THE CORE ISSUESABOUTCORE FUNDING
JOINT STRUCTURED FUNDINGDIALOGUE WITH THE EXECUTIVEBOARDS
9 MAY 2023

AGENDA
1. Centrality of core to Our
Common Agenda and UNDS
Reform
2. Diversification of core funding
3. The consequences of reduced

core funding
4. How can we help you to helpus?
5. Discussion

01

CORE IS CENTRAL TO OUR COMMON AGENDA
AND UNDS REFORM•In a resource constrained environment,
quality of funding is as important as
quantity of funding.

•UNDS largest and fastest growing
channel for multilateral ODA from OECDDAC.

•UNDS receives more highly earmarked
funding than other multilaterals (UNDS71%, WBG/IMF 24%, EU 3%)•The Funding Compact is the blueprint for
improving the effectiveness andefficiency (priorities: core, multiyear,flexible non-core)

Dag Hammarksjöld Foundation & UN Multi-Partner Trust Fund
UN Women | LSE Department of International Development | Partner Visibility in the Development Sector
3Office, Financing the UN Development System, September 2022

01

CORE IS CENTRAL TO OUR COMMON AGENDA
AND UNDS REFORM

Uphold international norms andstandards: Serves as the bedrock for theCrisis response: Allows flexible and rapid

UNDS to fulfil normative mandates.

responses to crises and allows UNDS to manage
risk, particularly in unstable, evolving
environments.

Strong & sustainable UNDS: Underpins

Reach the most vulnerable: Supports theessential business functions and systems, risk
management practices and personnel capacity
and allows entities to plan ahead.

most vulnerable and hardest to reach, in linewith getting back on track with SDG
commitments.

Leverage additional resources &partnerships: Supports greater results andIntegrated and joined up
programming: Enables strategic, multisector,

impact, including improved coordination andintegrated interventions for long-term andeffectiveness through joint UN
workandpartnerships.
programing.
Women | LSE Department of International Developmentsustainable| Partner Visibility
in the Development Sector
4

02

DIVERSIFICATION OF CORE FUNDING

Top Government Contributors to Core Funding (UNDS) (2018-2021)●Despite intense efforts to diversify,
all four agencies have seen adecline in the number ofgovernment donors to core overthe past decade.

●Last year alone, three agencies saw
declines in the number of core
contributors. Only UN Women saw
a slight increase.

502

DIVERSIFICATION OF CORE FUNDING
Non-OECD
DAC
governments

●●●●

●

Agencies are committed to diversification.
As UN entities, Member States will always be themain source of core funding.
Despite diversification efforts, there is reliance on
OECD-DAC donors for core.
IFIs and private sector corporations are not arealistic source of core funding, but individual
giving programmes from the public are a source.
Agencies call on all Member States to commit tocore.

PrivateSector Individual
Giving
Programmes

OECD DAC
governments

Programme
Country
governments

603

THE CAUSES OF REDUCED CORE FUNDING• Politicization of foreign aid• Taxpayer’s demand foraccountability

Political• Policy alignment and priorities• Channels and instruments of aid• Earmarking and fragmentation

Economic• Economic performance• Budget consideration• Currency fluctuations

PolicySystemic• Competition and efficiency• Greater availability andaccessibility of earmarked fundingat the country level

UN Women | LSE Department of International Development | Partner Visibility in the Development Sector

7

03

THE CONSEQUENCES OF REDUCED CORE FUNDING

Less core means:
High risk of competition andless funding to uphold
normative mandates
Project-based funding encourages competition,
where resource mobilization becomes driven
not by mandate, but rather by funding
opportunities (MOPAN 2020)

1Core resources remain critical to design andpilot innovative programmes that can be scaled
up and generate additional funding fromdonors, IFIs, private sector.

Core funding provides the most flexible
funding for designing projects and initiatives.

Challenges to respond tocrisis effectively and quickly

2

3

Less ability to leverage
partnerships and resources

Less programmable fundingat the country level45

Without adequate levels of core funding theUN system will face challenges in being
present on the ground before, during andafter emergencies.

Less funding to bolster
oversight functions
Core funding helps UN agencies to meet thehighest standards in transparency, oversight,evaluation and accountability

UN Women | LSE Department of International Development | Partner Visibility in the Development Sector

8

04

HOW CAN WE HELP YOU TO HELP US?
2. Demonstrate our commitment and progress on
becoming more efficient and effective, doing evenmore with less

1. Offer key messages and arguments toassure constituencies about the value ofcore funding

How can we help
you to help us?
3. Deliver timely and results-oriented
information and reports to explain
investments in core funding

5. Generate transparent, accessible
and real time data on funding flowsand results.

4. Provide partners greater visibility andrecognition to core funding and core contributors
UN Women | LSE Department of International Development | Partner Visibility in the Development Sector

905

QUESTIONS FOR DISCUSSION

1. With a declining trend in core funding, how can UN organizations uphold theirnormative mandates?

2. What specific lessons and experiences have donor and programme
countries had in convincing decision makers of the value of core that might
inspire other governments?
3. Given the relatively high capitalization of other multilateral commitments, suchas IDA or global funds, what does it take for the UN development system toattract a similar degree of political and financial commitments? What
incentives can the UNDS offer to secure such support?
UN Women | LSE Department of International Development | Partner Visibility in the Development Sector

10