UNCDF’s work helps least developed countries achieve the Millennium Development Goals (MDGs).
Financial Services for the Poor: An inclusive financial system is like basic infrastructure (e.g. a country’s road network or power system): it is not an end in itself but rather an enabler of progress on a range of development objectives. Microfinance can support entrepreneurship, leading to higher incomes (MDG 1). Savings, credit and other financial services can empower women (MDG 3) and help poor families pay school costs (MDG 2); respond to health concerns (MDGs 4-6); and afford clean water and sanitation technology (MDG 7). UNCDF helps least developed countries achieve the MDGs by ensuring that formal financial systems include products and services appropriate and accessible for poor people.
Public Finance for Local Development: A strong public sector and sound public financial management contribute to improved allocation of public resources and better service delivery at the local level. Farmers will have a better chance of selling their produce if feeder roads and rural marketplaces are well maintained (MDG 1); health workers can provide better services if funds flow efficiently to rural clinics (MDGs 4-6); and villages everywhere are better off if they have access to clean water (MDG 7). UNCDF helps least developed countries achieve the MDGs by ensuring decentralized financial systems support local governments tasked with delivering the basic services.
UNCDF is working with partners to devise appropriate ways of measuring the contribution of its programmes to progress on the MDGs.