Marijana Markotić Andrić presenting results from the upcoming Financing the UN development system report at the side event.
30 June, Sevilla, Spain. In a city plagued by a heatwave, participants gathered for the ‘Financing the UN system – Why is multilateral quality funding important?’ FFD4 side event during the first day of the conference. The Foundation brought representatives from Member States and the UN together to share their perspectives on quality funding for the UN system.
Alain Noudehou, Executive Coordinator, MPTFO, shared critical insights on the power of pooled funding. Noudehou highlighted that beyond general support to the UN, pooled funding mechanisms bring together multiple partners – whether countries, departments, or regions – to drive efficiency, transparency, and innovation in resource mobilisation.
‘The world needs to come together,’ he emphasised, noting that these funding models are essential for coordinating initiatives at global, regional, and country levels.
Following Noudehou’s remarks, Marijana Markotić Andrić, Programme Manager at the Foundation, presented some results from the upcoming Financing the UN development system report, which recorded a drop in total contributions to the UN, coupled with an increasing share of tightly earmarked funds. These trends risk undermining the UN’s ability to respond strategically and equitably across countries.
‘This is not just about quantity. It’s about structure, trust and political intent,’ said Peter Linnér, Programme Director at the Foundation and moderator of the session. ‘If we want a UN that can deliver, we must invest the right way in it.’
Rita Columbia, UN Resident Coordinator in North Macedonia, offered her view from the field – emphasising the issue of middle-income countries, such as North Macedonia, often becoming caught in a ‘funding trap’.
‘These countries are often too rich for traditional aid, but too poor or too risky to attract robust private investment,’ she explained.
Despite positive economic indicators, countries like North Macedonia continue to face stark internal inequalities and fragile financial systems. Multilateral contributions are decreasing, and most donors have transitioned to bilateral support.
‘Time is critical. We have the tools. What we need now is trust’, Rita Columbia, RC for North Macedonia, emphasised during her presentation.
Columbia stressed the need to rebuild trust in multilateral approaches. Donors, she noted, often hesitate to invest in pooled or joint programmes due to attribution concerns, even though such mechanisms can deliver greater impact.
She pointed to several successful models, including a green finance facility in North Macedonia that was co-developed with the government, the Joint SDG Fund, and commercial banks – providing energy-efficient solutions to small businesses and vulnerable households. Similar initiatives, from Albania to Kyrgyzstan, show that scalable, blended finance solutions already exist.
‘But we need to stop questioning our collective capacity,’ she urged. ‘Time is critical. We have the tools. What we need now is trust.’
Member States: Smarter spending and aligned reform
Representatives from Germany and Indonesia emphasised the need for more strategic, coherent financing that supports rather than fragments the multilateral development system.
Dr. Raden Siliwanti representing Bappenas, Indonesia’s Ministry of National Development Planning, argued that improving UN funding is not simply about increasing volumes, but about spending better.
Dr. Raden Siliwanti represented Indonesia during the event.
‘We need to invest in strong institutions, improve project design, and ensure long-term alignment with national strategies,’ she said.
She warned of growing fragmentation, as donors increasingly shift towards bilateral or narrowly targeted vertical funding, often bypassing multilateral channels. Indonesia, she noted, continues to engage with both approaches – combining bilateral partnerships, such as with Germany on social protection, with joint efforts through the UN system.
Echoing this, Niels Schütt, Head of Division responsible for Development Finance (BMZ), stressed the importance of aligning donor behaviour with the principles of UN development reform. ‘Trust is the currency of effective multilateralism,’ he said. ‘If we continue to earmark funds narrowly or bypass multilateral channels, we weaken the very system we claim to support.’
Both speakers underscored that high-quality funding – flexible, predictable, and aligned with country-led priorities – is critical to the success of the UN system. They also pointed to the Funding Compact as a key framework for mutual accountability between the UN and its Member States.
Germany, Schütt added, is increasing its share of core and flexible contributions in line with its commitments under the Compact. For Indonesia, deeper UN reform remains essential: including stronger Resident Coordinator leadership, integrated programming, and clearer accountability for results.
Together, their messages called for Member States to honour not just financial commitments, but a shared political vision of a more coherent, effective multilateral system.
Moving forward together
Several participants underlined the need to enhance implementation of the Funding Compact and improve financial literacy among both donors and UN actors. A simplified version of the Compact, launched in 2024, has made its goals more accessible to field-level staff and member states alike, though more outreach is needed.
Crucially, speakers underscored that improving multilateral funding is not just a technical fix, it is a political and strategic choice that reflects a country’s commitment to international cooperation.
As Dr Siliwanti concluded:
‘This is not about five-year political cycles. It’s about 25-year development visions. We must act accordingly.’
Group picture with the panelists, from left: Rita Columbia, Marijana Markotić Andrić, Alain Noudehou, Peter Linnér, Niels Schütt, Dr. Raden Siliwanti.