Fit for what purpose?

Funding of all UN system-wide activities is around US$40 billion per year. While this may seem to be a substantial sum, it is smaller than the budget of New York City, less than a quarter of the European Union budget, and only 2.3 per cent of the world’s military expenditures. Many Member States, particularly the large donors, pursue a dual approach of calling for greater coherence in UN development activities while at the same time increasing their use of earmarked funding. This pick- and- choose dynamic has opened the space for corporate sector engagement. Increasingly the UN is promoting market-based approaches and multi-stakeholder partnerships as the business model for solving global problems. Driven by a belief that engaging the more economically powerful is essential to maintaining the relevance of the UN, this practice has harmful consequences for democratic governance and general public support, as it aligns more with power centers and away from the less powerful.

Fit for Whose Purpose? Private Funding and Corporate Influence in the United Nations, released today, gives a comprehensive overview of current UN funding trends and ends with a summary of findings and policy recommendations to counter the new ‘business model’ of global governance and to make the United Nations really ‘fit for purpose’, fit for the purpose of a democratic and inclusive global governance. Detailed and specific, the demands range from adopting measures to limit earmarked funding as a percentage of total funding, to strengthening the rules and tools governing engagement with the business sector, and to establishing an intergovernmental framework for partnership accountability