1999 was a momentous year for UNCDF. The 1999 Results-Oriented Annual Report is presented in combination with an independent evaluation of the previous three years.

The evaluation concluded "UNCDF has enhanced its distinctive identity by developing competence in the fields of decentralization and local governance, together with microfinance.

The capacity of the institution has been improved and the preliminary judgment is that the new approaches have had a positive effect on field operations."