May 2006 United Nations Democracy Fund VOLKER LEHMANN Summary The recently established United Nations Democracy Fund(UNDEF) should provide strategic support to catalyze democracy and human rights initiatives around the world. It is intended to complement the UN’s existing engagement in democracy promotion. Yet given its limited resources, the Fund will have to carve out a competitive niche side by side with other, already well-established democracy-promotion programs. In addition, while the Fund was created thanks to the leadership of some democratic countries, notably the United States, its success will depend on more member states embracing it as a relevant tool for democracy promotion. Background Democratic values were enshrined in the Charter of the United Nations as well as in 1948 in the Universal Declaration of Human Rights. More recently, a group of states established a‘Community of Democracies’ to consult within the framework of some of the UN bodies. In a similar vein, in 2001 the General Assembly requested the Secretary-General “to examine options for strengthening the support provided by the United Nations System for the efforts of the Members States to consolidate democracy”(GA Resolution 56/98 of 14 December 2001). These normative processes to strengthen democracy were accompanied by operational activities of the UN System. In particular, in 2000 the United Nations Development Programme (UNDP) put democratic governance at the center of its development cooperation program, and dedicated a substantial proportion(about US$ 1 billion) of its core resources towards this end. Another significant development was the establishment of the Electoral Assistance Division(EAD) within the Department of Political Affairs(DPA) in 1992. The EAD is responsible for the coordination of the activities of the United Nations System in the field of electoral assistance. After a proposal by US President George W. Bush to the UN General Assembly in the fall of 2004, UNDEF was established in July 2005 as a United Nations General Trust Fund. It was kicked off by the United State’s initial contribution of US$ 10 million, which was matched by India. As of 3 March 2006, the Fund has received US$ 32.5 million in contributions and US$ 16.5 million in pledges. Table 1: Top Contributors to UNDEF Donor Country Contributions and Pledges(million US$) United States 17.9 India 10.0 Qatar 10.0 Australia 7.3 Germany 1.6 France 1.2 United Kingdom 0.6 Senegal 0.1 Chile 0.1 Czech Republic, 0.05 Poland, Portugal Source: UNDEF Website http://www.un.org/democracyfund/financial_contrib utions.htm(retrieved 20 April 2006). What is the UNDEF? UNDEF wants to provide strategic support to democracy and human rights initiatives around the world. UNDEF receives voluntary contributions from member states. The Secretary-General decides on project funding based on the recommendations from an Advisory Board, which has 17 members: Six representatives from those member states contributing the most to the Fund (see Table 1), currently Australia, France, Germany, India, Qatar, and the United States; five representatives from other member states to ensure geographic diversity, currently Benin, Chile, Hungary, Indonesia, and South Africa; four persons appointed in their individual capacity,

UN Democracy Fund FES New York Fact Sheet April 2006 Page 2 currently Mr. Michael Doyle, Columbia University; would support the interface between civil society Mr. Guillermo O’Donnell, University of Notre Dame; and the official institutions of democracy, such as Ms. Rima Khalaf Hunaidi, former Assistant central and local governments and parliaments, Administrator of UNDP; Mr. Amir A. Dossal,( ex electoral commissions, and judiciaries. officio), Executive Director, UN Fund for International Partnerships(UNFIP); two representatives of nonMoreover, the question whether the UN should be governmental organizations, currently the World engaged in the promotion of democracy is not Alliance for Citizens Participation(CIVICUS) and the unequivocally answered. At the 2005 Summit, UN International Commission of Jurists. member states emphasized that“democracy, development and respect for all human rights and UNDEF will finance projects that strengthen fundamental freedoms are interdependent and democratic institutions, promote human rights, and mutually reinforcing“. It is therefore important to ensure the participation of all groups in democratic decide whether the Democracy Fund should processes. 80 percent of the Fund’s resources will support all three of the above processes or limit be disbursed in least developed, low or middle itself only to selected components of income countries for democratic capacity-building. democratization. Activities eligible for funding are: Democratic dialogue and support for constitutional processes; The 2005 UN Summit’s Outcome Document also civil society empowerment; human rights and acknowledged that there is no single model of fundamental freedoms; citizens’ access to democracy, that it does not belong to any country information; accountability, transparency and or region, and that it remains necessary to pay integrity; civic education, voter registration and due respect for sovereignty and the right of selfstrengthening of political parties. Another 20 percent determination. Since no country in the world of the Fund will be dedicated to democracy currently can claim to have a perfect democracy, promotion on the global level. Here the Fund will the question who judges over the work of the highlight the role of democracy promotion in postDemocracy Fund in any given individual country conflict situations. It will also support regional and bears potential for political conflict. The issue global peer group processes among member states becomes all the more pertinent as any country can to advance democratization. “buy” a seat at the Advisory Board, simply by being one of the six largest financial contributors Eligible for funding will be national and sub-national to the Fund. government agencies; independent and constitutional bodies(such as electoral and human Issues Ahead rights commissions); civil society organizations Comparative Advantage: Despite the UN’s proven (including national and international NGOs, think track record in democracy promotion, there are tanks, and journalist associations); UN bodies also numerous successful examples of country(departments, funds, programs and agencies specific funds for democracy promotion. To claim working in this field); global and regional intera comparative advantage in strengthening governmental bodies other than the UN. democracy, UNDEF’s first implemented projects will have to prove that it is neither negligible due to Elected projects will be granted US$ 50,000 to US$ its limited resources nor redundant to the already 500,000 over a period of one or two years. The Fund existing UN mechanisms. will start with an experimental phase of project funding(12-15 months) for which the deadline for Neutrality: The Fund will have to square efficacy applications will be 15 May 2006, followed by a with neutrality. How will it decide on funding of second round of proposals, starting in September non-governmental organizations that may be 2006. Based on these experiences, the second, critical of governmental authority? Likewise, to long-term phase of the Fund is expected to strengthen democracy by strengthening political commence in the first half of 2007. parties can easily collide with the UN’s mandate not to take side with any concrete political option. Challenges The basic challenge for the Democracy Fund will be Legitimacy: Will the Fund be biased or will it reflect to position itself between the norm-setting and the the variety of countries’ circumstances, capacities, operational work of the UN’s engagement in and commitments to democratize? The Fund’s democracy promotion. The Fund is intended to success will depend on whether many member complement and build upon the already extensive states embrace it as a legitimate UN body for activities of UN departments, specialized agencies, democracy promotion. funds and programs working in this field. Yet UNDEF’s resources of currently US$ 49 million pale Further Reading in comparison with UNDP’s country-level work on UNDEF: www.un.org/democracyfund/index.html democratic governance, which has a budget in abundance of US$ 1 billion. The Fund’s comparative Dauderstädt, M. and Lerch, M.(2005): advantage may be in supporting the environment of International Democracy Promotion: Patiently nations’ democratic institutions to enable them to Redistributing Power. Friedrich Ebert Foundation. function more effectively. More specifically, the Fund http://library.fes.de/pdf-files/id/02847.pdf _______________________________________________________________________________________________________________________________________________________ Friedrich Ebert Foundation New York Office 823 United Nations Plaza, Suite 711• New York, NY 10017 Tel:+1-212-687-0208• Fax:+1-212-687-0261• E-mail: fesny@fesny.org