The current financing practices are putting pressure on UN development cooperation. Donors are bilaterally embarking contributions for projects they prefer, without directly contributing to the cost of UN’s multilateral mandate in the form of core contributions. The core financing needs to continue to be the bedrock of UN development cooperation and earmarked funding can be a helpful supplement to this. This paper by the German Development Institute underlines the unique nature of the multilateral UN development system that serves as a basis for holistic, long-term development policy work and puts forward a three pillar plan to prevent complete bilateralisation of the UNDC. The paper points out that imbalances in resource allocation can also be prevented by emphasizing core funding.
Click here to read the report. (pdf)