Two men hold big cream-colored fishes and laugh, while standing in water.

RC system funding

Funding of the RC system

The agreed budget of $281million for the RC system is a critical minimum investment that stems from a careful analysis of the functions needed for effective development coordination.

Of the total development spending in development activities by UN entities, the RC system represents only about 1.7% of UN expenditure for development and less than 1% of total spending for UN operational activities, including humanitarian spending. 

Despite significant commitments by Member States, voluntary contributions have continuously fallen short and in 2022 the RC system faced the largest funding gap to date.

$85 million

Funding gap

Voluntary contributions totaled only $69 million in 2022, against the target of $154 million, leaving a gap of $85 million. In contrast, the UN Sustainable Development Group paid in full their share of $77.5 million and the 1% levy on tightly earmarked funding accrued $50 million

27 donors

Resident Coordinator system

Only 27 donors contributed to the RC system in 2022 compared to 28 in 2021. This is the lowest number of contributors since the establishment of the RC system.

Donor countries

The 27 countries that contributed to the RC system in 2022 are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, New Zealand, Norway, Philippines, Portugal, RoK, Slovenia, Spain, Sweden, Switzerland, Timor-Leste, UAE, UK, US.

In addition, three of the nine multiyear agreements running through 2022 concluded at the end of the year. As of April 2023, only 11 Member States made firm commitments, and funding was disbursed only by 7 so far. 

Overview of Resident Coordinator system funding

Source: DCO, 2023 *2022: the levy amount represents a projection, pending finalization in May 2023; variance in voluntary contributions may occur due to exchange rates when contributions were received.

Overview of Resident Coordinator system funding
Overview of Resident Coordinator system funding
https://unsdg.un.org/2023-unsdg-chair-report/rc-system-funding?card=2110

DCO enacted several cost-control measures for 2022 designed to immediately reduce expenses and mitigate the impact of this unprecedented funding gap, that may continue in 2023.

These include:

Temporary freezing of select vacancies
Reductions in provisional consultancies and short-term thematic contracting of capacities
Cutbacks in DCO regional teams support to RCOs
Downsizing of the country-level Coordination Fund, which is vital for convening and facilitating joint consultations and collaboration among UN teams and partners   

At a time of increasing demands, the ambition envisioned for RC system results must be matched by adequate support.

Failure to do so will inevitably have far-reaching effects on the ability of the RC system to maximize the UN’s performance in support of countries’ needs and priorities, particularly as the world faces cascading crises.

The report's resource page can be found here, and the glossary, here.

To learn more, visit un-dco.org.