Financing development together : The role of pooled financing mechanisms in enhancing development effectiveness

 

Please download the : Financing development together 

 

 

 

For almost a decade since its establishment, the Multi-Partner Trust Fund Office (MPTF Office) has been at the forefront of the United Nations’ efforts to promote greater aid effectiveness.

 

 

The International Reconstruction Fund Facility for Iraq, the first United Nations (UN) multi-donor trust fund administered by the MPTF Office since 2004, was designed to support the Government of Iraq and donors to collect and allocate financial resources in a coordinated, transparent and cost-effective manner to facilitate the country’s recovery and reconstruction. The emergence of such a pooled funding mechanism represented a major innovation to the traditional approach to crises and post-conflict situations: for the first time, a common framework was available to access a wide range of specialized UN agencies’ expertise in humanitarian assistance, recovery, reconstruction and development.

 

 

The financial architecture first developed to support Iraq’s reconstruction has since evolved considerably to support a diverse set of humanitarian, transition, development and climate funds and programmes. As of September 2013, the MPTF Office manages approximately one hundred pooled financing mechanisms, which represent more than 95 percent of the funds channelled through UN-administered multi-donor trust funds and joint programmes. The MPTF Office operates in 99 countries and has transferred close to $7 billion from 94 contributors to 44 implementing UN entities and, most recently, directly to national government implementing entities.

 

 

The design of pooled funding mechanisms keeps evolving to meet a growing demand for customized development finance solutions. Since its adoption in Busan in 2011, the New Deal for Engagement in Fragile States has influenced the discourse among national and international partners with its call to change the way development assistance is delivered to the 1.5 billion people living in countries affected by conflict and fragility. Through the MPTF Office, the United Nations is developing new pooled financing mechanisms to increase the proportion of funding channelled through country systems, fulfilling a key ambition of the New Deal…

 

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