Based on the Independent Country Programme Evaluation of Suriname by UNDP’s Independent Evaluation Office

Elisabeth¹ proudly shows us the banana harvest. Together with three other women from her community, she has acquired a small plot of land where she grows multiple crops. The bananas are the latest success.

Elisabeth and her companions received tools and agricultural training from a UNDP-run project. It was part of a wider effort to provide alternative incomes to a community that has been largely reliant on dangerous small-scale gold mining in Suriname’s interior.

And, at least for Elisabeth, UNDP’s project was successful. Her income has significantly increased, and she aims to get a license to work as a certified producer for a major multinational mining company in the nearby town.

A country in rapid transition

UNDP has been working in Suriname since 1993 to support the country towards sustainable development. The smallest country in South America, with just over half a million inhabitants, Suriname is known for its abundant natural wonder.

Ninety-three percent of the country is covered in tropical rainforest, making it one of only three countries in the world that absorb more greenhouse gases than they emit. But it is also vulnerable to climate-related threats, including coastal flooding, saltwater intrusion and interior droughts, such as the 2023 event that affected 40,000 people and disrupted water supplies.

Poverty is higher among indigenous and tribal communities in the interior, where income is lower and services are more limited. These groups are not legally recognized as collective owners of their ancestral lands, so concessions for mining, logging and infrastructure projects can be granted without their consent.

In this context, UNDP has focused on supporting the livelihoods of indigenous and tribal women, preparing the country for disasters born from climate change, and supporting the country’s democratic institutions.

But the future of Suriname is rapidly changing. Like its neighbour, Guyana, it has discovered oil. In 2020, the first major offshore oil discovery was announced, and initial oil revenues are expected to start pouring in as soon as 2028. According to the IMF, the country’s GDP is expected to double within the next five years.

For a country that is coming out of an economic crisis, this is a welcome development, offering opportunities for economic growth. Yet, if countries in the region are anything to go by, the oil boom is also likely to cause major economic, environmental and societal change. These rapid changes may present considerable challenges, including increased demands on state institutions and the risk of growing inequality.

Suriname’s rapid move towards high-income status raises an important question for UNDP: what role should the agency play in this evolving context?

The recent Independent Country Programme Evaluation by UNDP’s Independent Evaluation Office provided insights into the future strategic positioning of UNDP in the country.

A different type of support

The country will likely need a different type of support going forward. When the oil revenues start flowing in, the country will have ample funds for its budget. But effectively managing oil revenues and facilitating economic transition will require robust institutions, economic diversification, and the prudent management of environmental risks, infrastructural needs and social issues.

Institutions will need to be strong to support development and manage oil revenues effectively. The challenge will be ensuring that marginalized groups are included in wealth distribution, and that this does not come at the expense of Suriname’s unique natural environment.

As the socio-economic context of Suriname changes, government needs will also evolve, creating new and different expectations of UNDP. Needs will no longer centre around the implementation of development projects. There will likely be more demand for specialized technical assistance, such as in fiscal management, the development of regulatory frameworks or strategies for environmental governance.

In other words, support will need to concentrate on the governance structures and strategic planning necessary for a sustainable development agenda.

Building on trust and long-term presence

To fulfil this role, UNDP can build on its historical presence and its strong relationships with government and civil society. The evaluation found that UNDP was a valued and trusted partner by both government institutions and civil society.

UNDP has high credibility in terms of financial management and organizational capacity. UNDP Suriname’s connection to a global network enables it to access expertise and share knowledge from around the world, making it a useful partner in the relatively small country of Suriname.

Its long-term presence has helped it build a solid operational base with institutional knowledge, local networks and community connections in Suriname’s interior. Importantly, UNDP is trusted among indigenous and tribal communities, as well as government institutions and civil society organizations working in these communities.

Shifting gear

However, UNDP will have to shift gear to an office with specialized technical support and thought leadership if it wants to be relevant for the changes coming.

UNDP’s office in Suriname, like many others in middle-income countries, is dependent on two types of funding: donors such as the EU and global trust funds. Both provide funding for development projects that typically run for three to four years, with UNDP required to compete with other organizations for management of these projects.

The lack of continued and predictable resources, which may deteriorate as Suriname reaches high-income status, constrains UNDP’s opportunities to provide the policy support expected of it in a rapidly changing context. There is little time to provide innovative ideas and thoughtful expertise at policy level to Suriname’s government when the office is burdened by project management and pursuing new funding.

There is a role to play for UNDP in a country like Suriname. But shifting to a role that offers both specialized technical advice and thought leadership in inclusive sustainable development will require adapting office capacity.

To do this, UNDP would have to rethink its funding and support model for small offices such as Suriname, and forge new partnerships with the national government, private sector and development banks.

The road ahead

For Elisabeth, UNDP’s project made a real difference to her life. It impacted individuals like her in a meaningful way. But the effect remained limited in scale and did not consistently feed into wider policy change.

While UNDP’s work in Suriname has not changed significantly over the last decade, the difference now is that the context is changing. There will be more need to support institutions to be ready for managing the oil boom and ensuring that the newly found wealth leads to an inclusive national development agenda.

Time will tell if UNDP can fulfil this role by adjusting its business approach and attracting the necessary expertise to support a rapidly developing country.

¹ Not her real name.