UNCDF and UNDP: Partnerships in Inclusive Finance

UNCDF and the United Nations Development Programme (UNDP) share a complementary partnership that permits the United Nations to implement pilots that have local-level investment and upstream policy and replication objectives.

Maximizing efficiency

Leveraging the added value of UNCDF capital investment and technical support combined with UNDP capacity-building, policy advocacy and convening power feeds the lessons of policy-pilots into policy decision-making processes. The relationship with UNDP also provides important efficiency gains and facilitates early entry in post-conflict countries.

UNCDF: Sharing unique expertise

As a critical element of this partnership, UNCDF's Inclusive Finance Unit serves as the Policy Advisor to UNDP, and is responsible for updating UNDP's microfinance policy as needed.

UNDP's revised microfinance policy

UNDP's Executive Team recently approved an action plan to improve the quality of UNDP's microfinance programming. The policy incorporated recommendations (see Letters to Management) from the Peer and Portfolio Reviews carried out by the Consultative Group to Assist the Poor (CGAP). This new policy went into effect in January 2006.