27 May 2016: UN Member States held a workshop to identify key aspects related to the functions, funding, and partnership approaches of the UN Development System (UNDS), on which the UN Economic and Social Council (ECOSOC) dialogue on the longer term positioning of the UNDS should focus in its final stage. During an informal meeting, delegates discussed: the proper roles for the UNDS; the need to reform the current funding architecture, so that instead of funding driving UNDS functions, funding supports its functions and strategic plans; and ways to leverage the strengths of both the private sector and the UN to implement the Sustainable Development Goals (SDGs).

The interactive dialogue took place on 27 May 2016, in New York, US, as a follow-up to the Dialogue workshops held to date.

On Functions, Member States said special attention should be given to: UNDS’ competitive advantages, such as its role as a global knowledge hub, its neutrality, and its convening power; the need to identify in which areas the UN needs to “deliver as one” and in which areas it should retain fragmentation; UNDS’ competitiveness and effectiveness on the market; to whom UNDS should be accountable; cost recovery within the system that goes beyond the financial aspects; sustainability and “leaving no one behind” as cross-cutting issues that could drive policy integration; and thematic windows as ways to incentivize funding and avoid overlap.

On Funding, delegates pointed out as important issues that need careful consideration: the extent to which Member States are generally participating in making decisions regarding UNDS’ functions and funding; discussing funding not only in terms of core or non core, but also how it is used and how it is given; the direct impact of the quality of plans’ designs on the quality of what pool funding brings; ways to strike a balance between funding flexibility and predictability; incentives for soft earmarking; the potential of earmarked funding to help with finding thematic pool-funding opportunities; pool funding at the country level to enable policy coherence; UNDAF’s common budgetary framework (CBF) as practical instrument at the country level; empowering the Resident Coordinator (RC) on financing matters; regional dynamics; and prioritization of projects within UNDS. Some proposed the system-wide funding should be managed by the Resident Coordinator, who should be neutral.

On Partnership Approaches, countries said the ECOSOC Dialogue should propose solutions to address the needs for: clear criteria and ways for screening the partnerships; mechanisms for enhancing transparency, accountability, and due diligence to help mitigate reputational risk; partnerships’ alignment with UNDS’ key functions; precise mandates for partnerships; upholding UN’s name and principles; sunset clauses; accountability both to governments and to the people the UN serves; and avoiding locking partnerships in “too water-tight compartments” that could limit their impact. Many called for a mapping exercise on both the quantity and quality of existing partnerships.

The dialogue process will continue with an informal discussion, on 10 June, and a workshop to discuss the interlinkages among all areas addressed throughout the Dialogue, and concrete recommendations that have emerged, on 13 June. [Website ECOSOC Dialogue][IISD RS Story on UNDS funding and functions][IISD RS Story on UNDS partnership approaches, governance and organizational arrangements]