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The United Nations Capital Development Fund (UNCDF) assists developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants, loans and guarantees, first and foremost for the 
The original UNCDF mandate from the
Created by the General Assembly in 1966 to promote economic development, UNCDF officially was established as an "autonomous organization within the United Nations" with the purpose to "assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans".
In 1973, the Governing Council reoriented UNCDF's activities towards "first and foremost the least developed among the developing countries" and it began focusing on the world's least developed countries in 1974.
For the next twenty years, UNCDF financed stand-alone capital infrastructure—roads, bridges, irrigation schemes—mostly in Africa. It received about $40 million in core funding per year and operated out of UNDP country offices.
In the mid-1990s, UNCDF began focusing on the role local governments could play in planning, financing, and maintaining capital investments. Promoting effective infrastructure investment and service delivery via decentralized public financial management has been UNCDF's mainstay ever since. UNCDF's other major area of expertise—
least developed countries
The least developed countries (LDCs) are developing countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. The concept of LDCs originated in the late 1960s and the first group of LDCs was listed b ...
(LDCs) among the developing countries.
As a Flagship Catalytic Blended Financing platform of the UN, UNCDF utilizes its unique capability to crowd-in finance for the scaling of development impact where the needs are greatest—a capability rooted in UNCDF’s unique investment mandate—to support the achievement of the 2030 Agenda for Sustainable Development and the realization of the Doha Programme of Action for the least developed countries, 2022–2031.
Established by the General Assembly in 1966 and with headquarters in New York City
New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
, UNCDF is an autonomous UN organization affiliated with UNDP
The United Nations Development Programme (UNDP) is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development. The UNDP emphasizes on developing local capacity towar ...
.
The original UNCDF mandate from the UN General Assembly
The United Nations General Assembly (UNGA or GA; , AGNU or AG) is one of the six principal organs of the United Nations (UN), serving as its main deliberative, policymaking, and representative organ. Currently in its 79th session, its powers, ...
(UNGA) is to “''assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans''” (General Assembly Resolution 2186, 13 December 1966). The mandate was modified in 1973 to serve first and foremost but not exclusively the LDCs.
The current Executive Secretary of UNCDF is Pradeep Kurukulasuriya.
History
Created by the General Assembly in 1966 to promote economic development, UNCDF officially was established as an "autonomous organization within the United Nations" with the purpose to "assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans".
In 1973, the Governing Council reoriented UNCDF's activities towards "first and foremost the least developed among the developing countries" and it began focusing on the world's least developed countries in 1974.
For the next twenty years, UNCDF financed stand-alone capital infrastructure—roads, bridges, irrigation schemes—mostly in Africa. It received about $40 million in core funding per year and operated out of UNDP country offices.
In the mid-1990s, UNCDF began focusing on the role local governments could play in planning, financing, and maintaining capital investments. Promoting effective infrastructure investment and service delivery via decentralized public financial management has been UNCDF's mainstay ever since. UNCDF's other major area of expertise—microfinance
Microfinance consists of financial services targeting individuals and small businesses (SMEs) who lack access to conventional banking and related services.
Microfinance includes microcredit, the provision of small loans to poor clients; saving ...
—also dates to the mid-1990s, when many of its rural development projects had credit components.
UNCDF's resources remain modest compared to many multilateral organizations. However, it has developed a considerable track record of going where others do not, and then “leveraging in” larger sources of public and private capital. In the words of a 2008 assessment by the Government of Sweden
The Government of the Kingdom of Sweden () is the Cabinet (government), national cabinet of Sweden, and the country's Executive (government), executive authority.
The Government consists of the Prime Minister of Sweden, Prime Minister and their ...
, “''UNCDF should be seen as a development actor that paves the way for others, rather than a financing mechanism.''”
In 2013, UNCDF received the highest score in the SmartAid for Microfinance Index, a measure of overall effectiveness in microfinance.
References
{{Authority control Microfinance organizations Organizations established in 1966 Organizations established by the United Nations United Nations Development Group