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Published online by Cambridge University Press: 22 May 2009
The United Nations Development Program (UNDP) is the major technical assistance fund in the UN family of institutions. By purchasing goods and services, it affects developed and developing states alike. As well as distributing assistance, UNDP attempts to stimulate follow-up investment and procures goods and services from member states. UNDP project expenditures are correlated with public and private follow-up investment, but the relationship is rather weak. On the procurement side, developed states receive subcontracts, equipment orders, and fellowship students in direct relationship to their contributions to UNDP, and developing states attract employment possibilities for their nationals as UNDP experts in direct relationship to their contributions. Developed states receive the largest returns from UNDP procurement. Providing multilateral assistance is UNDP's primary activity, but the purchase of equipment, the generation of investment opportunities, and the employment of experts provide economic incentives for both developing and developed states.
This article is the product of the authors' research at Syracuse University and represents their views only.
1 Economic and Social Council, “Economic Development of Underdeveloped Countries,” Resolution 222 (IX), 14–1508 1949, E/1553Google Scholar; General Assembly, “Expanded Programme of Technical Assistance for Economic Development of Underdeveloped Countries,” Resolution 304 (IV), 16 11 1949, A/1251Google Scholar.
2 The specialized agencies are those international organizations whose activities are formally coordinated through the United Nations Economic and Social Council (ECOSOC). They are: Food and Agriculture Organization (FAO), International Labor Organization (ILO), United Nations Education, Scientific and Cultural Organization (UNESCO), Intergovernmental Maritime Consultative Organization (IMCO), Universal Postal Union (UPU), International Telecommunications Union (ITU), World Health Organization (WHO), International Bank for Reconstruction and Development (IBJiD), International Civil Aviation Organization (ICAO), World Meteorological Organization (WMO), International Finance Corporation (IFC), International Development Association (IDA), and the World Intellectual Property Organization (WIPO). The International Atomic Energy Agency (IAEA) is formally not a specialized agency, but does have an agreement with the United Nations General Assembly.
3 General Assembly, “Establishment of The Special Fund,” Resolution 1240 (XIII), 14 11 1958, A/4090Google Scholar.
4 General Assembly, “Consolidation of the Special Fund and the Expanded Programme of Technical Assistance in a United Nations Development Programme,” Resolution 2029 (XX) 22 11 1965Google Scholar, (A/6014/Supp 14). For a discussion of the UNDP's formal structure and decision-making processes, see Berthoud, Paul, “The United Nations Development Programme: Framework and Procedures,” Journal of World Trade Law 4, 2 (03/April 1970): 155–191Google Scholar.
5 Jackson, Robert G. A., A Study of the Capacity of the United Nations Development System, DP/5 (Geneva: United Nations, 1969), II, Table 4Google Scholar.
6 Mangone, Gerard, “Field Administration: The United Nations Resident Representative,” in UN Administration of Economic and Social Programs, Mangone, Gerard, ed. (New York: Columbia University Press, 1966), pp. 166–167Google Scholar.
7 Jackson, Table 8.
8 Schonfield, Andrew, The Attack on World Poverty (New York: Random House, 1960), p. 24Google Scholar.
9 Data are taken from the following sources:
a. Population and gross national product—United States Department of State, Arms Control and Disarmament Agency, World Military Expenditures and Arms Transfers, 1966–1975 (Washington, D.C.: Government Printing Office, 1976).Google Scholar
b. UNDP project expenditures, subcontracts awarded, number of fellowships, and number of experts—
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United Nations, United Nations Development Programme, Subcontracts Awarded and Major Equipment Ordered (DP/'184/Annex II), 1976Google Scholar.
United Nations, United Nations Development Programme, Reported Investment Commitments Related to UNDP Projects in 1973 (UNDP/MIS/Field 20), 1974Google Scholar.
United Nations, United Nations Development Programme, Reported Investment Commitments Related to UNDP projects in /974 (UNDP/MIS/20), 1975Google Scholar.
United Nations, United Nations Development Programme, Reported Investment Commitments Related to UNDP Projects in 1975 (UNDP/MIS/25), 1976Google Scholar.
10 “Investment resulting directly from UNDP projects” means the reported investment commitments for development projects resulting directly from findings and recommendations of UNDP-assisted pre-investment surveys and feasibility studies. “Investment related to UNDP projects” means the reported investment commitments are development projects that emerged from pre-investment undertakings closely associated with the work carried out under UNDPassisted projects. See United Nations Development Programme, Reported Investment Commitments Related to UNDP Projects in 1975, (UNDP/MIS/25), 1976, p. 25Google Scholar.
Under UNDP procedures in effect in 1975, the field offices employed 3,217 people. The resident representatives report the direct and indirect follow-up investments resulting from UNDP and related projects. Here we had to aggregate direct and indirect investments into total investments.
11 We computed the correlation coefficient for developed state gross national product in 1975 and the five categories of end-use to test whether a measure of the economic size of a donor state might be a better predictor of end-use than contributions. As noted below, the results show generally no linear relationship between the variables:
12 Since the data used in this study were taken from UNDP records, they were reported as foreign currency converted to dollars. In the case of the Soviet Union, its contributions in rubles are used only in the Soviet Union, and then with great difficulty. As of December 31, 1976 about half of the $38 million in UNDP inconvertible currency were rubles. UNDP has tried to reduce the stock of rubles by increased subcontracting from the Soviet Union and Eastern Europe or by paying a share of the salaries of their recruited experts in inconvertible currency, but without substantially reducing the inconvertible currency holdings. Our data, as reported in UNDP documents, represents the conversion of foreign currency holdings, expenditures, and contributions into dollar equivalents, and in some cases may misstate the true relationship between the nominal and real value of resources available to UNDP.
13 United Nations General Assembly Resolution 3363 (S-VII) Chapter II, Article 4:
Developed countries and international organizations should enhance the real value and volume of assistance to developing countries and ensure that the developing countries obtain the largest possible share in the procurement of equipment, consultants and consultancy services. Such assistance should be on softer terms and, as a general rule, untied.
United Nations General Assembly, “Development and International Economic Cooperation,” Resolution 3362 (S-VII), 19 09 1975Google Scholar as reported in International Legal Materials 14, 6 (November 1975): 1528; Mason, Edward S. and Asher, Robert E., The World Bank Since Bret ton Woods (Washington, D.C.: Brookings Institution, 1973)Google Scholar, provides information on the World Bank's procurement policy. For discussion of aid tying, procurement tying, or project tying, see Hagen, Everett E., The Economics of Development (Homewood: Dorsey Press, 1968), p. 382Google Scholar and Little, I. M. D. and Clifford, J. M., International Aid: An Introduction to the Problems of the Flow of Public Resources from Rich to Poor Countries (Chicago: Aldine Publishing Co., 1966), pp. 163–166Google Scholar
14 Lucas, R. D., “The United Nations Development Program,” Foreign Trade (Canada) 133 (31 01 1970): 14–18Google Scholar is one exampleof this for adeveloped country.
15 Gordenker, Leon, National Aidand International Decisions (Princeton: Princeton University Press, 1976)Google Scholar is a study of UNDP's field influence in three south African countries.
