Statement at the UNFPA Executive Board Second Regular Session 2004

Mr. President,

Distinguished delegates,

It is a pleasure to address the Executive Board today on behalf of the Executive Director, Thoraya Ahmed Obaid, who is unable to be with us today, due to circumstances beyond her control. She asked me to extend to you her sincerest apologies for not being here today and wished the Board success in its deliberations during the week.

This would have been the fourteenth time Thoraya addressed this Board personally. Of course, the number 14, in and of itself, is not important. But the fact that she will be giving an address to this Board a fifteenth time in January is: She therefore asked me to convey to you how very pleased, and very proud, she is to announce to you that the United Nations Secretary-General has confirmed her appointment for another three years.

Mr. President,

UNFPA, the United Nations Population Fund, has had many highs and lows during the past four years, most of which have been witnessed by this Board. But one thing has remained constant throughout: the unfailingly strong commitment and support this Board has given to UNFPA, to Ms. Obaid personally and to the entire UNFPA staff, not only during the highs, but especially during the lows. Indeed, if there has been one common and consistent theme of every address Thoraya has made to this Board, this is it. So she thanks you – sincerely and deeply thanks you – for all this support, and looks forward to your continued support in the years to come.

Commemoration of Tenth Anniversary of ICPD

Mr. President,

In a little over three weeks from today, on 14 October, the General Assembly will commemorate the tenth anniversary of the Cairo International Conference on Population and Development (ICPD). Far from being a symbolic event, this event will mark the culmination of activities in all regions of the world, involving nearly all countries and civil society, which resulted in an extraordinary – at times passionate – reaffirmation of the landmark outcomes of the Cairo Conference and its five-year review.

One thing is clear: The countries of the world have made Cairo their own blueprint for action, and have made much progress in implementing its agenda. Indeed, it is with renewed dedication and optimism, but also with a strong sense of urgency that countries have reaffirmed their resolve to further integrate population concerns into their national development and poverty-reduction strategies.

They have reaffirmed their resolve to strive for human rights, gender equality and women’s empowerment

They have reaffirmed their resolve to provide access to quality sexual and reproductive health services to all, including youth, and to prevent the spread of HIV/AIDS.

They have reaffirmed their resolve to strengthen partnerships and to mobilize the resources needed to achieve the goals and objectives of the ICPD.

And perhaps most importantly, from Bangkok to San Juan, the countries of the world have stressed the critical importance of the implementation of the Programme of Action to the achievement of the Millennium Development Goals (MDGs).

The General Assembly commemoration comes at a most opportune time – the midpoint of the ICPD Programme of Action as well as the run up to the 2005 high-level event to review the implementation of the Millennium Declaration and the other outcomes of the major United Nations conferences and summits. It will, therefore, provide United Nations Member States the opportunity to reiterate these critical interlinkages between Cairo and the global agenda to eradicate poverty and improve the quality of lives of all of our peoples.

It is our hope that the powerful message that goes out of this global forum will spur this Board and other intergovernmental bodies on to a more ambitious agenda, matching the enormous challenges we still face and enabling all countries to achieve their national development goals, including poverty eradication, and to ensure universal access to reproductive health services.

Mr. President,

Before I introduce the annual financial review for 2003, I should like to say a few words about some issues, which we think will be of interest to the Board.

Triennial Comprehensive Policy Review

The first is the triennial comprehensive policy review (TCPR). As you will recall, at the annual session in June, the Executive Director briefed the Board on UNFPA’s views on some important issues related to the ongoing United Nations reform and the upcoming discussions on the triennial review.

Together with other United Nations agencies, UNFPA is continuously exploring new ways to strengthen collaboration within the system and with other development partners. The harmonization and simplification of rules and procedures is one example. Aside from the intrinsic merits of such an exercise, it has had the added benefit of improving team building within United Nations country teams.

This is, in fact, in our opinion perhaps the most immediate and positive result attained so far. For it is only by strengthening its country teams that the United Nations system will be able to effectively and efficiently support countries in developing their capacity to achieve the MDGs.

We are making progress, to be sure. But much remains to be addressed. The United Nations system cannot work in isolation. We have to harmonize and align ourselves better with national processes. Indeed, an active United Nations participation in the harmonization processes of the Development Assistance Committee of the Organization for Economic Cooperation and Development will broaden the scope and potential impact of the United Nations system. It will also increase the likelihood that sensitive issues such, as sexual and reproductive health, will be addressed in national policy dialogues and national development frameworks.

The United Nations reform is about people. It is about making the United Nations system more efficient and effective in implementing its joint commitments and, most importantly, in reaching people and meeting their needs.

As we had noted in June, but we think worth repeating here, we cannot lose sight of the reasons why we are doing all of this. Many discussions on a future United Nations system tend to focus on processes – which is crucial. But they often obscure the real purpose of the reform – namely, to provide relevant and timely support to countries and their people.

UNFPA wants to see a stronger United Nations system at the country level. And we are committed to doing whatever it takes to help bring this about. We must build on, and reinforce, each other’s comparative advantages and mandates. Only in this way can the United Nations system be effective in helping countries build national capacity, strengthen national institutions and effectively address crosscutting issues, such as human rights, gender inequalities and HIV/AIDS.

We believe that the Resident Coordinator system is the key to achieving this. Enhanced ownership and strengthened team spirit is one answer. And UNFPA is fully prepared to explore new and innovative ways to build on what we have today in order to empower the Resident Coordinators as well as the representatives of the respective agencies. But we must also earnestly and systematically address current limitations in the system and identify the most qualified candidates for Resident Coordinator posts.

The United Nations reform is not only necessary; it is indispensable. It has to succeed if we are to achieve the MDGs. And to make the United Nations system more relevant for countries, we must all work jointly to revitalize and strengthen it at all levels.

Achieving the MDGs in Africa

Mr. President,

We welcome the opportunity to participate in the special informal session on Thursday morning on achieving the MDGs in Africa. We can think of no better way to pave the way for action in 2005 and beyond than to address the key issues of sexual and reproductive health and gender equality, all of which will have a profound impact on the pace and depth of the achievement of the MDGs in African countries.

We will speak to this issue in more depth during the informal session of the Board, but we would like to highlight a few key points this morning as food for thought for Thursday’s discussion. We can think of no issue more crucial, or more challenging, to our efforts than the HIV/AIDS pandemic, which requires increased efforts along the full continuum of primary prevention, which is UNFPA’s main concern, and treatment and cure, with particular attention to cultural issues affecting risk, stigma and service barriers – an area in which UNFPA has extensive experience.

There is also the high burden of unwanted and ill-timed pregnancy, which broadens and deepens poverty and contributes to maternal mortality and morbidity, child mortality, and high school-drop-out rates for girls. This is compounded by pervasive gender inequality, the lack of services for safe motherhood, weak health systems and inequitable impacts of health-sector reforms, among other things.

Addressing these and closely related issues has been at the core of UNFPA’s support to policies and programmes since it became operational in 1969. We, therefore, sincerely look forward to a rich discussion on these and other crucial issues on Thursday.

Culture

Mr. President,

Since we met in June, the Fund has undertaken additional activities to strengthen its work in the area of culture and human rights. We have launched a web page of case studies on culture; and we have published a guide booklet entitled, 24 Tips for Culturally Sensitive Programming, to help programmers acquire the skills needed to enhance their knowledge and activities on cultural sensitivity. The booklet will also be useful to donor countries to enable them to include culture in all their activities.

We have also developed a training manual on culture. The manual contains three modules, one of which would also be useful to donor governments. We are also developing a knowledge asset on culture and human rights, which will be launched at the end of this month. Last, but certainly not least, we have just completed a very exciting meeting—our Arab Retreat on Culture and Human Rights, which was held in Sharm El Sheikh in Egypt. We will tell you more on this later.

Resources

Mr. President,

The final issue I should like to address this morning before introducing the annual financial review is precisely the key question at the core of that review –- namely, resources. Last year was a banner year for UNFPA’s resources, reaching nearly $398 million in total resources (core and non-core), the Fund’s second highest total ever. This year, we expect to do even better, passing the $400-million mark for the first time in UNFPA’s history, including over $325 million in regular resources, the highest total ever and the first time we will pass the $300-million mark since 1996.

The increase is due primarily to increased contributions from eight major donors – Australia, Belgium, Denmark, Finland, Luxembourg, New Zealand, Sweden and the United Kingdom – as well as the impact of a favourable exchange rate of the euro and other currencies against the United States dollar. But we would also like to think that it is a reflection of your confidence in us, not only in the strength of our commitment, but also in how well we are translating this commitment into action and results.

We are also extremely pleased with the significant increase in multi-year pledges by countries this year, which increased from last year’s 20 to 30 today.

The increase in core resources enables us to allocate our resources to priority activities in priority countries, as mandated by this Board. The increase in multi-year pledges enables us to manage those resources more effectively and efficiently.

For both of these we sincerely thank you.

Annual Financial Review

Mr. President,

I will now focus on some of the key highlights of the annual financial review for 2003, which is before you.

Total income to UNFPA in 2003 was $397.9 million, compared with $373.1 million in 2002. This was made up of $292.3 million in regular resources and $105.6 million in other resources. The increase in income to regular resources of $32.2 million or 12.4 per cent, compared to 2002, continues the general trend of the last five years and is due to the continued strong support of major donors and favourable exchange rates.

Total programme expenditure in 2003 was $303.6 million, compared with $343.4 million in 2002. Programme activities funded by regular resources totalled $176.4 million – a decrease of 13.4 per cent, compared with 2002. This was due primarily to the difference between the large balance of resources carried forward from 2001 to 2002 ($39.9 million) and that carried forward from 2002 to 2003 ($6.6 million). Of the $176.4 million, $140.5 million was spent on country activities – $92.1 million, or 65.5 per cent, of it in Category A countries.

Gross biennial support budget expenditures rose by $3.2 million, from $73.7 million in 2002 to $76.9 million in 2003, but were managed – security and reform-related costs – within the appropriation approved by the Executive Board. The ratio of biennial support budget (BSB) expenditures to total UNFPA spending increased from 22.3 per cent to 24.9 per cent - an increase attributable to both the decrease in programme expenditure and the moderate increase in net BSB expenditures.

In 2003, $6.0 million was expended on implementing the Enterprise Resource Planning system, bringing the cumulative project investment to $7.3 million.

The balance of unexpended regular resources carried forward from 2003 to 2004 totalled $20.0 million, representing 5 per cent of income for the year. Statutory reserves – the operational reserve and the field accommodation reserve – were replenished. With respect to other resources, the net decrease in the reserves and fund balances indicate that UNFPA programme absorptive capacity is improving.

All in all, UNFPA closed the year and the biennium in robust financial health.

Mr. President, Members of the Board,

Before concluding, I should like, on Thoraya’s behalf and on behalf of all of our colleagues in the Fund, to express sincere appreciation to some staff members who will be retiring at the end of this year.

Vernon Mack has been the tracker of our resource efforts for many years. Vernon, who joined UNFPA in the mid-1970s as an Associate Programme Officer, has served in many posts of increasing responsibilities—the last being Chief of the Resource Mobilization Branch since January 1990. In this post, he has diligently and conscientiously kept a keen eye on our contributions, both core and non-core. He has, at times, been the bearer of bad news—when having to report on reductions in contributions. Vernon and his staff have worked tirelessly to increase our donor base, which, as many of you will remember, reached a total of 149 countries in 2003. Vernon, we all say thank you for all that you have done for UNFPA over the years and send you our best wishes for a healthy and happy, and, of course, well-deserved retirement.

Another staff member who is leaving at the end of the year is no stranger to the Board. Richard Snyder has been a dear colleague and friend, not only to all of us at UNFPA, but also to the many members of the Executive Board, especially since he became Chief of the Executive Board Branch in 1995. During his tenure, he has gained the respect of both donor and programme country representatives alike. He has kept all of us on our toes with carrying out the wishes and requests of the Board. He has kept us alert and alive with his many humorous comments and words of wisdom, even at times when the going was tough. His wisdom, calmness and his simply good heart have made him a trusted colleague. Richard, we also wish you a healthy and productive life.

Security

Mr. President,

I will conclude this morning with an issue we deeply wish we did not have to address, but surely one we cannot avoid. I speak, of course, of security.

The devastating attack on the United Nations office in Baghdad on 19 August 2003 shattered the lives of scores of people and forever changed the way the United Nations carries out its work. It also made security an organizational priority, both for the United Nations as a whole and for its individual organizations, including UNFPA.

Unfortunately, the security situation has deteriorated rather than improve in the past year, and United Nations staff now face increasing threats and greater risks than ever before. It is in light of these increasing threats and greater risks that we submit a report to the Board on additional measures needed to safeguard UNFPA personnel and a request for the corresponding resources needed to support them.

We will take up this item separately later this morning, but the Executive Director felt strongly that we could not end this statement without mentioning an issue that is always close to our hearts and never far from our minds. There is nothing more precious than our people – yours and ours. And we cannot but do everything we can to safeguard and protect them.

Thank you.