United Nations Development Investment Fund

Powers

The United Nations Development Investment Fund has unique financial powers in the UN system. The fund provides funding for investment and technical assistance to both the public and private sectors of the least developed countries. The ability to provide capital funding in the form of grants and low-interest loans, as well as provide technical expertise for the preparation of infrastructure projects, makes the Fund an important addition to other UN organizations. The fund often provides initial funding for projects that are subsequently supported by charitable foundations and private investors.

Activity Direction

The United Nations Development Investment Fund is the only UN agency that operates primarily in the least developed countries. Currently, the Fund supports 33 of the 48 least developed countries through its programs in these countries, as well as through regional and global programs. The fund works in two directions: financial inclusion ^[2] and financing local development.

• Financial inclusion - ensuring the availability of various financial products to all public groups. The Fund supports a large number of institutions (microfinance institutions, banks, cooperatives, money transfer companies), as well as various financial products (savings, loans, insurance, payments and money transfers from abroad). In addition, the Foundation supports new technological delivery systems (for example, mobile telephony networks), which provides tremendous opportunities for scaling.
• Local development financing aims to ensure that people in all regions and regions enjoy the benefits of economic growth. This involves solving specific problems at the local level, for example, for areas adjacent to cities, and for remote rural areas. It also involves investing local and national resources in local economies and services through, for example, fiscal decentralization, climate finance, and project finance. The Fund pays special attention to strengthening the management of public finances and local revenues, as well as improving the quality of public and private investment and stimulating innovation at the local level.

Governance and Finance

The Foundation is an autonomous organization that is funded on a voluntary basis and is associated with the United Nations Development Program (although it is financed separately from it). The UNDP Executive Board is also the Executive Board of the Fund. The Executive Board meets three times a year and consists of 36 states representing different regions on a rotational basis. Program countries make up about two-thirds of the Executive Board, while the remaining seats belong to donor countries. The Executive Council reports to the Economic and Social Council and ultimately to the UN General Assembly .

The UNDP Administrator is also the Managing Director of the Fund. The right to manage the main aspects of the Foundation’s work has been delegated to the Executive Secretary. Since 2014, the Fund’s Executive Secretary has been Judith Carl (USA).

Funding for the Fund comes from UN member countries, foundations and the private sector. Funding for the Fund has grown substantially in recent years, starting in 2010 and reaching approximately $ 60 million per year. A significant proportion of funding comes from private foundations ^[3] . In 2014, the Fund's income grew to $ 88.3 million, while 21.1 million, or 23.8% of all resources, came from private foundations and corporations ^[4] .