UN Secretary General Announces Creation of a UN Democracy Fund

“Because I believe the advance of liberty is the path to both a safer and better world, today I propose establishing a Democracy Fund within the United Nations. This is a great calling for this great organization…To show our commitment to the new Democracy Fund, the United States will make an initial contribution.”
-President George W. Bush, UN General Assembly, September 21, 2004

On July 4, 2005, UN Secretary-General Kofi Annan announced the establishment of a UN Democracy Fund. The idea for the Fund was first articulated by President Bush in a speech before the UN General Assembly last fall and has been embraced by the 141 nations that attended the third ministerial meeting of the Community of Democracies in Santiago, Chile in April 2005. The UN Democracy Fund builds on the UN General Assembly's commitment to promote and consolidate new and restored democracies, as expressed in a resolution adopted in 2003. Annan's announcement is an important step toward the September 2005 World Summit where world leaders will seek consensus on a UN Reform plan. Click here for "Some Questions About the UN Democracy Fund"

26 Countries Express Their Support
The United States has declared its intention of being among the first donors, and President Bush has requested $10 million for the U.S.' initial contribution in his FY06 Budget Request. In a June 2005 letter to Kofi Annan, 26 countries, including the United States, expressed their support for the creation of the Fund. It would, they said, play “a valuable role in highlighting the importance of democracy and U.N. involvement in democratic development.” The Democracy Fund will be operational in time for the September 2005 World Summit, making it possible for participating countries to contribute to it.

The UN Democracy Fund will be a voluntary fund housed in the UN Fund for International Partnerships (UNFIP)*, but with its own Executive Head who will report to an Advisory Board of Member States on substantive matters. In order to ensure transparency and accountability, a dedicated support office will arrange for monitoring, evaluation and auditing of the program.

A New Chapter in the UN's Efforts to Promote Democratic Institutions and Practices
The UN Democracy Fund is the latest manifestation of the UN's commitment to supporting emerging democracies with legal, technical and financial assistance and advice. On-going activities include:

Electoral Assistance: UN officials lent logistical and strategic support to over twenty elections in the last year alone, including Afghanistan, Palestine and Burundi. In Iraq, the UN assisted the formation of the Independent Electoral Commission of Iraq (IECI) that supported the January 2005 elections.

Democratic Governance: In Iraq, the UN is reaching out to groups such as the Sunni Arabs that did not take part in the elections, but are willing to engage in dialogue and peaceful negotiations to reach their goals. As the newly-elected National Assembly drafts its first constitution, UN advisors are also guiding this process.

Democracy Caucus: In 2000, foreign ministers of a majority of Member States met in Warsaw to found the Community of Democracies, a precursor of the Democracy Caucus. The purpose of the Caucus, with a membership of over 100 countries, is to “forge common positions on democracy-related resolutions and activities.”

Rule of Law: Upon completion of Peacekeeping missions, the UN remains engaged to ensure that the peace is buttressed by stable political institutions and the rule of law. Currently, a political mission in East Timor is developing and strengthening the countries judicial, human rights and police capacities.

Anti-Corruption: In 2003, the General Assembly adopted the UN Convention against Corruption. The UN Office on Drugs and Crime also coordinates efforts to prevent and control corruption by offering guidance, technical assistance and evaluation services to countries. In Nigeria and Kenya, the UN is currently helping the governments recover assets looted by corrupt officials.

With the pledge to establish the Democracy Fund, the Secretary-General is committed to better coordinating the on-going democratic governance and election assistance work of diverse UN agencies. The UN Democracy Fund provides the UN with a new tool for the promotion of democracy and the strengthening of the rule of law.

* The Secretary-General established UNFIP in March 1998 to coordinate, channel and monitor contributions from the UN Foundation. Additionally, UNFIP works to build other partnerships between the UN and a variety of organizations, including the business community, foundations, and international and bilateral donors.

 

Some Questions about the New UN Democracy Fund

What will be the Fund's objective?

· The primary purpose will be to promote democracy throughout the world by providing assistance for projects that consolidate and strengthen democratic institutions and facilitate democratic governance in new or restored democracies, as called for by the General Assembly in resolution 58/13. The Fund will complement current UN efforts and ensure an integrated, holistic, capacity-building and demand-driven approach.

What would be the source of its funding?

· This will be a voluntary fund, established as a Trust Fund by the Secretary-General under the UN Financial Rules and Regulations.

Would it endorse a model of democracy?

· No, it will not support any single model of democracy. The Secretary-General reiterates in his report that democracy does not belong to any single country or region.

What will be its relationship to existing UN activities?

· The Fund will complement existing activities, fill gaps, and respond to requests that go beyond the reach of existing mechanisms. It will work closely, in a structured manner,

with other UN bodies to ensure coordination and avoid overlap.

How will funding be determined?

· The Fund will be overseen by an Advisory Board of Member States, established under the Secretary-General's authority, to include a geographically diverse group of members. This Advisory Board will consider and recommend proposals for funding.

Where will the Fund be located?

· Within the UN Fund for International Partnerships (UNFIP). The Democracy Fund will have an Executive Head and other staff appointed by the Secretary-General.

· UNFIP is to provide the necessary administrative and financial support in a cost-effective way. No substantive role is envisaged fo r UNFIP. The relevant departments, agencies and offices (such as DPA, UNDP and OHCHR) will be the ones to review applications and to provide recommendations to the Advisory Board. The Executive Head of the Democracy Fund will report directly to the Advisory Board on substantive matters, while

reporting to the Executive Director of UNFIP only for administrative purposes.

Will there be conditionality?

· No. Proposals will be decided on their merits.

Who will have access?

· At a minimum, any country will be able to apply, as well as UN entities.

Could it be used as a tool for political interference?

· Under no circumstances could activities undertaken by the Fund be “imposed” on a country. The approach will be one of collaboration and support.

How will it be evaluated?

· The Fund will have a dedicated support office that will arrange for monitoring and evaluation, as well as audit exercises. It will also submit reports to the ACABQ and the Fifth Committee of the General Assembly as required.

Why is it being established now?

· The Secretary-General has said repeatedly that he wants all the parts of his “In larger freedom” report to move forward as quickly as possible, and that we should lock in progress where we have it. Many Member States have already offered to contribute to the Fund, so he has proceeded to do the ground work to make that possible. This way the Fund will be up-and-running this summer, making it possible for any interested country to contribute by September.

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