UNDP and International Financial Institutions
International Financial Institutions (IFIs), including multilateral, regional and national development banks with international operations, are critical development partners to achieve the Sustainable Development Goals (SDGs). IFIs have deep institutional expertise in providing and catalyzing investments in sustainable development and have taken steps to align their activities with the 2030 Agenda, including by scaling-up climate finance, designing and deploying innovative SDG-related financial instruments, and helping to crowd-in public and private resources to advance global public goods in areas such as combatting climate change and forced displacement.
As underscored by the UNDP Strategic Plan, the Secretary-General’s Strategy for Financing the 2030 Agenda and related Financing Roadmap, UNDP is scaling up its engagement with IFIs. By leveraging the respective missions, added value and complementarities, UNDP works with IFIs at all levels, from joint assessments, analysis and research, to project development and implementation.
In every region, UNDP is working with Governments and IFIs to leverage development expertise and resources towards shared outcomes to enhance support for national governments and local communities, and improve the sustainability of development efforts. Since 2010, IFI partners have contributed more than $2.5 billion to UNDP programmes, both through direct grants to UNDP, and indirectly, through government financing. Through tripartite partnerships, UNDP provides capacity development or implementation support to national government projects financed by IFIs.
How can UNDP add value to IFI operations?
UNDP offers IFIs and government partners access, impartiality, and expertise to help maximize the true development impact of every IFI dollar spent.
UNDP has entered into formal agreements with the African Development Bank, Asian Development Bank, Caribbean Development Bank, Central American bank for Economic Integration, Council of Europe Development Bank, Development Bank of Latin America (CAF), Eurasian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Fund for Agricultural Development, Islamic Development Bank, Germany’s KfW, and the World Bank Group.
UNDP also works with the International Monetary Fund, the New Development Bank (NDB) and the Asian Infrastructure and Investment Bank (AIIB).
In addition to global and regional Banks, UNDP is increasing collaboration with national development banks, including, the China Development Bank, Italy’s Cassa Depositi e Prestiti and the Brazilian National Development Bank (BNDES),
Most of UNDP’s collaboration with IFIs takes place through several modalities.
Financial partnerships take shape primarily through project implementation whereby UNDP supports governments in the implementation of loans and provision of technical assistance, or receives direct grants from IFIs, especially for crisis response in fragile contexts. UNDP’s tailored support allows governments to realise the greatest possible impact from these resources – saving time and funds while simultaneously strengthening national institutions and capacities. Examples are found in the brochure, “Strong Partnerships, Stronger Impact: Governments, International Financial Institutions, and UNDP Working Together for Development” (March 2022) and Partnerships for Sustainable Finance: UNDP and International Financial Institutions Accelerating Finance for the Sustainable Development Goals (October 2022).
Non-financial partnerships involve joint research, knowledge products, and publications such as the Pathways for Peace report with the World Bank; Guide for Integrated Planning in Africa with the African Development Bank; UNDP-ADB-ESCAP annual Asia-Pacific SDG Partnership report with the Asian Development Bank and UNESCAP; Harmonizing Investments and Financing Standards Toward Sustainable Development Along the Belt and Road with the China Development Bank; and Africa’s Digital Solutions to Tackle COVID-19 with the European Investment Bank.
UNDP also partners with IFIs on joint analysis and assessments including joint Post Disaster Needs Assessment and Recovery and Peacebuilding Assessments; COVID-19 Recovery Needs Assessments; and Socio-economic Impact Assessments and Response Plans (of which an estimated 50% have been developed in partnership with the WB, and one-third with the International Monetary Fund (IMF).
UNDP collaborates with IFIs on platforms; staff exchanges and secondments, joint capacity development trainings and technical assistance; development finance policy areas; joint events and advocacy; and parallel financing (through which each partner uses its own funding streams for a common programme such as joint applications to the Green Climate Fund with the European Investment Bank in Armenia.
The Financial Institutions Partnerships team in UNDP’s Bureau for External Relations and Advocacy (BERA) is working across UNDP to increase collaboration with IFIs. Please contact the team with any queries you may have related to IFI-UNDP collaboration.
UNDP and IFIs for the Global Goals
- World Bank: The World Bank and UNDP signed an agreement for the Beirut Critical Environment Recovery, Restoration and Waste Management Program with $10M in World Bank grant financing financed through the Lebanon Financing Facility, a multi-donor trust fund. (18 May 2022)
- Asian Development Bank: Building Forward Together. Towards an Inclusive and Resilient Asia and the Pacific (ADB, UNDP, UNESCAP Asia-Pacific SDG Partnership Series, March 2022
- World Bank: UNDP-World Bank data collection on social protection and COVID-19 in Latin America (March 2022)
- Islamic Corporation for the Development of the Private Sector: UNDP-Islamic Development Bank team up to help Uzbekistan develop Green Sukuk for SDGs and Climate Action. Green Sukuk to help Uzbekistan
- Islamic Development Bank: UNDP-Islamic Development Bank partnership for the SDGs: the bold choices that will define the future of development (January 2022)
- BADEA: Public-Private Dialogue Making Finance Work for MSMEs towards recovery in the West African Economic and Monetary Union (WAEMU) region. (November 2021)
- Publication: “Supporting Public Development Banks in their Commitments to Financing the Sustainable Development Goals and Paris Agreement,” (October 2021)
- African Development Bank: African Development Bank (AfDB) finances UNDP’s Regional Stabilization Facility for the Lake Chad Basin region. (August 2021)
- European Bank for Reconstruction and Development: UNDP and EBRD reaffirm partnership to promote sustainable development: Joint initiatives to promote green economy, digital transition and inclusion (July 2021)
- Islamic Development Bank: Pre-Feasibility Study for Green Sukuk Issuance in the Republic of Uzbekistan (April 2021)
- UNDP blog: Why International Financial Institutions matter for COVID-19 recovery (March 2021)
- New Development Bank: NDB issues RMB 5 billion Sustainable Development Goals Bond (March 2021)
- KfW: Leveraging UNDP’s Insurance and Risk Finance Facility through the InsuReslience Global Partnership (January 2021)
- KfW: Germany’s KfW Development Bank investing EUR 30 million (US$35.89 million) to enhance economic empowerment and create employment opportunities for vulnerable communities in Iraq through UNDP. (December 2020)
- Asian Development Bank: UNDP-ADB partnership to strengthen Bhutan’s macroecnomic forecasting and modelling (September 2020)
- Islamic Development Bank: UNDP, UNOPs, UNICEF, Islamic Development Bank and the Government of Cameroon join forces to fight the COVID-19 pandemic (August 2020)
- World Bank: 26 tons of personal protective equipment (PPE) procured by UNDP with World Bank’s financial contribution to help strengthen the COVID-19 response in Guinea Bissau (July 2020)
- Asian Development Bank: UNDP and ADB join efforts to strengthen medical waste management in Kazakhstan during COVID-19 pandemic (July 2020)
- Asian Development Bank: Ministry of Finance and UNDP Launch Food Security Project for Tens of Thousands of Timorese in Timor Leste (July 2020)
- World Bank: UN and World Bank analyze the socio-economic impact of the COVID-19 pandemic in Angola. (June 2020)
- World Bank: UNDP and the World Bank support the process of measuring the social impact of the COVID-19 pandemic in Moldova (May 2020)
- Asian Development Bank: Fast-tracking the SDGs: Driving Asia-Pacific Transformations (ADB, UNDP, and UNESCAP Asia-Pacific SDG Partnership series, May 2020)
- Inter-American Development Bank: IaDB and UNDP sign agreement to support the government of Paraguay’s COVID-19 response (April 2020)
- European Investment Bank: Ukraine Early Recovery Programme (February 2020)
- KfW German Development Bank: Hospitals and bridges re-open after completion of KfW-financed UNDP projects to rebuild infrastructure in Iraq after ISIL (February 2020)
- Asian Development Bank: Partnership agreement between UNDP in Armenia and Asian Development Bank (February 2020)
- Asian Development Bank: UNDP teams up with Asian Development Bank for sustainable development in Chittagong Tracts, Bangladesh. (April 2019)
- CABEI: Accelerating Renewable Energy Investments through CABEI in Central America. (December 2018)