As prepared for delivery

1. Introduction 

Mr. President,

Distinguished Members of the Executive Board,

It is a privilege to join this second regular session of the UNDP/UNFPA/UNOPS Executive Board. Next month, the 81^st session of the UN General Assembly will open. It will hold a mirror to our deeply fractured world. Persistent conflicts. Growing climate pressures. Rapid technological change. And a crisis of trust in institutions.

But amid these pressures, one truth is becoming clearer. Development is not peripheral to this changing world. It is central to how we shape it. Development is how we build prosperity and stability. How we create opportunities for women and young people. How we ensure technology becomes a bridge to opportunity, not a new dividing line. And how we restore trust between people, institutions and the systems meant to serve them.

No country can secure lasting progress alone. The future requires countries, communities and partners working together to build resilience, security and prosperity.

I saw this clearly during my joint mission to Afghanistan with the UN High Commissioner for Refugees. There, the challenge is not simply to create livelihoods. It is to connect people, markets, finance and value chains. So that local opportunity translates into jobs, income and greater stability.

That is the role development must play. Not isolated projects, but stronger systems. Not livelihoods disconnected from markets, but economies connected to wider regional and global opportunity. And not development as an afterthought to geopolitics, but as one of the ways we shape it.

To do this at scale, development must be at the heart of the global political debate. And to play that role, development itself must change. How we programme. How we partner. How we finance. And how we deliver. Not change for its own sake. But change that delivers greater impact.

That is what I want to discuss with you today: how UNDP is changing and how do we build a development model that can deliver for a changing world and give it the resources it needs to succeed?

2. From Aid to Investment: Making Development Finance Work Differently 

In my conversations with governments, partners, and communities on the ground over these past months, one message has come through clearly: the development model is changing. 

For decades, aid helped deliver extraordinary progress. It helped halve extreme poverty. It helped dramatically reduce child mortality. It helped countries build institutions, expand services and improve the lives of millions.

Trade and investment helped drive these gains, while aid helped countries build the foundations that made it possible. That role remains essential. But the world has changed.

Development needs are becoming more interconnected. Public resources are under pressure. And the financing required to achieve the Sustainable Development Goals is far beyond what aid alone can provide. 

This does not make aid less important. It makes how we use it more important.

So, the role of development finance must evolve. From aid to unlocking investment at scale. Using scarce public resources strategically to strengthen institutions. Reduce risk. And mobilize much larger flows of finance.

This transition is already underway. And Member States are leading it. Mobilizing resources. Building partnerships. And shaping solutions around the goals they have set for themselves.

The Sevilla Commitment, adopted last year, offers an action plan to address the annual $4 trillion SDG financing gap. And the urgency is growing. Official Development Assistance (ODA) fell by 23.3% in 2025 and is projected to decline by a further 6.9% this year.  Core contributions to the UN system fell by 27% in 2025, the largest annual decline on record. That is precisely why every development dollar must work harder.

A development dollar can fund a project. Or it can do more. It can strengthen a system. It can reduce risk. And it can help unlock larger investments that are many times greater.

So, the question is not whether aid or investment matters more. The question is how we use development resources to unlock investment, expand opportunity and take solutions that work to scale.

3. For Governments: Making Every Dollar Work Harder 

Countries know that lasting development cannot depend indefinitely on resources coming from somewhere else. They want to mobilize more of their own resources. Access capital on fairer terms. And invest in their own priorities. This is what our partners are asking for. And this is where UNDP is focusing its efforts.

Between 2022 and 2025, UNDP helped countries align and leverage $920 billion for the Sustainable Development Goals. Not because UNDP became a lender. But because we became a stronger connector between development and finance, helping countries build the policies, institutions and investment environments that allow finance to flow. 

Our approach is straightforward. We support our partners to raise more, borrow better and share what works.

First, raise more. Domestic public resources are the most sustainable foundation for financing development. Through the OECD-UNDP Tax Inspectors Without Borders initiative, developing countries have generated more than $2.7 billion in additional domestic revenue.

Second, borrow better. The cost of capital is a development issue. Because the price a country pays to borrow determines the choices it can make. Schools. Infrastructure. Jobs. Yet, too often, countries pay a premium not for the risks they face, but for the risks others perceive. That is why UNDP works with governments to strengthen sovereign credit ratings, develop sustainable bond frameworks and improve public financial management. Working alongside partners, UNDP has helped countries from Mexico to Tanzania to Ecuador mobilize $31.5 billion through sovereign bonds. And through our Africa Credit Ratings Initiative, we are helping governments strengthen data systems and engage more effectively with rating agencies, so that risk is assessed more accurately and countries can access capital on fairer terms.

Third, share what works. Expertise no longer travels in one direction. Countries that once received expertise are now providing it. Colombia, for example, was an early recipient of support from Tax Inspectors Without Borders. Today, its tax administration is helping Guatemala strengthen its capacity to address tax avoidance risks associated with multinational companies.

That is what development should do. Build capacity that lasts. And expertise that travels.

Countries across the Global South are increasingly solving problems together, sharing knowledge, technology and solutions built from their own experience.

Together with the United Nations Office for South-South Cooperation, hosted by UNDP, we connect that knowledge, financing and experience to our country presence and programming. 

By linking to UNDP’s global network initiatives such as the Pérez-Guerrero Trust Fund, funded by the G77 and China, the India-Brazil-South Africa Fund and the India-UN Development Partnership Fund and the UN-China Facility, we help take South-South cooperation to scale. 

This is more than an exchange of knowledge. It is a new model of partnership built on connecting capabilities. Countries sharing what works, mobilizing more of their own resources and accessing capital on better terms. That is stronger development ownership. And that is the foundation of the new development model we are building together.

4. The Private Sector: Bringing Capital, Technology and Jobs to Development

Countries financing more of their own development is an essential part of the answer. 

But it is not the whole answer. Domestic public resources cannot, on their own, deliver the scale of investment required to achieve the Sustainable Development Goals. Nor can they, by themselves, connect countries to the forces that increasingly shape growth and competitiveness.

Access to capital. Access to technology. Access to markets. And access to global value chains. These are no longer separate questions.  Together, they increasingly determine whether countries create jobs, attract investment and compete in the global economy. 

This is why doing more to attract private capital matters to development. And not just simply because it brings financing. But because it brings much more. Innovation. State-of-the art technology. Entrepreneurship. Market access. And jobs.

Investment does more than finance development. It connects countries to opportunity. Done well, and equitably, it can accelerate progress and expand prosperity. 

That is why UNDP is increasingly working with the private sector as a strategic development partner. And it is why we created our flagship Investment Accelerator. To translate national ambitions into investment opportunities. To connect global capital with country priorities. And to turn development commitments into jobs, growth and shared prosperity.

We do this in three ways.

First, we build confidence. Capital retreats from uncertainty. It follows confidence. That is why UNDP helps countries to build the policies, institutions and systems that make investment possible.

Climate policies and regulations that turn commitments into credible investment opportunities. Anti-corruption frameworks, which UNDP supports in more than 60 countries. And stronger public institutions that build trust and create predictability. Because countries with trusted, capable institutions are better able to reduce risk, mobilize domestic resources and crowd in capital for development.

We also help build systems that governments need and investors increasingly expect. International sustainability standards. Digital public infrastructure that expands access to finance, improves public services and creates new opportunities for citizens.

Take Viet Nam. The capital needed for the green transition already existed. But the market risks remained too high. UNDP helped build regulatory frameworks, develop a green taxonomy and carbon market infrastructure, and strengthen banking capacity. We did not provide the financing. We helped to create the confidence that allowed it to move.

Second, we help connect ambition with investment. Because good policies do not automatically become investments. They need financing partners. They need bankable projects. And they need investment pipelines.

This is especially important in high-risk and last-mile markets. That is why we work closely with the United Nations Capital Development Fund (UNCDF). Together, the UNDP-UNCDF partnership offers governments a true policy-to-capital continuum: an end-to-end pathway from policy design to financing at scale. UNDP builds the conditions for investment.  UNCDF brings the UN system’s specialized capability to structure financial instruments and take early, calculated risk to demonstrate that markets are investable. Our new UNDP-UNCDF Policy-to-Capital pooled fund, with a target of mobilizing $500 million, is designed to put that approach into practice.

We are also helping investors identify concrete opportunities. Through our SDG Investor Maps, investors can identify hundreds of opportunities across countries, sectors and Sustainable Development Goals. In Nigeria alone, this tool has already helped secure $15 million in SDG-aligned investments for women-owned SMEs. In Serbia, the Investor Map identified $8.3 billion in direct investment potential, with wider economic effects of up to $20 billion.

Through our UNDP-Italy Platform for Investment Support and Technical Assistance (PISTA), we have helped unlock around $100 million in debt and equity financing for climate projects, with a further $300 million expected in 2026. 

But investment is not an end in itself. Its value is measured in what it changes for people. 

In Mauritania, PISTA has helped bring solar power to 200 villages. Which means electricity for schools. Better access to health services. And new economic opportunities.

And through the EU-UNDP Mayors for Economic Growth Facility, we are supporting cities in Armenia, Georgia, Moldova and Ukraine to build investment pipelines and connect with financing partners.

Because ultimately, investment is a means to an end. Better lives. More choices. Greater opportunity.  And stronger resilience. 

Third, we connect countries to the technologies and markets shaping the future. Artificial intelligence is already reshaping economies, development prospects and global competitiveness. So, the question is no longer whether AI will shape development. It already is. The question is who will participate in that future. We cannot allow access to AI to become another global divide.

That is why we co-designed the AI 10 Billion Initiative for Africa with the African Development Bank, building investment pipelines for AI infrastructure. And why a new 50 million euro venture capital platform for AI in Africa was announced at the Nairobi AI Forum. Because the future of artificial intelligence should not simply be designed for developing countries. It should be built with them. 

Through partnerships with companies such as Samsung, HP and Mastercard, UNDP is combining access to technology, expertise and markets to expand digital inclusion, strengthen entrepreneurship and accelerate sustainable development.

And with private-sector partners in Türkiye, we are connecting rural producers, entrepreneurs and small businesses to digital markets, skills and value chains, translating local opportunity into investment and growth.

That is the model we are building. Governments setting priorities and providing finance. Private capital providing scale. The private sector translating innovation into jobs, growth and resilience. And development connecting those capabilities to national priorities. And doing so in a way that is inclusive, equitable and delivers for all. 

5. Crisis: Where Development and Investment Matter Most

Investment in development is also investment in human security. 

Today, more than half of UNDP’s work takes place in fragile and conflict-affected settings. Crises do not simply destroy infrastructure. They destroy livelihoods. They weaken institutions. They erode people’s confidence that tomorrow can be better. And they put hard-won development gains at greatest risk.

Humanitarian needs have never been greater. At the same time, humanitarian financing is under unprecedented pressure. This is widening the gap between emergency response and long-term recovery. And that gap is where millions of people live.

This matters, because recovery does not begin when an emergency ends. It begins while the emergency is still unfolding. Humanitarian action remains indispensable, particularly in the immediate aftermath of crisis.

It saves lives. 

But alongside that lifesaving response, development must begin rebuilding the foundations on which recovery depends. Restoring services. Rebuilding institutions. Reviving local markets. And creating the conditions for future investment.

The choice is not between humanitarian action and development. We need both.

That is why UNDP’s Moving Beyond Crisis flagship puts development at the center of crisis response. Because moving beyond crisis means connecting immediate recovery to long-term resilience. It means development from day one.  Laying the foundations for recovery from the very start, so that scarce humanitarian resources can remain focused on saving lives while development investment restores livelihoods, services, institutions and longer-term resilience.

And here, too, partnerships make all the difference. Together with UNHCR and IOM, we support 27 Resident Coordinators and UN Country Teams in helping governments to put more than 16.9 million IDPs and returnees on solutions pathways, up from 11.4 million in 2024. Together with international financial institutions, we help bring financing into contexts which investment would otherwise struggle to reach. In Ukraine, UNDP support has helped unlock $1.6 billion in recovery financing from the European Investment Bank. 

Every dollar invested in technical assistance generated approximately $70 in infrastructure recovery. And through pooled funding, we help governments mobilize larger public and private investments. In Colombia, the UN Internal Displacement Solutions Fund helped mobilize $2.5 billion in national public investment. 

Taken together, these examples show what it means to move beyond crisis. Development in crisis settings is about connecting immediate recovery with long-term resilience, prevention and preparedness. And this is why core and flexible resources matter so much. Because crises do not wait for funding cycles. Core resources allow UNDP to act early. To respond immediately. And to mobilize additional financing when countries need it most. In Lebanon, UNDP’s investment through core funding achieved a leveraging effect of 1 to 50 in raising funds to respond to crisis and recovery needs.

But financing alone is never enough. Recovery ultimately depends on people. People rebuilding their communities. People restoring local institutions. And people shaping their own future. This is why the United Nations Volunteers remain such an important part of our work. Serving in 172 countries and territories, three-quarters of them are national volunteers working in their own communities. They remind us of something fundamental. Development is not something we deliver to people. It is something we build with them.

6. A Changing UNDP: A Future-Fit Development Partner

As I said at the outset, development is changing. And the institutions that support development must change with it. We cannot build the development model of tomorrow with the operating model of yesterday.

That is why UNDP is changing. How we partner. How we finance our work. And how we organize ourselves to deliver greater impact. This is not change for its own sake. Our guiding principle is simple: every reform must strengthen our delivery.  And every change must strengthen the trust placed in us. 

This is also the ambition behind the Secretary-General’s UN80 initiative. UNDP is fully committed to this effort. We are reducing duplication and improving efficiency, within UNDP and across the system.

We have acted early to align our structures, footprint, workforce and operating model with today's realities. We are strengthening expenditure discipline. Expanding shared services and automation. Investing in digital technologies, data and artificial intelligence. And building new partnerships.

All this to ensure that every development dollar invested in UNDP and in the UN system delivers greater impact.

Today, UNDP remains resilient despite one of the most difficult financing environments in decades. This reflects your continued confidence in our value and our ability to deliver. But the financing landscape is changing. And our partnership model is changing with it.

We are broadening our contributor base. New strategic partners are contributing some $350 million to UNDP, across core and non-core. And we are deepening our relationships with non-core contributors beyond programme financing, helping to bridge the core funding gap. 

We are also expanding the use of pooled and flexible funding mechanisms. As the largest participant in inter-agency pooled funds and joint programmes, and as host to the Multi-Partner Trust Fund Office, UNDP helps transform collective priorities into collective action.

We have also reformed the architecture of our flexible thematic mechanism, the Funding Windows, in line with the Strategic Plan and our corporate flagships. Because flexible resources generate a higher development return. They allow us to work across sectors. Connect institutions. And help countries address challenges that do not fit neatly into traditional funding silos. 

This is also the logic behind our portfolio approach. Rather than financing isolated projects, we bring together connected sets of investments tackling national challenges from several angles simultaneously. Last year, UNDP invested $175 million across 70 such portfolios. Investment in coherent strategies, not individual projects. Working across the UN system, including in fragile settings like Libya, Timor-Leste and Venezuela, where we collaborated with other UN agencies. 

But perhaps the most significant change is happening in our relationship with programme countries themselves. Government Development Financing reached nearly $1.6 billion in 2025 and now represents 29% of UNDP’s total contributions. This represents a fundamental shift.

When developing countries invest their own national budgets through UNDP, it flips the traditional script. UNDP is no longer simply an aid provider. We become a platform through which countries advance priorities they have set for themselves. A partner that brings expertise. A partner that delivers quickly. A partner that provides the transparency and accountability that governments expect. A co-investor in countries’ development pathways. Because countries own their development. They lead the way. And they want partnerships built around their own priorities.

We are modernizing and adapting our business model accordingly. Strengthening our value proposition. Integrating Government Development Financing more systematically into country-level engagement. And simplifying the way we work.

Our partnerships with International Financial Institutions are evolving in the same direction. We are moving beyond project implementation toward deeper cooperation on policy reform, financing strategies and investment pipelines. For example, the new ECHO–EIB–UNDP Investing Beyond Crisis Mechanism will unlock up to 400 million euros in European Investment Bank (EIB) loans for crisis-affected countries. Our new Cooperation Framework with the World Bank will combine our respective strengths to create enabling market conditions, unlock private finance and support job creation. Pilots will launch soon in Yemen, Haiti, Lebanon, Ghana and Nepal. And new partnership agreements being launched this fall with the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and the European Investment Bank will further expand access to innovation, expertise, technology and scale.

Yet we need to do more. We need to modernize our partnership frameworks. Simplify our engagement processes. Upgrade our skills. And invest in the next generation of talent through our People for 2030 Strategy.

As we do this, I would like an open conversation with the Board on how to continue to adapt our business model to a rapidly changing world. How do we direct resources where they can have the greatest impact? How do we refine our funding approaches so they respond more effectively to country priorities? And how do we encourage innovation while managing risks responsibly?

The world will not wait for multilateral institutions to catch up. UNDP must continue to change. Faster. Smarter. And closer to the countries we serve. Because in the end, reform is about strengthening our impact and helping countries shape their own future.

Members of the Board, you are an indispensable partner in this process. Guiding UNDP's evolution. Ensuring that our reforms continue to respond to what Member States need.

7. Conclusion

Mr. President,

Distinguished Members of the Board,

Excellencies,

At the beginning of my remarks, I said that development is becoming central to how we shape a changing world. I remain convinced that this is so. Because development is where prosperity is built. Where resilience is strengthened. And where trust in institutions is restored.

The recent MOPAN assessment recognized the progress that UNDP has made in becoming a stronger organization, including in audit and independent evaluation. We have done our homework. Step by step, we are becoming more agile. More efficient. And more effective. But there is one constraint we cannot reform our way around.

Funding.

We cannot continue to absorb the impact of declining core funding without affecting the very capabilities you rely on. Our ability to act early. Our ability to innovate. And our ability to build new partnerships that unlock much larger investments.

Seen this way, core funding is not simply a contribution to UNDP. It is catalytic capital for development. I therefore want to warmly thank all 32 Member States who contributed to core in 2025. I greatly appreciate your support, whether new or continuing. I am particularly grateful to those partners that contribute early in the year. That timely support gives UNDP the predictability to plan ahead, act quickly and put every dollar to work where it is needed most.

Every development dollar of core resources mobilizes approximately $10 in other resources. But its true value cannot be measured in leverage only. Core funding allows us to remain present when conditions deteriorate.

To work where risks are highest. To invest early, before crises become more costly. And to move beyond projects into portfolios with maximum impact.

In short, core provides the platform that enables us to deliver. If we do not reverse the current decline in core funding, we risk losing as much as 40% of our impact for the people we serve.

So, the question before us is not whether the world can afford a new development model. It is whether we can afford not to build one. A model that combines solidarity with investment. National ownership with international partnership. And ambition with measurable results.

Next month, the General Assembly will ask whether multilateralism can still deliver. Our answer must be clear. Yes. But only if we judge ourselves by results. Institutions that function. Services that reach people. Jobs that create opportunity. And investments that strengthen resilience.

So, my appeal to this Board is straightforward. Protect the foundation. Protect the flexible and predictable resources that allow UNDP to act early, to innovate and to deliver.  And build this new development model together.