Statement of the G-77 and China during the 23rd session of
the PBC of UNIDO 2-3 May 2007, delivered by H.E. Ambassador Sayed Galal E. Elamin,
Permanent Representative of Sudan
Mr. Chairman, (His Excellency, Ambassador Rudolf Schaller, Permanent Representative
It gives me great pleasure to congratulate you on behalf of the Group of 77
and China on your election as the Chairman of the 23rd Session of the UNIDO
Programme and Budget Committee. We are confident that your experience will lead
to the success of this session.
I also take this opportunity to congratulate other members of the Bureau on
their election, and convey special thanks to your predecessor Her Excellency,
Ambassador Kongit SINEGIORGIS, Permanent Representative of Ethiopia, for her
commendable leadership of the previous PBC meeting.
The Group acknowledges the efforts of the Secretariat for the preparation
of the documents. At the same time encourages the Secretariat to issue documents
earlier and in all official languages, to give delegations more time to prepare
their active participation.
The G-77 and China expresses its appreciation to the Director-General, Mr.
Kandeh Yumkella, for his introductory statement and his dynamic leadership of
the Organization. The Group wishes to comment on the agenda items 3 to 9 and
I will express the views of the Group on each Item in due time.
Agenda item 3: Interim Report of the External Auditor, financial performance
report and programme performance report for the biennium 2004-2005
The Group of 77 and China takes note of the document IDB.33/8-PBC.23/8.
The Group finds that the External Auditor's report contains several issues
of great importance, in particular, points relating to the Status of implementation
of recommendations, Results based-management and Governance matters, including
the Office of Internal Oversight Services and the Implementation of International
Public Sector Accounting Standards. In this respect, we are paying due attention
to the recommendations in the report and we will be following the process of
Regarding the status of implementation of recommendations, made during the
financial period 2004/2005, the Group takes note with satisfaction that most
of the recommendations have been implemented by the Organization, including
the strengthening of the internal oversight function, improvements in the area
of performance management, reconciliations of non/expendable property at headquarters
and field offices, as well as improvements in the procurement function and the
general information and communication technology control environment.
4. On the implementation of Results/based management, the Group notes that
from several recommendations made by the External Auditor, only some were addressed
by the Organization. There is still need to develop a coherent policy framework
that governs the institutionalization of the Results Based Management as a "holistic
The Group notes with satisfaction that the rate of collection of assessed
contributions for 2006 is 93.7 per cent, the highest collection rate recorded
at UNIDO and takes note that the technical cooperation delivery, recorded another
impressive performance during the year with an amount of 113.6 million expenditure,
which represents an increase of 14.8 million or 15% over the first year of the
previous biennium 2004-2005.
Thank you, Mr. Chairman.
Agenda item 4: Financial Situation of UNIDO
The Group of 77 and China takes note of the document IDB.33/10-PBC.23/10.
Taking note of the information that the collection rate of the assessed contributions
during the year 2006 was the highest in UNIDO, the Group commends the Secretariat
for its intensive efforts. At the same time however, we note that the collection
rate of 2007 does not compare well with the corresponding figure in two previous
years. The Group believes that we should aim for the same or even higher figure
than that was achieved in 2006.
The Group welcomes the information that 43 Member States, including 5 LDCs,
have already made full payment for their assessed contributions for the year
2007, while partial payments have been received in respect of another 49 Member
States, including 10 LDCs.
The Group of 77 and China appreciates that the payment plans concluded with
some Member States are proceeding smoothly while negotiations with several other
Member States are underway to reach such payment plans.
The Group notes that the delivery of technical cooperation activities in
2006 was almost at the same level as in the previous year i.e, US$113.7million
and 112.9million respectively. Similarly there was no major change in the rate
of net regular budget spending from 2005 to 2006 as it increased from 81.1%
to 81.8% of the total approved net regular budget for respective years.
The Group is concerned that the amount of outstanding contributions has been
continuously rising over the previous years. Also the Group notes that the number
of Member States (43) without voting rights on 31 March 2007, though lower as
compared to the same figure in previous years yet is very high as it constitutes
one quarter of the Organization's membership.
The Group of 77 and China appeals to all Member States to fully and promptly
settle their financial obligations towards the Organization. The Group also
calls upon the Secretariat to continue its efforts to effect full payment of
the outstanding amounts. The Group is of the view that Secretariat's strategy,
in this regard, could focus first on the higher amounts and the amounts outstanding
Thank you Mr. Chairman.
Agenda item 5: Programme and Budgets, 2008-2009
1. The Group of 77 and China takes note of the proposals of the Director-General
on Programme and Budgets 2008-2009 as contained in IDB.33/7-PBC.23/27 and corrigendum
IDB.33/7/Corr1 - PBC.23/7/Corr.1.
The Group acknowledges the Director General's proposals for the Programme
and Budgets 2008-09 within a scenario of zero-real growth for the regular budget,
excluding one time expenses. The Group notes the need to make further investments
in the Organization's core capacities under the regular budget in the future
to allow for UNIDO's expanding role.
Within the scenario of zero-real growth, the Group welcomes that resources
allocated to implementing programmes and projects under the thematic priorities
have been increased as a share of the overall budget. The Group expresses its
satisfaction that the application of results-based management (RBM) principles
and practices is being further refined, which would allow for more effective
monitoring and reporting on the results achieved by its programmes and activities.
On Public Advocacy, the Group would like to be informed of the steps planned
in this regard, in order to increase the effectiveness under this programme.
The Group urges the Director-General to ensure optimal use of the resources
of other UN agencies and better coordination for concerted effort for public
advocacy, as we move towards greater system wide coherence.
On Major Programmes C,D & E, the Group has noted that at 41.5%, the combined
share of resources devoted to these three major programmes in the programme
and budget proposals for 2008-2009 improves upon the allocation made in these
areas in the previous programme and budgets. To meet the challenges set out
by the Organization, the Group continues to support UNIDO's efforts aimed at
increasing involvement and contributions of donors. The Group would like to
encourage Member States to make voluntary contributions for UNIDO to continue
to meet growing demands for its services.
The Group supports UNIDO's regional priorities and activities to reduce
intra-regional differences. The programme components of UNIDO will indeed help
developing countries to seize the opportunities of globalization and prepare
for increased competitiveness. The Group would like to commend UNIDO for setting
up the first UNIDO Centre for South-South Industrial Cooperation in India in
January 2007 and is confident that a similar one will be opened in China soon.
The Group expects that these Centres would utilize the lessons learned in the
region, which has enjoyed rapid economic growth over the past decades, and replicate
success stories throughout the developing world.
On Human Security issues and policies, while the Group continues to encourage
synergies between key stakeholders, private sector and civil society, the Group
expects UNIDO to closely consult Member States while establishing the scope
The Group supports a stronger decentralization of UNIDO's activities to
the field. On UNIDO Desks, including focal points, the G-77 and China would
like to be regularly apprised of the joint programmes of technical cooperation,
including in the area of private sector development. The Group also expects
an independent report on the pilot cost-sharing phase whereby 13 new UNIDO Desks
were established in 2005-2006. The Group underlines that establishment of any
additional UNIDO Desk should be in accordance with the decisions of the Governing
Bodies, in particular, IDB.32/Dec.6.
As regards the increase in the number of posts, the Group urges the Secretariat
to utilize the existing human resources optimally including through reorganization
and to inform Member States in detail on the Young Professional programme. Nevertheless
the G-77 and China reaffirms the principle of equitable geographical distribution,
which should be clearly followed in the recruitment process, besides giving
due consideration to suitably qualified personnel, already working in the Organization.
Finally the Group welcomes the budget framework for the biennium 2008-2009 and
the elements of revaluation and recosting. The Group supports the work being done
by UNIDO and expects the Secretariat to continue to look into avenues for possible
savings, without compromising technical cooperation programmes.
Thank you Mr. Chairman.
Agenda item 6: Scale of assessments for appropriation of Regular Budget expenses
for the biennium 2008-2009
The Group of 77 and China takes note of the information furnished by the
Secretariat in document IDB.33/3-PBC.23/3.
The Group notes that the scale of assessments for the regular budget for
the biennium 2008-2008 has been calculated, in light of UNIDO's constitutional
provisions and the decisions of the Governing Bodies, on the basis of latest
available UN scale of assessments adopted by the General Assembly.
The Group urges the Secretariat to undertake efforts towards bringing back
the former Member States so as to minimise the variance between the UN and UNIDO
scale of assessments.
Agenda item 7: Working Capital Fund for the biennium 2008-2009
The G-77 and China takes note of the proposal of the Director-General regarding
the Working Capital Fund for the biennium 2006 - 2007, which proposes that the
Fund should remain at the same level and with the same objectives for the biennium
2004 - 2005.
Thank you, Mr. Chairman.
Agenda item 8: International Public Sector Accounting Standards
The Group of 77 and China takes note of the information contained in the
document IDB.33/5-PBC.23/5 concerning the International Public Sector Accounting
The Group supports the UN system-wide cooperation and UNIDO's active participation
in the discussion on implementation of the IPSAS, including Project Steering
Committee, Task Force and Vienna Focus Group.
Taking into account UNIDO's specific needs, the Group encourages the Secretariat
to continue its participation in such activities with a view to acquire expertise
and learn lessons from the experience of other organizations.
Considering changes to the financial regulations, arising as a consequence
of the adoption of IPSAS, the Group expects that all necessary amendments to
be timely presented to PBC and IDB for approval by the General Conference in
The Group of 77 and China pursues with special attention the impacts of
the IPSAS adoption on the programme and budgets preparation and presentation.
Considering the wider implications of IPSAS, the Group expects that a common
understanding could be developed for a system-wide approach by the United Nations
The Group requests the Secretariat to provide Member States with more detailed
information on the distinction between the current accounting system (UNSAS)
and IPSAS and the long-term financial implications of the change on the regular
budget. The Group believes that the Secretariat should continue to inform Member
States of any progress made on the budgeting practices, especially, on a system-wide
solution for the unfunded liabilities amounting to approximately €93.9
The Group of 77 and China takes note of the estimated proposed resource
requirement for the IPSAS implementation activities in 2008-2009, amounting
to EUR 1.219 million. The Group requests the Secretariat to provide Member States
with more detailed information on the breakdown of the expenses for the IPSAS
implementation, including the IPSAS consultancy and information and communication
The Group encourages the Secretariat to continue its efforts to allocate
resources for IPSAS in a more cost-effective way through training and developing
its internal expertise capacity.
The Group of 77 and China takes note of the updated information on the Work
programme 2007 and the Action plan for 2008-2009 and requests the Secretariat
to continue to provide progress reports to Member States on the developments
and implementation activities of the Work programme and the Action Plan.
hank you, Mr. Chairman.
Agenda item 9: Mobilization of Financial Resources
The Group of 77 and China takes note of documents IDB.33/2-PBC.23/2 and PBC.23/CRP.2
regarding mobilization of financial resources.
The Group believes that there is a direct relationship between fulfilment
of UNIDO's mandate and the financial resources available for the purpose. Adequate
fund mobilization should form the basis for programme development and technical
cooperation activities. In this respect, the Group acknowledges the efforts
of the Secretariat towards resource mobilization.
The Group takes note with satisfaction that the funding from governmental
sources reached USD 55.1 million in 2006 and funding from organisations such
as the Multilateral Fund for the Montreal protocol and the Global Environment
Facility amounted USD 49.9 million the same year.
However noting that the volume of the funds mobilized during the year 2006
was almost the same as in the year 2005 and also that funding mobilized for
Integrated Programmes (IPs) and Country Service Frameworks (CSFs) was lower
than the comparable figure in previous years, the Group calls upon the Secretariat
to further strengthen its fund mobilization activity.
The Group takes note of the two major developments mentioned in document
IDB.33/2-PBC.23/2 (namely the decision of GEF to allow UNIDO direct access to
its funds and the Economic Partnership Agreements of the EU) expected to result
in greater funds availability for UNIDO.
The Group encourages the Secretariat to continue its efforts to approach
development partners to mobilize financial resources for two other priority
areas namely poverty reduction through productive activities and trade capacity-building.
While the Group commends the Secretariat for formulation of a huge portfolio
of projects and programmes, yet it feels that availability of a large number
of projects by itself cannot lead to inflow of required funds. Rather a concerted
effort is essential to achieve the availability of sufficient funds.
Finally, Mr. Chairman, the Group of 77 and China wishes to express its appreciation
for the voluntary contributions made by all the development partners including
the emerging donors. The Group would like to encourage them to consider enhancing
their voluntary contributions towards the Organization so that the amount of
extra-budgetary resources available helps enhancing annual delivery figures
besides matching the volume of the ongoing Integrated Programmes (IPs) and Country
Service Frameworks (CSFs).
Thank you Mr. Chairman.
Agenda item 10: Appointment of an External Auditor
The Group of 77 and China takes note of the information contained in documents
IDB.33/6-PBC.23/6 and Add.1.
The Group notes that, ever since UNIDO became a UN specialized agency in
1985, only one developing country has held the post of the External Auditor
of UNIDO and that too for a shorter term as compared to the tenure of each of
the previous two incumbents of the office.
Keeping in view that equitable geographical rotation of high-level posts
is a generally accepted principle in the international organizations, the Group
believes that an other developing country should hold the office of the External
Auditor of UNIDO.
Therefore the Group fully supports the candidature of Mr. Muhammad Yunis Khan,
the Auditor General of Pakistan for the post of UNIDO's External Auditor. The
information that has been made available to the PBC about Mr. Muhammad Yunis Khan
and the Supreme Audit Institution of Pakistan of which he is the head demonstrate
his excellent credentials and experience of auditing international organizations,
including the United Nations.
The Group looks forward to the valuable support of all the member states
for the election of the candidate of the G-77 and China as the External Auditor
of the Organization for the term July 2008 -- June 2010.
Thank you Mr. Chairman.