TECHNICAL COOPERATION ACTIVITIES OF THE EC-ESA ENTITIES: A Note on Achieving Greater Coherence. 23 April 2003

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1 TECHNICAL COOPERATION ACTIVITIES OF THE EC-ESA ENTITIES: A Note on Achieving Greater Coherence 23 April 2003 Executive Summary The present note is intended to provide an analytical overview of the technical cooperation activities of the member entities of the Executive Committee on Economic and Social Affairs (EC- ESA) and to serve as an input into the follow-up to Action 15 regarding technical cooperation, of the Secretary-General s report, Strengthening the United Nations: An Agenda for Further Action. The note will also serve as a tool to facilitate coordination of technical cooperation during the next biennium. The note defines technical cooperation and explains how for most EC-ESA entities, normative, analytical and technical cooperation activities form an integrated whole. Technical cooperation complements the primary role of UN assessed-budget entities for normative and analytical activities by helping to ensure that the latter remain in touch with country and regional level development activities. The normative, analytical and technical cooperation activities of EC-ESA members are grouped into ten thematic clusters: (1) Trade; (2) Macroeconomic analysis, finance and external debt; (3) Environment, natural resources and human settlements;(4) Social Development and social integration; (5) Advancement of women; (6) Countries with special needs; (7) Governance, public administration, institution building and human capacity building; (8) Science and technology for development; (9) Human rights; and (10) Statistics and data collection. In each of the thematic clusters, the note discusses the technical cooperation of each of the entities active in it and makes recommendations for further coherence. In conclusion, the note makes several general observations regarding (a) the division of labour among technical cooperation actors; (b) the fact that the EC-ESA capacities represent a powerful palette of expertise at the service of developing countries and transition economies; (c) the use of the cluster mechanism as a tool for ensuring technical cooperation coherence; (d) the need for additional coordination mechanisms within clusters; (e) the distinction among normative, analytical and operational activities; (f) the distinction between field offices and field presence; (g) the issue of overlap versus duplication; (h) coordination with the rest of the UN system, including the Bretton Woods institutions and WTO; and (i) the future of technical cooperation of EC-ESA entities. The note then assigns lead roles for the coordination of technical cooperation by thematic cluster. Finally, the note makes eight general recommendations and specific suggestions of areas of technical cooperation which the consultancy related to Action 15 may wish to cover. 1

2 Introduction Technical Cooperation creates knowledge and supports capacity building to meet national, regional and global development goals. Technical cooperation also provides advisory services, training and other substantive inputs that help strengthen institutions, norms, values, standards and practices, that are vital for achieving developmental goals and objectives. Within the UN Secretariat, for the assessed-budget entities that make up the Executive Committee on Economic and Social Affairs (EC-ESA), technical cooperation complements their primary role for normative and analytical work and ensures that normative and analytical work remains closely linked to the development realities on the ground. Technical cooperation also facilitates the implement ation at national and regional levels of UN norms and standards and the promotion of globally-agreed development goals, in the formulation of which EC-ESA entities have supported member states. The UN funds and programmes have a primary role for the funding of technical cooperation, but also increasingly play an advocacy role in their specific areas of operation mainly at the country level for UN economic and social development goals, especially the Millennium Development Goals (MDGs). In support of this advocacy role, the funds and programmes have been progressively expanding their advisory capacities, for example through the Sub-Regional Resource Facility (SURF) network of UNDP and the sub-regional technical advisory teams of UNFPA. In the coming biennium and the remainder of the Medium Term Plan ( ), the main strategic task of technical cooperation of the EC-ESA entities will be to help member states implement the outcomes of the Millennium Summit and other United Nations conferences. Technical cooperation is one of the important means by which EC-ESA entities are able to fulfil the tasks assigned them by intergovernmental bodies for assisting countries on request in the implementation of conference and summit commitments. The large corpus of conference commitments that now exists gives added raison d etre to the technical cooperation of EC-ESA entities. Consequently, technical cooperation is carried out, in varying degrees, by virtually all entities of EC-ESA. Recognizing this important fact, the report of the Secretary-General, Strengthening the United Nations: An Agenda for Further Action, points out that clarifying who does what is particularly important, given the increasing resources, capabilities and programme reach of the international financial institutions. 1 The purposes of this note, therefore, are (1) to provide an analytical and thematic overview of the technical cooperation of the member entities of EC-ESA (who does what and how, with what capacity, experience and networks) and (2) to provide recommendations for achieving greater coherence and complementarity of their technical cooperation activities as well for avoiding duplication and ensuring synergy. In so doing, this note will also recommend lead entities. This note is, also, intended (3) to provide a key input, from the perspective of EC-ESA, into the ongoing process managed by the Office of the Deputy Secretary-General, related to Action 15 of the Secretary -General s Report, Strengthening the United Nations: An Agenda for Further Action (A/57/387), namely the preparation of a document clarifying the roles and responsibilities in the area of technical cooperation [to be ready] by September This note would furthermore (4) 1 Strengthening the United Nations: An Agenda for Further Action: Report of the Secretary General, A/57/387, p Specifically, the consultancy to draft the report will involve: (1) Identifying a list of major issues, particularly those which are newly emerging, on which different parts of Organisation provide technical cooperation and where clarification of roles and responsibilities could be deemed useful; (2) Documenting which entity is providing what specific service on each selected substantive issue, in consultation with different offices in the UN system; (4)Identifying current challenges to the effective, efficient delivery of technical cooperation services in these substantive areas particularly the 2

3 complement and contribute to the broader coordination exercise underway within EC-ESA related to the biennial budget and the Medium Term Plan (MTP) also (5) facilitate overall strategic planning by EC-ESA, in line with the recommendations of the Secretary -General s report. The note is structured around the ten thematic clusters agreed on for the EC-ESA budget coordination exercise. Since technical cooperation activities are an integral part of the programme of work of EC-ESA entities, although their actual TC portfolios vary greatly in size and content, these ten thematic clusters also serve to guide the technical cooperation of these entities. At the outset, it is important to stress that technical cooperation of EC-ESA entities, particularly for the UN Secretariat regular-budget entities, needs to be reviewed always in the context of the normative and analytical activities that they support. The analysis of technical cooperation under the ten clusters was guided by the four organizational and managerial principles of the Secretary-General s report: (a) Lead responsibility for a given issue or activity should rest with the entity best equipped substantively to assume it; (b) Entities in the lead on a given issue or activity should work in close collaboration with the rest of the United Nations rather than attempt to duplicate expertise elsewhere in the Organization; (c) More systematic efforts should be made to draw on the vast reservoir of knowledge and expertise that exists outside the United Nations system; (d) Technical Cooperation should be delivered to the maximum extent possible by the entities that have an established field presence and experience. Secretariat entities should provide policy guidance and expertise, as appropriate 3. The ten clusters are as follows, with the related goals from the Millennium Declaration indicated in parenthesis and in italics: (1) Trade (Develop a global partnership for Development-8); (2) Macroeconomic analysis, finance and external debt (Develop a global partnership for Development-8); (3) Environment, natural resources and human settlements; (Ensure environmentally sustainability and sustainable human settlements activities-7); (4) Social Development and social integration (Eradicate extreme poverty and hunger-1); (5) Advancement of women (Promote gender equality and empower women-3) (6) Countries with special needss (Address the special needs of LDCs, landlocked and Small Island Developing States-8); (7) Governance, institution building and human capacity building (Overall achievement of the MDGs, including MDGs 2,3, 4, 5 and 6); (8) Science and technology for development (Make available the benefits of new technologies, especially ICT-8); degree to which the current division of labour could be improved; (5) Determining which entity would be best equipped to assume lead responsibility for delivery of different kinds of technical assistance, based on the following criteria: - The degree to which the entity has existing capacity in a given substantive area; - The breadth of the entity s existing field networks and proven experience in delivery of technical cooperation; - The entity s ability to draw upon the reservoir of knowledge and expertise that exists in and outside the UN system. (6) Proposing actions to consolidate, transfer and/or clarify responsibilities for delivery of technical cooperation services. 3 Strengthening the United Nations: An Agenda for Further Action: Report of the Secretary General, A/57/387, p. 22 3

4 (9) Human rights (Overall achievement of the MDGs); and (10) Statistics and data collection (Monitoring the MDGs). The technical cooperation activities of individual EC-ESA entities can of course be linked to other MDGs than those cited. Additionally, the technical cooperation of EC-ESA seeks to help countries promote over-arching goals of the Millennium Summit and of other major UN summits and conferences such as: Managing globalization Poverty eradication Social integration Enabling environment for sustained economic growth Changing unsustainable patterns of consumption/production Protecting and managing the resource base of economic and social development In the following sections is discussed the technical cooperation of EC-ESA entities in the 10 clusters. Under each heading measures are then presented to enhance coherence in technical cooperation within the cluster. In any given cluster, there will be a few EC-ESA entities that work most closely together or are most actively involved, where greater coherence and synergy are called for. Finally, in the conclusion will be presented the main strategic cross-cluster issues for further action, emerging from the foregoing analysis of the 10 clusters. The cross-cluster concluding remarks will, in particular, facilitate the follow-up of this note by individual entities of EC-ESA, as concerns their individual technical cooperation goals and programmes. The proposed sectoral cluster system provides a useful framework for the classification of work of EC-ESA entities, and is particularly relevant for global bodies that serve as the lead for specific sectoral areas. It does not, however, allow incorporating all the technical cooperation activities being carried out by the Regional Commissions. Additionally, for the Regional Commissions, a dual approach is necessary. All the Regional Commissions address work in the ten cluster areas, but do so from a multi-sectoral perspective, which is value-added given the multidimensionality of development issues. In addition to work in the ten cluster areas, the Regional Commissions perform a coordinating role in terms of managing regional processes connected with the implementation of the outcomes of key global conferences, including the Millennium Summit, the International Conference on Financing for Development and the World Summit on Sustainable Development. With the growing emphasis placed on regional approaches to addressing issues of global importance, the comparative advantage of the Regional Commissions in undertaking regional-level technical cooperation in these areas needs to be borne in mind. I. Trade Main involvement of EC-ESA entities: roles, capacity and experience The overriding concept for normative, analytical and technical cooperation activities in this cluster is the vision of the Millennium Declaration of an open, equitable, rule-based, predictable and nondiscriminatory multilateral trading system. Assisting developing countries to reap the maximum benefit from increased trade, so as to ensure sustainable development and the attainment of the MDGs, is the prime directive for technical cooperation in this area. Within the UN secretariat, at the global level in the trade area, UNCTAD plays a central normative, analytical and technical cooperation role, in close cooperation with the Regional Commissions, which play a similar role at the regional level, in addition to playing an active role in supporting global initiatives. UNDP and DESA also operate in this area, as indicated below. 4

5 UNCTAD s role includes promoting global consensus, conducting policy analysis and technical assistance on: (a) global trade issues needing multilateral solutions; and (b) economic and trade issues where global factors prevail over local ones. UNCTAD s technical cooperation covers (i) trade policy: (ii) trade in services; (iii) trade, environment and development; and (iv) transport and trade facilitation. In trade policy, UNCTAD helps countries build capacity for trade negotiations, trade policy formulation, planning and negotitating WTO accession, utilizing trading opportunitites and preferences under existing preferential arrangements, and formulating and implementing commodity diversification programmes, using modern marketing and financing techniques in commodity trade. In trade in services, UNCTAD assists countries in identifying trade interests and in preparing offers and requests, including for the effective implementation of GATS Articles IV and V. In trade, environment and development, UNCTAD advises countries based on policy oriented studies and research and implements the BIOTRADE initiative, aimed at stimulating trade and investment in biological resources to promote sustainable development in line with the Convention on Biodiversity. In transport and trade facilitation, UNCTAD s programme aims at identifying and eliminating transport-related and other physical and logistic barriers hindering trade. UNCTAD s programme on e-commerce helps countries develop policies and strategies to benefit from e-commerce. The Regional Commissions have a normative and analytical role for the study of regional trade and regional economic integration. They provide policy analysis and technical assistance (a) where regional solutions are needed; (b) where regional positions are needed or a common regional interest exists; and (c) where local conditions and regional specificities have prevailing implications over global considerations and international standards. Moreover, they work closely with organisations such as UNCTAD and WTO in providing advisory services and training on multilateral trade-related issues. A special sectoral role that the Regional Commissions, in particular ESCAP and ECE, have, relates to their work on transport-related issues. At the regional level, their support to the development of transport infrastructure, e.g. the Asian Highway and the Trans-Asian Railway, and mechanisms for inter-modal transport is of particular importance in improving access to domestic and global markets and exploiting opportunities for globalisation. In the connection, the Regional Commissions also provide extensive advisory services and training on issues related to transport policy as well as transport and trade facilitation. DESA supports, through normative, analytical and technical cooperation activities of the UN Statistics Division, jointly with the statistics programmes of the Regional Commissions, the development of international trade statistics and statistics on trade in services, The main means for this support is the on-going dialogue on capacity building between the Statistics Division and the statistics programmes of the Regional Commissions, on the one hand, and National Statistical Offices, on the other, rather than through distinct projects as such. UNDP s involvement in funding technical cooperation and advisory services in the trade area include: (i) trade policies: multilateral trading system, other trade-related agreements and schemes and trade negotiations; (ii) trade analysis in the human development context; (iii) sectoral analysis and regional dimensions; (iv) trade, environment and development; and (v) national pro-poor trade strategy formulation and capacity building. In the area of trade analysis in the human development context, UNDP has published a report, Making Global Trade Work for People to strengthen the participation of developing countries in the debates and negotiations on the emerging global trading regime. In the area of trade policies, the joint UNDP and UNCTAD programme on Globalization, Liberalization and Sustainable Development, is aimed at strengthening national capacitities for trade negotiation. 5

6 In the area of trade-related technical assistance and capacity building, UNDP is manager and one of the six partner agencies (WB, IMF, UNCTAD, WTO and ITC) in the Integrated Framework for Trade Related Technical Assistance for LDCs. The Integrated Framework is today the principal mechanism in the international community for mainstreaming trade into development plans and poverty reduction strategies of LDCs. Through various instruments, the IF aims at strengthening national capacities in trade related areas and assisting LDCs to derive greater benefits from their integration into the multilateral trading system and the global economy. The joint UNDP and UNCTAD programme on Globalization, Liberalization and SD meanwhile draws on the twin strengths of UNDP and UNCTAD to bring sustainable development to the forefront of challenges being confronted by countries in their integration into the global economy. UNDP supports Asia- Pacific regional initiative on trade, economic governance and human development. Regional Programmes on trade, globalization and human development are implemented by several UNDP Regional Bureaux. UNDP provides programme countries trade policy advisory services through its Sub-regional Resource Facility (SURF). In the analysis of human dimensions of trade, UNDP manages a global trade and sustainable human development project and a South-South TRIPS project which will look at TRIPS and HIV/AIDS Measures for Further Coherence The following scenario for coordinated UN work in this area focus only on areas where further coherence is required in trade-related technical cooperation. For greater coherence and avoidance of duplication, UN entities will be guided by the following division of labour in this area. Trade policies: multilateral trading system, other trade-related agreements and schemes, and trade negotiations UNCTAD continues to be a major provider of technical assistance to developing countries in building human and institutional capacity for trade negotiations and policy analysis. Areas covered include: agriculture, services, implementation issues, WTO rules, market access, dispute settlement, trade, debt and finance, environment, competition, transfer of technology, accession to WTO and systemic issues such as making more effective and operational, special and differential treatment to developing countries in the multilateral trading system. UNCTAD continues to carry out analyses and provide technical assistance on global preferential schemes and market access issues involving the relationship between regional cooperation and integration arrangements and the multilateral trading system. There should be further cooperation between UNCTAD and UNDP on trade analysis to broaden the analytical framework from economic development to human development concerns UNDP supports capacity building in trade in developing countries though the Integrated framework for trade related technical assistance (see above) as well as broader capacity development, at the request of developing countries. Managing globalization through pro-poor trade and investment policies is a central element of UNDP s support to developing countries and economies in transition, in the formulation of poverty reduction strategies, and national sustainable development strategies. Over the past several years, UNDP has invested significant resources in recruiting trade policy advisers to the 9 sub regional resource facilities (SURFs) to assist countries in this task. Regional Commissions undertake trade analysis as a part of regional economic analysis and as an element of integration, not only within regions but also globally. Regional Commissions provide analyses and supporting technical cooperation in relation to regional, subregional and bilateral trade agreements, regional cooperation and integration schemes, as well as preferential schemes where there are strong regional components or implications. The latter could be done with UNCTAD providing analytical support when necessary. 6

7 ECLAC, for example, in coordination with other regional organizations, provides technical cooperation to regional integration efforts at the hemispheric and sub-regional levels as well as to some ad-hoc efforts (Panamá-Puebla Plan in Central America and Regional Infrastructure Integration in South America (IRSA)), in the form of studies, reports and working documents, prepared at the request of the Chairs of different intergovernmental bodies involved in the processes. A distinctive feature of this technical cooperation is the fact that its beneficiaries are several member states involved, and its different components respond to specific requests previously agreed upon by all parties, within the framework of a institutional collaborative mechanism (involving, for instance ECLAC, the Inter-American Development Bank and the Organization of American States in the case of the hemispheric process) aimed at supporting the process of trade negotiations. ESCWA provides technical cooperation to member states in the establishment of free trade areas; in WTO agreements and policies; and in the International Foreign Trade System. UNCTAD and Regional Commissions together address the issues of the regional implication of the multilateral trading system and the relationship between regional preferential and integration schemes and the multilateral trading system. The Regional Commissions should also continue to support, in coordination with UNCTAD and WTO, efforts to build national capacities relating to the multilateral trading system. It is particularly important that UNDP in providing substantive trade policy advisory services through its Sub-regional Resource Facility (SURF) networks, draw on the established capacity and expertise of UNCTAD and the regional commissions which already exist to provide advisory services to member states at their request and can do so in line with regional intergovernmental priorities expressed by member states at the Regional Commissions. Clearly, further and closer partnering by UNDP and the Regional Commissions in the provision of advisory services on request to member states, but also within the framework of cooperation agreements between the Regional Commission and sub-regional country groupings and initiatives on border crossing facilitation, is called for. The regional coordination meetings, chaired by the Deputy Secretary -General, should be continued and prepared and followed up by the Regional Commissions, in cooperation with other UN entities active at the regional level. Trade in services The importance of services as the fastest growing component of FDI and trade has been further enhanced by the ongoing efforts at the WTO to negotiate liberalization of the international trade in services. The United Nations has a significant role in monitoring this issue and providing the development dimension, as well as in providing related technical cooperation to developing countries and economies in transition for capacity-building for negotiations on trade in services. UNCTAD carries out policy analysis, consensus-building and technical assistance to help developing countries maximize their participation in the trade in services and their ability to derive socio-economic dividends from the development of services exports. UNDP and UNCTAD are expanding their support for technical cooperation on trade in services, including the linkages between global and regional aspects. Regional Commissions focus on regional aspects of the trade in services and support regional negotiating agendas and capacity on the issue. An emerging area in services, which calls for a closer cooperation between the WTO, UNCTAD, UNDP and the Regional Commissions, is the standardization of e-services. The ECE, for example, has been increasingly focusing on the norm setting for this segment of the service sector, mainly, in cooperation with the private sector. With a further proliferation and globalization of e-services, the need in technical cooperation between the all stakeholders will increase. Trade, environment and development The WSSD Plan of Implementation (POI) called for encouraging efforts to promote cooperation on trande, environment and development, including in the field of providing technical assistance 7

8 to developing countries, between the secretariats of WTO, UNCTAD, UNDP, UNEP and other relevant international environmental and development and regional organizations 4 Among these other entities, areof course, DESA and the Regional Commissions, which can bring perspectives of the social and economic aspects of sustainable development to this issue. In accordance with the call of the WSSD for cooperation, UNCTAD and UNEP, including through CBTF, will continue to strengthen cooperation with the Regional Commissions on technical cooperation in this field. This includes cooperation in the area of training (based, inter alia, on the UNCTAD TrainForTrade Programme) and workshops and seminars to enhance developing countries participation in multilateral trade and environment negotiations. II. Macroeconomic Analysis, Finance and External Debt Main involvement of EC-ESA entities Several EC-ESA entities, in particular DESA, UNCTAD, the Regional Commissions, as well as other parts of the UN system and related organizations, namely the IMF, World Bank and WTO, provide substantive support to their respective intergovernmental bodies on macroeconomic issues as well as technical cooperation to member states. Among DESA s key responsibilities is this area are (i) support to the strengthened dialogue on macroeconomic policy issues in the General Assembly and the Economic and Social Council; (ii) promoting enhanced understanding in developing countries, in particular the least developed countries, and economies in transition of the actions necessary to mobilize and allocate, in an efficient and gender-neutral manner, domestic financial resources for development, as per the outcomes of the International Conference on Financing for Development; (iii) intergovernmental dialogues at the United Nations on the globalization of financial markets, international financial stability and early warning, prevention and response to financial crises that advance discussions on such matters; (iv) supporting discussions in the Economic and Social Council and the General Assembly of long-term developmental trends, including their gender dimensions, and progress in formulating long-term development strategies and mainstreaming the gender dimensions in them; (v) global and country maroeconomic forecasts and supporting the international econometric model Project LINK, including through related technical cooperation projects of the Development Account in Africa and Latin America and the Caribbean, to build up national macroeconomic modelling and forecasting ability and (vi) international cooperation and inter-agency coordination and liaison, including consultations and coordination with UNCTAD, the regional commissions, IMF and the World Bank; external relations with academic, governmental and non-governmental economic research institutes through the exchange of background papers and consultations; and provision of improved global on-line access to the Project LINK economic model network for other bodies of the United Nations system and to Member States. Project LINK is for DESA a powerful network which permits it to promote the exchange of knowhow and contribute to macroeconomic modelling capacity building in developing countries and transition economies. As countries are often required to cope with a variety of tools in the formulation of macro-ec onomic policies-namely poverty reduction strategy papers, MDGs, and National Sustainable Development Plans to name only few, DESA assists them on request in harmonizing and integrating these multiple initiatives in order to address national development priorities. In order to address the macroeconomic challenges identified at UNCTAD-X in 2000, UNCTAD acts as a forum for intergovernmental discussions, supported by discussions with experts, aimed at consensus-building; undertakes research and analysis, inter alia, to provide substantive inputs for those discussions; and provides related technical assistance tailored to the needs of beneficiary countries, concentrating on capacity-building. 4 WSSD Plan of Implementation, para. 97(c) 8

9 The overarching objective of UNCTAD's work on investment is the promotion of development goals by: (1) improving the understanding of developing countries, in particular least developed countries, of policy choices; (2) strengthening their ability to formulate and implement policy measures and action programmes to maximize the benefits from FDI; (3) promoting understanding of, and consensus building on, emerging issues in the area of international investment; (4) specifically in the area of technical cooperation on macroeconomics, UNCTAD will offer countries training courses on globalization and development and foreign direct investment. UNCTAD's technical cooperation programme in this area is based on research and policy analysis work, including the World Investment Report. It benefits from cooperation with the private sector, NGOs and other parts of civil society. Among its flagship technical cooperation programmes are: investment policy reviews (IPRs); capacity-building in negotiating international investment agreements; linking foreign affiliates and domestic enterprises; capacity-building in investment promotion and targeting; UNCTAD/ICC Investment Guides for LDCs and strengthening entrepreneurship (Empretec); and the Debt Management and Financial Analysis System (DMFAS). The Regional Commissions are responsible for the economic analysis and forecasting for regional development, with special attention to the issues of poverty alleviation and managing globalization. As in the trade cluster, in the macroeconomic cluster, regional commissions help increase the capacity of member countries to coordinate their economic policies by providing quantitative assessment of economic and financial data and trends and related technical cooperation consisting of advisory services and training. The special case of the Special Programme for the Economies of Central Asia (SPECA), which receives funding from the UN Development Account, and helps build capacity for economic policy making in the five Central Asian republics, especially through regional training and advisory services, is a prominent example of technical cooperation supported by two Regional Commissions (ECE and ESCAP) together. ECLAC provides technical cooperation to strengthen the capacity of countries of the region to develop their statistical systems through the adoption of methodological and technological advances to support the formulation of economic and social programes. It also provides advice to policy makers of Latin America and the Caribbean in the design and implementation of consistent short-term macroeconomic policies, within a long-term growth-enhancing framework that aims at reconciling long-term growth with sustainable development and social equity. Additionally, ECLAC also provides technical cooperation services on the implementation of fiscal policies and the design of national systems of public investment and for evaluation of policies, programmes and projects; decentralization policies and on the design and application of policies to enhance the links between macroeconomic policy and productive (sectoral and microeconomic) development; and on the identification of policies to promote investment and productivity and the development of a regulatory framework for foreign direct investment and for managing capital account volatility. Another key area of the technical cooperation ECLAC provides to the member states is the promotion of regional cooperation on fiscal policy and on the harmonization of macroeconomic policies in the context of regional integration. In the first case, this has been done through the annual convening of the Regional Seminar on Fiscal Policy (organized by ECLAC in partnership with the World Bank, the International Monetary Fund and the Inter-American Development Bank) in which a high-level dialogue among policy makers has been established. In the case of the harmonization of macroeconomic policies, ECLAC has promoted the establishment of a consulting and sharing of experiences/best practices mechanism entitled Macroeconomic Dialogue Network (REDIMA), whose positive results open the possibility of extending policy coordination to other public policy areas. ESCWA is involved with UNCTAD in the implementation of the Development Account project entitled: Networking of expertise on foreign direct investment in the Member States of the 9

10 ESCWA, which focuses on increasing the inflows of foreign direct investment to ESCWA member States, with a view of contributing to their economic development and integration into the global trading and financial system. UNDP s work in this cluster focuses specifically on building capacity at the country level for propoor macro-economic policies. UNDP s technical cooperation in this area includes: Macro-reform and social service design and delivery Capacity building for pro-poor economic policies En-gendering macro-economic policies, MDG Reports and PRSPs Direct support on macro-economics for Poverty reduction Direct support to pro-poor budgets. Financing for development: savings, investment and debt relief Measures for Further Coherence The major intergovernmental initiative on macroeconomics and finance issues at the United Nations is the Monterrey Consensus, which emerged from the International Conference on Financing for Development in March 2002, and which now needs to be the coordinating framework for normative, analytical and technical cooperation activities of EC-ESA entities in these issues. It is proposed that EC-ESA entities organize their technical cooperation in the next biennium around the following six priorities that emerge from the Monterrrey Consensus, with an indication in parentheses of the main entities concerned: a. Monitoring the global economy, including at national and regional levels (short-run and long-run developments and prospects; domestic and international variables; trends and policies) (DESA, Regional Commissions); b. Towards a more enabling domestic economic environment for growth and development (fiscal policy and the economic role of government; monetary and exchange rate policy in open economies; financial sector development; enterprise development) (UNCTAD, Regional Commissions); c. Towards better mobilization of foreign direct investment and other private flows (net contribution to development by transnational corporations; portfolio investment; public/private initiatives; insurance and risk mitigation) (UNCTAD, Regional Commissions); d. Increasing international financial and technical cooperation for development (official development assistance; multilateral cooperation; innovative sources of finance) (UNDP); e. External debt (analytics and instruments of debt management; effective policy for resolving debt crises; middle and low-income country debt) (UNCTAD); and f. Addressing systemic issues: enhancing the coherence and consistency of the international monetary, financial and trading systems in support of development (creating a more enabling international environment for growth and development; managing globalization and addressing its impact on development; reform of the international financial architecture; cross-border corruption, transnational crime and terrorist financing; effective participation in international policy formulation; systemic coherence and coordination; UN-centered, enhanced and more democratic global economic governance ) (ODC, UNDP, DESA, UNCTAD and Regional Commissions). 10

11 III. Environment, Natural Resources and Human Settlements Main involvement of EC-ESA entities Main Areas of Activity in the Cluster The Plan of Implementation of the World Summit on Sustainable Development (POI of WSSD), as well as Agenda 21, now serve as the conceptual umbrella for normative, analytical and technical cooperation activities in this cluster, within the UN Secretariat and within agencies of the broader UN system beyond the UN Secretariat and EC-ESA. EC-ESA members, for their part, are involved in the following thematic groups of activities, which can serve as a thematic coordination framework for normative, analytical and technical cooperation activities for the remainder of the Medium Term Plan until 2005: (1) Providing support to integrated water resources management (IWRM) and governance: policy formulation and capacity building; developing IWRM and water efficiency plans by 2005, as recommended in the Johannesburg POI; and improving access to water and sanitation to reach the MDGs (DESA, UN-Habitat, UNEP, Regional Commissions, UNDP, along with other non-ec-esa members of UN Water). (2) Promoting goals of energy for sustainable development including diversifying sources of energy, promoting energy efficiency and ensuring access to energy for all (DESA, ECA, ESCAP, ECLAC, ECE, UNDP, UNEP); (3) Changing unsustainable consumption and production patterns (DESA, UNEP) (4) Addressing environment and health linkages (UNEP, DESA, ECE, and non-ec-esa members, WHO, UNICEF and GEF); (5) Promoting sustainable agriculture and control, prevention and reversal of land degradation (ECA, ECLAC and non-ec-esa agencies FAO, IFAD and CCD); (6) Preserving biodiversity (UNEP, ECE, ESCAP, UNDP); and (7) Combating air pollution and addressing climate change (ECE, UNEP, DESA, ESCAP, UNDP, along with non-ec-esa agency, WMO). Activities under these areas contribute directly to reaching the targets of the MDGs and the commitments made in the POI of WSSD. The provision of reliable and affordable supplies of energy and water are prerequisites for halving the number of people living in poverty by In addition to the MDGs related to water supply and sanitation, energy and water are also basic to human health services and have strong linkages to the MDGs goals as well as meeting the special needs of Africa. DESA DESA is responsible for ensuring the integration of the economic, social and environmental components of sustainable development and is the secretariat of the Commission on Sustainable Development. DESA s task is to support the effective and coordinated implementation of commitments made at global level to achieve sustainable development, including: Agenda 21 and the United Nations Conference on Environment and Development; the Programme of Action for the Sustainable Development of Small Island Developing States; the decisions of the Commission on Sustainable Development; and the Plan of Implementation of WSSD. DESA links the analytical and normative work at the global level with related technical cooperation activities in the water, energy and mineral resources areas at the national level. In this context DESA 11

12 provides, on country request, high level advisory and technical cooperation services to member States, while continuously sharpening the focus and direction of its activities in an effort to improve the quality of inter-governmental dialogue on sustainable development issues. This allows for feedback from the country-level reality into the normative and analytical process. DESA aims to remain more focused on the development of global and regional methodologies and systems for efficient monitoring and reporting of the development targets. Accordingly, the main thrust of activities in the coming years should be mainly focussed on the areas of energy, water and the changing of unsustainable patterns of consumption and production. DESA provides analysis and substantive support to the CSD in its deliberations on energy issues, including monitoring and reporting on the progress of implementation of energy decisions. On the basis of the POI, DESA continues to provide technical cooperation services to developing countries in the following areas: (i) access to energy; (ii) renewable energy; (iii) energy efficiency; (iv) policy reforms; (v) advanced fossil-fuel technology; and (vi) energy and transport. DESA is also implementing the POI on Consumption and Production Patterns. With respect to the partnership initiatives and networks involving governments, civil society and the private sector, DESA is currently engaged in the following: (i) Clean Fuels and Vehicles Partnership; (ii) Collaborative Labeling and Appliance Standards Partnership; (iii) Electricity for All Partnership; and (iv) Global Village Energy Partnership. DESA also provides analysis and substantive support to the CSD in its deliberations on water issues. In the context of developing integrated water resources management and water efficiency plans by 2005, with support to developing countries, through actions at all levels (JPOI), DESA assists member states in creating the necessary capacity for: (i) Diagnosis and self-assessment of the current situation, state and needs of their water sector (including water resources, sub-sectoral water developments and sanitation), using a holistic methodological framework; (ii) formulation of national water policies and sub-sectoral strategies and action plans taking into account local, provincial and national conditions, capacities, and financial means; (iii) formulation of legal and institutional frameworks, including water administration, role of local governments, civil society and private sector; (iv) securing coordination of internal and external main actors according to agreed policies, strategies and action plans; and (v) technical auditing and evaluation of programmes being implemented to achieve water-related MDGs and targets set under the WSSD/POI. In the area of minerals and metals, DESA assists member states in (i) developing and implementing sustainable mining strategies with focus on creation of sustainable livelihood opportunities in artisanal and small-scale mining; (ii) in assessment of capacity gaps and identification of means to bridge those gaps; (iii) in establishing policy and legislative frameworks that promote social responsibility, provide increased market access, foster partnerships and create attractive environment for investment. Given DESA s key role in organizing WSSD, many countries are continuing to approach the Department for technical cooperation in implementing the POI in their national programmes for sustainable development. In response to the demand for services, DESA is entering into cooperation agreements or MOUs with other technical bodies in the scientific and NGO communities as well as academia, resulting in broader access to technical capacity through the UN system. NGOs, research institutes and university centres are key project participants, either as technical counterparts or as implementing agents at the field level. DESA is also partnering with the private sector. To this end, DESA has prepared guidelines for working with the private sector and other partners. Examples include: activities related to the International Year of Freshwater, 2003; and projects that support the establishment of renewable energy service companies (RESCOs) and energy efficiency service companies (ESCOs). This engagement of various stakeholders is bolstering the continued relevance of DESA as a key implementing 12

13 agency of UN technical cooperation projects, particularly in water, natural resources, mining, energy, transport and infrastructure sectors. UNEP UNEP is responsible for the environmental dimensions of sustainable development. The following functions remain at the core of UNEP activities: (1) environmental assessment and early warning, by which UNEP seeks to ensure that environmental policymaking rests on a firm scientific foundation; (2) integrating a strong environmental component into broader multilateral initiatives aimed at implementing the WEHAB agenda and achieving the Millennium Development Goals; (3) promoting integration of environment into policy making, whereby UNEP promotes an integrated approach to policymaking that addresses key underlying issues such as climate change and the links between globalization, the environment and sustainable development. Regarding areas of common EC-ESA involvement, particularly water and energy, in the area of water, UNEP will seek to promote, through UNEP s Water Policy and Strategy, environmental goals by developing policies, guidelines, economic instruments, legal tools and participatory management approaches, all of which also serve as a basis for its technical cooperation and outreach to member states. UNEP will also assess at the global and regional level, freshwater vulnerability. UNEP will organize multistakeholder processes to promote dialogue on sustainable water resources management based on the findings of the report of the independent World Commission on Dams. Through staff and expert missions, advisory services and training, UNEP helps member countries: support the development and implementation of intergovernmental strategies and policies for protecting, conserve and value aquatic biological diversity; minimize the degradation of water resources and supplies by promoting a holistic appraoch to sanitation issues, including wastewater treatment and cleaner production processes. UNEP also collaborates with other UN agencies and partners to promote environmentally sustainable ways of increasing water supplies and reducing water demand. In energy, UNEP s technical cooperation activities will include: (1) supporting the development, use and transfer of clean, efficient and renewable energy technology by expanding and strengthening energy knowledge networks and other information exchange systems that help disseminate best practices and services, including the Global Network on Energy for Sustainable Development, launched at Johannesburg; (2) providing policy guidance and advice to developing countries regarding sustainable energy and helping them to overcome relevant policy, regulatory and financing barriers; and (3) providing banks and other financial institutions with targeted expertise and support to encourage investments in the sustainable energy sector. Regional Commissions All five of the Regional Commissions have sub-programmes in the next biennium of integrated normative, analytical and technical cooperation activities, covering the environment and sustainable development, although ECE clearly has the largest such subprogramme, with a strong emphasis on the specifically environmental dimension. Through staff and expert missions, regional advisory services and training, ECE supports: (a) the follow up to the WSSD POI in the ECE region; (b) the development and implementation of environmenal conventions and protocols; (c) the review of environmental performances in transition economies; (d) promoting intersectoral cooperation in water and environment, transport and environment, health and environment, and energy and environment; (e) improving energy efficiency in production and use, especially in transition economies; (f) promote sustainable energy mixes; (g) the promotion of sustainable forestry and timber sectors, as regards certification of forest products, and sound use of wood and monitoring of sustainable forest management using indicators; (h) the implementation of the ECE strategy for sustainable quality of life in human settlements; (i) the multiple linkages among the social, economic and 13

14 envi ronmental dimensions of development; (j) mitigation of the transboundary effects of environmental degradation; (k) making globalization environmentally sustainable; (l) reviewing environmental performances in transition economies. In addition, ECE has been heavily involved in assisting newly emerged national states in advising on the design of a national energy system, which would be most appropriate and efficient under new political arrangements, as well as in overcoming the problem of the lack of local energy resources by means of diversification and cooperation within the sub-regional cooperation initiatives (SECI, BSEC, CEI, CIS). Through staff and expert missions, advisory services and training, ECA will support: (a) strengthening integrated water resources management; (b) improving land resources management; (c) harnessing science and technology and (d) monitoring progress towards global development goals on population, food security and the environment and development. Through staff and expert missions, advisory services and training, ESCAP will play an active role in the regional implementation of the outcomes of WSSD. In this regard, particular emphasis will be placed on certain aspects of WEHAB, i.e. the development of pro-poor public-private partnerships for improving access to basic services such as water, energy and health as well as for the conservation of biodiversity. Overall, attention will be given to (a) strategic planning and management to promote integrated water resources management; (b) improved access to safe drinking water and reduction of water contamination; (c) improving access to water supply and sanitation for the poor; (d) public awareness of water conservation; (e) mitigation of natural disasters, particularly water-related isasters; (e) formulation and implementation of sustainable energy development policies and plans; (f) energy efficiency improvement; (g) enhanced utilization of new and renewable sources of energy; (h) the implementation of multilateral environmental agreements; (i) land degradation and desertification; (i) causes and impact of climate change; and (j) the post-doha trade and environment nexus. ESCAP will continue to promote effective regional and subregional cooperation, monitor and assess the state of the environment in the region and promote environmental governance for sustainable development. In addition, ESCAP also has an active human settlements-related programme, which focuses, in particular, on achieving significant improvement in the living conditions of slum dwellers (e.g. good governance, urban water and sanitation, waste management, etc.), and on issues of ruralurban migragion. Through staff and expert missions, advisory services and training, ECLAC supports capacity building in its region for (a) assessing sustainable development trends in the region based on the Millennium Development goals; (b) establishing links between economic, social and environmental strategies aimed at mainstreaming sustainable development concerns into economic development policies and patterns; (c) integrating the economic dimension of sustainable development policies through the innovative use of environmental management instruments and financing for sustainable development; (d) implementing integrated land use and urban management practices and policies, taking into account systematic criteria of sustainability, gender equality and the Millennium Development Goal; (e) the follow up to the WSSD-POI and the SIDS-POA; (f) the assessment of the socio-economic impact of natural disasters; (g) on the area of water law and participates in the discussion of water law reforms in the region, contributing to diversify the range of advise available to countries; and (h) to strengthen countries capacities to formulate and implement policies geared to promoting the rational and efficient use of energy resources aimed at furthering economic growth, social equity, and protection of the environment through a better governance. For carrying out this technical cooperation activities, ECLAC relies in the results of its analytical and normative activities in terms of availability of new knowledge, criteria and specialized data ESCWA assists member countries in regional integration and cooperaiton using a concerted approach to sustainable management of water and energy and production, through (a) integrated sustainable management of water and energy resources; (b) sound environmental policies and (c) sustainable development through competitiveness and harmonization of the production sectors. In the area of water, ESCWA s technical cooperation includes water management, 14