The Global Financial and Economic Crisis UNDP’s RESPONSE

1. The Global Financial and Economic CrisisUNDP’s RESPONSE Regional Conference on the Impact of the Global Economic and Financial Crisis to the Vulnerable Sectors in the Region: Civil Society Voices and ASEAN Jakarta, 28-29 July 2009

2. Human Development Impact of Crisis in Asia • Progress towards MDGs under threat • While poverty incidence decreased sharply many remain vulnerable to economic shocks • Recent food and fuel crisis forced 200 million into poverty • An estimated 60 million in 2009 and up to 100 million in 2010 more pushed into poverty • Children, women, working poor, migrants and people already at a disadvantage among most vulnerable

3. Human Development Impact of Crisis in Asia • Unemployed in Asia projected to increase from 80 million in 2007 to 93 million in 2009 • Slow-down in job creation (a 4% drop in growth will reduce employment growth by 2- 4% per year) • Female and migrant workers often most vulnerable to lose jobs

4. Responding to Crisis • Asymmetry between industrialized and developing countries in capacity to respond • Most countries focus on fiscal stimulus packages • Support for vulnerable remains fragmented and under-resourced

5. Global Responses Conference on World Financial and Economic Crisis and Its Impact on Development June 2009 • Tackling crisis can be consistent with tackling poverty and climate change • Highlighted systemic fragilities and imbalances • Called for renewed multilateralism • Called for intensification of efforts to reform and strengthen international financial system and architecture

6. UN Summit Proposals • Adopting a comprehensive approach to address • climate change, environmental issues • food/fuel price crisis • MDGs • Keeping a long-term perspective • Looking beyond national benefits • Improving monitoring of vulnerabilities

7. UN Summit – Some Proposals for Action • Suggests counter-cyclical measures of stimulus • Calls on countries to avoid protectionist actions • Proposes better regulation over financial markets • Calls for creation of new credit facility and mechanisms of innovative financing • Calls for better coherence between policies governing trade and finance • Proposes institutional reform of Bretton Woods institutions

8. UNDP Response – Country Level Support UNDP’s support includes • Policy dialogue and consultations • Assessment and advocacy • Monitoring human development impact • Support through existing and new programs and projects • Design of social protection programs and safety nets • Job creation schemes (e.g. labor intensive infrastructure) • Increasing income and productivity of farmers

9. Asia Pacific – Regional and Country Level Responses • Regional • Shift from more localized response to higher policy level • Philippines • Local government unit intervention • High level policy advice • Laos • UNDP Round Table Implementation Meeting • Follow up workshop in December with key ministries – discussion of implications of crisis on next National Socio-Economic Development plan with concrete recommendations

10. Asia Pacific Country Level Responses, Continued . . . • China • Discussion with government on South South financial flows in trade, aid and investment • China-Africa Business Council involvement • Cambodia • Insights for Action initiative (UNDP Cambodia) is exploring ways of facilitating information sharing and providing advisory assistance to the government

11. UN Response - Indonesia • Harmonized UN Approach: UNDP, WFP, UNICEF and ILO • Technical Workshop March/April 2009 laid groundwork for Crisis Monitoring and Response System • Assist Government in Setting up Crisis Monitoring and Response System • Institutional framework • In-depth analysis of impact • Assessing response mechanisms • Data management system

12. Thank You