FINANCING THE RECOVERY

Page 39

FIGURE 4. The UNDP COVID-19 response in 2020 United Nations Framework for the Immediate Socio-Economic Response to COVID-19 (UNDP technical lead for socioeconomic response) United Nations COVID-19 Response and Recovery Fund COVID-19 Integrated Response Rapid Response Facility (RRF) RR Toolkit MAR

APR

Response Phase 1: COVID-19 Response and Offer 1.0

United Nations socioeconomic programme indicators monitoring framework

Beyond Recovery: Towards 2030

Completion of first COVID-19 Mini-ROAR Data Insights Portal

Rapid Financing Facility (RFF) SEIAs MAY

SERPs JUN

JUL

AUG

SEP

OCT

NOV

Response Phase 2: COVID-19 Response and Offer 2.0

ROAR= Results-oriented annual report; RR= Resident Representative; SEIA=socioeconomic impact assessment; SERP=socioeconomic response plan Source: ‘Update on UNDP’s Socio-economic Response, Beyond Recovery: Towards 2030’, Briefing Note #2, 25 January 2021, prepared for the Executive Board at its first regular session of 2021, available here.

UNDP estimated that $5 million per country would be required for preparation, rapid response and initial recovery assessments, amounting to $500 million globally. A COVID-19 Rapid Response Facility was launched, funded by existing resources and capitalized with an initial $20 million, providing up to $250,000 per country for initial action. UNDP stated an intention to unlock additional resources by repurposing unspent programme funding, in consultation with host country Governments and donors as appropriate. The UNDP financial structure (earmarked versus flexible funding) somewhat constrained the organization’s ability to mount a flexible response to the pandemic at scale. In 2019, earmarked funding accounted for 78 percent of the $4.8 billion reported, with voluntary regular resources (core) funding accounting for 14 percent. For the pandemic response, this placed a premium on releasing resources through reallocation and/or the mobilization of new donor funding.69 Of the $1.6 billion reported to have been utilized for COVID-19 as of November 2021, new funds accounted for 54 percent and repurposed funds for 46 percent.70 The next phase of the UNDP crisis response, Beyond Recovery: Towards 2030 (June 2020), set out a more detailed and granular strategic response to the pandemic.71 The stated purpose was to help policymakers make choices and manage complexity in four areas: governance, social protection, the green economy and digital disruption. The analysis behind this selection is based on the identification of seven ‘tipping points’ or thematic issues.72 Beyond Recovery highlighted the UNDP role as the integrator of the

69 70 71 72

Dag Hammarskjold Foundation and the United Nations Multi-Partner Trust Fund Office, Financing the UN Development System: Time to meet the Moment, September 2021. UNDP, COVID-19 Monitoring Dashboard, November 2021. UNDP, ‘Beyond Recovery: Towards 2030’, June 2020, https://www.undp.org/publications/beyond-recovery-towards-2030 (i) Social contract: A rights-based social contract on greater solidarity; (ii) Capabilities: A capabilities revolution focused on health and addressing income inequalities; (iii) Climate and nature-based transition: Decoupling growth from carbon emissions and unsustainable consumption production; (iv) Inclusion and diversity: A decisive move on inclusion and diversity, including gender equality; (v) Digital disruption: A digital acceleration for people and planet; (vi) Peace: Peaceful and resilient institutions and societies capable of prevention, preparedness and risk management; and (vii) Human rights and multilateralism: Reasserting multilateralism and the Universal Declaration of Human Rights.

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7.2 Recommendations and management response

25min
pages 100-112

7.1 Conclusions

13min
pages 95-99

5.5 International public finance and private capital tools

23min
pages 86-94

Box 8. The SDG investor mapping process in Rwanda

2min
page 85

Box 7. ESG standard-setting agencies

7min
pages 82-84

Box 6. An illustration of the management approach for bond issuers

2min
page 81

Box 3. The Benin SDG bond

4min
pages 64-65

Box 4. The example of the Armenian Government’s Budget Circular for 2020

11min
pages 75-78

5.3 Domestic resource mobilization

8min
pages 72-74

Box 5. Tax Inspectors without Borders in Uganda

2min
page 79

5.4 Private capital attraction tools

2min
page 80

5.1 The SDG financing strategy and implementation architecture

10min
pages 66-69

4.7 Sustainability bonds demonstrate the potential for SDG-related financing

5min
pages 62-63

Table 2. UNDP COVID-19 budget utilization, 2020 and 2021, as of November 2021

4min
pages 42-43

Figure 10. Countries spending more on debt servicing than health in 2021

1min
page 52

4.5 International public finance – aid and multilateral institutions

8min
pages 58-60

4.3 Aligning finance with SDG purpose

6min
pages 55-56

Figure 9. The effect of the COVID-19 pandemic on fiscal and gross domestic product forecasts

2min
page 51

4.4 Domestic resource mobilization and public spending

2min
page 57

Box 2. The experience of Armenia in developing its socioeconomic impact assessment

7min
pages 46-48

Figure 4. The UNDP COVID-19 response in 2020

4min
pages 39-40
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