilateral character, strategic independence, universal presence, and development effectiveness.

The recently launched report by the Dag Hammarskjöld Foundation and the UN’s Multi-Partner Trust Fund Office showed that more than 70 percent of funding to the UN development system is earmarked, compared to 24 percent for the World Bank Group and IMF, and only 3 percent for the EU.

As the world faces daunting development finance prospects in 2022-2023, investments should focus on protecting a strong and effective multilateral system; the system that remains trusted by countries and partners for its reliable delivery of services.

It has also proven to complement bilateral, south-south and other forms of cooperation – beyond the traditional development narrative. An ODI study showed that the multilateral channel, when compared with bilateral channel, remains less-politicized, more demand-driven, more selective in terms of poverty criteria and a good conduit for global public goods.

Notwithstanding the institutional and bureaucratic challenges that the multilateral system faces, which must be addressed head-on, a retreat from a shared system of rules and norms that has served the world for seven decades is the wrong response.

Those of us in the multilateral system, especially in the UN development system, must recognize the difficult work that lies ahead. We must continue to demonstrate that each tax dollar is spent judiciously and show traceable results, while upholding the highest standards set out in the UN charter.

Improved transparency on how and where we spend the funds entrusted to us by our key partners and the IATI standard have long been adopted as key requirement outlined in the funding compact.

The Multilateral Organisation Performance Assessment Network and other donor assessments have recognized the systems’ value for money and confirmed that partnerships with other UN entities improve programmes and effectively integrates multiple sources of expertise.

Of course, the system must continue to build on successes and lessons to prove to our partners that we remain worthy of their trust and drive our collective agenda.

However, the true value of multilateral cooperation can only be fully realized with strong political commitment by partners matched with the necessary financial investment.

Ulrika Modéer is UN Assistant Secretary-General and Director of the Bureau of External Relations and Advocacy, UNDP; Tsegaye Lemma is Team Leader, Strategic Analysis and Corporate Engagement, Bureau of External Relations and Advocacy, UNDP.

Source: UNDP

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