Independent expert report praises UNIDO reform

Vienna, 5 June 1997 (G-77) - Issued in Vienna on 4 June 1997, an independent expert report commissioned by the Danish Government praises the successful reform of the United Nations Industrial Development Organization and urges all Member States to continue supporting the Organization's important work. The Danish Assessment of UNIDO is a key contribution for ongoing consultations among Member States on UNIDO's future and for decisions to be taken in the coming months. Denmark, within its policy of "active multilateralism", has played an important role in assessing the work of a range of UN organizations.

The Assessment concludes that there is a definite need for an independent industrial development organization in the United Nations system and acknowledges the effective implementation of UNIDO reform since 1993. "There are clearly identifiable needs, and even increasingly so, for the kinds of services provided by the Organization and UNIDO has proved capable since 1995 of adjusting its portfolio of services and modes of operating ... so as to become more responsive to those needs and at the same time more effective and efficient" the report states.

Through a re-engineering of management processes, UNIDO has brought down its administrative and operational costs of technical cooperation delivery from 22% in 1993 to 14.5% in 1996. "This gives UNIDO the lowest administrative and operational support cost-to-delivery ratio among the UN agencies using the same measurement methodology.

The marked increase in demand for UNIDO's services proves the need for a neutral and independent provider of integrated services in support of industrial development. This increase in demand cannot justify overall budget cuts.