The changing pattern of financing for development

Pressure on development aid spending means that aid budgets are in general under greater scrutiny, and value for money is a key driver of funding decisions. For the 2012-2013 biennium the ILO mobilized more than USD 530 million in new voluntary contributions, which now make up approximately 38 per cent of overall ILO resources.

The ILO’s funding base consists of three components:

  • Regular Budget contributions provided by all ILO Member States by virtue of their membership of the ILO. Countries’ contributions are based on the United Nations distribution assessment and in 2012-2013 reached USD 861,6 million;
  • Earmarked voluntary contributions that support specific projects and programmes with a clear timeline and a pre-defined geographic and thematic focus. Earmarked contributions reached USD 497.9 million in 2012-2013. This included USD 352.5 million allocated by governments and USD 145.4 million allocated by other partners such us the United Nations, the European Commission, international financial institutions and non-state actors (including the private sector);
  • Unearmarked voluntary contributions (RBSA) provide a pool of flexible resources, which are allocated when and where they are most needed in a flexible manner by the ILO. Unearmarked resources amounted to USD 36 million in 2012-2013.

Contributions to the ILO 2004-2013 (in US$ '000)

Contributions to the ILO 2004-2013 (in US$ ‘000)

Within UN Country Teams (UNCTs) the ILO is drawing on its knowledge, experience and proven expertise to provide technical support and policy advice in various fields, including employment, creation of enterprises and cooperatives, training for employability, and social protection. Through Decent Work Country Programmes (DWCPs) and technical cooperation projects, the ILO addresses the sectoral world of work demands of its tripartite constituents – while contributing to the outcomes under the United Nations Development Assistance Frameworks (UNDAFs), 'One UN' Programmes and the MDG Acceleration Framework (MAF).

In line with the most recent thinking on aid effectiveness and international development cooperation policy, donors are encouraged to provide flexible, un-earmarked and predictable funding, also through inclusive multi-annual partnership agreements. In return the ILO has strengthened its capacity to manage for development results, including through enhanced quality control. In 2012-2013 the ILO achieved a delivery rate of 80 per cent, the highest ever.

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