UNDP and the International Financial Institutions
International Financial Institutions (IFIs), including the World Bank Group and other multilateral and regional development banks, are critical development partners to address the Sustainable Development Goals (SDGs). In addition to policy expertise, economic analysis and knowledge products, they bring to the table considerable development resources and deep ties to national governments.
IFIs are already important contributors to UNDP’s project-specific (non-core) funding. From 2010 to 2014, IFIs contributed more than $550 million to UNDP programs. Some of these contributions were provided through direct grants to UNDP, while the majority came in the form of Government Cost-Sharing arrangements, through which IFIs provide loans to national governments that are then used to fund UNDP programming.
UNDP’s partnerships with IFIs are not, however, a one-way street. Indeed, UNDP and IFIs have established mutually- beneficial partnerships to enhance support for national governments and local communities, and improve the sustainability of development efforts.
UNDP recognizes that scaling up its engagement with IFIs is essential to achieving the SDGs, as underscored by the UNDP Strategic Plan. The Financial Institutions (FIT) team in UNDP’s Bureau for External Relations and Advocacy (BERA) is working across UNDP to help improve collaboration with IFIs. Please contact the Team with any queries you may have related to IFI-UNDP collaboration.
UNDP has entered into formal agreements with the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, Islamic Development Bank, World Bank Group and BNDES, the Brazilian National Development Bank.
UNDP has also received contributions through Government Cost-Sharing from the European Investment Bank, and is currently in discussions with emerging banks, namely the Asian Infrastructure and Investment Bank and the New Development Bank.
Most collaboration with IFIs takes place through one of several modalities. These include:
- UNDP implementation of projects with IFI financing;
- UNDP provision of logistical support to projects implemented by national partners with IFI funding; and
- “Parallel financing”, in which funds are not transferred to UNDP, but cooperative efforts are made towards common development goals.
- UNDP, Council of Europe Development Bank to boost Development Goals in Europe Feb 6, 2017
- UNDP To Support Zakat for Development in Indonesia Mar 15, 2017
- UNDP and Islamic Development Bank Sign Partnership to Support the Sustainable Development Goals May 18, 2016
- The European Union, the Islamic Development Bank and UNDP launch the Revitalization of Sultan Suleiman and Salah Eddin Streets in East Jerusalem Dec 13, 2016