Can the UN adjust to the changing funding landscape?

Private sources of financing have become a growing feature of UN budgets. This report argues that an evaluation of the private financing of UNDP activities reveals both advantages - increased resources, more technical expertise, better management - and challenges such distorted priorities, unhealthy competition, weakened multilateralism.

The increase in non-core funding constitutes a permanent change in the development scene. The UN continues to play a vital role in delivering programs with the use of such funds. It is a standard bearer for international treaties and principles; its universality means legitimacy; it adds value through its large network of offices and administrative capacities; and its perceived neutrality facilitates access to a range of partners in different country contexts. These advantages help explain the attraction of the UN system for delivering programs with resources from new funding sources. Hitherto, few other organizations have been able to perform this role. However, this role cannot be taken for granted, particularly with the emergence of new global organizations in the public, charitable, and for - profit sectors. Working with these funds has brought much benefit to the UN’s development work but also carries risks. As these changes are here to stay, it is essential that the UNDP and other vital organisations of the UN system find ways of optimising the use of these resources without diminishing their core purpose and values.