2.5 Cross cutting issues Finding 16. Resource mobilization: A decline in official development assistance, Peru’s status as an upper‑middle income country, its new legal supplementary provisions and over-reliance on government and GEF funds have presented a challenge for the UNDP resource mobilization strategy. UNDP has already taken steps to diversify its resource base, which are showing early but encouraging results. Funding projections for this programme cycle were ambitious. According to the 2017-2021 results and resource allocation framework, the country programme planned to mobilize $250 million in resources, including $1.8 million in regular resources. So far, it has managed to mobilize $212.2 million, or under 85 percent of its target, with almost $1.6 million from regular resources.173 The current programme budget (2017-2021) is significantly lower than for the previous period. In the previous cycle, the UNDP programme budget reached $127.6 million in 2014,174 and $100.9 million in 2015.175 In 2017, the programme budget was $33.0 million, but steadily increased to reach $61.3 million in 2021 (see figure 5). In 2017-2021, core funding programme expenditure amounted to $1.9 million, compared to $3.0 million (0.83 percent) in 2012-2016.
FIGURE 5. Programme budget and expenditure, Peru 2012-2021 million US$
Budget 99.56%
140 96.28%
94.64%
120
127.6
93.77%
127.1
97.39%
Execution rate 100%
93.36%
90% 81.66%
100.9
100
Expenditure
99.13%
80%
77.22%
70%
100
60%
80 69.9
40
61.3
39.7 38.2
33 32.1
32.9 31.1
20 0
50%
65.5
60
34.3 32
41.7 34.1
30%
42.0 32.4
20% 10.5
2012
2013
2014
2015
2016
2017
2018
2019
2020
40%
2021
10% 0
Source: Data from Pawer BI as of 14 June 2021
173
174 175
UNDP mobilized 85 percent of the planned financial resources. Disaggregated data by outcome indicates that UNDP mobilized 99 percent of the financial planned resources for institutions and transparency (outcome 3), 95 percent for social protection and quality services (outcome 2), 84 percent for inclusive and sustainable growth and development (outcome 1) and only 50 percent for citizenship and peace (outcome 4). The low resource mobilization for outcome 4 in part is due to frequent changes in the Government as a result of political instability and changing government priorities. Due to the allocation of $83 million to the “United Nations Climate Change Conference (COP20) project”. Budget allocations of $47.7 million to the “Proyecto Especial Apoyo Organización Juntas Gob BM/FM” and $24.3 million to the “Fortalecimiento capacidades Programa Qali Warma” projects. The resources of the above projects were fully utilized in 2014 and 2015 respectively.
Chapter 2. Findings
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