UN development agency teams up with World Bank, others as funds grow scarce

The United Nations Development Programme (UNDP) has announced new initiatives to attract investors and create jobs in developing countries, amid a decline in official development aid. UNDP Administrator Alexander De Croo emphasized that the agency is strengthening its collaboration with the World Bank and forging ties with the European Bank for Reconstruction and Development, European Investment Bank, and other financial institutions and private investors.

De Croo highlighted the necessity for developing nations to implement governance and legal reforms, as well as to enhance domestic revenue generation, but noted that progress has been hindered by crises since the COVID pandemic. He stated that the current crises are more severe than the 2020-2021 COVID pandemic, but it is too early to discuss debt relief measures.

Central banks and regional institutions must address liquidity needs in countries grappling with high energy costs, rising interest rates, and the worst El Niño weather effect since 1950. The UNDP is collaborating with 46 countries to develop cost-effective subsidies and is working on pilot initiatives in Nepal, Yemen, Haiti, Lebanon, and Ghana in partnership with the World Bank.

Additionally, the organization is working with Italy’s Generali to expand insurance coverage for developing countries. De Croo stressed that managing risk through insurance systems is crucial as the world becomes more turbulent.