United Nations Capital Development Fund

The Executive Board

1. Takes note with appreciation of the results-oriented annual report of the United Nations Capital Development Fund (UNCDF) (DP/2003/13);

2. Welcomes with appreciation the committed engagement of the Administrator of UNDP and managing director of the Fund for its continued efforts to promote the contribution of UNCDF to poverty reduction;

3. Welcomes the articulation of the complementarity and partnership between UNDP and UNCDF as reflected in the two Memoranda of Understanding signed by them on their collaborative efforts in the areas of micro-finance and local governance;

4. Takes note of the independent impact assessment of UNCDF currently being carried out and to be submitted to the Executive Board at its annual session 2004, and invites countries, in a position to do so, to make financial or in-kind contributions to UNCDF towards this important initiative;

5. Notes with concern that the regular (core) resources available to UNCDF fall far below the demand of programme countries, in particular the least developed countries, for its two areas of concentration: micro-finance and local governance/decentralization;

6. Reaffirms the unique contribution of UNCDF to the achievement of the MDGs* and the Brussels Programme of Action for the Least Developed Countries, and urges the international community to follow up on decision 2002/26, which articulates a regular (core) resources mobilization target of $30 million per year, in order to allow UNCDF to fulfil its mandate;

7. Recognizes the efforts of UNCDF to broaden the donor base, and requests UNCDF to inform the Executive Board of its strategy to achieve the objectives set out in decision 2002/26 at the second regular session of the Board in September 2003.

13 June 2003

* Internationally agreed development goals, including those contained in the Millennium Declaration.