RBEC in 2007 and 2008 Regional RR meeting Bratislava April 2008

2 Balanced Score Card Analysis of delivery trends Outlook for 2008 Priorities for 2008 Regional RR meeting Bratislava April 2008 Outline of the presentation

3 Balanced Score Card: key indicators 1/3 Programme delivery: increased by 8% from 2006 to 2007 (corporately a decline of 5%) Resource mobilization: up 5% in (RBAP, RBAS up 44%, RBA up 7%, RBLAC down 6.5%) Cost recovery /government cost sharing: RBEC rate, 2.86% in 2007, below 3% corporate rate (3.82% without Poland) Cost recovery from TF and 3 rd party cost sharing: RBEC rate, 5.77%, is above minimum 5% and highest in UNDP 58%27%15% RBEC 2007 Results 61%24%15% All COs 2007 Results 81%8%11% RBEC 2007 Results 70%11%19% All COs 2007 Results 68%12%20% RBEC 2007 Results 71%8%21% All COs 2007 Results 33%50%17% RBEC 2007 Results 49%40%11% All COs 2007 Results Regional RR meeting Bratislava April 2008

4 Balanced Score Card: key indicators 2/3 Implementation of audit recommendations: 100% compliance with OAPR standards NEX Audit Management: 17 Cos (74%) meet OAPR requirements, above corporate average MOSS compliance: 100% compliant with MOSS Financial data quality: only one CO does not meet corporate requirements Management efficiency ratio - admin/total expenditure - RBEC average 11.1% vs. 9.8 % target 100%0% RBEC 2007 Results 97%3%0% All COs 2007 Results 74%22%4% RBEC 2007 Results 47%28%25% All COs 2007 Results 100%0% RBEC 2007 Results 74%0%26% All COs 2007 Results 68%24%8% RBEC 2007 Results 55%23%22% All COs 2007 Results 96%0%4% RBEC 2007 Results 88%6% All COs 2007 Results Regional RR meeting Bratislava April 2008

5 Balanced Score Card: key indicators 3/3 Staff perception of work environment (GSS): slightly ahead of corporate average Knowledge networks participation and learning: ahead of corporate average Gender balance in professional positions: 4 more country offices achieved gender balance in %66%17% RBEC 2007 Results 10% 71%19% All COs 2007 Results 54%19%27% RBEC 2007 Results 41%29%30% All COs 2007 Results 39%46%15% RBEC 2007 Results 26%48% 26% All COs 2007 Results Regional RR meeting Bratislava April 2008

6 Bureau Y/Y Change RBLAC$1,411,941$1,310, % RBAP$727,851$732, % RBA$900,906$694, % RBAS$372,141$428, % RBEC $308,703 $ 335, % RBEC Total $ 335,7 mln – smallest in UNDP Growth of 8.76% - one of two regions growing Delivery trends: RBEC vs. other Bureaux programme delivery by region, US$ thous. Regional RR meeting Bratislava April 2008

7 Delivery trends: RBEC analysis Fastest growing 2007/2006, % Croatia196% Montenegro107% Moldova69% Belarus69% Turkey52% Serbia47% Regional RR meeting Bratislava April 2008 Delivery size2006 % of RBEC delivery 2007 % of RBEC delivery $ 1-6 mln88%54% $6-12 mln514%923% $12 mln & up1478%1372% COs by delivery size, COs by growth rate, 2007 Delivery trend Number of COs % of RBEC delivery Average increase / decline Declining823%-28% Stagnating (0-15%)520%8% Growing (15% and up)1457%55%

8 Delivery trends: underlying sustainability 1.External factors: RBEC delivery growth would be 14.5% without Bulgaria 2.Source of funds: non core resources = 86%. Major donors: Govt, EU, GFATM, GEF 3.Contribution of the largest (No 1) project - 26% of ‘07 delivery (in 6 COs - over 40% of delivery) Regional RR meeting Bratislava April 2008

9 Outlook for 2008 and beyond RBEC Purchasing Power: vs DCU = Development Capacity Unit = Project manager + Consultant, Advisor + 1 Project support Staff Purchasing Power = No. of DCUs COs can purchase in the biennium (Biennium TRAC allocation / Average cost of the DCU) * DCU costs barely keep up with dollar depreciation Country % inc – decrease in TRAC 1-2 allocations DCU cost increase % increase - decrease purchasing power Ukraine -32%115%-68% Kosovo -54%23%-63% Serbia -41%23%-52% Bulgaria -29%41%-50% Armenia -21%49%-47% Albania -40%17%-49% BiH -36%16%-45% Turkmenistan -30%21%-42% Azerbaijan -19%36%-40% Georgia -26%20%-39% Belarus -18%23%-34% Romania -17%25%-34% Macedonia -12%23%-29% Turkey -13%21%-28% Moldova -14%17%-26% Croatia -5%22%-22% Kazakhstan 7%36%-21% Russia 13%23%-8% Kyrgyzstan 50%32%13% Montenegro 52%23% Tajikistan 56%21%29% Uzbekistan 115%13%89% RBEC Averages 6%29%-20% BRC 0.12%19%-18%

10 TREND: 8 out of 25 COs set lower delivery targets vs ’07 FACT: 1 st quarter delivery is $7 mln lower than in ‘07 (17 COs have a decline) Outlook for 2008 and beyond Delivery vs. Resource Mobilization Regional RR meeting Bratislava April 2008 US$ thous.

11 Running a CO is like riding a bicycle: Priorities for 2008 Delivery vs. Impact Regional RR meeting Bratislava April 2008  Level of delivery = speed  Impact = where does it bring you

12 Great in local governance / ABD Visibility in social inclusion policies Regional RR meeting Bratislava April 2008 Priorities for 2008 Impact: where are we going?  EU New Member States or Accession States  Low-income countries Environment & Energy Booming  First MDG Carbon Project  Staved off worse-case scenario with GEF

13 1.Go-to agency for institutional development 2.Scale up of local development, social inclusion 3.East-East cooperation network 4.Honest broker and advocate + Energy and Environment Regional RR meeting Bratislava April 2008 Priorities for 2008 Impact: where do we want to arrive?

14 Coordinated advocacy w/EU and other donors Advancing partnerships (Govt, EC, OSI,CEDB, EBRD) Effective internal communications Regional RR meeting Bratislava April 2008 Priorities for 2008 Impact: how to get there? 1/2  Analysis of delivery vs. sustainability issues  Learning from our work (self-reflection)  Working together

15 Consolidating BRC role and operations Regional RR meeting Bratislava April 2008 Priorities for 2008 Impact: how to get there? 2/2 Accountability, evaluation, working for results  New management  More prioritization and feedback In New York:  More systematic monitoring and feedback  Building (sub-) regional synergies  Far more responsiveness Strategic HR management

16 Clear message from Oslo: mainstreaming lessons from the pilots as a priority Using the wave of new UNDAFs in RBEC as a unique strategic opportunity Relying on an inter-agency process for strategic prioritization (RDT role in strategy review) Regional RR meeting Bratislava April 2008 Priorities for 2008 Delivering as One