By Thalif Deen
UNITED NATIONS, Sep 12 2000 (IPS)

The UN Development Programme (UNDP), which has suffered heavy cuts in donor contributions, is seeking broader political support for its new policy objectives.

UNDP Administrator Mark Malloch Brown blames the decline in resources primarily on the lack of “real political support” for the work of the organisation over the last few years. “We have paid the price in major reduction in resources,” he told IPS.

On Monday, the UNDP hosted its first-ever, one-day ministerial meeting, described as an “interactive discussion” between donors and recipients.

The meeting was held at a time when UNDP’s core resources have plummeted: from about 1.2 billion dollars in 1992 to a low of 680 million dollars in 2000. The proposed funding for 2000 represents a 120-million-dollar shortfall from the targets set by governments 12 months earlier.

The shortfall in contributions is also partly blamed on the strengthen of the US dollar. Since European donors make pledges in their national currencies, their contributions have declined in terms of the US dollar, the currency used in the UN system.

According to UNDP figures, the organisation lost about 60 million dollars last year as a result of the depreciation of national currencies against the US dollar.

In a new report titled ‘Rebuilding Support for UN Development Co- operation,’ UNDP points out that in 30 countries, financial constraints have become so severe that project approval authority has been suspended altogether.

“A large number of country offices will not be in a position to finance new initiatives. Lack of resources will make it impossible to translate reform commitments into reality,” it says.

As part of a reform process, UNDP’s staff at headquarters is being reduced by about 26 percent, with a reduction in 303 posts in New York. Of these positions, 106 are being reallocated to the field primarily to strengthen direct policy support to country operations.

According to UNDP, the allocations have been made and the process initiated. The result will be a net cut of 138 posts. Currently, there are about 1,000 staffers at headquarters and about 4,000 in field offices worldwide.

Malloch Brown admits there has been “a lot of pain” resulting from staff cuts. But these cuts are part of the ongoing reform process.

With regard to human resources, measures have been implemented to monitor performance in critical areas. A management scorecard has been designed and is ready to be implemented. Managers are also being held accountable for performance.

Malloch Brown thinks that there has been a very positive response from donors to the reforms he has already initiated. As proof, he points to the projected increase in contributions for next year.

For 2001, France has indicated it will increase its contributions by 25 percent (over and above the 16.4 million dollars this year), Italy by 20 percent (as against 11.8 million dollars this year), Ireland by 35 percent (as against 3.4 million dollars) and Japan by 25 percent (as against 80 million dollars).

Currently, the five major contributors to UNDP’s core resources are the United States (88.8 million dollars), Japan (80 million dollars), the Netherlands (75.2 million dollars), Norway (70.7 million dollars) and Sweden (60.1 million dollars).

Addressing the ministerial meeting Monday, UN Secretary-General Kofi Annan said that development has been one of the main tasks of the United Nations from the very beginning.

“Even if the UN charter did not require us to work for development, I believe we should have no choice, because without development the rest of our mission would be impossible.”

Annan also argued that without development, the United Nations couldn’t either prevent conflict or build peace. “What is perhaps more contentious is the UN’s active engagement in the day-to-day work of development in individual countries – which, of course, is what UNDP is all about.”

Annan said the United Nations will not tell any country that it can solve its problems “or that we ourselves can bring it the resources to lift its people out of poverty.

“What we aim to do is to help countries find their own way of solving their problems, and help them attract, or mobilise, the resources they need,” he added.

In many middle income countries, he said, governments are willing to pay for help and advice. In Brazil, for example, most of the money UNDP is spending comes from the Brazilian taxpayer. The Brazilian federal government, and an increasing number of state governments, use UNDP’s services because they are good value for their money, Annan said.

Countries need this kind of help and advice more than ever today, in the age of globalisation, when events more very fast, and choices have to be made very quickly, he added.

As a leading Asian journalist recently put it: globalisation is like an express train. “It only stops at those stations where the platform is high enough for passengers to get on,” Annan said.

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