FINANCING THE RECOVERY

Page 46

system reforms to bring the UNCT together to coordinate a response to the pandemic. In several countries this was successful, and UNDP was able to support the UNCT and resident coordinator’s office in the response, through technical support to the both the impact assessment and socioeconomic response.

BOX 2. The experience of Armenia in developing its socioeconomic impact assessment In Armenia, a strong country team was able to play a pivotal role in informing the policy response to COVID-19, engaging with the Government and donors to shape policy on the crisis response. As in other countries, COVID-19 triggered a marked economic reversal in Armenia, leading to pressure on the exchange rate, increased inflation and fiscal pressures. The close and trusted working relationship between UNDP, the Government and key international partners was key to the response to the pandemic. An important entry point was a legacy programme on disaster relief, which in turn informed the development of both a household survey and a survey of businesses and farmers. The surveys provided real-time data which was shared with the Government, UNCT, donors and the IMF and established UNDP as a critical interlocutor. The donor environment in Armenia is characterized by close and regular dialogue between donors, allowing for collaboration between agencies. One visible outcome of that dialogue was the participation of the IMF in the UNDP-led socioeconomic impact assessment. The UNDP household survey team was in the field collecting data during the early days of the pandemic, while the Government was rolling out its initial COVID-19 support programmes. The country office used the granular data being collected by the surveys in biweekly meetings with the Government and donors, particularly the IMF, shedding light on the impact of government policies in different regions, broken down by gender and income group. The close engagement of UNDP with the Deputy Prime Minister’s Offices and the Ministry of Territorial Administration and Infrastructure, through provision of primary data and technical advice, contributed to government policymaking and a practical COVID-19 response across the country. While the socioeconomic impact assessment was not integrated into the Government’s crisis response plan, it did inform implementation. The assessment, which was itself informed through dialogue with the World Bank, European Development Bank, the IMF and other development partners, spanned the five areas of the United Nations framework for the immediate socioeconomic response to COVID-19. The IMF was directly involved in the drafting of chapter 4 on the macroeconomic response and multilateral collaboration, establishing continuity and consistency with inputs from the European Union and United Nations. In what is an overwhelmingly positive story of effective engagement to inform and influence policy, the evaluation team identified a few lessons learned. The critical ingredients for success include the development of trust with government; a distinctive delivery offer (the household survey); sustained engagement with development partners; effective leadership; and a strong national team with the right competency profile. There are distinctive features that are relevant and less easy to duplicate. The Government is clearly very open to engagement and is marked by strong technical capacity in many areas, donors appear to coordinate effectively and Armenia is not facing a full-blown economic crisis. Even so, the country may serve as a role model for converting the type of technical assistance offered by UNDP into wider influencing.

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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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