(Day 2 - Wednesday 28 February)
Session IV:
Revitalizing the UN Development System's Funding Architecture

The Group of 77 and China reiterates that a more stable, predictable, and sustainable funding for UNDS activities is key to poverty eradication, which is the overarching goal of the 2030 agenda. Such funding must be aligned with national development priorities and strategies of program countries in order to reflect their national ownership. In this vein, funding should be directed towards underfunded priority areas of the developing countries.

The Group express its concern at the continuing decline of core contributions to the UNDS, which negatively affect the efficiency and effectiveness of its functions. The Group stresses that reversing this trend, along with enhancement of core contributions to UNDS entities will ensure achieving the objectives of operational activities for development.

Likewise, the Group emphasizes the need to move from the present funding pattern by improving flexibility and quality of non-core contributions as well as funding practices, with a view to align them with the real needs and priorities of developing countries.

The Group supports pooled funding mechanisms within the UNDS as an alternative for strict earmarking, in complement to core contributions, which remains the bedrock of the system. The Group stresses that pooled funds operating, in relevant contexts, across development, humanitarian assistance and peacebuilding efforts should be guided by the provisions contained in paragraph 24 of the QCPR.

The Group stresses that strengthening funding mechanisms should not put any financial burden on developing countries.

Finally, the Group welcomes the "funding dialogue" proposed by the SG and looks forward to have more clarity on modalities and timeframe of the proposed dialogue.