Reform of the United Nations Development System

FACTSHEET Global Institutions Divison April 2013

REFORM OF THE UNITED NATIONS DEVELOPMENT SYSTEM

One of the most needed and challenging el- resources. By assuming comprehensive strategic ement of the UN reform agenda is the im- leadership, the Resident Coordinator can act as a provement of the coherence, efficiency and link between national authorities, the UN and other effectiveness of the UN development sys- partners. tem. Numerous reform processes have been launched in the past two decades focusing One Programme: Under the leadership of the Resi- both at headquarter and at country level. The dent Coordinator and based on the country’s nation- establishment of UN Women and the spread- ally-owned development strategy, a joint country ing of the Delivering as One approach are program is to be defined. Such a “One Programme” among the fruits of these important efforts. draws on the full range of UN expertise and enables Switzerland traditionally plays a key role in UN organizations to better focus on activities accord- this endeavour through regularly facilitating to their comparative advantages. ing the only resolution that provides overall guidance to the UN development operations. One Budget: UN development organizations ought In December 2012 after two months of ne- to use a common financial framework at country level. gotiations, the adoption of this quadrennial Coordinated financial planning provides governments system-wide landmark resolution is providing and partners with transparent information on all UN a great opportunity for a consistent break- activities as well as on funding sources and gaps. through in the right direction. One Office: In order to increase efficiency and to lower expenses for administration, business proce- REFORM ACHIEVEMENTS dures and policies must be harmonized, simplified and unified. When relevant, premises and services The reform of the United Nations is a subject of con- should be shared between UN organizations. stant political debates in which positions often di- verge. There is however consensus on the need to As suggested by the rising popularity of the “De- enhance the coherence, effectiveness and efficiency livering as One” approach, governments of partner of the UN’s operational activities. countries generally appreciate its positive impacts, in particular in terms of increasing national owner- Delivering as One ship and alignment with national priorities. To more In 1997, Secretary General Kofi Annan launched a systematically assess the value added by this organi- reform process geared towards these goals and in zational model in the eight pilot countries, member 2006, a High Level Panel on UN system-wide coher- states mandated an independent evaluation which ence launched a landmark report called “Delivering as took place in 2011-2012. It showed that in order to One”. Among several recommendations, it proposed tap the full potential of better coordination in the a new business model to organize UN operational field, further steps of reform are needed. Among activities for development in a given country. Eight other points, the evaluation recommended that the countries volunteered to implement it as pilots, sub- United Nations Development Group provide fur- sequently convincing others to follow. In these coun- ther guidance on joint planning and monitoring and tries, the UN operational system for development acts evaluation systems as well as support the use of a as “One UN” by following four main objectives. common budgetary framework. It also stressed the need for more far-reaching harmonization of busi- One Leader: The Resident Coordinator who co- ness practices, notably in financial management, ac- ordinates all UN development activities in a pro- counting standards and human resources rules and gram country should be given more authority and regulations.

Reform of the United Nations Development System APRIL 2013 1 Besides the “Delivering as One” approach, the willing- inefficiencies through high expenses for administra- ness of UN member states to increase system-wide tion, coordination and reporting. coherence was repeatedly expressed in specific reso- An example of the consequences of fragmentation lutions and in Executive Board decisions. Concrete is the 17,000 reports annually produced by the UN efficiency gains were achieved by rationalizing some development system. By reducing fragmentation administrative services. In addition, institutional frag- and refocusing reporting, resources could be reallo- mentation was reduced by merging four UN organiza- cated in favour of partner countries. In addition, this tions related to Gender into UN Women in 2010. would facilitate more effective monitoring by member states. The quadrennial comprehensive policy review (QCPR) Funding: In the recent years, the ratio of core finan- The main normative instrument for reforming the UN cial contributions to the budgets of UN organizations development system is the quadrennial comprehen- has declined relative to earmarked contributions sive policy review (QCPR). Following an assessment (contributions for specific themes or regions). The of progress, this General Assembly resolution which relative increase of earmarked financial contribu- designs and gives mandates to the UN system to bet- tions tends to limit the ability of UN agencies to fully ter address reform objectives is negotiated every four comply with their mandates, threatens their financial years. The most recent QCPR (resolution 67/226) was sustainability and fosters fragmentation. adopted in December 2012. Complexity of business practices: One of the This consensus document covers three major the- limiting factors to the implementation of the “De- matic areas, among which funding of operational livering as One” approach is the diversity of business activities and improving the functioning of the UN practices between UN organizations. Handling the development system are essential to the UN reform. multitude of procedures and directives raises transaction costs of coordinating operational activities of Apart from these topics which are treated here, the UN agencies. Inconsistencies in planning, funding, 2012 QCPR also stresses the transversal importance reporting and evaluation across the UN development of certain development goals (e.g. poverty reduc- system threaten to undermine efforts to enhance tion, gender equality). In addition, south-south co- coherence, effectiveness and efficiency for better operation and the development of national capaci- development results. Furthermore, and despite im- ties are promoted. portant progress in rationalization, the complexity of business processes could still be decreased. The QCPR resolution addresses direct binding mandates to Funds and Programmes of the UN develop- Accountability for results and transparency: ment system and recommendations to Specialized Enhancing the effectiveness of the UN operational Agencies as they are autonomous organizations. The activities for development requires a coherent moni- Specialized Agencies are also part of the UN Eco- toring and evaluation of results. Information on sys- nomic and Social Council (ECOSOC) and therefore tem-wide results is still difficult to obtain for donor expected to implement the reforms. For the SDC, and partner countries. UN funds and agencies often this means that most of its priority organizations1 are struggle to report on results and make insufficient legally bound by the QCPR. use of standard indicators. This largely complicates the analysis of results from the field and the collec- tion of global information on results achieved on REMAINING CHALLENGES specific themes.

Reforming the UN development system is ambitious. The QCPR addresses the four most important challenges to promote a more efficient, effective and coherent operational development system:

Fragmentation: The UN development system con- sists of a complex web of organizations. Their mandates partly overlap and their activities have become thematically and geographically dispersed. This fragmentation of institutions and activities challenges the coherence of operational activities, incurs high transaction costs on recipient countries and entails

1 The following priority organizations of the SDC are bound by the 2012 QCPR resolution: UN WOMEN, UNAIDS, UNDP, Photo credits: UNFPA, UNHABITAT, UNHCR, UNICEF, UNRWA, WFP United Nations Development Programme / Prakash Hatvalne

Reform of the United Nations Development System APRIL 2013 2 Results-based management and evaluation: OPPORTUNITIES OF THE QCPR 2012 There was agreement on setting stronger incentives for streamlined and coherent results-based man- Most of the 187 mandates contained in the 2012 agement. To strengthen accountability for results, QCPR resolution address the functioning and fund- frameworks based on measurable indicators will be ing of the UN development system. They offer ap- established. Further objectives include facilitating in- proaches to meet the challenges mentioned above: dependent system-wide evaluation and strengthening recipient countries’ monitoring capacities. Coordination of operational activities: The QCPR formally approved “Delivering as One” as an approach that program countries can voluntar- ily request. To support countries having adopted it, integrated and specifically tailored packages of support are planned to be provided. These packages will enhance coordination between UN organizations at country level by introducing standard operating procedures and pooled funding mechanisms as well as by providing guidance on “Delivery as One”-specific programming, monitoring, evaluation and reporting. To enhance both the coherence of UN activities at Photo credits: country level and the leadership of the governments, United Nations Development Programme / Saikat Mukherjee two existing tools will be strengthened: the United Nations Development Action Framework (UNDAF) and the Resident Coordinator system. THE ROLE OF SWITZERLAND UNDAFs define the strategic framework for the entire UN development system in a given country. By simpli- Switzerland as a facilitator, fying and enhancing this tool, interagency consisten- promoter and convener cy and efficiency in planning is expected to improve. Making the UN system more effective and efficient Equally, there was consensus on strengthening the is one of the main goals of Switzerland at the United position of Resident Coordinators by better financial Nations. Thanks to continuous efforts to promote and and organizational support as well as by extending facilitate processes supporting reform at the global their competences in programming and planning. policy level and in its priority countries, Switzerland is To be effective, these efforts have to coincide with considered as a country strongly committed to enhanc- organizational changes within UN agencies. There- ing the capacity of the UN system to deliver results. fore, the QCPR advocates for a greater decentraliza- tion of authority to field representatives. Facilitating the negotiations: For the past 10 years, Switzerland has assumed the role of facilitator Funding of operational activities: Full cost recov- of the QCPR negotiations (2004, 2007, 2012) as well ery of all non-core funded activities is mandatory for as of the resolutions of the ECOSOC monitoring the UN Funds and Programmes. Thus trust funds and implementation of the QCPR. Prior to the intergov- multi-bilateral projects have to cover the overhead ernmental negotiations and in collaboration with UN costs they incur to the UN institution they are as- agencies and the UN Secretariat, Switzerland helped sociated with. For this purpose and as a first step, a build the basis for an informed dialogue and was standard charge of 8 per cent on earmarked finan- then assigned the task of achieving consensus in the cial contributions has recently been agreed upon by negotiations. As facilitator, it had a key role in mak- the governing bodies of the Funds and Programmes, ing possible the positive outcome of the 2012 QCPR. which means that Boards have already acted upon This active role in the QCPR process considerably en- one of the mandates given by the QCPR in 2012. hanced the visibility and good reputation of Switzer- Donors are planned to be incentivized to raise the land in the United Nations. level and predictability of their core financial contributions. Finally, UN Funds and Programmes are held Promoting the implementation of the QCPR is a accountable for using similar systems of cost classifi- priority objective of Switzerland at the UN. Continu- cation and control. ous effort by the entire UN development system and by member states will be needed to put into practice Harmonization of business practices: At head- what was agreed upon. In monitoring the implemen- quarters and regional levels, harmonization of poli- tation of these intergovernmental decisions, the Unit- cies, rules and procedures is planned to be continued ed Nations Department of Economic and Social Affairs in the area of support services (e.g. finance, human (UN DESA) plays a crucial role. UN DESA, through the resources, procurement and information technology UN Secretary General, issues the most important re- management). At country level, common frame- ports on the implementation of the QCPR which are works for budgeting and service provision are to be discussed in the ECOSOC sessions. It also is the main introduced. provider of expertise to member states.

Reform of the United Nations Development System APRIL 2013 3 Switzerland will continue to support UN DESA for an Reform priorities of Switzerland effective implementation of the reforms. In addition, In promoting the implementation of the 2012 QCPR, implementing the QCPR is actively advocated by Switzerland is focusing on the following priorities. Switzerland through its membership in the governing bodies of UN organizations. Coordination of operational activities • Accelerate the consolidation of the “Delivering as At country level, Switzerland is actively supporting One” approach the implementation of the “Delivering as One” ap- • Further establish the United Nations Development proach and of the QCPR. This includes support to ef- Action Framework (UNDAF) as a strategic instru- forts to increase coordination between different UN ment negotiated between UN agencies and gov- organizations. Switzerland also sponsored events fa- ernments cilitating the exchange of experiences between Resi- • Enhance the function and authority of Resident dent Coordinators as well as between countries that Coordinators. Ensure the funding of RC systems have adopted the “Delivering as One” model. Impor- through a predictable financing mechanism. tant lessons learnt and recommendations based on field experiences came out of these workshops and Harmonization of business practices fed into the QCPR debate. • Unify rules, policies and procedures in all function- al areas mentioned in the QCPR • Further harmonize business practices, which in- “One UN” in Vietnam: cludes common premises and common services Switzerland’s contribution (procurement, ICT infrastructure, human resources, harmonized approach to cash transfers) Vietnam was one of eight pilots to first implement the “Delivering as One” approach and is now among Funding of operational activities the most advanced countries in reorganizing the UN • Monitor the outcome of the recently adopted cost country presence. recovery frameworks from core and non -core financial resources Following a strong demand for more coherence by • Set effective incentives to achieve sustainable and the Vietnamese government, the first “One Plan” high levels of core financial contributions was adopted for 2006-2010. In a participative pro- • Incentivize donors to make more predictable long- cess, common expected results, joint strategies to term financial commitments achieve them and responsibilities of both the government and the 14 UN organizations then present Results-based management and evaluation in the country were defined. • Replace most agency-specific reports at country level by common reporting on system-wide results A subsequent “One Plan Management Plan” speci- fied the implementation of the “Delivering as One” model in Vietnam. The UN agencies started to work together in issue-specific “Programme Coordination Groups” and began to pool operational support services e.g. in the fields of procurement, travel, training or security.

Switzerland participated in financing this first phase of Vietnam’s “One UN” pilot initiative. An independent evaluation found that the Swiss involvement has, inter alia, enhanced results orientation, helped to increase efficiency through harmonized reporting and contributed to empowering the UN Resident Coor- dinator.

Today, the now 16 UN agencies in Vietnam are co- operating ever more closely. They defined 12 common result objectives to be pursued by 12 thematic inter-agency teams. This substantial step towards more efficiency, coherence and effectiveness will be facilitated by a common “One UN House” accom- modating all 16 organizations. Switzerland is not Contact only financially supporting the construction of these premises but will also actively contribute to the im- SDC Global Institution Division: plementation of the new “One Plan” for 2012-2016. [email protected]

Reform of the United Nations Development System APRIL 2013 4