Annual Report 2008

UNDP resources

Voluntary contributions to the organization’s regular (core) resources grew for the seventh consecutive year. The $1.12 billion gross regular income received by UNDP in 2007 represents a significant increase over the $922 million received in 2006 and exceeds the overall nominal target of $1.1 billion set by the Multi-Year Funding Framework (MYFF 2004-2007). This increase results from both step increases in voluntary contributions and exchange rate changes: expressed in current dollar terms, core income increased by 21.5 percent between 2006 and 2007 and by 32.7 percent over the planning period from 2004 to 2007. When corrected for both inflation and the performance of the US dollar vis-à-vis other currencies, adjusted core income still grew by 12.1 percent and 16.8 percent, respectively.

Overall combined earmarked (non-core) contributions to UNDP in 2007 totaled $3.8 billion, remaining at the same high level in nominal terms as in 2005 and 2006. Between 2006 and 2007, resources channelled through UNDP by programme country governments in support of their own development priorities decreased a little, from $1.4 to $1.3 billion. Non-core contributions from bilateral donor governments, mostly from OECD-DAC member states, increased a little from $1 billion to $1.1 billion. Total contributions from non-bilateral partners remained at $1.2 billion, the same level as in 2006. UNDP continues to be called upon to support governments to obtain, direct and manage different types of funding in accordance with national priorities.

Earmarked resources represent an important complement to the regular resource base of UNDP. However, the ratio of earmarked to non-earmarked regular resources remained imbalanced, although increased core resources improved this ratio slightly in 2007. A continued focus on the mobilization of core resources remains imperative to enable UNDP to fulfil its mandate and deliver effective capacity development support for partner countries and to pursue flexible, integrated management approaches focused on long-term development effectiveness and sustainability.