Governance of United Nations Development Rutgers University Governance of United Nations Development Recharging multilateral cooperation for the post-2015 era New Jersey, 20 November 2014 Kristinn Sv. Helgason

Governance of United Nations Development Presentation outline Governance of United Nations Development Introduction Current governance system Major challenges Changing functions of UN Development Governance requirements Possible reform options Kristinn Sv. Helgason

A. Introduction (a) United Nations Development Composed of the 34 UN entities that receive contributions for operational activities for development UN Development is the largest multilateral partner of OECD/DAC countries, an important indicator of the significant role played by the Organization in global development cooperation 3 Kristinn Sv. Helgason 3

A. Introduction (a) United Nations Development 4 Funds & programmes (12) Specialized agencies (13) Other entities (9) UNDP, (incl. UNV, UNCDF) FAO, IAEA, UNESCO, ILO ECA, ECE, ESCAP UN-Women, UNFPA, WFP ICAO, IMO, ITU, UNIDO ESCWA UNICEF, UNHCR, UNAIDS UPU, WIPO, WHO, WMO UNCTAD (incl. ITC), UNEP UNWTO OCHA, DESA UN-Habitat, UNODC UNRWA IFAD, OHCHR 4 Kristinn Sv. Helgason 4

A. Introduction (b) Operational activities for development UN operational activities for development include both development-related activities as well as those with a humanitarian assistance focus In 2012, operational activities for development of the UN system amounted to some $24 billion and accounted for nearly two-thirds of all system-wide activities of the Organization Close to 95 per cent of all operational activities for development are funded from voluntary contributions 5 Kristinn Sv. Helgason 5

A. Introduction (c) Analytical framework Strategic Triangle (Mark Moore, HKS)   What are the sources of legitimacy and support that allow the governance system to take action and provide necessary support? Is the action politically and legally feasible? What is it that Member States want UN Development to accomplish? Is the purpose publicly valuable? What are the governance capacities that Member States have put in place to enable UN Development to deliver on the desired results? Is it operationally and administratively feasible to establish such capacity? Authorizing environment Mission What to Member States want UN Development to achieve? Political and legal feasibility for UN Development to take action Capacity What governance capacity is in place to deliver on the desired results? 6 Kristinn Sv. Helgason 6

B. Current governance system Overview System-wide Agency-specific Country-level General Assembly Economic and Social Council Executive Boards of funds & programmes Governing bodies of specialized agencies & other entities Agency-specific programming documents United Nations Development Assistance Framework 7 Kristinn Sv. Helgason 7

B. Current governance system (b) System-wide Bodies Main instruments Primary task General Assembly Quadrennial comprehensive policy review (QCPR) High-level Political Forum on Sustainable Development Operational guidance Normative guidance Economic and Social Council Operational Activities Segment Integration Segment Operational coordination Substantive coordination 8 Kristinn Sv. Helgason 8

B. Current governance system (c) Agency-specific Key functions Executive Boards of funds and programmes Implement GA & ECOSOC guidance Approve country programmes Approve strategic plan & budget Monitor performance Allocate core resources Informal joint meeting of EBs Discuss issues of common concern Governing bodies of specialized agencies 9 Kristinn Sv. Helgason 9

B. Current governance system (d ) Country-level Key tasks Country programme documents of funds and programmes Define programme priorities and present indicate allocation of non- core funding based on consultation between government and UN entity United Nations Development Assistance Framework UNDAF is the strategic programme framework describing the collective response of the UN system as a whole to national development priorities 10 Kristinn Sv. Helgason 10

B. Current governance system (e) Governing bodies: distribution of political power Regional groupings (based on the principle of equitable geographical distribution) Constituency-based groupings Mixed regional and constituency-based groupings Key question What is an effective and equitable method for distributing political power for decision-making in the area of operational activities for development? 11 Kristinn Sv. Helgason 11

B. Current governance system (e) Governing bodies: distribution of political power Regional groupings Constituency groupings UNDP/UNFPA/UNOPS, UNICEF, WFP, UNHCR, UNCTAD, UNODC, UN- Habitat, UNEP, UNRWA, FAO, ITU, UNESCO, UNIDO, UPU, WIPO, WHO, WMO, UNWTO, OHCHR GA, ECOSOC [political groupings negotiate resolutions on system-wide policies on operational activities] Regional commissions (5) OCHA, DESA ICAO, IFAD, IMO Mixed regional and constituency-based groupings UNAIDS, UN-Women, ILO, 12 Kristinn Sv. Helgason 12

B. Current governance system (e) Major challenges Governing bodies of UN Development entities operate in almost total isolation from each other. Decisions and policies in one area are generally not known to or, or seen as important by those operating in another The ability of agency-specific governing bodies to provide regular, detailed guidance on operational activities is affected by variation in their size and meeting frequency. Some governing bodies meet only every two years, while others report to policy-making bodies, not designed to provide guidance on operational activities 13 Kristinn Sv. Helgason 13

B. Current governance system (e) Major challenges Central governing bodies are not able to hold entities accountable for the implementation of system-wide mandates such as those relating to the quadrennial comprehensive policy review and established by GA or ECOSOC Central governing bodies do not have the capacity to further policy coherence and interoperability in programming and operations across UN entities 14 Kristinn Sv. Helgason 14

B. Current governance system (e) Major challenges The governance of key country-level coordination instruments such as the resident coordinator system, UNDAF and business operations is left to voluntary agreements established through inter-agency bodies such as UNDG, which operate on the basis of consensus, with the final outcome often heavily dictated by the specific mandates and business models of individual agencies 15 Kristinn Sv. Helgason 15

B. Current governance system (e) Major challenges The significant fragmentation of the governance system is costly and reduces the ability of UN Development entities to capitalize on opportunities for synergy in programming and operations. It is estimated that synergy through enhanced efficiency and reduction in duplication across entities could amount to some 20 per cent of total operational activities for development 16 Kristinn Sv. Helgason 16

B. Current governance system (e) Major challenges Quadrennial comprehensive policy review An example of lack of alignment between (a) the authorizing environment, (b) the mission of UN Development (as reflected in QCPR mandates) and (c) the governance capacity 17 Kristinn Sv. Helgason 17

B. Current governance system (e) Major challenges Quadrennial comprehensive policy review No Executive Board of fund/programme formally discusses progress in QCPR implementation – left to informal joint meeting of boards QCPR implementation not on the agenda of governing bodies of other entities Little evidence that entities measure performance in QCPR implementation (or review of QCPR progress part of background documentation) No governing body in UN Development adopts decisions on progress in QCPR implementation 18 Kristinn Sv. Helgason 18

C. Changing functions of UN Development (a) Post-2015 development agenda Integration of economic, social and environmental pillars of sustainable development, requiring greater emphasis on pursuing activities in combination rather than isolation as with MDGs Broadening of development agenda to include global public goods, which to a large extent will need to rely on country-level action Growing concern about systemic risks associated with accelerating globalization and interconnectedness of countries 19 Kristinn Sv. Helgason 19

D. Emerging governance requirements Governing body design The overarching principle of governing body design is that form should follow functions Over the years, the functions of most UN Development entities have changed significantly but the form of governance has remained the same 20 Kristinn Sv. Helgason 20

D. Emerging governance requirements (b) UN Development functional groupings Entities with operational focus (10) Entities with normative focus and major operational programmes (11) Entities with normative/analytical focus (13) UNDP, UNFPA, UNICEF, WFP, UN-Women, UNHCR, UNAIDS, UNRWA, OCHA, IFAD UNIDO, WHO, FAO, UNESCO, ILO, UNEP, UN-Habitat, UNODC, IAEA, ICAO, OHCHR IMO, ITU, UPU, WIPO, WMO, UNWTO, UNCTAD, DESA, ECA, ECE, ECLAC, ESCAP, ESCWA 21 Kristinn Sv. Helgason 21

D. Emerging governance requirements (c) Strategic triangle concept (Mark Moore, HKS) Firstly, what “public value” is the governance system expected to provide? Secondly, what sources of legitimacy or support would be relied upon to authorize the governance system to take action to create that value? Thirdly, what operational capabilities would governance system rely on to deliver the desired results? 22 Kristinn Sv. Helgason 22

D. Emerging governance requirements (d) Critical governance capacities Firstly, a post-2015 development agenda with significant focus on the integration of country and global development action will require innovations in the application of the principles of national sovereignty and global responsibility, or what Kaul (2013) refers to as ‘smart sovereignty’ The ‘smart sovereignty’ principle recognizes policy cooperation among countries as the best way to achieve national interest in the global public domain 23 Kristinn Sv. Helgason 23

D. Emerging governance requirements (d) Critical governance capacities Secondly, UN Development will increasingly have to work as one in an environment characterized by growing diversity of both national development experiences and sources of financing. This will require UN Development to develop strong governance capacity for internal and external coordination 24 Kristinn Sv. Helgason 24

D. Emerging governance requirements (d) Critical governance capacities Thirdly, in the post-2015 era, UN Development will need to develop an organizational capability anchored in integrated approaches that reduce duplication and fragmentation and enable entities to exploit opportunities for synergy in programming and operations 25 Kristinn Sv. Helgason 25

D. Emerging governance requirements (e) Post-2015 era   What are the sources of legitimacy and support that allow the governance system to take action and provide necessary support? Is the action politically and legally feasible? What is it that Member States want UN Development to accomplish? Is the purpose publicly valuable? What are the governance capacities that Member States have put in place to enable UN Development to deliver on the desired results? Is it operationally and administratively feasible to establish such capacity? Authorizing environment Mission Universal SDGs Global public goods Integrated solutions Pooling of knowledge and expertise Broadening of funding base System-wide and agency efficiency and accountability Post-2015 agenda Rise of global challenges Emerging economies Diversification of development experiences and funding sources Management of interdependence ‘Smart sovereignty’ Capacity Policy coherence and interoperability across entities Coordination with authority Balancing of agency and system- wide governance More precise criteria for participation in governing bodies 26 Kristinn Sv. Helgason 26

D. Emerging governance requirements (e) Legitimacy in governance The major changes needed in governance capacity of UN Development in the post-2015 era will require Member States to rethink what constitutes political and performance legitimacy of governing bodies A governance system dominated by agency-specific considerations no longer able to meet the emerging mission of UN Development Rebalancing authority of agency-specific & system- wide governing bodies will require more effective and equitable distribution of political power in decision- making in the governance system 27 Kristinn Sv. Helgason 27

D. Emerging governance requirements (e) Legitimacy in governance A governance system aimed at furthering policy cooperation among Member States will require decision-making processes characterized by high degree of legitimacy of representation Operational activities, however, are not of equal importance to Member States and the adoption of more precise criteria for selecting members of governing bodies rather than relying only on regional groupings and the principle of equitable geographical distribution could enhance legitimacy in governance 28 Kristinn Sv. Helgason 28

D. Emerging governance requirements (e) Legitimacy in governance A key message of the paper is that a more effective and equitable method of distributing political power in decision-making on operational activities of UN Development in the post-2015 era will be a governance system based on: Constituency-based selection, or Mixed regional grouping and constituency-based criteria 29 Kristinn Sv. Helgason 29

D. Emerging governance requirements (e) Legitimacy in governance Possible criteria to enhance the legitimacy of representation in governance of UN Development entities could include: Income groupings (to better reflect the socio- economic profile of members of regional groupings) Expenditure level in different regions Contribution level Other 30 Kristinn Sv. Helgason 30

D. Emerging governance requirements (e) Legitimacy in governance Constituency-based selection of members of governing bodies and “variable geometry” to enable rotational representation may be particularly important innovations to further a culture of policy cooperation among Member States and governing bodies of UN Development entities in the post-2015 era 31 Kristinn Sv. Helgason 31

D. Emerging governance requirements (e) Legitimacy in governance Intergovernmental negotiations on operational activities in central governing bodies conducted by political groupings should ideally be replaced by constituency groupings with a view to: Reducing incentives for proliferation of system-wide mandates that cannot be realized due to capacity constraints in system-wide governing bodies and inter- agency mechanisms, and Helping to ensure alignment of objectives of decision- making processes of agency-specific and system-wide governing bodies 32 Kristinn Sv. Helgason 32

E. Possible reform options The primary objective of reform would be to enhance legitimacy in governance of UN Development: Performance Increased system-wide coherence, including high-degree of synergy in programming and operations, enhanced accountability for implementation of agency-specific and system-wide mandates and greater transparency and cost-effectiveness in governance Political More effective and equitable distribution of political power in decision-making that better reflects the interests of those Member States that are core stakeholders of operational activities for development 33 Kristinn Sv. Helgason 33

E. Possible reform options Development Board (fulltime) For operational activities of 19 funds, programmes and other entities reporting to General Assembly Four Executive Boards of six major funds and programmes would be merged in new DB DB would regulate operational activities of other funds and programmes reporting to GA but existing governing bodies perform norm- and standard-setting and policy- making roles Composition of DB based on mixture of equitable geographical distribution and constituency-based selection criteria along with “variable geometry” 34 Kristinn Sv. Helgason 34

E. Possible reform options (b) Joint Executive Board of Fs/Ps (fulltime) Four Executive Boards of six major funds and programmes UNDP/UNFPA/UNOPS, UNICEF, UN- Women and WFP would be merged in new JEB JEB organized around segments for each F/P and sessions to discuss issues of common interest Composition of DB based on mixture of equitable geographical distribution and constituency-based selection criteria along with “variable geometry” 35 Kristinn Sv. Helgason 35

E. Possible reform options (c) ECOSOC as system-wide governing body Role of ECOSOC firmly recast as central coordinating body for operational activities of UN system QCPR resolution upgraded into system-wide strategy UNDG established as legal entity and made formally accountable to ECOSOC for implementation of system-wide mandates such as those established in QCPR resolution 36 Kristinn Sv. Helgason 36