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From: Devex Invested <invested@devex.com>
Date: Tue, Dec 20, 2022, 11:04 AM
Subject: A power struggle at two UN agencies
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Coaxing high-income nations to rechannel SDRs, and top Devex Pro stories of 2022.

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DEC. 20, 2022

BY ADVA SALDINGER

There seems to be some trouble at the United Nations Capital Development Fund. The fund’s leader has been placed on paid administrative leave, pending an investigation into allegations that she retaliated against an unidentified U.N. staffer, my colleague Colum Lynch reports.

Preeti Sinha, who has been on leave since October, contests the allegation and says that the U.N. Development Programme is trying to sideline her and take over the functions of the quasi-autonomous UNCDF, according to documents. She also says she has been pressured to resign, though UNDP denies this claim.

The dispute threatens to open a rift between UNDP and UNCDF, just as the U.N. looks to mobilize more private capital to low-income countries, Colum reports. And full disclosure: Devex Editor-in-Chief and President Raj Kumar is on UNCDF’s advisory board.

It certainly seems as though there is a tale of two stories, with Sinha claiming in documents obtained by Devex that UNDP is trying to usurp UNCDF’s role and launch financial instruments that “are the unique ability of the UNCDF.” UNCDF is a small agency that arranges loans, grants, guarantees, and other financial instruments to support small- and medium-sized companies in the 46 lowest-income countries. It spent about $100 million in 2021.

UNDP declined to comment on its interaction with Sinha. But it denied that it had sought to undermine UNCDF, sideline Sinha, or force her to step down, a spokesperson tells Devex. “We are not aware of any activities by Ms. Sinha with respect to concerns about a hostile working environment in UNCDF,” the spokesperson says. “In fact, UNDP management has proactively responded to and supported the Executive Secretary in her own efforts to evolve the operations of the Fund throughout her tenure.” The investigation into the situation continues.

Exclusive: UN development boss placed on leave

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We’re launching a new monthly event series: Devex Leader Roundtables.

On Jan. 11, we’ll be kicking off our new series of leadership roundtables, where each month, we’ll bring together a group of leaders to discuss the business of development. You’ll get the chance to pose questions to high-profile guest speakers and connect with our network of subscribers.

Join us for our first event of the series: The NGO CEO edition.

Happy New Year!

Here at Devex, we’re taking next week off. I hope you can all take time to relax and recharge in the coming weeks. Invested will be back in your inbox on Jan. 3, 2023. Cheers!

Looking back on 2022

This week we’re taking a look at our top-read Devex Pro stories from this year. Here are some of Invested readers’ favorite pieces.

+ A Devex Pro membership brings you essential analysis, data-driven funding insights, and access to the world’s largest global development job board. Get these perks and more by signing up for a 15-day free trial today.

Sharing the wealth

Last week, Barbados Prime Minister Mia Mottley and other world leaders called on high-income countries to step up their commitments to the International Monetary Fund’s new trust for vulnerable countries.

IMF set up the Sustainability and Resilience Trust to encourage high-income countries to rechannel some of the $650 billion in Special Drawing Rights that the fund issued in 2021 — the idea being that lower-income countries need the help far more. So far, only about $20 billion has gone into the trust, though more has been pledged. The U.S. has not rechanneled any funds into it, though President Joe Biden said last week that he would support doing so. The U.S. Congress, which would have to approve the transfer, has thus far been unsupportive.

SDRs should not simply sit at the bottom of a capital pile in high-income nations’ treasuries, IMF chief Kristalina Georgieva said at an event in Washington, D.C. last week. “We should not allow a dormant asset if we can make something out of it,” she said.

Mottley warned that debt problems could spark social unrest and urged more support for the fund and an increase to the cap for how much each country can get from it. Right now, the cap is 150% of countries’ IMF share quota. However, at the moment, the fund is too small for such a change, and the only way to get more money to low-income countries is for high-income nations to pony up their SDRs.

Mia Mottley: Rich world must 'put more into the pot' for development

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Why adaptable services are key in a changing world

Covid-19, conflict and climate change have put hard-won gains in education at risk. It’s estimated that up to 222 million children globally are either not in school, or require additional support to reach standard proficiencies.

In a new visual story we look at the work of three organizations focused on improving learning outcomes for children who have missed school, are living in refugee camps, or have low attendance due to treatable health issues.

Explore the visual story →

Pick up the pace

I had the opportunity to meet with investors, business owners, and government leaders who were in Washington, D.C., for the U.S.-Africa Leaders Summit last week. One key takeaway in terms of infrastructure and other investments is a need for speed. That isn’t exactly a forte of the U.S. government — so while government agencies may move slowly, U.S. private sector companies could move quickly.

Instead of waiting to create perfect projects "in an imperfect environment," financing institutions should accept those that are good enough and move faster, according to Alain Ebobissé, the CEO of Africa50, an organization charged with helping bridge Africa’s infrastructure funding gap.

And what the U.S. can do better is to more effectively target its resources. There is often financing available when projects are bankable, but little support to make sure projects are ready for investment — so the U.S. should focus on project preparation, he says.

Read: The US-Africa Leaders Summit hits ‘reset.’ Now what?

Your next job?

Manager, Blue Finance (Blended financial models)
World Wildlife Fund
United States

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Investments of interest

The International Finance Corporation announced a $2 billion investment program to help build the resilience of the Ukrainian private sector and support livelihoods. This will include funds from IFC and guarantees from donor governments. Initially, the Economic Resilience Action Program will focus on ensuring access to goods and services, including support for agribusiness and trade finance, as well as lending to small businesses through financial intermediaries.
The Global Environment Facility will establish a Global Biodiversity Fund to scale up financing to implement the post-2020 biodiversity framework, one of the outcomes of the major conference of the parties on biodiversity that wrapped up this week. The facility plans to spend more than 60% of its recent $5 billion replenishment on protecting species and their ecosystems.

Thank you for reading this week’s Devex Invested, which was edited by Tania Karas, copy edited by Mauricio Romero and Florence Williams, and produced by Janelle Cruz. We hope you’ve enjoyed the read. For any news tips, please get in touch: adva.saldinger@devex.com.

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