for UNDP Regular Resources
Informal Consultations with the Executive Board
02 June 2005
Overview of Programming Arrangements
TRAC-1 Calculation Methodology
Sets the legal framework, as well as the principles
and parameters, for the distributions of UNDP core
Principles and Legal Framework
(Programming Arrangements for the period 2004-2007)
Reaffirms principles of eligibility of all recipient countries
Recognizes principles of progressivity, impartiality,
transparency, and predictability of flow of resources
Reconfirms importance of annual funding target of $1.1 billion
Reconfirms TRAC distribution methodology
Confirms that the amount of regular resources available for
programming for any given year is equal to:
Amount of regular income minus:
• Amount allocated for the biennial support budget
• Other amount set aside by the EB for other purposes
Programme resource allocation framework 2004-2007
Programme - Fixed Lines
• Human Development Report (HDR) $5.3
• Office of Development Studies (ODS) 1.1
• Economist Programme 4.5
• Development Support Services (DSS) 6.0
• Support to Resident Coordinator 13.5
• Evaluation 2.5
• South-South Cooperation (formerly TCDC) 3.5
Subtotal – fixed lines $36.4
Programme - Variable Lines
• TRAC 1.1.1 47.3%
• TRAC 1.1.2 31.5
• TRAC 1.1.3 7.2
• Regional programmes 9.0
• Global programmes 5.0
Subtotal – variable lines 100.0%
Target resource assignment from the core (TRAC)
• Assigned immediately to programme countries
• Regional share determined by total TRAC 1.1.1 earmarkings for
countries in the region
• Assigned to programme countries based on performance
• Regional share is the same as TRAC 1.1.1
• TRAC 1.1.2 assigned as a percentage of TRAC 1.1.1 (0 to 100%)
Facility was established with the view to provide the Administrator
with a capacity to respond quickly and flexibly to the development
needs of countries in special circumstances
Principles underlying the TRAC-1 distribution methodology
• Focus on low-income and least developed countries;
• Progressivity in favour of lower-income countries within the
categories of, respectively, low-income and middle-income
• A gradual move to net contributor country (NCC) status for
countries that achieve higher GNI levels.
• Low Income Country (LIC) GNI per capita threshold: $900
• Middle Income Country (MIC) GNI per capita range between
$900 and $4700 (73 countries)
• Net Contributor Country (NCC) GNI per capita threshold
greater than $4700 (26 countries)
• Least Developed Country (LDC) floor 60% of total resources
• LIC resources range – between 85% to 91% of total resources
• Floor Principle – protects country TRAC-1 from a drastic drop
from increased GNI
• Minimum TRAC – $350,000 per year country minimum and
“cluster” minimum for multi-country offices
Step 1: Calculate GNI per capita and population weights.
Add an extra weight for LDCs and LICs
Step 2: Determine the country’s basic share in the total
Step 3: Make certain basic TRAC 1.1.1 does not go below
floor mandated by EB
Step 4: Make sure that calculated TRAC-1 above does not go
below minimum TRAC-1
• Executive Board 2002/18 calls for a midterm recalculations of
• Initial calculation for the period 2004-2007 based on agreed
distribution methodology using 2001 World Bank Atlas gross
national income (GNI) per capita and population.
• The present recalculation is based on the 2003 World Bank
Atlas gross national income (GNI) per capita and population.
• The recalculated TRAC-1 earmarkings will replace the initial
TRAC-1 earmarkings for the remaining two years of the
programming period (i.e., 2006/2007).
• First time a full comprehensive recalculation is done within a
• Based on the same methodology approved in decision
• Based on 2003 GNI per capita and population.
• Similar to the initial calculation, recalculation is based on $450
million regular programme resources.
• A large number of countries reflect potential increases or decreases
mainly because of a change in the GNI base from 2001 to 2003.
• In the past, intra-period adjustments were made based on the same
GNI base year (i.e., 2001 GNI).
• New calculations were only done inter-period, where countries were
allowed to get a lower TRAC-1 from one period to another.
• Countries moved between income categories:
6 countries moved from LIC to MIC (Armenia, China, Djibouti,
Honduras, Sri Lanka and Ukraine)
1 country moved from MIC to LIC (Bolivia)
1 country moved from NCC to MIC (Venezuela)
3 countries became new NCCs (Croatia, Poland and Slovak
Option 1 – based on full recalculation, considered both increases and
Total of 101 changes.
39 countries getting TRAC-1 increases (all LICs except 1 MIC).
62 countries getting decreases (mostly MICs).
$9.6 million TRAC-1 shifted to countries eligible for TRAC-1
TRAC-1 increases went to countries with absolute GNI increases,
decreases, or no GNI changes.
Option 2 – derived directly from option 1, but only considers TRAC-1
increases (net resources required is $8.2 million). All countries either
maintained their initial TRAC-1 earmarkings or received TRAC-1
Recommendation – Option 2
Need to maintain principle of progressivity and
predictability of programme resource flows, especially to
low income countries.
United Nations Development Programme