Mr. President, Distinguished Members of the Board, the UNDP Administrator,

I have the honor to deliver this statement on behalf of the Group of 77 and China.

Once again, we express the full confidence on the leadership of the UNDP Administrator, Mr. Alexander De Croo.

The Group reiterates its long-standing position that peace cannot be achieved without sustainable development. At a time of uncertainties and exacerbated global challenges, developing countries depend more than ever on a strong, responsive and adequately resourced United Nations system to ensure that no one is left behind.

International cooperation, including South-South cooperation remains a central pillar of the work of the United Nations and is of particular importance to developing countries. The United Nations Office for South-South Cooperation plays a vital role in supporting, coordinating and/or implementing South-South cooperation initiatives across the United Nations development system.

Mr. President,

We are deeply concerned by the ongoing UN financial challenges resulting, among others, from the non-payment of assessed contributions by Member States, which has forced the Organization to adopt urgent cost-saving measures, as well as reduce its budget and to under execute it. While we recognize the need for efficiency, we must underline that austerity cannot come at the expense of the mandates that developing countries rely upon most.

In these circumstances, while we understand that the financial difficulties specifically impacted the design of the United Nations Office for South-South Cooperation's Strategic Framework 2026-2029, presented today to the Executive Board, we believe it is essential to emphasize the need for a balanced approach that safeguards substantially the integrity of both strategic policy and operational functions within UNOSSC.

Additionally, the Group values the principle of equitable geographical representation, particularly in this Office that was established, supported, and promoted by the G77 and China.

The G77 notes that until last year, the existing model, has delivered concrete and widely recognized results on the ground. Trust Funds, such as the Pérez-Guerrero Trust Fund, established by the United Nations General Assembly resolution 38/201 in 1983, for the purpose of supporting activities in economic and technical cooperation among developing countries members of this Group, exemplify effective South-South and triangular cooperation, prioritizing projects that benefit the most vulnerable populations, being financed and administered by and for developing countries.

Therefore, we appreciate UNDP's commitment to maintaining support and ensuring "the fiduciary management" of South-South Cooperation Trust Funds and "interface with the relevant UNDP Country Offices". Despite the current constraints explained, it is crucial to uphold the existing level of support to guarantee the substantive impact of these initiatives in the field.

Regarding the concern raised in our letter to the Administrator dated 30 January 2026 over the significant reduction in the resources to be allocated by UNDP to the UN Office on South-South cooperation under the 2026-2029 Strategic Framework, the Group of 77 and China wishes to acknowledge and appreciate the constructive dialogue maintained with the Administrator and his team as well as his reassurances for the continued support to the Trust Funds.

We appreciate the response given and the willingness to engage further with the G77 and China regarding the implementation approach of the Strategic Framework, including the proposal to develop "implementation arrangements" that incorporate our feedback.

The Group of 77 and China thanks you and reaffirms its readiness to continue engaging constructively in order to improve the coherence and effectiveness in the UN system as a whole.