Madam Chair,

1. I have the honour to convey to this informal consultation general observations on behalf of the Group of 77 and China.

2. The Group is of the view that this strategy on UNDP Funding Windows is a step in the right direction in terms of generating flexibility for non-core resources with better focus in response to the current situation of imbalance between core and non-core resources and implementation of the 2030 Agenda.

3. However, since this is the first time we are discussing this document, the Group would like to raise some imperative questions as to different elements laid down in this document.

4. First, with the adoption of many intergovernmentally agreed development commitments in 2015, it is crucial to elaborate how this strategy will impact the implementation of the Sustainable Development Goals (SDGs) and other commitments we made last year. In addition, taking into account that this year will be the first milestone year in the implementation of those commitments as well as the last phase of the implementation of the Quadrennial Comprehensive Policy Review (QCPR) 2012-2016 and the negotiation of the new QCPR, it would be beneficial to all Member States to learn how this strategy will align itself with those development outcomes and, in particularly, with the guidelines as set in the QCPR.

5. Second, the Group welcomes the emphasis this strategy places on having resources being 'windowed' through South-South and Triangular Cooperation, thereby leveraging the potentials of South-driven development. However, as a group comprised of developing countries, the Group of 77 and China attaches importance to the work of UNDP in supporting national efforts and capacity-building geared towards development and achievement of internationally agreed development goals, there is a cause for concern on how this strategy will impact existing Country Programme Document (CPDs) implementations and how it will take into account different national priorities and needs.

6. Third, the last QCPR resolution requested the funds and programmes to define common principles for the concept of critical mass of core resources. This is light, this strategy is a good initial step towards making sure resources are used where they must. Apart from designing this pooled, flexible funding arrangement, the Group is of strong view that this strategy should also address the need for critical mass of core resources and avoid the use of core resources, which are dwindling, to subsidise non-core financing of programmes. It would be beneficial for the overall picture of funding if these views are taken into account while drafting this strategy.

7. In addition, with the four segmented financing windows focusing on different aspects of issues pertaining to development outlined in the proposal, there is a possibility in the future that there could be imbalanced financing between the four windows as a result of donor preference. The Group would like to be clarified on how UNDP would address this imbalance if such a case would arise.

8. Fourth, for us to achieve inclusive and sustainable development, the Group is of a strong view that any initiative relating to the issue of development should be inclusive in nature and transparent in practice. In this regard, the implementation of this strategy at the global, regional and country levels and the management of this strategy are still not made very clear in the proposed draft.

9. Moreover, the Group is concerned about the mandate this strategy would give to UNDP in terms of responding to humanitarian situations under the "Crisis response and recovery" window, and how this would impact the work of the UN Office for the Coordination of Humanitarian Affairs (OCHA) and other entities primarily responsible for humanitarian response.

10. Lastly, timing for the adoption of this very important strategy is also critical. The Group would like to be clarified on the steps to be taken before its eventual adoption by the Executive Board.

Madam Chair,

11. The Group of 77 and China looks forward to engaging constructively with all relevant parties in the discussion of this very important initiative.

12. I thank you.