LocationsDevelopment in dollars and sense
Investing in people pays the highest returns
When people talk about investing in development, they often say it’s the right thing to do. What we don’t always hear is that it’s also the smart thing to do. Funding human capital growth is the investment that pays the highest dividends.
Global wealth now exceeds US$600 trillion according to McKinsey, while developing countries face a $4.3 trillion annual financing gap to achieve the Sustainable Development Goals (SDGs). This shows that there is no lack of capital but rather a failure to connect that capital with the people and places that need it most.
UNDP advocates for three solutions: renewed international solidarity, mobilizing domestic resources and unlocking private sector financing. We’re working with countries and partners to align global markets with human development and turn commitments into results.
Every day UNDP’S work proves that investing in people isn’t just an altruistic endeavour. It pays for itself many times over–in dollars and in good sense.
Healthy returns
A healthy population is the foundation of a cohesive society and a vibrant economy. Vaccines, for example, provide economic benefits to individuals and countries by lowering health care costs and preventing lost wages and poor productivity due to illness. Still, at least half of the world’s population do not have adequate access to health services, and millions of people are pushed into poverty because they must pay for care.
Since 2022, UNDP has supported 90 countries to improve health services, critical to helping people escape multidimensional poverty. Our Digital Health for Development Hub is a one-stop shop with technical, advisory and partnership support to help countries introduce and scale up of digital and AI health solutions.
Reducing risks to development
Like with health, prevention is much better than cure when it comes to disasters. On top of the immense human suffering, disasters cost us over US$200 billion annually in direct damages, and the overall costs exceed $2.3 trillion when indirect and ecosystem impacts are included. Disaster risk reduction is, therefore, an investment worth making, and small investments can yield big transformations.
UNDP works with some 59 governments around the world to reduce people’s vulnerability to disasters. In Indonesia, schools use a mobile app called STEP-A to measure their tsunami readiness. The data gives authorities a clear picture of which schools are prepared and where more efforts are needed.
Preventing conflict and violence
Armed conflicts roll back development. That’s why UNDP has built a cohesive peacebuilding practice, including our work on preventing violent extremism. UNDP aims to tackle both push and pull factors, addressing the grievances and deprivations that can drive people to join violent groups.
We’re also helping to strengthen national systems for arms control, advancing peace, security and sustainable development. One of several countries taking part in the SALIENT (Saving Lives Entity) project, Kyrgyzstan is developing a modern and accountable system for managing civilian firearms to keep them out of the wrong hands.
When conflicts happen, UNDP stays and delivers for people and communities facing their toughest times. In Gaza, in Sudan and Ukraine, UNDP has remained operational throughout the crises, working to meet basic needs while protecting critical infrastructure so that recovery can happen faster.
The climate economy
As the World Economic Forum (WEF) has outlined, there is an emerging mindset recognizing that climate action can be an economic boon rather than a drain on resources. Research consistently demonstrates that climate adaptation measures deliver robust returns, presenting extraordinary opportunities for both governments and the private sector.
The Forum’s Alliance of CEO Climate Leaders has published an open letter to world leaders, stressing the commercial viability of the climate economy and urging businesses and policy-makers to scale up this historic opportunity.
Nature-positive growth
From sequestering carbon to strengthening food systems and protecting coastal areas, nature is a big part of the solution for climate change and other development challenges. And nature-based solutions are cost effective, providing multiple benefits at lower lifecycle costs than traditional engineering-focused interventions.
UNDP works to accelerate systemic shifts to unlock nature-positive financial flows. We co-founded the Taskforce on Nature-Related Financial Disclosures, expanded the Biodiversity Finance Initiative (BIOFIN) to mobilize US$2.7 billion in new funding and supported reforms of $10 billion in subsidies that were harmful to the environment.
Our Equator Initiative showcases nature-based solutions led by Indigenous Peoples and local communities, helping to expand their reach and inspire more impactful action. This includes the work of the Urus community in Bolivia, who turned to an ancient remedy to remove contaminants from Uru Uru Lake.
Fueling progress
Investing in clean energy generates significant economic benefits, including creating more jobs than fossil fuels, driving innovation and building sustainable infrastructure. Despite this, countries spend huge sums subsidizing fossil fuels, perverting economic incentives. Redirecting a small percentage of this spending could bring great impact for people and planet.
UNDP advocates for comprehensive fossil fuel subsidy reform to support a just transition to a clean energy future. With careful planning to support vulnerable populations, phasing out fossil fuel subsidies could free up significant funds to advance progress on the SDGs, including Goal 7 on affordable and clean energy for all.
Gender equality
Gender inequality doesn’t hurt only women. It harms their families and the entire economy. If women earned the same as men over their lifetimes, the world could reap a significant ‘gender dividend’, the World Bank says.
The earnings gap is one part of a broader gender imbalance that has serious consequences for women’s wellbeing and for overall development progress. Our Gender Inequality Index shows the loss in potential human development due to inequality between women and men in reproductive health, empowerment and labour markets.
Recognizing its multiplier effects for development progress, UNDP integrates women’s empowerment into all aspects of our work. Our flagship initiative to dismantle economic structures that generate and perpetuate gender inequality, ‘Equanomics’ works to build expertise and support partners that want to transform their economies to work better for everyone.
Efficiency with a purpose
UNDP consistently ranks among the most efficient and transparent development organizations. For every dollar in funding, UNDP spends 91 cents on programmes and services, up from 88 cents before 2018. From digitalization and AI to streamlining operational services across the UN system, we’re constantly exploring ways to increase efficiency and accountability.
This efficiency comes with a purpose. We are on a mission to exceed our partners’ expectations and deliver greater impact for the people we serve. In total, since 2022, UNDP-supported efforts have promoted $920 billion in public and private investment in the Sustainable Development Goals.
Our work on aligning global markets with human development is the next frontier of shared prosperity. Investing even a fraction of global wealth into the SDGs can reshape economies, expand opportunity and accelerate the just transitions this decade demands. The potential is extraordinary: when finance serves the public good, the return on investment can be measured in lives saved and improved but also in economic gains.