GAZPROM RUSSIA -ECOLOGY& environment protection

1. Global partnership
for development
United Nations
Development Programme
Annual Report 2006

2. Contents
1 Foreword: A trusted partner in development
2 The UN’s global development network
4 Developing capacity, creating opportunities
5 Building stronger democracies
8 Generating equitable growth
11 Preventing conflict and supporting long-term recovery
14 Protecting our planet to benefit the poor
17 Halting the spread of HIV/AIDS
20 Empowering women to transform societies
22 Brokering partnerships for development
25 Strengthening national strategies to achieve the MDGs
30 Supporting the UN agenda for reform
34 UNDP resources: growing, but fragile and complex
UNDP at a glance
UNDP is the UN’s global development network,
advocating for change and connecting countries
to knowledge, experience and resources to help
people build a better life. We are on the ground
in 166 countries, working with them to strengthen
their capacities and create their own solutions to
global and national development challenges.
40 years of development experience
Programmes in 166 countries
135 offices around the world

3. A trusted partner in development
ince its creation in 1966, UNDP has performance. But we face the challenge of a
S been at the centre of the United Nations’
operational development system, work-
ing both at the grassroots level to help build
ratio of un-earmarked regular resources to ear-
marked resources that is too low to support
the unity of strategic management and the
national capacities for sustainable develop- flexibility required to respond to the challenges
ment, and as a leader in development thinking, and opportunities UNDP faces. Public finance
as demonstrated by its flagship Human Devel- theory, as well as lessons learned around the
opment Reports and its contributions to criti- world, are clear on the need to protect public
cal issues such as global public goods and expenditure and the budgetary process from
excessive earmarking; indeed, it is something
In October 2005, for his international development organizations and
first visit to Africa as UNDP experts always warn developing countries
Administrator, Mr. Dervi¸ s against. I, therefore, hope that UNDP can have
travelled to Niger, a coun- the support of donors in our efforts to
try that has been facing strengthen the integrity of our resource base.
a serious food crisis. Despite these constraints, UNDP contin-
Beyond pressing humani- ues to make an important contribution to
tarian needs, Mr. Dervi¸ s achieving the MDGs, working increasingly
stressed that in order for
closely with our sister organizations in the UN
such recurring crises to be
system. Such cooperation should not mean a
overcome, long-term
lack of competition in ideas or methods, but it
development challenges
need to be addressed.
should mean that there is a synergy in our
democratic governance. In many ways, it is this actions which allows each organization to take
important nexus—connecting countries to advantage of its comparative strengths, pool
knowledge and ideas and working with them to resources when needed, and work in partner-
strengthen the capacity needed to tackle devel- ships, which enable developing countries to
opment challenges—that is UNDP’s hallmark. steer their own development.
With the advent of the Millennium Devel- 2005 was an important year for the devel-
opment Goals (MDGs), the last few years have opment agenda, with the international com-
seen UNDP scale up its activities in a major munity reaffirming its commitment to the
way. UNDP is working at the conceptual level MDGs. In 2007, we will be mid-way towards
with a wide range of partners to advocate for the 2015 deadline. UNDP remains committed
the policy and institutional changes needed to to doing its part to translate the ambitious new
fight poverty more effectively and achieve the partnership for development launched in 2000
MDGs. From elections support in Liberia and into better policies, stronger institutions and
Haiti, to recovery efforts after decades of greater resources more effectively deployed, all
conflict in the Democratic Republic of Congo with the aim of achieving concrete improve-
(DRC), to helping countries deliver services to ments in the lives of those who need and
their citizens in countries with much stronger deserve our strong support.
economies but huge social challenges such as
Brazil and Indonesia, UNDP also works with
countries in a very practical way to help build
the institutional capacity needed to promote,
support and accelerate human development
and sustainable growth.
Recent years have seen a significant
increase in the volume of resources given to Kemal Dervi¸ s
support UNDP’s work. The greatest amount UNDP Administrator
has come from a rise in country level non-core
co-financing, an important affirmation of the
confidence partners have in UNDP’s role and
1 A trusted partner in development

4. The UN’s global
development network
orking at the heart of the UN sys-Resident Representative is at the same time the
W tem, and on the ground in 166
countries around the world, UNDP
plays a unique role in global development. At
UN Resident Coordinator, with responsibility
for promoting coherence among the various
parts of the UN development system operating
the country level, we are often the “partner in any given country. This is a difficult task,
of choice” for governments grappling with especially in countries with large or complex
national and global development challenges. UN programmes and given the essential
This is because UNDP does not represent any autonomy of UN funds and programmes as
one approach to development; rather, our well as specialized agencies. In 2005, the
commitment is to assist partner governments importance of this challenge came to the fore
in finding their own approaches, according to in the aftermath of the devastating earthquake
their own unique national circumstances. It is that hit South Asia in early October, in
also because UNDP, with a long-term presence planning for the recovery phase in tsunami-
in almost all developing countries, and exten- affected countries, and in coping with the
sive networks at the national, regional and spread of avian flu. At present, UNDP is
leading efforts to create joint UN offices, to
global levels, is by its very nature an impartial
strengthen the role of the Resident Coordinator,
broker, convenor and facilitator. In particular,
we often play a pivotal role in helping coun- to bring more overall coherence to the work
tries to access development assistance and of country teams, and to promote knowledge
networking within the wider UN system. All
these issues are being addressed by the High-
“UNDP is the driving force behind reforms Level Panel on UN System-Wide Coherence,
of which the UNDP Administrator is an ex-
aimed at enabling the UN to operate as officio member.
a single team at country level in efforts Hand in hand with its brokering and
coordinating functions—within the UN system,
to help achieve the Millennium Develop- on behalf of partner governments—is UNDP’s
advocacy for the Millennium Development
ment Goals.” Goals (MDGs), the concept of human devel-
Agnes van Ardenne-van der Hoeven, Minister for Development opment, the need to empower women, the
Cooperation, The Netherlands critical role of the private sector and civil
society, and other important development
other forms of support, and to form strategic issues. UNDP advocates for equitable growth
linkages, including, for example, with the and sustainability at the global, regional and
global private sector. national levels, including through its series of
UNDP also has a special set of responsibil- global, regional and country-focused Human
ities within the UN family, where it is charged Development Reports.
with a coordinating role in the wider group At the same time, UNDP is also the UN
of UN entities involved in development, via development system’s largest operational
the UN Development Group (UNDG). At the agency, focused on strengthening the capacities
country level, this means that the UNDP of its national partners. Development requires
2 A N N UA L R E P O R T 2 0 0 6

5. both “hardware”—the ports, roads, irrigation It is the bringing together under the same
systems and production facilities that are roof of these various roles—broker, coordina-
essential to economic growth and develop- tor and advocate, as well as on-the-ground
ment—as well as “software”—trained civil efforts to strengthen institutions and capaci-
servants, effective electoral processes and ties, that make UNDP such an effective partner
parliaments, appropriate environmental and for developing countries. In the area of trade,
energy policies and other elements of national for example, UNDP works in global fora
capacity that are financed and supported by towards an open and development-friendly
UNDP and others. UNDP understands that multilateral trading system, and at the country
level, to help our
In the run-up to the national partners
February 2006 elections overcome institu-
in Haiti, United Nations tional bottlenecks
Volunteer (UNV) Alejan- and build capacity to
dro Philion of Mexico negotiate trade agree-
distributed pamphlets ments. Another exam-
on voter registration to ple is our work on the
help ensure that eligible MDGs: we have been
voters in rural communi-
a leading advocate for
ties were included on the
the MDGs, through
electoral roll.
our support of the
Millennium Project
and the Millennium
Campaign, as well as a
host of MDG reports
at the global, regional
and national levels. At
countries must guide their own development, the same time, we are working actively to help
which is why developing national capacity is countries anchor the MDGs in their national
at the heart of our mission and the unifying development strategies and strengthen capac-
thread that runs through everything we do. ity to ensure that their policies and budgets
UNDP’s commitment to developing match the demands of meeting the goals. The
national capacity finds expression in its following pages explain in greater detail how
interconnected development practices: UNDP—at the centre of the UN system and as
democratic governance, poverty reduction, the trusted partner of developing countries—
crisis prevention and recovery, energy and helps to address multi-dimensional develop-
environment, and HIV/AIDS. The largest of ment challenges around the world.
these is democratic governance, accounting
for 47 percent of our operational activities in
2005, followed by poverty reduction (25 per-
cent) and crisis prevention and recovery (12
percent). These practices are not objectives in
themselves but rather conduits for UNDP’s
work in capacity development. They are, of
course, interrelated, which means that UNDP’s
support helps developing countries address
underlying cross-sectoral capacity constraints.
This, in turn, can lead to more effective use of
official development assistance and, more
broadly, can help accelerate progress towards
achieving the MDGs.
3 The UN’s global development network

6. Developing capacity,
creating opportunities
NDP works to strengthen the UNDP helps strengthen national capacity
U capacity of national partners to
manage their own development
effectively. This means empowering people
through its interconnected development prac-
tices: democratic governance, poverty reduc-
tion, crisis prevention and recovery, energy
and giving them tools to chart their own and environment and HIV/AIDS. Many of our
course and working to establish the larger interventions are pilot exercises, designed to
institutional frameworks that will help to increase capacity in ways that may be replica-
transform societies. It also means targeting ble on a larger scale elsewhere. And all of our
developing countries’ abilities to deal with capacity strengthening work can draw upon
regional and global issues, enabling them, for our global development network, where a les-
example, to respond to threats such as avian son learned, for example, in Brazil, may be
flu, and to benefit from a more development- applicable to a development challenge in
oriented world trading system. Mozambique or Bangladesh.
Investing in capacity
UNDP practice area expenditures 2005
$US millions
12% Crisis prevention & recovery $374
25% Poverty reduction $744
11% Energy & environment $326
5% HIV/AIDS $161
47% Democratic governance $1,395
Source: Bureau of Management, UNDP
4 A N N UA L R E P O R T 2 0 0 6

7. Building stronger democracies
The world has seen an unprecedented expan- moting peace is, of course, at the heart of the
sion of democratic freedoms since the end of UN’s mission.
Making history: the Cold War. As the 2002 Human Develop- Over the past six years, UNDP, in collabo-
In November 2005, Ellen ment Report shows, during the 1990s, some ration with the UN Department of Political
Johnson-Sirleaf won 81 countries made significant progress towards Affairs, has been helping countries develop
Liberia’s presidential elec- democracy. Today, 140 countries in the world their capacity to build stronger democracies.
tions, becoming Africa’s hold multiparty elections. Despite these We have been working with national partners
first woman Head of State.
achievements, however, in many countries, to implement better electoral and legislative
She was sworn in on
democracy is taking root very slowly. Out of systems, improve access to justice and public
16 January 2006.
administration, and develop greater capacity to
deliver basic services to those most in need. In
2005, we helped strengthen democratic gover-
nance in over 130 countries and devoted
US$1.4 billion in resources to these efforts.
UNDP supports one in three parliaments in
the developing world and an election some-
where around the globe every two weeks.
In Liberia, UNDP was on the ground to
help the country prepare for the poll that saw
the election of Africa’s first woman president,
Ellen Johnson-Sirleaf, in November 2005. For
a country that only recently emerged from 14
years of violent civil war, organizing elections
presented major challenges. UNDP teamed up
with the UN Mission in Liberia, the United
States Agency for International Development
and the International Foundation for Electoral
the 140 countries that hold elections, more Systems to train more than 915 community-
than 100 still limit important civil and political based voter educators from 22 civil society
freedoms. organizations. They learned how to conduct
In many parts of the world, confidence in workshops and other outreach activities, includ-
democracy’s power to change lives is also being ing those designed for women and special
eroded. The ‘dividends of democracy’ often groups, such as the physically challenged,
seem elusive to those who, having gained the internally displaced persons, ex-combatants,
right to vote, still struggle to feed themselves and refugees who had returned to Liberia. The
and their families. As UNDP’s 2004 Democracy European Commission provided $3.6 million,
in Latin America report shows, more than half including $500,000 to computerize voter rolls.
of all Latin Americans—54.7 percent—say UNDP managed the contribution to develop
they would opt for an “authoritarian” regime the National Elections Commission’s capacity
over democratic government if authoritarian- to enforce electoral rules and put in place the
ism could “resolve” their economic problems. systems and procedures needed for transparent
In many parts of the world, disillusionment is and democratic elections.
also fuelled by increased cynicism about the Elections constitute but one step in the
political process and the lack of transparency process of developing a strongly rooted demo-
of political institutions. cratic culture. Legislatures play an important
Reversing this trend is a crucial challenge, role and UNDP is currently helping countries
not least because strong democracies are key to strengthen their Parliaments and ensure
to advancing human development, with its fair and inclusive democratic participation.
essential component of human empowerment. Through its Global Programme on Parliamen-
Democratic governance is also associated tary Strengthening, UNDP is working to help
with peaceful resolution of disputes; and pro- Arab parliaments develop the capacity,
5 Developing capacity, creating opportunities

8. UNV programme: A vital role in fighting poverty
Collective endeavors to advance human develop- their own communities. In Ethiopia, for exam-
ment and achieve the MDGs benefit significantly ple, UNV volunteers are supporting communi-
from the efforts of United Nations Volunteers ties in their own development planning and
(UNV), a fund administered by UNDP. From implementation as well as the improved moni-
helping to rebuild communities shattered by war toring of progress towards the MDGs. In part-
or natural disasters to assisting in the fight nership with UNDP and the central government,
against HIV/AIDS and creating new job oppor- more than 100 Ethiopian UNV volunteers are
tunities, UNV volunteers make a distinctive con- working to strengthen the capacities of regional
tribution to national capacity building. administrations to deliver services and develop
In 2005, UNV played a vital role in helping infrastructure. They have also designed systems
to organize national elections. For example, in to improve access to information, including the
preparation for the February 2006 elections in creation of an e-government platform provid-
Haiti, UNV volunteers were stationed in the ing key social and economic data, and a web-
country’s 10 departments to help register some based network linking 200 high schools in the
3.5 million voters. In a difficult environment country to foster interactive communication
marked by violence and rioting, they worked and learning.
closely with Haiti’s Provisional Electoral Com- In 2005, more than 8,100 women and men
mission, setting up counting centres and putting from 168 countries served as UNV volunteers in
together voting material. 144 countries. The majority of UNV volunteers
Through its expanding range of activities, were from developing countries, and nearly 40
UNV also helps ensure that those who are too percent took up an assignment in their home
often seen exclusively as recipients of aid are country—eloquent examples of successful
In Kyrgyzstan, a UNDP- empowered to contribute to the development of South-South cooperation.
supported pre-election
newspaper helped ensure resources, and independence to carry out their out research and ensuring that new laws
that people living in the functions effectively. For example, in Algeria, adhered to the Constitution. The key skills
remotest areas of the UNDP helped train Members of Parliament acquired will allow legislators and staff to
country were fully from both houses, as well as parliamentary improve the effectiveness of Parliament and
informed ahead of the
staff, on writing and initiating laws, carrying increase their capacity to support the needs
July 2005 elections.
and interests of their constituents.
To build strong and stable democracies,
countries must ensure that young people have
the opportunity to take part in the democratic
process. In Nicaragua, UNDP helped set up a
Political Youth Forum, aimed at encouraging
young party members to articulate their ideas
and vision to political leaders and their fellow
citizens. In collaboration with a number
of regional and international partners, includ-
ing the Swedish International Development
Cooperation Agency, the United Kingdom
Department for International Development
and the Netherlands Ministry of Foreign Affairs
(Development Cooperation), UNDP helped
to develop the political skills of young parlia-
mentarians and strengthen their capacity to
influence public debate.
For many citizens living in newly-emerg-
ing democracies, casting their vote in an elec-
tion is still a novel experience. Ahead of the
July 2005 presidential elections in Kyrgyzstan,
6 A N N UA L R E P O R T 2 0 0 6

9. The electoral process: getting to an accurate vote
UNDP helps provide the knowledge, infrastructure and logistics needed to hold elections.
THE STEPS NEEDED TO HOLD AN ELECTION:
ESTABLISH LEGAL STRATEGIC TRAINING AND VOTER ELECTORAL ELECTION DAY VERIFICATION
FRAMEWORK PLANNING EDUCATION REGISTRATION CAMPAIGN OF RESULTS
address accurately train large staff find appropriate overcome biased ensure access to results tabulation
CHALLENGES TO EACH STEP
constitutional determine in short time and affordable coverage by all voters free of fraud
problems time needed technology media or manipulation
reach out to need appropriate,
reform set realistic all voters verify and enforce public sustainable establish unbiased
electoral budget complete financing technology complaints and
system overcome voter lists regulations appeals process
recruit voter apathy avoid fraud
are freedoms personnel and high avoid accidental minimize or irregularities manage post-
of speech and illiteracy level disenfranchise- potential election transition
assembly ment of voters for conflict ensure respect and reform
guaranteed? for procedures
Source: Bureau for Development Policy, UNDP
UNDP worked with the country’s Electoral civil services through performance-based
Commission to launch a wide-ranging voter management, which, in turn, promotes equal
education campaign. An eight-page pre- opportunities for women and minority groups.
election newspaper was produced, providing We also help strengthen countries’ capacity to
information about the six candidates and their develop anti-corruption legislation and codes
electoral programmes. Well over a million of conduct, and we train civil servants, partic-
copies were printed and distributed to 46 dis- ularly in public service delivery to vulnerable
tricts across Kyrgyzstan—the largest single citizens. Throughout Africa, international
printing venture in the country’s history. partners continue to support initiatives to
Electoral broadcasts encouraging voter partici- clamp down on corruption and strengthen
pation were aired on governments’ capacity to deliver for the people.
over 30 national and One such initiative is the African Peer Review
”Democracy does not belong local stations and rein- Mechanism developed under the New Part-
to any country or region but forced the campaign’s nership for Africa’s Development (NEPAD).
unprecedented out- This programme allows African governments
is a universal right.” reach. UNDP also to evaluate their peers in a manner that will
helped strengthen collectively raise the bar on governance
from In Larger Freedom: Towards Development, the Electoral Com- standards and performance. Some 27 countries
Security and Human Rights for All mission’s independ- have so far agreed to be reviewed and more
ence by providing are expected to join the process. A key partner
infrastructure support, including a new media in this initiative, UNDP has been instrumental
centre and a national computer network, in developing the tools to carry out peer
which was used to establish voter lists and reviews in Algeria, Ghana, Kenya, Mauritius,
transmit results. By highlighting the vital role Nigeria and Rwanda. UNDP also manages the
that access to information can play in develop- African Peer Review Mechanism Trust Fund,
ing a strong and vibrant democratic culture, to which it has contributed $2.7 million. In
the Kyrgyzstan experience is just one example addition, we have been supporting NEPAD
of a successful model that could be replicated through a $3.5 million project aimed at
in other emerging democracies. bolstering countries’ capacities to strengthen
UNDP is a leading provider of technical democratic governance and budgeting for the
advice on the modernization of state institu- MDGs, as well as to improve communications.
tions. We help countries develop professional
7 Developing capacity, creating opportunities

10. Generating equitable growth
Ours is a world of extremes. The poorest they lack the basic infrastructure and know-
40 percent of the world population—the 2.5 how needed to participate in the global
billion people who live on less than $2 a day— economy. Opening up rich countries’ markets
account for five percent of global income, while to poor nations could help lift millions of
the richest 10 percent account for 54 percent. people out of poverty. But market access is
Never before has the goal of abolishing poverty not enough. More must be done to support
been within our reach: there are no longer any countries in developing their trade capacity.
insurmountable technical, resource or logisti- UNDP works towards helping countries
cal obstacles to achieving it. Yet, more than 800 participate more effectively in the multilateral
trading system through the Integrated Frame-
Contrasting shares of global exports and population, 2004 work for Trade-Related Technical Assistance to
least developed countries (LDCs). Working
alongside other international partners
25% share of global population 25% including the UN Conference on Trade and
share of global merchandise exports
Development, the World Bank and the World
20 20
Trade Organization, UNDP helps LDCs
GDP in US$billions
overcome some of the challenges they face
including lack of adequate infrastructure,
15 15
institutional bottlenecks and burdensome
regulations. We also support countries in their
10 10
ability to negotiate and implement trade
agreements that reflect human development
5 5 concerns. Finally, we back governments’ efforts
to incorporate pro-poor trade policies in
0 0 national development strategies.
China DRC Brazil USA Germany
GDP=$1,931 GDP=$6.6 GDP=$604 GDP=$11,711 GDP=$2,740 In 2005, for instance, UNDP teamed up
with the Azerbaijan Export and Investment
Source: the World Trade Organization, the World Bank, and the UN Statistics Division Promotion Foundation in a bid to strengthen
the country’s capacity for export promotion.
million people suffer from hunger and mal- Under this partnership, UNDP helped formu-
nutrition, 1.1 billion people do not have access late the government’s export strategy for the
to clean drinking water and, every hour, 1,200 development of the non-oil sector and estab-
children die from preventable diseases. Despite lish an Export Information Centre to provide
a growing world economy and significant advice to potential local exporters. In Yemen,
advances in medicine and technology, many UNDP is backing the government’s efforts to
people in developing countries are not reaping promote the country’s fruit and fisheries
the potential benefits of globalization. exports. A $1 million project provides techni-
UNDP works with governments in devel- cal advice to fruit and vegetable farmers on
oping countries to design and implement the proper use of pesticides as well as on
policies and initiatives that address the needs packaging and transportation. It also aims at
of the poor. We help countries lay the founda- improving Yemen’s competitiveness in the area
tions for pro-poor economic growth, and back of fisheries through the establishment of
efforts to develop the skills, knowledge and quality control procedures and the training
resources that will lead to sustained progress of fishermen.
against poverty. Much progress can be achieved in alleviat-
Trade can be one of the most effective ing poverty by supporting local entrepreneur-
engines of economic growth. Many producers ship and business initiatives. In Southeastern
in poor countries remain, however, cut off Anatolia, one of Turkey’s most disadvantaged
from international markets because they can- regions, UNDP partnered with the Regional
not compete with heavily subsidized goods Development Administration to increase the
produced in the developed world or because competitiveness of small- and medium-sized
8 A N N UA L R E P O R T 2 0 0 6

11. UNIFEM: Strengthening women’s economic security
The majority of women in developing countries support of women migrant workers in the Arab
are in informal employment. In developed coun- States and Asia, for example, the Ministry of
tries, part-time work and self-employment are a Labour in Jordan is now evaluating its internal
more important source of income for women regulations and investigating violations against
than for men. Moreover, women generally earn women migrant workers, monitoring labour
less than men, have less access to quality jobs, recruitment offices and working closely with the
and fewer opportunities for the education that Ministry of the Interior and the Police Depart-
could help them find better, safer means of in- ment. In Indonesia, a local law on the protection
come. These are some of the findings of Progress of migrant workers is awaiting passage in Blitar;
of the World’s Women 2005: Women, Work and similarly, in Nepal, a Foreign Employment Bill
Poverty, published by the UN Development Fund has been drafted.
for Women (UNIFEM). The report makes the UNIFEM’s efforts to promote budget analy-
case for an increased focus on women’s economic ses that look into how the allocation of public
security and argues that more should be done to resources benefit women and men also showed
achieve appropriate legal and social protection new and promising results in 2005. In Morocco,
for women in the informal economy and ensure the national budget for 2006 included, for the
that their work is valued and supported in pol- first time, a special annex on how gender equality
icy-making. priorities will be addressed. In India’s state of
UNIFEM promotes women’s empowerment Karnataka, elected local women leaders used
and gender equality through a network of 15 training on gender-responsive budgeting to advo-
sub-regional and two national offices. During cate successfully for a doubling of resources to
2005, UNIFEM, which is administered by UNDP, reintroduce a women’s health insurance scheme
continued its efforts to strengthen women’s in the city of Mysore.
economic security. Through its initiative in
enterprises (SMEs). We opened Business and administrative capacities. We also advised
Development Centres in four cities (Adiyaman, and trained budding entrepreneurs, who often
Diyarbakir, Mardin and Sanliurfa) to help lack the skills, knowledge and networks to get
SMEs improve their managerial, operational their ideas off the ground. Efforts to reduce
economic disparities in Southeastern Anatolia
Many countries in Asia, have also targeted young people. UNDP sup-
including the Philippines, ported the launch of a National Apprenticeship
have made steady
Programme, which provides young people
progress in reducing
from the region with internship opportunities
poverty rates. But growth
in a number of companies nationwide. The
in urban poverty threat-
ens to reverse some of
professional experience gained in accounting,
these achievements. sales and marketing will help bring much
needed skills and knowledge to the region. And
elements of the overall initiative can serve as
models for replication by other regional
administrations, in Turkey and elsewhere.
In Moldova, UNDP is helping to em-
power communities economically through its
Local Agenda 21 initiative. By involving citi-
zens in local-level decision making and pro-
moting partnerships between the public and
private sectors, this effort aims at integrating
sustainable development principles into local
authorities’ policies. UNDP helped develop an
economic free zone in Moldova’s region of
9 Developing capacity, creating opportunities

12. These Palestinian women
have used small loans to
jump-start their food busi-
ness and turn it into a
profit-making venture.
Ungheni, a former industrial area. The new Programme (UNEP) and the World Bank,
zone now hosts 33 businesses from several women in Gaza have been able to acquire
countries. It has helped develop new enter- solar-powered machines to dry fruits and
prises in the region, such as plastic container herbs more quickly and efficiently. This
manufacturers, luxury furniture businesses, environmentally-friendly initiative has enabled
as well as fruit and vegetable juice producers. women in Gaza to expand their businesses
In addition to generating $15.8 million worth and sell their produce in local Gazan markets.
of investments, the Ungheni Business zone This is just one of many projects funded
through GEF that help improve the livelihoods
of the poor while contributing to the protec-
“Massive poverty and obscene inequality tion of the environment.
are such terrible scourges of our times…
that they have to rank alongside slavery
and apartheid as social evils.”
Nelson Mandela, former President of South Africa
has created 1,250 jobs and increased the level
of exports from the region.
Some small-scale projects can deliver big
results. In Gaza, UNDP helped women fruit
producers secure small grants to boost their
production. Traditionally, women have dried
fruits and herbs in the sun, but this process can
affect the quality and freshness of the products.
From grants obtained through the Global
Environment Facility (GEF), which is run
jointly by UNDP, the UN Environment
10 A N N UA L R E P O R T 2 0 0 6

13. Preventing conflict and supporting long-term recovery
Armed conflicts and natural disasters can have Developing national capacities to prevent
a crippling effect on a country’s progress conflicts and achieve sustainable peace is one
towards human development. The human of UNDP’s highest priorities. With a long-term
cost is enormous—in the 1990s, 3.6 million presence in almost all developing countries,
people died in violent conflicts, while in 2005 we are on the ground before, during and after
natural disasters caused 91,900 deaths in dif- conflicts occur. We provide significant support,
ferent parts of the world. Moreover, the impact especially through our Bureau for Crisis
on the development and growth prospects of Prevention and Recovery, to strengthen the
a country can be devastating. A civil war can capacities of governments, civil society and
other actors to resolve disputes constructively.
When there is war, infants are more likely to die In 2005, as in previous years, we were called
In 2002, as conflict was raging in the eastern provinces of the DRC, the upon to assist countries in post-conflict situa-
destruction of infrastructure and lack of services drove the infant mortality tions by supporting early efforts to consolidate
rate up to nearly double the sub-Saharan African average. peace, reintegrate combatants, jump-start
economic recovery and re-establish the rule of
deaths per 1,000 live births
..........
.......... law. UNDP also works to develop long-term
. ..........
..........
national capacities to sustain peace, including
. infant deaths across sub-Saharan Africa
..........
..........
through the strengthening of economic and
political governance.
additional infant deaths in the DRC
..........
.......... Increasingly, UNDP’s work focuses on
...... ..........
.......... prevention. We help countries address the
........
.......... ..........
.......... ..........
..........
root causes of conflict, such as inequality,
..........
.......... ..........
.......... ..........
..........
injustice and discrimination, and we strive to
strengthen institutions and mechanisms that
..........
.......... ..........
.......... ..........
.......... can help defuse tensions before they degen-
..........
.......... ..........
.......... ..........
..........
erate into full-blown conflicts. We also help
..........
.......... ..........
.......... ..........
..........
secure the foundations of justice and provide
employment to ex-combatants to ensure that
..........
sub-Saharan African
..........
West Congo: 116
.......... East Congo: 210
countries that have just emerged from conflict
do not descend back into civil strife.
average: 108 In Somaliland, an area recovering from
Source: 2004 Human Development Report; International Rescue Committee, DRC Mortality Survey 2004 decades of conflict, a groundbreaking UNDP
initiative, the Rule of Law and Security Pro-
gramme (ROLS), offers a path for significant
erase decades of development. In a single hour, reform. In addition to supporting disarma-
a hurricane or an earthquake can wipe out ment, demobilization and the removal of
entire communities and further entrench landmines, this programme has helped create
poverty and inequality. a more reliable form of governance by training
As the 2005 Human Development Report legal professionals and providing free legal aid
shows, of the 32 countries at the bottom of the to vulnerable groups including women and
Human Development Index (HDI), 22 have children. Another achievement is the Mandera
experienced conflict at some point in time since Police Academy, which is the linchpin of the
1990; and of the 52 countries in which child administration’s efforts to establish a profes-
mortality statistics are stagnant or even going in sional community police force aware of
the wrong direction, 30 have experienced con- human rights standards. ROLS supports the
flict since 1990. Failure to break the vicious academy’s training programme, as well as
circle of poverty and conflict can have regional its operating costs and upkeep, while the gov-
and global consequences. As recent history has ernment covers the staff ’s salaries. The success
shown, the destructive impact of civil wars often of this initiative provides valuable lessons
crosses national boundaries and can have ripple that could help design future crisis and
effects on the lives of people around the world. recovery programmes in the areas of justice
11 Developing capacity, creating opportunities

14. Tackling small arms in FYR Macedonia
The existence of small arms and light weapons the supply of illegal small arms, improving
not only represents a threat to countries that are security and fostering national reconciliation.
emerging from conflict; it can also continue to More than 13,000 weapons have been collected
blight the lives of people long after the crisis has and destroyed by authorities, thanks in part to
subsided. Four years after the end of a conflict a UNDP-supported awareness-raising campaign.
that brought it close to civil war in 2001, the Security has improved considerably in Macedon-
Former Yugoslav Republic of Macedonia is strug- ian cities. In Tearce and Vratnica, there have
gling with armed crime, a depressed economy, been no murders since the initiative began and
and ethnic tensions between Albanians and no armed incidents in 2005. Moreover, the
Macedonians. Approximately 170,000 illegal government adopted a new weapons law and
small arms are thought to remain within FYR national action strategy to further advance the
Macedonia’s borders. UNDP has been support- disarmament process.
ing national and local authorities in reducing
and security. Based on the model in Somali- helps disaster-affected countries by coordinat-
land, UNDP also trains police officers in the ing donor assistance, as it did in the aftermath
federal state of Puntland in northeast Somalia. of the earthquake that hit South Asia on
In April 2006, 151 officers, 19 of whom are 8 October 2005. One of the main challenges
female, graduated from the recently-established in dealing with natural disasters is to put the
Armo Police Academy, following a challenging affected region back on a development track
training course covering law enforcement, as quickly as possible and in a manner which
international standards of human rights, reduces future risk. UNDP is ideally placed to
community policing and disarmament. manage the transition between early recovery
Natural disasters threaten human develop- and long-term development. In Pakistan, one
ment prospects in many parts of the world. month after the earthquake, UNDP spear-
Today, 85 percent of the people exposed to headed the preparation of a Strategic Frame-
natural disasters live in countries with medium work for Early Recovery in collaboration with
or low levels of human development. UNDP the wider UN System, civil society and the
At the Maputo Police
Academy in Mozambique,
UNDP provides training to
young officers as part of a
broader effort to secure
stability and human
development in the
country.
12 A N N UA L R E P O R T 2 0 0 6

15. Government of Pakistan. A UN Early Recovery opening up new opportunities for local
Plan for Pakistan was launched in May 2006, workers. UNDP helped set up an employment
laying out programmes in priority sectors such services network and is providing vocational
as education, health, water and sanitation, and technical training. To date, more than
housing, shelter and camp management, as 40,000 job seekers have joined the network and
well as disaster risk reduction. In order to more than 7,000 have found employment.
ensure a safer future for the residents of the UNDP is also working with Austcare, a
devastated areas, UNDP worked with Nepal’s refugee agency, to introduce easy-to-use brick
National Society for Earthquake Technology to machines in order to increase brick makers’
output and improve
In the earthquake-hit the quality of con-
regions of Pakistan, struction materials.
UNDP helps people In Sri Lanka,
move quickly from the efforts to support
immediate recovery long-term develop-
phase to long-term ment following the
development planning. 2004 tsunami have
focused on developing
the capacity of public
administration, local
government, civil
society and the private
sector. With $4.6
million funding from
the German and Nor-
wegian governments,
UNDP launched an
initiative aimed at
enhancing the capac-
ity of local authorities
raise awareness and build local national capac- to improve the sourcing of infrastructure and
ity for earthquake-resistant construction. services for recovery and reconstruction. In
In the tsunami-hit region of Aceh, in particular, we will provide specialized training
Indonesia, UNDP has teamed up with the to programme coordinators and selected
International Labour Organization to help government employees to strengthen skills in
train the workers needed to meet increased planning, managing and delivering recovery
demand in the construction industry. Con- and reconstruction services.
struction spending in Aceh and Nias jumped
from $50 million to nearly $2 billion a year,
13 Developing capacity, creating opportunities

16. Protecting our planet to benefit the poor
Many environmental challenges can only be over 1 billion people lack access to clean water
tackled through international cooperation. and 2.4 billion do not have basic sanitation.
Climate change, access to sustainable sources The use and abuse of increasingly precious
of energy, the need to safeguard rivers, lakes water resources have intensified dramatically
and coasts from various forms of pollution are over the past decades, reaching a point where
all challenges that call for effective multilateral water shortages, water quality degradation and
approaches. aquatic ecosystem destruction are threatening
UNDP supports countries’ efforts to prospects for human development and politi-
protect the environment and manage their cal stability. As water resources become scarce,
resources efficiently, and promotes cooperation new forms of tension can arise between
among countries in tackling common envi- countries sharing the same rivers and lakes.
ronmental challenges. One of UNDP’s core In order to transform the risks of conflict into
objectives is to help countries design environ- opportunities for cooperation, UNDP estab-
ment and energy policies that address the lished the Transboundary River Basin Initiative,
needs of the poor. Inadequate and unequal a platform for dialogue and consensus build-
management of natural resources is a major ing for countries that share the same water
impediment to the transformation of commu- resources. Through this initiative, we support
nities in the developing world. When natural 36 countries in their efforts to reach agree-
resources are depleted, when pollution ments on the management of shared waters,
threatens the well-being of a country’s popula- in partnership with regional and national
tion, the most vulnerable tend to be among organizations, including the Mekong River
the hardest hit. Poor households often depend Commission, the Nile Basin Initiative and the
on access to a diversity of natural resources Niger Basin Authority. Building on this success,
for their livelihoods; they are often the most UNDP is now expanding its shared waters
adversely affected by exposure to unsafe water, initiative to the Central Asian Region, where,
indoor air pollution, toxic chemicals and in collaboration with other UN agencies, it is
other health hazards. leading a process that would enable govern-
Among natural resources, water plays a ments to work together on the management
pivotal role for human development. Today, of the region’s shared waters.
Populations not receiving clean drinking water or sanitation, by region
population lacking access population lacking access
to clean, drinkable water to sanitation
100% 100%
90 90
Arab States
80 80
East Asia & the Pacific
70 70
Latin America & the Caribbean
60 60
South Asia
50 50
Sub-Saharan Africa
40 40
30 30
20 20
10 10
36 420 54 212 269 80 932 125 910 407
0 0
numbers of people, in millions numbers of people, in millions
Source: Human Development Reports (2004, 2005)
14 A N N UA L R E P O R T 2 0 0 6

17. Sound and equitable management of cost of energy translates into increased pro-
natural resources is critical to sustained duction costs, affecting the competitiveness of
poverty reduction and to the achievement of Kenyan goods in local and international
the MDGs. One of the most efficient ways of markets. To help tackle this problem, UNDP
ensuring that the poor’s environmental has been assisting small- and medium-sized
concerns are not ignored is to incorporate enterprises to reduce production costs through
these concerns in national policies. Yet, in most increased energy efficiency. In particular,
countries, integrating ‘pro-poor’ perspectives UNDP trained managers and engineers on
on the environment into national development the use of energy-efficient manufacturing
In a village in Thailand,
families are benefiting
from a UNCDF solar
power pumping station.
The money it generates is
used to send their chil-
dren to school, pay for
food and make essential
repairs to their houses.
strategies remains a major challenge. UNDP, techniques. As a result, many local companies
in partnership with UNEP, is supporting envi- were able to make significant savings on fuel
ronment-based policies in Cambodia, Kenya, costs. This initiative also helps increase access
Nicaragua, Rwanda, Tanzania and Viet Nam. to financing for profitable projects and pres-
Through this Poverty and Environment ents significant potential for other countries in
Initiative, we helped the Tanzanian government Eastern Africa.
integrate environment into the poverty In India, UNDP is supporting government
reduction strategy process. The programme efforts to empower poor and disadvantaged
supported dialogue among policy-makers, communities and strengthen their livelihoods
NGOs and community groups on poverty- by improving the management of natural
environment linkages and the use of environ- resources. In collaboration with the Indian
ment indicators in local and national level Government and the state governments of
planning. As a result, Tanzania’s new poverty Jharkhand, Orissa and Rajasthan, the project
reduction strategy includes actions on using aims at encouraging effective participation of
natural resources management to alleviate the poor—especially women—in the manage-
poverty, empower women and improve ment and development of natural resources.
government accountability. Working with around 5,000 women’s groups
Access to affordable sources of energy is and 17 civil society partners, the project helps
key to poverty alleviation. In Kenya, the high disadvantaged women join forces to develop
15 Developing capacity, creating opportunities

18. “The planet does not belong to those in Bank. UNDP-GEF has 1,750 projects on the
ground in more than 155 developing countries.
power. We ought to embrace the Kyoto In 2005, in support of these projects, UNDP
secured $284.5 million from GEF and attracted
Protocol in our own little way. It’s the little $1.02 billion in co-financing from govern-
things that we can do that are important.” ments and donors.
Through GEF, UNDP helps countries use
Wangari Maathai, 2004 Nobel Peace Prize laureate energy more efficiently and reduce greenhouse
gas emissions. In Viet Nam, where the use
of electricity is increasing dramatically as a
sustainable farming practices, run conserva- result of growing urban populations, UNDP
tion projects and promote the regeneration of launched a $15 million programme in Ho Chi
pastures and wastelands. These networks also Minh City and in Quy Nhon, in the Binh
link women with financial institutions and Dinh Province to promote the use of energy-
provide them with the strength and influence efficient street lighting. Run in partnership
they need to negotiate effectively with local with the Vietnamese Academy of Science and
government officials. Technology, the project is expected to result in
Many of the environment issues the world energy savings of 310 gigawatt hours and green-
is facing today, from climate change to ozone house gas reductions equivalent to 133 kilo
depletion, are global in nature. With funding tons of carbon dioxide over the next five years.
from the GEF, UNDP supports international
cooperation to promote sustainable develop-
ment. The GEF is a financial mechanism that
supports action to address critical threats to
the global environment, including biodiversity
loss, degradation of land and international
waters and persistent organic pollutants.
UNDP is one of the implementing agencies of
the GEF, along with UNEP and the World
Access to sustainable
energy is key to lifting
people out of poverty.
Thanks to the installation
of a hydroelectric micro-
central in the Tirua VIII
region of Chile, the
indigenous community
of Lafquenche de Pallaco
is able to use electricity
for the first time.
16 A N N UA L R E P O R T 2 0 0 6

19. Halting the spread of HIV/AIDS
HIV/AIDS has a devastating impact on those rights of people living with HIV/AIDS.
who live with the virus as well as their families. In sub-Saharan Africa, where the pandemic
The pandemic also has wide-ranging reper- has taken its worst toll, HIV is claiming the
cussions on all sectors of society and can lives of society’s most productive members—
damage the fabric of entire communities. farmers, doctors, teachers, civil servants,
When teachers die from HIV/AIDS, the scientists and agriculture workers. A strategy
children they used to educate lose out; when developed by UNDP—the Southern Africa
doctors and nurses fall ill, hospitals struggle Capacity Initiative (SACI)—aims to help
to provide patients with the care they need; Southern African countries address the impact
of capacity erosion in key sectors, including
UNDP is helping to tackle HIV/AIDS on all fronts public services, agriculture, health, education
2005 expenditures go into building leadership, advocating for change and the private sector. This $42 million initia-
and shaping policies. tive helps governments to develop policies that
$US millions respond effectively to the unique challenges
of providing services in the HIV/AIDS era—
developing leadership capacity and skills, and
empowering institutions to continue func-
tioning and delivering services. We also help
Policy formulation and
implementation Advocacy and countries cope with the loss of skilled public
$108.9 communication sector workers by expanding training oppor-
$13.9
tunities and laying the foundations for long-
term human resources strategies.
In Botswana, SACI helped the Directorate
Leadership and of Public Service Management improve the
capacity development
$38.7 efficiency of human resources management
by cutting red tape and simplifying lines of
reporting. A similar approach was adopted in
Source: Office of Finance, UNDP South Africa to identify bottlenecks and take
remedial action in the KwaZulu Natal and
when parents die, their children are often left Limpopo health sectors. Increased efficiency
to fend for themselves and become vulnerable in record-keeping and scheduling led to sig-
to exploitation and abuse. nificant reductions of hospital waiting times.
The scale of the crisis points to a major In Lesotho, Malawi and Zambia, SACI helped
development challenge. The number of people governments seize information and communi-
living with HIV globally has now reached an cation technology opportunities and assessed
estimated 40.3 million. In 2005, 3.1 million the challenges presented by e-governance to
people died of AIDS-related illnesses; of these, improve service delivery in the public sector.
more than 500,000 were children. Even though SACI is also benefiting from UNDP’s corpo-
there is evidence that rates of infection have rate partnership with Microsoft through the
decreased in certain countries (including recently established Shared Solution Network
Kenya, Zimbabwe, and some countries in the portal, which facilitates knowledge sharing
Caribbean), overall trends in HIV transmission among various key stakeholders. The SACI
are still increasing. As a trusted development framework has been adopted by the UN
partner, and co-sponsor of UNAIDS, the Joint Regional Team as a key capacity development
UN Programme on HIV/AIDS, UNDP works tool that could be used by several UN agencies.
to prevent the spread of the virus and reduce Other African countries are now looking to
its impact. We help countries put HIV/AIDS join this initiative.
at the centre of national poverty reduction In Asia—where the number of people liv-
strategies, we promote coordinated and effec- ing with HIV/AIDS rose from 7.1 million in
tive responses to the pandemic and we help 2003 to 8.3 million in 2005—a flagship UNDP
countries develop the capacity to protect the capacity development programme, Leadership
17 Developing capacity, creating opportunities

20. In November 2005, UNDP
trained 30 leaders of
HIV/AIDS groups in the
Dominican Republic to
help strengthen their
skills in promoting greater
tolerance towards people
living with HIV within
their communities.
based EPIN Technologies, a leading player in
for Results, has made a measurable impact on
the country’s new media industry, contributed
the fight against HIV/AIDS. In China, the
to raising awareness about HIV/AIDS by
programme helped transform institutional
showing education clips onboard trains in
structures by giving officials the tools to
China. By using EPIN’s plasma advertisement
coordinate HIV/AIDS policy more effectively
outlets, this campaign will reach millions of
among different government departments.
passengers, highlighting the basic facts about
The programme supported efforts to promote
greater openness about HIV/AIDS, moreHIV and the need to treat those living with
the virus with respect and tolerance.
widespread education about the epidemic,
One of the main hurdles in the fight
against HIV/AIDS is the stigma and discrimi-
The number of people living with HIV nation suffered by those who live with HIV.
Fear of rejection often prevents people from
globally has now reached an estimated seeking medical help and support services.
40.3 million. In 2005, 3.1 million people Moreover, the threat of stigmatization stops
people at risk from getting tested, thus ham-
died of AIDS-related illnesses; of these, pering efforts to halt the spread of the virus.
more than 500,000 were children. In Latin America and the Caribbean, UNDP
used its Leadership for Results programme to
launch a number of sensitization initiatives.
and increased tolerance for people living with In the Dominican Republic, for instance, our
the virus. In the city of Xintai, in the Shandong efforts focused on helping to tackle the spread
province, a successful initiative was developed of HIV/AIDS among the armed forces—a
to spread awareness about the pandemic, reach highly vulnerable group. We supported the
out to vulnerable groups and provide support establishment of a Network of Military
for HIV-positive individuals. These efforts are Educators, the first of its kind, to help promote
all the more important given that knowledge understanding and tolerance for those who
about HIV/AIDS and the way it is transmitted live with HIV/AIDS among officials and
remains limited in China, particularly among recruits. Building on this success, UNDP also
the rural population and migrant workers. A worked with a large group of people living
joint initiative between UNDP and the China- with the virus to improve their leadership
18 A N N UA L R E P O R T 2 0 0 6