Official Development Assistance and the contribution of the UN system
Following the restoration of independence in 2006, Montenegro has continued to register an annual inflow of Official Development Assistance (ODA) of around US$100m, despite its Middle Income Country status (according to WB criteria). The latest available data from the Organization for Economic Co-operation & Development (OECD) indicate that Montenegro received some US$106.3m in ODA in 2008 (see Table 1). Of this, US$72.9m came from bilateral donors, US$10.9m came from the EC and US$33.4m from multilateral agencies, including the UN system.
It is estimated that resident and some regionally-based UN organizations delivered some US$11.8m in programmes, projects and activities in 2008, representing over 10 per cent of total ODA grant assistance to Montenegro.
Table 1: Official Development Assistance (in millions of US$) to Montenegro (2006 – 2008)1
|
DONORS
|
2006
|
2007
|
2008
|
|
Grants
|
Loans
|
TOTAL NET
|
Grants
|
Loans
|
TOTAL NET
|
Grants
|
Loans
|
TOTAL NET
|
|
All Donors
|
78.07
|
17.44
|
95.50
|
83.93
|
24.26
|
105.76
|
73.05
|
40.81
|
106.3
|
|
Bilateral sources
|
58.74
|
3.43
|
62.16
|
47.52
|
16.52
|
61.61
|
56.54
|
23.95
|
72.93
|
|
Multilateral sources
|
19.33
|
14.01
|
33.34
|
36.41
|
7.74
|
44.15
|
16.51
|
16.86
|
33.37
|
|
EC
|
18.13
|
0
|
18.13
|
31.57
|
0
|
31.57
|
10.94
|
1.44
|
10.94
|
1 Data extracted on 10 Dec 2009 15:06 UTC (GMT) from OECD.Stat
Donors to Montenegro
The largest bilateral donors to Montenegro in 2008 were: Germany (US$14.9m), France (US$9.9m), U.S.A. (US$9.1m), Italy (US$5.8m) and Turkey (US$5.25m), but this picture is skewed by the loan facility data (see Table 2). In relation to grant assistance, however, it is clear that EU Member States, countries that have historical associations with Montenegro (such as Austria, Hungary and Turkey), as well as Norway, Japan and the USA, form a solid donor base for Montenegro.
Table 2: Largest bilateral donors to Montenegro (2007 and 2008)
|
DONORS
|
2007
|
DONORS
|
2008
|
|
Grants
|
Loans
|
TOTAL NET
|
Grants
|
Loans
|
TOTAL NET
|
|
USA
|
11.69
|
**
|
11.69
|
Germany
|
9.4
|
11.66
|
14.92
|
|
France
|
4.27
|
2.25
|
6.52
|
France
|
0.64
|
9.31
|
9.94
|
|
Sweden
|
5.58
|
**
|
5.58
|
USA
|
9.13
|
**
|
9.12
|
|
Norway
|
4.18
|
**
|
4.18
|
Italy
|
5.89
|
**
|
5.78
|
|
Japan
|
3.92
|
**
|
3.92
|
Turkey
|
5.25
|
**
|
5.25
|
|
Luxemburg
|
3.45
|
**
|
3.45
|
Luxemburg
|
4.89
|
**
|
4.89
|
|
Austria
|
2.97
|
**
|
2.97
|
Sweden
|
4.18
|
**
|
4.18
|
|
Germany
|
1.10
|
1.04
|
2.14
|
Norway
|
3.99
|
**
|
3.99
|
|
Italy
|
2.10
|
**
|
2.10
|
Austria
|
3.58
|
**
|
3.58
|
|
Turkey
|
1.19
|
**
|
1.19
|
Poland
|
0.02
|
2.98
|
3.00
|
|
Canada
|
1.06
|
**
|
1.06
|
Japan
|
3.14
|
**
|
1.85
|
|
Netherlands
|
1.03
|
**
|
1.03
|
Hungary
|
1.67
|
**
|
1.67
|
Donors to the United Nations system in Montenegro
There are only five bilateral donors that have contributed over half a million US dollars to the UN in Montenegro since 2007. Of these five, Sweden and The Netherlands have been the most consistent and reliable. The contributions of Norway and the UK seem to be growing, but those of Slovenia shrinking.
Table 5: The top five bilateral donors to the UN in Montenegro
|
Donor:
|
2007
|
2008
|
2009
|
2007-09
|
2010
|
Location of Mission
|
|
Sweden
|
1,274
|
1,223
|
1,052
|
3,549
|
1,580
|
Belgrade, Serbia
|
|
The Netherlands
|
698
|
1,034
|
1,425
|
3,157
|
1,512
|
Belgrade, Serbia
|
|
Norway
|
0
|
224
|
212
|
436
|
675
|
Belgrade, Serbia
|
|
Slovenia
|
684
|
57
|
4
|
745
|
122
|
Podgorica, MNE
|
|
UK
|
38
|
199
|
325
|
562
|
0
|
Podgorica, MNE
|
Global Funds and UN Trust Funds
To date, global funds and UN Trust Funds have been important sources of funding primarily for UNDP in Montenegro. However, UNICEF has also been successful in accessing modest resources from its own Headquarters-administered global and thematic funds. Regionally-based and specialized agencies have also made use of global funds for specific activities in Montenegro, sometimes in the context of a regional programme or project.
Because of the processes of these Funds, resources allocated from them are often multi-year, which is very valuable and contributes to better funding predictability. However, some of these funds may become more difficult to access in the future due to Montenegro’s Upper-Middle Income status.
Prior to the successful submission to the Expanded DAO Window, all previous resources received by UN organizations in Montenegro from global funds have been “vertical” or agency-specific in nature. With the creation of the UN Country Fund for Montenegro the arrangements for applying, receiving and reporting on such agency-specific resources is unchanged and these resources will not go through the Country Fund but function in parallel to it.
Table 6: Vertical Global and UN Trust Funds, by UN Organisation
|
Name of Fund:
|
2007
|
2008
|
2009
|
20102
|
UN Org
|
|
UN Democracy Fund (UNDEF)
|
118
|
153
|
26
|
0
|
UNDP
|
|
Global Environment Fund (GEF)
|
0
|
148
|
512
|
758
|
|
Global Fund to Fight AIDS, Tub. & Malaria3
|
1,476
|
1,421
|
1,201
|
723
|
|
Sub-total for UNDP
|
1,594
|
1,722
|
1,739
|
1,481
|
|
Global Environment Fund (GEF)
(estimation - as part of sub-regional project)
|
0
|
0
|
0
|
100
|
UNEP
|
|
Montreal Protocol Fund
|
21
|
104
|
250
|
0
|
UNIDO
|
|
UNICEF Basic Education and Gender Equality
|
75
|
124
|
266
|
80
|
UNICEF
|
|
UNICEF Child Protection
|
71
|
73
|
116
|
128
|
|
UNICEF Global Child Protection Thematic Funds
|
11
|
4
|
0
|
0
|
|
UNICEF Global Girls Education Thematic Funds
|
0
|
18
|
42
|
0
|
|
UNICEF Policy advocacy and partnership
|
0
|
0
|
43
|
95
|
|
Sub-total for UNICEF
|
157
|
219
|
467
|
303
|
|
UNAIDS – Programme Acceleration Fund (PAF)
|
75
|
75
|
125
|
75
|
UNRCO
|
|
UNAIDS – Regional Support Team (RST)
|
0
|
0
|
10
|
0
|
|
TOTALS:
|
1,847
|
2,120
|
2,591
|
1,959
|
|
2 As of 30 April 2010, based on information provided by Participating UN Organisations
3 These allocations reflect Round 5 funding only. Successful application made to Round 9, but exact funding allocations of approx. US$4.7m (2010 – 2014) still pending.
Expanded Funding Window for “Delivering as One” and the UN Country Fund
Following the submission of the Integrated UN Programme to the Steering Committee of the Expanded Funding Window for “Delivering as One” (EFW) at the end of 2009, and with the establishment of the UN Country Fund for Montenegro, a new avenue for donor support to the UN has been created. The first contribution to the UN Country Fund of some US$ 1m was received from the EFW in February 2010 and, through a Joint Resource Mobilization Strategy, additional contributions will be sought in order to fill resource gaps affecting implementation of national development priorities.
Inter-governmental Bodies and Multilateral institutions
Given the over-riding goal of the Montenegro Government to join the European Union and the national priorities expressed in the National Programme of Integration to the EU, 2008-2012 (NPI), European inter-governmental bodies and multilateral institutions are of fundamental and growing importance to the UN in Montenegro, not simply as donors but also as strategic development partners. Since 2007, the European Commission (EC) has been the most consistent and significant multilateral donor to the UN, facilitated in part by the global Financial and Administrative Framework Agreement (FAFA) between the EC and UN4, through which UN organization may manage EC contributions in accordance with their own regulations and rules. However, even more important than the FAFA has been the opportunity for UN agencies to be a channel for EC pre-accession funding as long as it is part of a government project that addresses a pre-accession priority and is approved by the EC. Nonetheless, such EC funding should not go through UN agencies to the detriment of national institutional capacity development efforts, whether governmental or non-governmental. On the contrary, the UN should be an advocate of direct EC support to strengthening of government, civil society and NGOs whenever possible.
4 Financial and Administrative Framework Agreement between the European Community, represented by the Commission of the European Communities, and the United Nations; 29 April 2003
Table 7: Montenegro: Multi-annual Indicative Financial Framework in
|
Name of Fund:
|
2007
|
2008
|
2009
|
20105
|
UN Org
|
|
EUROPEAN COMMISSION
|
0
|
122
|
127
|
0
|
UNDP
|
|
EUROPEAN COMMISSION
|
95
|
64
|
0
|
0
|
UNHCR
|
|
EUROPEAN COMMISSION
|
0
|
74
|
135
|
85
|
|
EUROPEAN COMMISSION
|
20
|
48
|
60
|
2
|
|
EUROPEAN COMMISSION
|
0
|
46
|
306
|
262
|
UNICEF
|
|
OSCE
|
0
|
0
|
449
|
48
|
UNDP
|
|
TOTALS:
|
115
|
354
|
1,077
|
397
|
|
5 As of 30 April 2010, based on information provided by Participating UN Organisations
Government cost-sharing
Since 2007, the formal contribution of the Government of Montenegro to UN programmes in the country has gone from zero to over US$ 1 million (see Table 9). These are monetized contributions to UNDP projects.
Table 9: Growth in government cost-sharing
|
|
2007
|
2008
|
2009
|
2010
|
|
Government of Montenegro to UNDP (US$ million)
|
0
|
84
|
221
|
1,026
|
In the case of other UN agencies, as well as UNDP, the government contribution is represented in different ways, including human resources, use of buildings and other assets. Under the Integrated UN Programme, with the alignment of UN and government development priorities, cost-sharing can be expected to increase and there should be greater synergy between UN and government for the achievement of Outcomes.
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