UNDP | Poverty Reduction

Public Resource Management

Key Initiatives | Resources | Events

Budgets are the primary vehicle for channeling resources to government functions, including poverty reduction. In order to support countries' efforts to collect, allocate and manage public funds in a 'pro-poor' fashion, UNDP promotes the design and implementation of fiscal policies for poverty reduction and provides technical support to the formulation of poverty reduction strategies to achieve the Millennium Development Goals (MDGs).

Public Resource Management (PRM) activities aim to widen developing countries access to policy options in three areas:

Key initiatives:

Pro-poor Domestic Resource Mobilization: Securing Fiscal Space for the MDGs – Country Case Studies

As part of its work on pro-poor resource mobilization, UNDP is supporting on-going case study research that will provide an empirical body of work presenting evidence-based recommendations and highlighting appropriate policy actions and programming activities to secure fiscal space in developing countries. These case-studies will also propose appropriate country-level initiatives to address issues of domestic resource mobilization more directly, including in National Poverty Reduction Strategies. The country case studies focus on Morocco, Senegal, Thailand and Venezuela.

Fiscal Policy Capacity Development in Selected Nigerian States

UNDP has just launched a technical capacity assessment and development programme in response to the request formulated by the government of Nigeria to receive assistance to improve the formulation of pro-poor fiscal policies at the state level. This project specifically aims to ensure a better alignment and coherence between the policy objectives and modalities of the national and local level strategies in four pilot states of Nigeria through a wide array of activities (training, workshops, position papers, etc.). The first phase of the project is expected to be completed by December 2006.

CapacityBuilding to Support Pro-poor Fiscal Reform in China

Continuing its involvement in China’s economic transition and development, UNDP has taken a major role in accompanying the country’s fiscal reform through its support to a 4-year (2005-2008) assistance programme entitled “Capacity Building to Support Pro-Poor Fiscal Reform in China”. Co-funded by the United Kindgom's Department for International Development, the Chinese Ministry of Finance and the State Administration of Taxation, this programme seeks to address emerging policy development and capacity constraints in the implementation of on-going fiscal reforms with a clear emphasis placed on the needs of sub-national levels and poor regions.

The Fiscal Implication of Trade Liberalization in Asia-Pacific Least Developed Countries

Drawing on the benchmark 2002 global report on Trade and Human Development, the Asia Trade Initiative and the Asia Pacific Regional Programme on Macroeconomics and Poverty Reduction, UNDP is developing a conceptual framework on the key linkages between trade and fiscal policies before testing it in three Asian least developed countries. The final output of this initiative will be a report which will synthesize the findings from the project. This project will draw policy lessons at the national level, which will empirically inform the global debates on trade liberalization and the development of a successful strategy to achieve the MDG. The second phase of the project will apply this analytical framework and test it in Laos, Cambodia and Bangladesh.

Participation in the OECD Joint Venture on Public Financial Management

UNDP is actively involved in the OECD Joint Venture on Public Financial Management, which notes the importance of pro-active measures by the development community to strengthen the capacity of developing countries to manage public financial management, and examine ways in which it might more effectively support partner country efforts.

In this connection the Joint Venture provides a platform to discuss the results and proposals emerging from studies and initiatives undertaken by other organisations such as the MDB Financial Management Harmonisation working group, the Strategic Partnership for Africa (SPA), Public Espenditure and Financial Accountability programme (PEFA), the OECD network of Budget Officials and the WP-EFF Task Team on Harmonisation and Alignment.

Resources

Assessing Fiscal Space in Developing Countries. Chambas Gérard et al. CERDI, 26 January 2006. Concept Paper commissioned by UNDP.
The Role of Public Investment in Poverty Reduction: Theories, Evidence and Methods. Anderson Ed, Paolo de Renzio and Stephanie Levy, Overseas Development Institute, March 2006. Paper commissioned by UNDP.
Investing in development: The Millennium Development Goals, Aid and the Sustainable Capital Accumulation. Rathin Roy and Antoine Heuty, Columbia School of International and Public Affairs Review, Spring 2005, volume 58, number 2.
Macroeconomic Policies for Poverty Reduction: The Case of Syria; Chapter 3: Fiscal Policy. Rathin Roy, UNDP, April 2005.
Making Fiscal Policy Work for the Poor. John Weeks and Rathin Roy. UNDP, January 2004.
Making Sense of MDG Costing. Jan Vandemoortele and Rathin Roy, UNDP, August 2004.
Pro-Poor Fiscal Policy in Cambodia. Rathin Roy, UNDP, 2004.

In French:

Evaluation de l’Espace Budgétaire dans les Pays en voie de Développement. Chambas Gérard et al. CERDI, 26 Janvier 2006 Document Conceptuel rédigé a la demande du PNUD.
Comprendre le Calcul du Coût de la Réalisation des Objectifs du Millénaire pour le Développement. Vandemoortele Jan et Rathin Roy, PNUD, Août 2004.

Events

"Aid, Budgets and Accountability" ODI Seminar co-sponsored by UNDP London, 3-4 October 2005

UNDP Consultations on “Pro-Poor Public Investment” London, 14 March 2005, and New York, 24 May 2005

Pro-Poor Public Resource Management UNDP Training, New Delhi, 29 March- 2 April 2004

(1) Public investment is defined here as “public expenditure that adds to the public physical capital stock”, which includes “the building of roads, ports, schools, hospitals etc.”. (Overseas Development Institute, 2006)

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In order to support countries' efforts to collect, allocate and manage public funds in a 'pro-poor' fashion, UNDP promotes the design and implementation of fiscal policies for poverty reduction and provides technical support to the formulation of poverty reduction strategies to achieve the Millennium Development Goals (MDGs). Public Resource Management (PRM) activities aim to widen developing countries access to policy options in three areas: Pro-poor Public investment and spending Pro-poor domestic resource mobilization MDG financing: conceptual and empirical issues Key initiatives: Pro-poor Domestic Resource Mobilization: Securing Fiscal Space for the MDGs – Country Case Studies As part of its work on pro-poor resource mobilization, UNDP is supporting on-going case study research that will provide an empirical body of work presenting evidence-based recommendations and highlighting appropriate policy actions and programming activities to secure fiscal space in developing countries. These case-studies will also propose appropriate country-level initiatives to address issues of domestic resource mobilization more directly, including in National Poverty Reduction Strategies. The country case studies focus on Morocco, Senegal, Thailand and Venezuela. Fiscal Policy Capacity Development in Selected Nigerian States UNDP has just launched a technical capacity assessment and development programme in response to the request formulated by the government of Nigeria to receive assistance to improve the formulation of pro-poor fiscal policies at the state level. This project specifically aims to ensure a better alignment and coherence between the policy objectives and modalities of the national and local level strategies in four pilot states of Nigeria through a wide array of activities (training, workshops, position papers, etc.). The first phase of the project is expected to be completed by December 2006. CapacityBuilding to Support Pro-poor Fiscal Reform in China Continuing its involvement in China’s economic transition and development, UNDP has taken a major role in accompanying the country’s fiscal reform through its support to a 4-year (2005-2008) assistance programme entitled “Capacity Building to Support Pro-Poor Fiscal Reform in China”. Co-funded by the United Kindgom's Department for International Development, the Chinese Ministry of Finance and the State Administration of Taxation, this programme seeks to address emerging policy development and capacity constraints in the implementation of on-going fiscal reforms with a clear emphasis placed on the needs of sub-national levels and poor regions. The Fiscal Implication of Trade Liberalization in Asia-Pacific Least Developed Countries Drawing on the benchmark 2002 global report on Trade and Human Development, the Asia Trade Initiative and the Asia Pacific Regional Programme on Macroeconomics and Poverty Reduction, UNDP is developing a conceptual framework on the key linkages between trade and fiscal policies before testing it in three Asian least developed countries. The final output of this initiative will be a report which will synthesize the findings from the project. This project will draw policy lessons at the national level, which will empirically inform the global debates on trade liberalization and the development of a successful strategy to achieve the MDG. The second phase of the project will apply this analytical framework and test it in Laos, Cambodia and Bangladesh. Participation in the OECD Joint Venture on Public Financial Management UNDP is actively involved in the OECD Joint Venture on Public Financial Management, which notes the importance of pro-active measures by the development community to strengthen the capacity of developing countries to manage public financial management, and examine ways in which it might more effectively support partner country efforts. In this connection the Joint Venture provides a platform to discuss the results and proposals emerging from studies and initiatives undertaken by other organisations such as the MDB Financial Management Harmonisation working group, the Strategic Partnership for Africa (SPA), Public Espenditure and Financial Accountability programme (PEFA), the OECD network of Budget Officials and the WP-EFF Task Team on Harmonisation and Alignment. Resources Assessing Fiscal Space in Developing Countries. Chambas Gérard et al. CERDI, 26 January 2006. Concept Paper commissioned by UNDP. The Role of Public Investment in Poverty Reduction: Theories, Evidence and Methods. Anderson Ed, Paolo de Renzio and Stephanie Levy, Overseas Development Institute, March 2006. Paper commissioned by UNDP. Investing in development: The Millennium Development Goals, Aid and the Sustainable Capital Accumulation. Rathin Roy and Antoine Heuty, Columbia School of International and Public Affairs Review, Spring 2005, volume 58, number 2. Macroeconomic Policies for Poverty Reduction: The Case of Syria; Chapter 3: Fiscal Policy. Rathin Roy, UNDP, April 2005. Making Fiscal Policy Work for the Poor. John Weeks and Rathin Roy. UNDP, January 2004. Making Sense of MDG Costing. Jan Vandemoortele and Rathin Roy, UNDP, August 2004. Pro-Poor Fiscal Policy in Cambodia. Rathin Roy, UNDP, 2004. In French: Evaluation de l’Espace Budgétaire dans les Pays en voie de Développement. Chambas Gérard et al. CERDI, 26 Janvier 2006 Document Conceptuel rédigé a la demande du PNUD. Comprendre le Calcul du Coût de la Réalisation des Objectifs du Millénaire pour le Développement. Vandemoortele Jan et Rathin Roy, PNUD, Août 2004. Events "Aid, Budgets and Accountability" ODI Seminar co-sponsored by UNDP London, 3-4 October 2005 UNDP Consultations on “Pro-Poor Public Investment” London, 14 March 2005, and New York, 24 May 2005 Pro-Poor Public Resource Management UNDP Training, New Delhi, 29 March- 2 April 2004 (1) Public investment is defined here as “public expenditure that adds to the public physical capital stock”, which includes “the building of roads, ports, schools, hospitals etc.”. (Overseas Development Institute, 2006)
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