Corporate Policy Papers

Taking Risks

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Foreword

As the pace of globalization accelerates, there is a concurrent movement in another direction—towards an emphasis on local responsibility and power, and on the democratization of daily life. People around the world are demanding a greater say in how their local institutions—their schools, hospitals, public parks and roads—are developed and managed. It is in support of these demands that UNCDF is investing efforts.

We see ourselves as junior partners to local institutions and national governments that are pursuing—in words and in practice—policies of decentralization and good local governance. Together with UNDP, we provide grants and technical assistance to support the democratization of development planning and financing. That assistance also supports the transfer of power downward from central to local authorities and from local governments to citizens.

Our local development programmes give newly elected officials the resources to govern and invest—while also opening up local planning processes so that ordinary people have a say in the decisions that affect their lives. In addition to strengthening local authorities, we work with NGOs and civil society to develop the checks and balances needed to keep local governments accountable. In this we try to create a climate of engagement and dialogue among technical authorities, local government and the people they serve.

We are often asked how UNCDF differs from other donors. One of the biggest differences between us and the financial institutions, bilateral donors and large NGOs is our smaller size, our flexibility and our commitment to take risks and test new approaches which can later be picked up by others. We devolve significant responsibility and authority (including financial control) to national and local authorities—but at the same time build systems for accountability.

In taking risks we are also prepared to fail, and to publish those failures as widely as our successes. But though we take risks, we do not gamble with our limited resources. Our programmes are carefully thought out and driven by the firm belief that providing good technical solutions within the right policy framework achieves results.

The challenge that we give to ourselves—and extend to others—is that our work be driven by a spirit of change. We try new approaches. We reward innovation and technical excellence. We give authority and space to local and national partners. And we are prepared to subject our ideas to the widest possible scrutiny. In all this, we believe it essential to share the results of our work as widely as possible—to document difficulties as well as achievements and to encourage reflection and responsiveness to the lessons we learn. That is what we have tried to achieve with this publication.

 

Paul Grosen

Executive Secretary

United Nations Capital Development Fund