MODERNIZING DEVELOPMENT

Introducing Portfolios* — a new systems-way of working for today’s complexity, built for greater impact. 


*Portfolio as a concept transcends sectors. In our case we refer to system-driven portfolios - cases and definitions will follow

A shift in logic

Portfolios represent a fundamental shift in how development is delivered.

Consider an example: a renewable energy project requires functioning tax policy, land governance, talent, grid regulation, credit markets and access to insurance. Traditionally, individual issues is dealt by a different sector - each one effective in their own right but the result is collective fragmentation.

Portfolios bundles connected interventions where the interaction between them generates value that none could product alone.  Here are some key changes driving this transformation. 

 

 

Clusters of light blue squares are arranged to the left of a green-bordered grid.
Two diagrams: a single line connecting two circles and a complex network of interconnected circles.
graphic showing lines going through an element and then over it
New Publication

 

Modernizing Development – Introducing Portfolios

Based on the experience from over 100 countries and cities, it highlights how governments, communities, and development partners—working alongside UNDP Country Office teams—are turning system and portfolio approaches into action. Together, they are shaping an emerging development practice. 

What is a portfolio? 


A UNDP portfolio is a dynamic set of interconnected interventions aimed at addressing complex development challenges. Designed for flexibility, portfolios can quickly adapt to changing contexts and new insights. This approach enables the continuous generation of systems-level options to maximize impact across societies and economies, beyond any single sector.

Portfolios in Action

Portfolios deliver new benefits to stakeholders by adopting a logic of work suited to a complex, changing world. Key benefits include:
 

    A portfolio brings previously separate investments together toward shared goals. This reduces duplication, directs resources to where they matter most, and makes funding go further. It also generates a steady pipeline of investable propositions that attract new partners and resources.

    Portfolios continuously surface & translate insights, data, expertise, and lived experience into new (policy) options for action. This keeps partners informed and ready to respond as opportunities emerge and challenges evolve

    Portfolios build shared ownership among groups with different interests, levels of influence, and resources. This makes change more sustainable and more likely to survive shifts in political priorities or leadership. Progress in one area creates openings in others, building momentum that is harder to reverse.

    Lessons from civil servants and development practicioners on

    HOW TO
    Tackle complex policy issues with system & portfolio approaches

    "In the 21st century, development looks less like a single national leap and more like a portfolio of locally rooted experiments that cumulatively reshape systems." Rainer Kattel, IIPP


    We drew on the experience of government & UNDP partners across 100 countries and cities who are applying system & portfolio approaches to consolidate a "how to do portfolios" grounded in reality.

    Empowered by a new policy

    In 2025, UNDP approved a new portfolio policy - the first system oriented development instrument institutionalizing these efforts.  It offers a new option for partners to engage with UNDP on pursuing complex, cross sectoral policy issues.

    Integrated approaches combine multiple interventions—like health, education, and livelihoods—to address a problem holistically, but they usually operate within existing systems. Systems change goes deeper, aiming to transform the underlying structures and rules that sustain the problem.

    For example, an integrated approach to youth unemployment might offer job training, education access, and mentorship. A systems change approach would tackle the root causes—such as how education is designed, hiring practices, policy gaps, social norms, and power dynamics that exclude youth from opportunities.

    This new instrument enables partners to collaborate with UNDP and others to design a portfolio that integrates their existing efforts, offering a more holistic and effective response to complex, systemic challenges. In the process, partners gain insights that strengthen their own policies—on issues like migration, employment, or climate change—while reducing the unintended consequences of well-intentioned actions.

    As this policy is adopted in more countries, interested partners have a new opportunity to align their efforts with the portfolio approach. They can collaborate on shared goals, and contribute to long-term, adaptive solutions with greater effectiveness.
     

    Explore the online course “Systems Thinking: Tackling Complex Challenges with a Portfolio Approach.”


    New to this? Start here. This free course available in five languages, through UNDP and Apolitical, introduces the core ideas behind portfolio work and shows, with real examples, how governments are putting them into practice. No prior knowledge required. You will need to create a free account on the Apolitical platform to access it.

    • English: Systems Thinking: Tackling Complex Challenges with a Portfolio Approach
    • Portuguese: Pensamento sistêmico: enfrentando desafios complexos com uma abordagem de portfólio
    • French: La pensée systémique : relever les défis complexes grâce à une approche par portefeuille
    • Spanish: Pensamiento sistémico: abordar desafíos complejos con un enfoque de portafolio
    • Arabic: التفكير المنظومي: معالجة التحديات المعقدة من خلال نهج المحفظة