UNCTAD technical cooperation activities are financed from three main sources:

• Trust funds (i.e. voluntary contributions from donors)
  
  
• United Nations Development Programme (UNDP)
  
  
• United Nations programme budget

Expenditures from the three main sources of financing of UNCTAD technical cooperation, 2007

Trust fund contributions are provided on a voluntary basis by individual Governments, multilateral donors, non-governmental organizations, the enterprise sector and foundations. About 80 Governments and a score of multilateral and other organizations contribute to UNCTAD trust funds.

In 2007, contributions to trust funds amounted to $36.8 million, reflecting, in nominal terms, a 26.4 per cent increase over 2006, and a 2.9 per cent increase over 2005.

Between 2004 and 2007, trust fund contributions grew at an annual average rate of 11 per cent. The depreciation of United States dollars in the last quarter of 2007 played a role in shaping the dollar amount and rate at which the contribution grew in 2007. Nonetheless, the increase in contributions is mainly attributable to a marked growth of resources provided by developed countries and multilateral donors. Contributions from developed countries increased by 30 per cent in nominal terms and accounted for approximately 58 per cent of the total contributions to trust funds.

Altogether, 17 developed countries contributed to UNCTAD trust funds in 2007. The following 11 countries with contributions of more than $500,000 accounted for 95 per cent of developed countries' contributions to trust funds: Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom and the United States.

Contributions from developing countries declined by 17 per cent compared to 2006, and accounted for 21 per cent of total contributions to trust funds.

The following 10 countries with contributions of more than $200,000 accounted for approximately three quarters of contributions from developing countries: Albania, Cambodia, the Central African Republic, Côte d'Ivoire, Georgia, Haiti, Mauritania, the Syrian Arab Republic, the Bolivarian Republic of Venezuela and Zimbabwe.

The major part of contributions from developing countries takes the form of self-financing arrangements in support of individual country projects. Self-sustained projects are either financed by the beneficiary country itself or though the use of resources from grants, credits or loans by regional and international development and financial institutions.

As in previous years, such contributions have been directed in particular to finance country projects in the areas of customs reforms and debt management.

This is an indication of the relevance and utility of the two major programmes of UNCTAD technical assistance, namely ASYCUDA and the Debt Management and Financial Analysis System (DMFAS).

Contributions from multilateral donors increased sharply, thanks to contributions from the European Commission, which more than doubled as compared with 2006.

The European Commission continues to be the single largest multilateral donor for UNCTAD operational activities, accounting for 8 per cent of total trust fund contributions.

The $5.3 million contribution from the European Commission - an increase of 127 per cent over the previous year - was mainly in support of three country projects in the area of customs reforms, one country project on TrainForTrade and one interregional project on commodities issues.

Expenditures

Overall expenditures from all three sources of financing of UNCTAD's technical cooperation - i.e. trust funds, United Nations Regular Programme of Technical Cooperation and UNDP - amounted to $31.5 million in 2007, a contraction of more than 10 per cent as compared with the previous year.

It should be noted that 2006 was an exceptional year, in which expenditures on technical cooperation increased by 16 per cent over 2005. Over a five-year period - from 2003 and 2007 - expenditures on technical cooperation grew on average by 3.2 per cent annually.

Trust funds are the major source of financing for UNCTAD technical cooperation, and in 2007 accounted for 88 per cent of total expenditures.

The United Nations Regular Programme of Technical Cooperation and the Development Account

Programme budget resources are provided under the United Nations Regular Programme of Technical Cooperation and under the Development Account - sections 22 and 34 respectively of the United Nations programme budget.

Total UNCTAD expenditures on technical cooperation provided in the context of both sections of programme budget resources amounted to $2.5 million, i.e. 8 per cent of total expenditures.

Resources provided by UNDP

Expenditures on UNDP-financed projects dropped from $1.4 million in 2006 to $1.2 million in 2007, and accounted for 4 per cent of overall expenditures.