FUNDING A UNCT TRANSITION STRATEGY 1) Various channels -Multi-Donor Trust Funds -Transitional Appeals -Peacebuilding Fund -Humanitarian instruments -Bilateral channels 2) A UNCT transition strategy can funded through a combination of those channels 3) Additionality principle: remind donors of agency specific mechanisms
Multi-Donor Trust Funds Iraq, Lebanon, Sudan, Nepal, Indonesia… Large scope, aligned with national plans Capitalization: $10 million - +$1 billion Coordination / coherence value High transaction costs (delays in setting up) Expectations / incentives: strategy? Limited access to NGO (UNDG MDTF) UN system capacity for management WB-UNDG rivalry UNDG MDTF Oversight framework
Transitional Appeals Pakistan Early Recovery Plan, Angola, Tajikistan, Haiti Within CAP (Angola), or outside (Haiti) Focus on recovery activities Conceptual clarity? Strategic focus Government and donor stewardship High transaction costs Limited donor understanding / flexibility
Humanitarian instruments CAP, CERF, Common Humanitarian Fund, ERF Limited scope for early recovery / transition CAP: Mixed results (see Somalia 07 CAP: 62% funding rate for ER) CAP: sector orphans (coordination capacity, governance, land property, etc.) CHF: gap filling nature Donor concerns about mission creep and dilution
Observations Funding follows strategy Funding is aligned with national priorities Funding channels can have perverse effect on UNCT behavior UNCT needs to be transparent and avoid impression of double-dipping Funding instruments require internal capacity Funding requires constant donor stewardship
. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22. MONTH Emergency Peace Agreement Donor Conference Recovery/ Development Simplified model for early recovery financing: Filling the gap
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