UNDP and International Financial Institutions
International Financial Institutions (IFIs), including the World Bank Group, other multilateral and regional development banks, and national development banks with international objectives, are critical development partners to address the Sustainable Development Goals (SDGs). In addition to policy expertise, economic analysis and knowledge products, they bring to the table considerable development resources and deep ties to national governments.
IFIs are already important contributors to UNDP’s project-specific (non-core) funding. Since 2010, IFIs have contributed more than $1 billion to UNDP programs. Some of these contributions were provided through direct grants to UNDP, while the majority (approximately 60 per cent) came in the form of Government Cost-Sharing arrangements, through which UNDP provides capacity development or implementation support to national government projects financed by IFI loans.
In every region, UNDP is working with Governments and IFIs to leverage development expertise and resources by collaborating on analysis, assessments and planning, pipeline development and project implementation towards shared outcomes to enhance support for national governments and local communities, and improve the sustainability of development efforts.
UNDP recognizes that scaling up its engagement with IFIs is essential to achieving the SDGs, as underscored by the UNDP Strategic Plan. The Financial Institutions (FI) team in UNDP’s Bureau for External Relations and Advocacy (BERA) is working across UNDP to help improve collaboration with IFIs. Please contact the Team with any queries you may have related to IFI-UNDP collaboration.
UNDP has entered into formal agreements with the African Development Bank, Asian Development Bank, Council of Europe Development Bank, Development Bank of Latin American (CAF), Eurasian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Fund for Agricultural Development, Islamic Development Bank, and the World Bank Group.
UNDP also works closely with national development banks, including KfW, the China Development Bank and BNDES, the Brazilian National Development Bank, and is currently in discussions with emerging banks, namely the Asian Infrastructure and Investment Bank and the New Development Bank.
Most collaboration with IFIs takes place through one of several modalities. These include:
- Research Research and knowledge products, such as the African Economic Outlook Reports with the African Development Bank;
- Assessments and analysis, such us the joint post-disaster assessments with the World Bank (WB) in places like the Caribbean, Sierra Leone, Ecuador and Haiti; and recovery/peacebuilding assessments with the WB and others in Ukraine, CAR, Cameroon, Nigeria and other countries;
- Partnering through joint priorities or “parallel financing”, working with IFIs on common projects and joint outcomes through separate funding streams, like supporting the development of the Islamic Development Bank’s innovation strategy;
- Project implementation, where at the request of national governments, UNDP supports the design or execution of national development projects funded by IFIs, while developing long-term capacity. Click here to access examples of tripartite collaboration between Governments, IFIs and UNDP globally.
UNDP and IFIs for the Global Goals
- UNDP Signs Cooperation Agreement with the Caribbean Development Bank (June 16 2017)
- Modernising Energy Efficiency of Public and Multi-Apartment Buildings (Jul 7 2017)
- UNDP, Council of Europe Development Bank to boost Development Goals in Europe (Feb 6 2017)
- UNDP To Support Zakat for Development in Indonesia (Mar 15 2017)
- The European Union, the Islamic Development Bank and UNDP launch the Revitalization of Sultan Suleiman and Salah Eddin Streets in East Jerusalem (Dec 13 2016)
- UNDP and Islamic Development Bank Sign Partnership to Support the Sustainable Development Goals (May 18 2016)