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A World of
Development Experience
Contents
10
22
A Defining Moment
For UNDP, despite these points of despair, there is also
wide room for optimism. In 2003, the world has come to
a defining moment, with the convergence of several
important trends opening unprecedented opportunities
to move into a new and better century. While globalization has drawn sharper lines between those who have and
those who dont, it has also made them more aware of
each other than ever before. If trade and capital flows
know no borders, neither do disease, environmental
destruction and terrorism. Faced with steadily mounting
instability in every region, the international community
has been confronted with the fact that sharing benefits
and burdens is not just a moral imperative, but in the
interest of the world as a whole.
Already, the recognition has dawned that little progress
will be made without additional funds. Sources of
assistance for development have been increasing and
diversifying, with private wealth pouring into foundations, including those created by the American entrepreneurs Bill Gates and Ted Turner. New public and private
financing mechanisms have sprung up, including the
Global Fund to Fight AIDS, Tuberculosis and Malaria,
and the Millennium Challenge Account. And at the 2002
International Conference on Financing for Development,
donor governments made striking new commitments to
raise development assistanceEurope and the United
States together promised an additional $16 billion by 2006.
Subsequently, just before the World Summit on Sustainable Development, donors agreed to replenish the Global
Environment Facilityin which UNDP is one of the three
main implementing partnerswith nearly $3 billion.
M I L L E N N I U M D E V E LO P M E N T G OA L S
P OV E R T Y I S FA L L I N G , B U T N OT FA S T E N O U G H
44
25
38
20
32
15
26
10
0
1990
2015
20
1990
1999
1999
2015
1990
20
50
3.0
15
45
2.5
10
30
2.0
25
1.5
20
1990
1999
2015
1990
1999
2015
Sub-Saharan Africa
1999
2015
South Asia
1.0
1990
1999
2015
= 1990
= Millennium Development Goal of halving poverty by 2015
= rate of progress needed to meet goal = rate of progress made as of 1999
Bratislava
New York City
Beirut
Kathmandu
Dakar
Bangkok
Panama City
Port-of-Spain
Addis Ababa
Harare
PA R T N E R S S AY T H E Y VA LU E U N D P
87%
Governments
92%
UN Agencies
82%
78%
Bilaterals
74%
Civil Society
86%
Private Sector
90%
Other
90%
Unknown
95%
La
u
Bu nch
sin o
e s f 20
sP 0
l a 0 -2
n 0
En
03
ha
fo n
r m ce
an d f
ce oc
an us
d on
co st
Bu
m af
re
pe f p
a n au
te er
d fo
nc Re r
y
C
co r i
ve sis
ry Pr
cr ev
Cr
ea en
e
te ti
ou atio
d on
tp n
sp os of
ec tin th
ia g e
lis o SU
ts f 1 R
00 Fs;
po
Re
lic
pr
y
of of
fic ili
st es ng
ra w o
te i t f 1
gi h c 35
es o c
rp o
or un
He
at tr
e y
ad
by q
u
in 25% arte
IC ; s rs
T av st
an in a
d gs ff r
le r e d
ar ei u
ni nv ce
ng e d
st
ed
Ro
llo
in u
fo t
en rm of $
ha ati 50
nc on m
e sy illi
pe st on
rfo em
rm s t
an o
ce
F O U R Y E A R S O F T H E U N D P B U S I N E S S P L A N , M I L E S TO N E S A N D AC H I E V E M E N T S
2001
2002
2003
An
nu
al
g
Re
s
ur loba
vit
ve l
al
ys sta
ize
be ff
d
le
gi
ad
n
Le
er
ad
sh
ip
pr ers
te
og hi
am
ra p D
m e
m v
at e l elo
tra au pm
Re
ct nc e
ne he nt
te org
r s an
w dt
un iza
ta o
le
i ts t i o
nt
in n
c r of
ea h
se ea
s e dq
Sh
ffi ua
fo ar
cie rcu pe
nc
s t ne
y
o d
six p
La
r
o
un
pr g
a c ra
ch
tic mm
of
ea e
ne
re
w
as
Co
UN
or
D
d
P
sy ina
br
st tio
an
em n
d
w rol
o
e
rk fo
92
on r U
%
of
M N
go
DG
ve
s
UN rn
DP me
De
as nts
ve
lo
va ra
pm
lu te
ab
en
le
co t o
rp f 2
or 00
at 4
e p 2
rio 00
ri t 7
ie
s
2000
Key
Governance
Democratic
Reduction
Poverty
Prevention and Recovery
Crisis
Energy and Environment
Informatin
Technologyand Communications
HIV/AIDS
10
11
UNDP Responds
UNDP works on the ground in countries before, during
and after catastrophes strike. In concert with governments
and civil society, we analyze risk factors and set up early
warning systems. Bridging the traditional gap between
relief efforts and longer term development goals, we
partner first with humanitarian agencies for recovery
efforts as soon as the need arises. And then we continue
helping, by supporting communities as they use national
and international resources to rehabilitate themselves.
Throughout, we look for ways to address the root devel-
opment causes of conflicts and disasters, from encouraging sound institutions to opening economic opportunities
to promoting the participation of women in reconciliation
and reconstruction. For knowledge, we draw from our
global network, which incubates and shares innovative
approaches to conflict prevention, peacebuilding, and
disaster assessment and mitigation. All our activities integrate the UNs objectives for peace and security as well as
development, including the MDGs. As the leader of the
UNDG, we play a vital role in coordinating recovery assistance, and championing joint appeals to donors.
In 2002, our newly created Bureau for Crisis Prevention
and Recovery completed its first full year, with programmes
now in over 60 developing countries. The Bureau assists
UNDP country offices on natural disaster reduction, justice
and security sector reform, curtailment of small arms,
disarmament and demobilization, mine removal, conflict
prevention and peacebuilding, and post-crisis economic
and social recovery. In Afghanistan, UNDP played an
unprecedented role in mobilizing over $75 million to cover
the initial expenses of the fledgling Afghanistan Interim
Authority Fund, and continues to provide such critical
forms of support as aid coordination and assistance on
constitutional reform. During 2003, we debuted the World
Vulnerability Report, a major new contribution to advocacy
that highlights patterns of natural disaster risk and vulnerability, and outlines strategic responses.
Haiti: Knowledge That Could Save Your Neighbours
Located in the very centre of the Caribbean, Haiti is prone
12
T H E P O O R A R E M O R E V U L N E R A B L E TO C R I S I S
Casualties from conflict, 19901999
2.0
350
1.6
280
1.2
210
0.8
140
0.4
70
millions
of people
thousands
of people
Sub-Saharan
Africa
Arab
States
Eastern
South
Europe & CIS Asia
low human
development
medium human
development
high human
development
Source: Human Development Report 2002 and World Disasters Report 2002
13
UNDP Responds
Nationally developed strategies to combat poverty, rooted
in a countrys own assessment of its needs, serve as the
platform for sustainable human and economic development. UNDP advocates for these strategies, and helps
bolster them by incorporating the voices of women and
the poor, expanding the reach of assets and opportunities,
and advising governments on structuring beneficial
arrangements with international financial institutions. In
over 60 developing countries during 2002, we supported
the preparation and implementation of Poverty Reduction Strategy Papers, World Bank and IMF initiatives
designed to help the poorest countries map out national
development programmes. Our contributions included
the sharing of experiences on how to better align these
efforts with the MDGs.
Across the board, we emphasize looking beyond
income poverty to the broader concept of human poverty.
Money is not enough; equity, social inclusion, women's
empowerment and human rights matter too. These
issues have been analyzed in depth by our internationally
renowned Human Development Report; national and
regional human development reports are increasingly
adopting this approach as well. To bring globalization
down to the ground, so that it can work for everyone, we
also advocate for trade reform and investment arrangements that lift people out of poverty. In 2002, we worked
with foundations and other partners to stimulate debate
through publications on issues such as world trade and
global public goods.
W O M E N FA L L S H O R T I N S TA N D A R D M E A S U R E S
O F VA LU E
Women compared to men in developing countries
81%
66%
388
445
84%
4,743
2,158
earn less...
14
56%
21%
60%
These lessons are taken to heart. My childrens education is absolutely essential, says Mrs. Tirisoa. Its all I can
give them as a heritage.
15
CO U N T R I E S H O L D I N G E L E C T I O N S S I N C E 2 0 0 0
16
W H E N S A N I TAT I O N I M P R OV E S ,
C H I L D R E N L I V E LO N G E R
100
% population whose
wastewater is treated
90
% population whose
solid waste is disposed
in sanitary landfill or
incinerated
80
70
60
50
40
30
under-five mortality,
number of deaths per
1,000 children
20
10
$751-2,499
$2,5009,999
18
more than
$10,000
UNDP Responds
Reducing poverty and achieving sustainable development
rest upon a careful balance of concerns: consumption and
protection of resources in ways that sustain both people
and the world they live in. With extensive experience in
integrated development solutions, UNDP assists countries
in striking this balance. We circulate best practices from
our wide network, provide innovative policy advice, and
rally partners to find methods and financing for bringing
sustainable livelihoods to poor communities.
Progress toward sustainable development comes
through improved access to energy services for the poor,
equitable management of water and land, sustainable use
of biodiversity and measures to address climate change
so these form the core of our work on energy and the
environment. The 2002 World Summit on Sustainable
Development reaffirmed these priorities. In the months
leading up to it, UNDP made major contributions to
global debates on water, energy, health, agriculture and
biodiversitypriorities set by the Secretary-General that
shaped the Summits final agreement. Governments in
turn called upon UNDP, through the Capacity 2015
programme, to strengthen local capacities for sustainable
development, an important component in reaching the
MDGs. Before the Summit, we also launched the Equator
Initiative with seven other institutional partners. Through
grants, a prestigious award and the exchange of practical
experiences, the initiative will foster poverty reduction
along the equatorial belt through the conservation and
sustainable use of biodiversity.
Since modern energy services yield better livelihoods
and spur more equitable economic growth, UNDP pays
particular attention to ensuring this access. In 2002, with
members of the donor community and private sector,
we established the Global Village Energy Partnership to
provide energy services in rural areas. We took on water
issues in 90 countries, emphasizing that water crises can
often be traced to bad governance. In Argentina, the
Public-Private Partnerships for the Urban Environment
project worked with community organizations, municipalities, the Water Regulatory Board and a private
company to set up a new collaborative model for delivering water and sanitation to poor communities.
With the European Commission, we brought together
practitioners, policymakers and researchers to identify
concrete policy recommendations and practical measures
for responding to the environmental concerns of developing countries. In Nairobi, our Drylands Development
Centre helped 16 African and Arab states determine how
to reduce vulnerability to climatic shocks and improve
natural resources management.
H I G H I N CO M E CO U N T R I E S P R O D U C E M O S T O F
T H E W O R L D S CO 2 E M I S S I O N S
% world
CO2 emissions
% world
population
Arab States
Central & Eastern Europe & CIS
Latin America & Caribbean
Sub-Saharan Africa
18.6%
OECD
49.6%
South Asia
UNDP Responds
Because HIV/AIDS is a factor in so many development
concerns, UNDP works with countries to integrate
responses to the epidemic across national planning and
budgets, including poverty reduction strategies, and move
beyond the narrow confines of HIV/AIDS as a public
health intervention. We urge dynamic leadership from all
corners, including civil society and the private sector,
20
H I V / A I D S E X T R AC T S A H E AV Y TO L L
Some impacts include:
A person gets HIV
as this
happens
in multiple
households
Community
Infection spreads, people
susceptible to other illnesses
Businesses suffer loss of skilled
employees
Food production drops as
farmers die
Schools and hospitals close as
teachers and doctors die
Social stigma hardens into
overt discrimination, violence
as this
happens
in multiple
communities
Nation
Public health systems are
overwhelmed
Government workers die
GDP plunges; less money for
services, anti-retroviral drugs
Taboos stall prevention
Poverty, hunger increase;
literacy, productivity drop
Growing instability fans
conflicts, migration
Resources
E S T I M AT E D TOTA L P R O G R A M M E E X P E N D I T U R E S
FOR 2002 (US$ MILLIONS)
Governance
Poverty Reduction
and Gender
Energy and
Environment
$493
26.65%
Crisis Prevention
and Recovery
$744
40.22%
$298
16.11%
$315
17.03%
Note: Categories are based on the 2000-2003 Strategic Results Framework. Figures
include UNDP regular, donor co-funding and government cost-sharing resources.
Source: Report on the Multi-Year Funding Framework 2002
AC T UA L A N D P R O J E C T E D R E S O U R C E S , 1 9 9 3 2 0 0 3
3,000
2,500
2,000
Third-party co-financing
1,500
1,000
500
UNDP core
millions of
US dollars
1993
1994
1995
1996
1997
1998
1999
2000
* Includes income from administered, extrabudgetary, and miscellaneous funds, as well as management service agreements.
Source: BRSP, UNDP
22
2001
2002
2003
I N CO M E R E C E I V E D I N 2 0 0 2
Donors
Co-financing*
millions of US dollars
United States
Japan
Norway
Netherlands
United Kingdom
Sweden
Denmark
Switzerland
Canada
Germany
Italy
France
Finland
Belgium
Ireland
Spain
India
Austria
Australia
Portugal
China
New Zealand
Saudi Arabia
Mexico
97.13
86.77
79.27
70.13
56.30
53.69
47.89
33.33
27.67
23.73
16.88
14.90
12.92
10.69
7.68
5.96
4.55
4.13
3.67
3.18
3.10
2.60
2.00
1.00
43.89
25.19
58.85
60.22
65.69
26.82
14.08
10.56
16.79
30.42
31.99
4.10
7.18
6.25
5.78
3.19
1.22
11.24
0.76
28.08
1.30
6.34
7.21
Notes: (a) Contributions for Portugal includes amounts from previous year.
(b) The European Commission is a major source of non-core funding for UNDP.
* Includes cost-sharing and trust funds.
TO P 1 0 P R O G R A M M E CO U N T RY CO S T - S H A R I N G
CO N T R I B U T I O N S , 2 0 0 2
TO P 1 0 T R U S T F U N D S , 2 0 0 2 : I N CO M E
Brazil
ENRP (Iraq)
Colombia
GEF
Afghanistan
Interim
Authority
Montreal
Protocol
Panama
Honduras
Peru
PAPP
Argentina
SIDA
Guatemala
Post Conflict
and Recovery
Ecuador
Democratic
Governance
China
UNFIP
Venezuela
UK Trust Fund
Zimbabwe
0
25
50
75
millions of US dollars
Source: BRSP, UNDP
100
125
150
175
200
225
Abbreviations:
ENRPElectricity Network
Rehabilitation Programme
PAPPProgramme of Assistance
to the Palestinian People
SIDASwedish International
Development Cooperation
UNFIPUnited Nations Fund for
International Partnerships
0
25
50
75
millions of US dollars
100
125
150
175
200
23
Acronyms
BRSP
Bureau for Resources and Strategic Partnerships
SURF
Sub-regional Resource Facility
ERP
Enterprise Resource Planning system
UNAIDS
Joint United Nations Programme on HIV/AIDS
ICT
Information and communications technology
UNCDF
United Nations Capital Development Fund
ILO
International Labour Organization
UNDG
United Nations Development Group
IMF
International Monetary Fund
UNDP
United Nations Development Programme
LDCs
Least developed countries
UNFPA
United Nations Population Fund
MDG
Millennium Development Goal
UNHCR
United Nations High Commissioner for Refugees
NGO
Non-governmental organization
UNIFEM
United Nations Development Fund for Women
OECD/DAC
Organisation for Economic Co-operation and
Development/Development Assistance Committee
UNV
United Nations Volunteers
PoWER
Post-War Emergency Rehabilitation
RDS
Sustainable Development Network of Honduras
CREDITS
Photographs
page 1: UNDP Rwanda
page 8: GTZ
page 14: Erick Rabemananoro/UNDP
page 17: Marek Smith/UNDP
page 19: Brangjolica Vlaho/UNDP
Published by the Communications Office
Office of the Administrator
United Nations Development Programme
Director: Djibril Diallo
Annual Report Team: Anne-Birgitte Albrectsen, Brian Gleeson,
Mariana Gonzalez, Rajeswary Iruthayanathan, Maureen Lynch,
Jennifer Prince, Gretchen Sidhu (consultant) and Mark Suzman
Design: Pamela Geismar
Cover Design: Suazion, New York
Printing: Hoechstetter Printing Company, Pittsburgh, PA
Printed on recycled stock
UNDP June 2003
24
USAID
United States Agency for International Development