ABSTRACT
This chapter describes the current funding patterns of the UN development system (UNDS), analyzes the main drivers, and assesses repercussions. When analyzing the funding of the UNDS over the last two decades, three patterns emerge, namely a strong increase in resources, a dependency on Western contributors, and a shift toward earmarked funding. The Funding Compact, focusing on the development side only, indeed aims to raise additional funds for the UNDS, albeit in very specific form. As highlighted by the UN Secretary-General in his 2019 funding report, seven countries accounted for over two-thirds of all government contributions to UNDS. Core contributions mean funding provided without restrictions to the budgets of organization, controlled by the respective intergovernmental governing body of that organization. Forms of earmarking in fact undermine this proposition, by reducing the decision-making autonomy of international organizations. The chapter concludes with some reflections about the inherent challenges in finding remedies to the unsustainable funding structures that endanger the system's multilateral assets.
