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Abbreviation | UNCDF |
---|---|
Formation | 1966 |
Legal status | Active |
Headquarters | New York, US |
Executive Secretary | Pradeep Kurukulasuriya (since April 2024) |
Parent organization | United Nations General Assembly United Nations Economic and Social Council |
Website | www |
Politicsportal |
The United Nations Capital Development Fund (UNCDF) assists developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants, loans and guarantees, first and foremost for the least developed countries (LDCs) among the developing countries.
As a Flagship Catalytic Blended Financing platform of the UN, UNCDF utilizes its unique capability to crowd-in finance for the scaling of development impact where the needs are greatest—a capability rooted in UNCDF’s unique investment mandate—to support the achievement of the 2030 Agenda for Sustainable Development and the realization of the Doha Programme of Action for the least developed countries, 2022–2031.
Established by the General Assembly in 1966 and with headquarters in New York City, UNCDF is an autonomous UN organization affiliated with UNDP. [1]
The original UNCDF mandate from the UN General Assembly (UNGA) is to “assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans” (General Assembly Resolution 2186, 13 December 1966). [2] The mandate was modified in 1973 to serve first and foremost but not exclusively the LDCs.
The current Executive Secretary of UNCDF is Pradeep Kurukulasuriya. [3]
Created by the General Assembly in 1966 to promote economic development, UNCDF officially was established as an "autonomous organization within the United Nations" with the purpose to "assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans".
In 1973, the Governing Council reoriented UNCDF's activities towards "first and foremost the least developed among the developing countries" and it began focusing on the world's least developed countries in 1974.
For the next twenty years, UNCDF financed stand-alone capital infrastructure—roads, bridges, irrigation schemes—mostly in Africa. It received about $40 million in core funding per year and operated out of UNDP country offices.
In the mid-1990s, UNCDF began focusing on the role local governments could play in planning, financing, and maintaining capital investments. Promoting effective infrastructure investment and service delivery via decentralized public financial management has been UNCDF's mainstay ever since. UNCDF's other major area of expertise—microfinance—also dates to the mid-1990s, when many of its rural development projects had credit components.
UNCDF's resources remain modest compared to many multilateral organizations. However, it has developed a considerable track record of going where others do not, and then “leveraging in” larger sources of public and private capital. In the words of a 2008 assessment by the Government of Sweden, “UNCDF should be seen as a development actor that paves the way for others, rather than a financing mechanism.”
In 2013, UNCDF received the highest score in the SmartAid for Microfinance Index, [4] a measure of overall effectiveness in microfinance.
The economy of Bhutan is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult. Bhutan is among the richest by gross domestic product (nominal) per capita in South Asia, at $3,491 as of 2022, but it still places 153rd, and among the poorest in the world. The total gross domestic product is only $2,653 million, and 178th according to IMF.
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados with an estimated annual per capita income of just $805 as measured by purchasing power parity in 2019.
UN Trade and Development (UNCTAD) is an intergovernmental organization within the United Nations Secretariat that promotes the interests of developing countries in world trade. It was established in 1964 by the United Nations General Assembly (UNGA) as the United Nations Conference on Trade and Development but rebranded to its current name on the occasion of its 60th anniversary in 2024. It reports to both the General Assembly and the United Nations Economic and Social Council (ECOSOC). UNCTAD is composed of 195 member states and works with non-governmental organizations worldwide; its permanent secretariat is at UNOG in Geneva, Switzerland.
The economy of Tunisia is in the process of being liberalized after decades of heavy state direction and participation in the country's economy. Prudent economic and fiscal planning has resulted in moderate but sustained growth for over a decade. Tunisia's economic growth historically has depended on oil, phosphates, agri-food products, car parts manufacturing, and tourism. In the World Economic Forum Global Competitiveness Report for 2015–2016, Tunisia ranks in 92nd place.
Tuvalu is a Polynesian island nation located in the Pacific Ocean, midway between Hawaii and Australia, with a population of 11,192 per the 2017 census. The economy of Tuvalu is constrained by its remoteness and lack of economies of scale. Government revenues largely come from fishing licences ; direct grants from international donors ; and income from the Tuvalu Trust Fund. The lease of its highly fortuitous .tv Top Level Domain (TLD) also contributes revenue. The sale of stamps since the independence of Tuvalu in 1976 has been an important source of revenue for the country and government. However, such revenue has significantly declined in recent years. Tuvalu has hardly any tourism. It has no tour guides, tour operators, or organised activities, and no cruise ships visit.
Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, and a verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Many recipients are illiterate, and therefore unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million people held microloans that totaled US$38 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent. The first economist who had invented the idea of micro loans was Jonathan Swift I the 1720’s Microcredit is part of microfinance, which provides a wider range of financial services, especially savings accounts, to the poor. Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983. Many traditional banks subsequently introduced microcredit despite initial misgivings. The United Nations declared 2005 the International Year of Microcredit. As of 2012, microcredit is widely used in developing countries and is presented as having "enormous potential as a tool for poverty alleviation." Microcredit is a tool that can possibly be helpful to reduce feminization of poverty in developing countries.
The least developed countries (LDCs) are developing countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. The concept of LDCs originated in the late 1960s and the first group of LDCs was listed by the UN in its resolution 2768 (XXVI) on 18 November 1971.
The U.S. Economic Development Administration (EDA) is an agency in the United States Department of Commerce that provides grants and technical assistance to economically distressed communities in order to generate new employment, help retain existing jobs and stimulate industrial and commercial growth through a variety of investment programs. EDA works with boards and communities across the country on economic development strategies.
Microfinance is a of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana is an example of a microfinance institution.
The United Nations Institute for Training and Research (UNITAR) is a dedicated training arm of the United Nations system. UNITAR provides training and capacity development activities to assist mainly developing countries with special attention to Least Developed Countries (LDCs), Small Island Developing States (SIDS) and other groups and communities who are most vulnerable, including those in conflict situations.
The National Bank for Agriculture and Rural Development (NABARD) is an All India Financial Institution (AIFI) and an apex Supervisory Body for overall supervision of Regional Rural Banks, State Cooperative Banks and District Central Cooperative Banks in India. It was established under the NABARD Act 1981 passed by the Parliament of India. It is fully owned by Government of India and functions under the Department of Financial Services (DFS) under the Ministry of Finance.
The United Nations Sustainable Development Group (UNSDG), previously the United Nations Development Group (UNDG), is a consortium of 36 United Nations funds, programmes, specialized agencies, departments and offices that play a role in development. It was created by the Secretary-General of the United Nations in order to improve the effectiveness of United Nations development activities at the country level.
The Kuwait Fund for Arab Economic Development (KFAED), commonly known as the Kuwait Fund, is the State of Kuwait’s agency for the provision and administration of financial and technical assistance to developing countries.
Norfund is a development finance institution established by the Norwegian Storting (parliament) in 1997 and owned by the Norwegian Ministry of Foreign Affairs. The fund receives its investment capital from the state budget, and surpluses in the portfolio are reinvested. Its head office is located in Oslo with local offices in Thailand, Costa Rica, Kenya, South Africa, Bangkok and Ghana.
A National Adaptation Programme of Action (NAPA) is a type of plan submitted to the United Nations Framework Convention on Climate Change (UNFCCC) by least developed countries, to describe the country's perception of its most "urgent and immediate needs to adapt to climate change". NAPAs are not supposed to include original research, but use existing information and include profiles of priority projects that are intended to address those needs that have been identified.
The Territorial Approach to Climate Change (TACC) works with local level governments in developing countries and countries in transition to increase resilience to climate change impact and reduce their carbon footprint. The TACC is a partnership of five agencies that includes UNEP, UNDP, UNITAR, UN-Habitat and UNCDF.
The 2030 Agenda for Sustainable Development, adopted by all United Nations members in 2015, created 17 world Sustainable Development Goals (SDGs). They were created with the aim of "peace and prosperity for people and the planet..." – while tackling climate change and working to preserve oceans and forests. The SDGs highlight the connections between the environmental, social and economic aspects of sustainable development. Sustainability is at the center of the SDGs.
Sustainable Development Goal 17 is about "partnerships for the goals." One of the 17 Sustainable Development Goals established by the United Nations in 2015, the official wording is: "Strengthen the means of implementation and revitalize the global partnership for sustainable development". SDG 17 refers to the need for the nonhegemonic and fair cross sector and cross country collaborations in pursuit of all the goals by the year 2030. It is a call for countries to align policies.
The United Nations Technology Bank for Least Developed Countries was established as a subsidiary organ of the UN General Assembly on 23 December 2016 by the United Nations resolution 71/251 to support Least Developed Countries (LDCs) to strengthen their science and technology and innovation (STI) capacities.