The GM's Response to the Changing Financial Architecture
Global consensus, expressed in the Millennium Development Goals (MDGs), and the understanding of changing resource allocation modalities for development and poverty reduction, outlined in the Monterrey Consensus on Financing for Development & the Paris Declaration on Aid Effectiveness, pose challenges that must be met through new approaches and strategies to support affected country Parties in resource mobilization.
Multilateral development institutions - including the World Bank and IFAD - the regional development banks and bilateral donor agencies, have developed new policies, modalities and instruments for resource allocation, through which to support national development priorities, as defined within overarching development frameworks such as Poverty Reduction Strategies (PRSs), through harmonization and alignment.
This has major implications for UNCCD financing in terms of:
- the financial instruments involved (e.g. basket finance, co-financing arrangements and sector-wide approaches);
- country leadership and country-driven identification of development priorities (decision-making on how budgets are allocated), and
- harmonization and alignment of donors’ and international finance institutions’ priorities with those of recipient countries.
Working in this changing international context, the GM consistently emphasizes the poverty/environment nexus, in keeping with the spirit of the Convention.
The GM is committed to translating recommendations to “improve aid effectiveness through strengthening countries’ development strategies and operational frameworks, aligning aid with country priorities, and eliminating duplication” (Paris Declaration of Aid Effectiveness) into a more coherent approach to resource mobilization by country Parties and their partners.
Related Links
Visit the website on Aid Harmonization and Alignment