98/24.        UNFPA Funding Strategy


The Executive Board

1.        Reaffirms the fundamental characteristics of the opera­tional activities of the United Nations Development system, which are, inter alia, universality, neutrality; multilateralism, and its voluntary and grant nature, fully respecting the priorities of programme countries and responding to the needs of developing countries in a flexible manner;

2.        Welcomes the effective role of UNFPA in advocating for and implementing programmes and activities in full accor­dance with its mandate and the Programme of Action of the International Conference on Population and Development and emphasizes the need for predictable, timely payments and increased funding to enhance the capacity of UNFPA to contribute to the implementation of the ICPD Programme of Action;

3.        Stresses the need for a funding strategy based on a con­cept of collective ownership, partnership and shared interests with differentiated responsibilities that is programme-driven and that encourages a collective partnership with programme and donor countries, lend­ing institutions, the private sector and foundations;

4.        Also stresses the important opportunity offered by the five-year review of the implementation of the ICPD Programme of Action in reinvigorating international commitment to the Programme of Action, including to mobilize financial support, based on an analysis of progress made, lessons learned and obstacles encountered, and recalls the resource goals as foreseen in the ICPD Programme of Action;

5.        Recognizes the clear and focused mandate and programme priorities of UNFPA and the Fund's clear and focused re­source allocation system, which is based on a country's level of achievement of ICPD goals and gives special attention to least developed countries, low-income countries and Africa;

6.        Reiterates that core resources are the bedrock of UNFPA and are essential to maintaining the multilateral nature of the Fund's assistance;

7.        Recognizes that an effective and visible programme is essential for resource mobilization and, while recognizing the commendable efforts of UNFPA to date in this area, urges the Fund to continue to expand its advocacy and institutional profile at the national and international level in order to illustrate better the importance of its work and of the impact and effectiveness of its programmes;

8.        Also recognizes the importance for UNFPA of non-core resources and the work of non-state actors in mobilizing resources;

9.         Adopts for UNFPA a programme-driven total resource goal of $400 million for 1999; requests the Executive Director, with the support of all the members of the Fund, to make every effort to reach this goal by mobilizing resources from all sources, including donor and programme countries, foundations, and the private sector; and decides to review this goal in September 1999 with a view to deciding goals for future years;

10.        Recognizes that overdependence on a limited number of donors carries risks for the long-term financial sustaina­bility of UNFPA and urges all donors and programme countries in a position to do so to increase their contribu­tions to core resources;

11.        Decides, in this context, that UNFPA shall:

(a) Develop a multi-year funding framework that integrates programme objectives, resources, budget and outcomes, with the objective of increasing core resources, taking into account the following principles: (i) This framework shall maintain the order of priorities and the mandate of UNFPA as determined by the Executive Board; (ii) This framework shall not introduce any conditiona­lity nor result in distortions in priorities or changes in the current system of resource allocation; (iii) The allocation of additional core resources that may be mobilized by the multi-year funding framework shall be consistent with programming guidelines determined by the Executive Board, and priority must be given to pro­grammes;

(b) Designate the second regular session of the Executive Board, starting tentatively with the second regular session 1999, as the time when all member countries would: (i) Announce their voluntary core contributions to UNFPA as follows: a firm funding commitment for the cur­rent year; for those in a position to do so, a firm contribution or indication of the contribution for the fol­lowing year and a firm or tentative contribution for the third year; (ii) Announce payment schedules for the current year; early payments should be encouraged; (iii) Review the record of actual core contributions as well as the timing of payments made in the previous calendar year;

12.        Decides to initiate a fully participative, transparent, open-ended consultative process between the UNFPA secretariat and the States members of UNFPA for designing a multi-year funding framework based on the principles as outlined in paragraph 11 of the present decision and on the modalities for the announcement of contributions with a view to holding the first such meeting as stipulated in paragraph 11 (b) of the present decision;

13.        Requests the Executive Director, on the basis of these consultations, to submit to the Executive Board a report on the multi-year funding framework for consideration at its second regular session 1999.


23 September 1998