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11
Funding the un *
Support or constraint?
Max-Otto Baumann and Silke Weinlich
Adequate and predictable funding to multilateral development organizations is key to promot? ing global sustainable development. Funding volumes and practices matter. They affect the scale and scope of solutions that can be offered. They reveal the extent to which multilateral organi? zations are owned by member states when looking at who shares the risks and costs of multi? lateral activities, and they demonstrate the level of trust placed in an organization. Through resource politics, states exercise influence and control over an organization. This influence can serve to support and strengthen multilateral organizations by helping them to be efficient, effective, and innovative. Or, it can also undermine international organizations by making their work harder, hampering development effectiveness, and eroding multilateral assets.
The UN development system (UNDS) illustrates both kinds of financial engagement, often in parallel. Over the last three decades, member states collectively multiplied their contributions; new, private actors emerged as significant donors. This growth in funding allowed the UNDS to expand significantly in scale and scope. At the same time, the practice of earmarking funding and the dependence on a small number of Western member states have been placing constraints on the UNDS. Despite a broad acknowledgment of the negative repercussions, efforts to curb earmarking practices and broaden the donor base have so far been mostly in vain. Adopting the UN Funding Compact in 2019, member states and the UNDS for the first time formulated a potential systemic approach to bring about a more predictable, flexible, and multilateralism? friendly funding so that the UNDS becomes fit for supporting member states in their transfor? mations toward sustainable development .1
This chapter begins by describing the current funding patterns of the UNDS, analyzes the main drivers,
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