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TCDC - Basic Documents

CHAPTER - X

HLC Decision on strengthning of TCDC Decision 6/4 dated September 29, 1989

6/4. recommendations for the strengthening of technical co-operation among developing countries

Bearing in mind the general evaluation of the implementation of the recommendations of the Buenos Aires Plan of Action for Promoting and Implementing Technical Co-operation among Developing Countries a/ and the analysis of the responsibilities of the various parties participating in the promotion and implementation of technical co-operation among developing countries, in particular the developing countries,

Taking into account the difficulties most frequently faced by national focal points, which, in turn, have an adverse impact on the promotion and implementation of activities for technical co-operation among developing countries,

Considering that it is appropriate for developing countries that deem it necessary to be able to earmark a percentage of their national indicative planning figure for the promotion of and support to activities for technical co-operation among developing countries and to allocate, where advisable, national budget items in local currency,

Decides to formulate a set of recommendations and measures that, in accordance with the conditions, interests and priorities of each of the countries involved, could be considered by Governments with a view to expanding and improving their activities, projects or programmes for technical co-operation among developing countries, as follows:

Those developing countries which have not already done so should elaborate directories of the supply and demand for technical cooperation among developing countries that would specify priority areas or sectors and employ appropriate methodologies in this elaboration;
National focal points should design mechanisms or systems for periodic updating of information on needs and capabilities for technical co-operation among developing countries;
Developing countries, in the context of their national development programmes, should ensure easy access by focal points to national data banks and information systems;
Developing countries should develop, in turn, registries and/or data banks on experts, institutions and professional organizations and local techniques capable of transferring knowledge and technologies, together with equipment and services produced in the countries; as those banks are set up, methods of dissemination and exchange shall be decided upon, with a view to utilizing the potential of technical co-operation among developing countries in the various regions, thereby paving the way for greater participation in the activities and projects promoted;
Opportunities for technical and financial support should be identified in an effort to strengthen national focal points;
Those countries which have not already done so should incorporate the Technology Information Pilot System, considering the importance of strengthening technical co-operation among developing countries in the scientific and technological sector, and recommends that ties be formed among the organizations that promote this sector, bearing in mind the considerable potential for carrying out activities and projects for technical co-operation among developing countries on a regional and interregional basis;

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CHAPTER - XI

HLC Document on TCDC strategy for the 1990s Document TCDC/8/4 , April 5, 1993

UNITED NATIONS TCDC

Technical co-operation Distr. among developing countries GENERAL TCDC/8/4 5 April 1993
ORIGINAL: ENGLISH OF TECHNICAL COOPERATION AMONG DEVELOPING COUNTRIES
Eighth session New York, 25-28 May 1993

REPORT ON DEVELOPMENT OF A STRATEGY OF TECHNICAL COOPERATION AMONG DEVELOPING COUNTRIES IN THE UNITED NATIONS DEVELOPMENT SYSTEM

SUMMARY

The present report is submitted in compliance with decision 7/6 of the High-level Committee.

The report in its first part provides a summary of the conclusions of the various exercises on review and evaluation of the programmes and activities undertaken by the United Nations development system for TCDC and also of the findings of various consultations held with Governments, intergovernmental organizations and United Nations agencies and organizations on all aspects of TCDC. Specifically, it summarizes the identified impediments to TCDC.

In the second part the report explains the evolution of the strategy for the 1990s and provides brief information on strategy reviews undertaken by three specialized agencies: WHO, FAO and UNIDO. Then it sets out for the consideration of the High-level Committee the objectives and elements of TCDC strategy primarily for the United Nations development system. The specific thrusts of TCDC strategy in the 1990s are brought out in paragraphs 27 to 36.

INTRODUCTION

1. The High-level Committee on the Review of Technical Cooperation among Developing Countries, at its seventh session, endorsed the proposal of the Administrator of the United Nations Development Programme that an overall framework for the promotion and application of TCDC in technical cooperation programmes and activities of the United Nations development system (UNDS) in the 1990s be formulated in accordance with the guidelines of the Buenos Aires Plan of Action (BAPA), 1/ taking full account of the recommendations of the Group of Governmental Experts on the rules, regulations and procedures of the United Nations organizations, 2/ the Joint Inspection Unit (JIU) report 3/ and ongoing evaluations.

2. The Committee appreciated the importance of developing a strategy for the UNDS that will make the system in the 1990s more efficiently supportive of the endeavours of developing countries and their institutions in applying TCDC. The Administrator was requested to present the proposed strategy paper at the eighth session in 1993 for review and comments.

3. Account was taken of the above-mentioned earlier reports and several initiatives and evaluations undertaken since 1990 for the preparation of this report. Notable among these were the evaluation of the project of action-oriented TCDC activities, 4/ evaluations of TCDC-INRES (Information Referral System), 5/ programming exercises undertaken, 6/ focal points, 7/ and the strategies adopted by some of the United Nations organizations. Mention should be made of the strategy paper by the Latin American Economic System (SELA), 8/ regional TCDC focal point, as a very useful contribution. Views and inputs were also obtained from other activities such as the regional TCDC focal points, the United Nations agencies focal point meeting last year, an expert group meeting on the status of TCDC held in Rabat.

BACKGROUND

4. The adoption of the Buenos Aires Plan of Action provided strong impetus to TCDC by adopting 36 specific recommendations for the support and promotion of TCDC and establishing the mechanisms and arrangements for the implementation of the Plan and its recommendations. The BAPA exhorts the United Nations organizations by calling on them to be "permeated by the spirit of TCDC" and that all of them "should play a prominent role as promoters and catalysts of TCDC",

5. The continued validity of the BAPA has been repeatedly confirmed. The adoption of General Assembly resolution 33/134 endorsing the BAPA initiated a broad-based movement in favour of TCDC. It was followed by the adoption of similar resolutions and decisions by the conferences or governing bodies of specialized agencies. More recently, TCDC found strong endorsement in the South Commission report entitled The Challenge to the South. 9/ Similar emphasis is evident in FAO Conference resolution 9/85, ILO Conference resolution on technical cooperation (1987) and WHO resolution WHA.43.9 (1990). The General Assembly in 1989 once again called upon all Governments and the UNDS to implement the recommendations of BAPA. The Economic and Social Council in its resolution 1992/41 reinforced the need for wide use of TCDC by calling on all parties in the development partnership to give first consideration to TCDC in the implementation of technical cooperation programmes and projects.

Goals of TCDC

6. The established goals of TCDC are to enhance national and collective self-reliance and to broaden the base for international technical cooperation. TCDC is envisaged and encouraged as a form of cooperation which complements North-South cooperation.

7. The main features of TCDC activities are:

First, it is between two or more developing countries on an institution-to-institution basis, in the public or in the private sector.
Secondly, it involves sharing of experience, expertise, know-how and facilities.
Thirdly, it is managed and implemented by developing country Governments, or institutions.
Fourthly, financing of the activities is primarily by the participating developing countries.

8. Although application of TCDC is primarily the responsibility of the developing countries and depends largely on the policies of national Governments, BAPA assigns a very important role to the UNDS in both promotional and operational activities in support of TCDC. The assigned role for UNDS is essentially that of a facilitator and a catalyst. Promotional activities are intended to strengthen the capacity of institutions in developing countries to engage in TCDC or to prepare the foundation for launching operational activities using this modality. Operational activities involve the application of TCDC by actually sharing and exchanging technical resources, capabilities and skills between two or more developing countries.

PROGRESS SINCE THE BAPA

9. Over the past decade, the developing countries and United Nations organizations have succeeded in firmly placing TCDC on the agenda of their governing bodies. Considerable efforts are being made to bring about stronger political commitment, and further articulate more explicitly the policy, strategy and programmes, and determine funding and institutional mechanisms for TCDC.

10. The promotion of TCDC is carried out through projects and activities such as seminars, study tours, skills transfer workshops, sensitization and orientation, training, information exchange, handbooks, manuals, programming exercises, public information campaigns and networking.

11. Progress reports on the implementation of the recommendations of the BAPA to the High-level Committee from Governments and the United Nations governing bodies have highlighted achievements and established that there now exists a widespread awareness that TCDC could be a powerful tool for initiating, designing, organizing and promoting the kind of cooperation that can truly advance national and collective self-reliance.

12. Although no adequate documentation or compilation of information on TCDC carried out at national, regional and sub-regional levels exists, developing countries apply TCDC and carry out considerable cooperation activities bilaterally especially in training, exchange of personnel, and advisory services.

13. Despite significant progress, there is also a consensus that actual application of TCDC in development efforts is not widespread and rather slow in pace. The meeting of TCDC focal points of the UNDS rightly concluded that "TCDC Is still a largely under-utilized potential for development cooperation". 10/

Conclusions from review and evaluation

14. The various exercises on review and evaluation of past and ongoing programmes and activities as well as brainstorming on future directions, which have been completed since 1990, have documented the strengths and weaknesses of various programmes and activities, provided recommendations on measures for improvement, and also put forward ideas on new approaches and initiatives. These findings have generally been confirmed by consultations with Governments of developing countries, other United Nations organizations and intergovernmental organizations. The broad conclusions are as follows:

First, TCDC as a modality of project implementation has not received adequate attention and priority.
Secondly, the use of the TCDC modality has not been given priority in national development activities nor in the programmes and activities supported by UNDS.
Thirdly, a common and unambiguous understanding of what TCDC means has impeded the reporting on and determination of progress in the promotion of TCDC in the UNDS.
Fourthly, TCDC programming exercises have expanded contacts between countries, added to knowledge about capacities and needs and resulted in many operational activities. But for greater impact, such exercises need sector concentration, greater attention to project preparation and careful monitoring of project implementation.
Fifthly, in order to expand application of the TCDC modality, the capacities of developing country institutions (e.g., research and training institutions, industrial units or agricultural farms) should be strengthened. Special importance should be given to strengthened TCDC national focal points who can promote, coordinate and manage TCDC.
Sixthly, more needs to be done to ensure ready availability of quality and up-to-date information on capacities of developing country institutions. Not only should the quality and volume of the TCDC-INRES database be improved, but accessing it should be much easier and simpler.
Seventhly, in order to enhance the TCDC modality in project or programme implementation, more rigorous and continuous monitoring, evaluation and reporting should be institutionalized.

IMPEDIMENTS TO TCDC

15. The use of the modality has been limited owing to a wide range of reasons, mainly:

Insufficient understanding of what constitutes TCDC and the possibilities it offers;
Lack of adequate data and information on capacities existing in developing countries;
Lack of commitment as well as inadequate prioritization of TCDC in national policies;
Attitudinal and language barriers;
Internal procedures not being conducive to TCDC;
Financial constraints to meet cooperation obligations.

16. The most fundamental constraints are issues of awareness, information and finance. Major development programmes are not often implemented through the TCDC modality. That is partly why few countries articulate a conscious TCDC policy and the TCDC modality seldom receives any serious consideration, not to speak of first consideration. Better availability of information on needs and capacities, greater communication and contact between countries, and a perception of TCDC as a cost-effective, more appropriate and more efficient modality will enable universal acceptance in developing countries.

17. Another constraint is the weakness of institutional underpinning. TCDC activities are undertaken under bilateral, regional or multilateral programmes; but they are not properly coordinated. Most countries have established TCDC focal points but their staffing, status, location in the governmental apparatus, terms of reference as well as legal and financial standing leave much to be desired. An effective focal point at an appropriate decision-making level can help in articulating national TCDC policy, promoting the modality and in evaluating progress, monitoring implementation, and in coordinating all TCDC activities and evaluating achievements. A strong focal point and a system of interaction between focal points can easily promote networking and twinning, two instruments highly appropriate for continued TCDC and problem-solving through joint efforts.

18. Financing of TCDC is universally acknowledged as a major bottleneck in a more widespread application of the TCDC modality. Lack of foreign exchange is almost always given as a major impediment to implementation of programmes or projects under the TCDC modality. It is also true that many countries do not make adequate budget and logistic provision for even agreed TCDC projects. They also have not tapped available resources for TCDC activities. This is largely because TCDC is treated as an exceptional short-term or subsidiary instrument for technical cooperation. The deficiency partly is a consequence of attitudinal and institutional shortcomings.

Current environment for TCDC

19. There are many propitious developments and favourable circumstances for TCDC now.

First, the level of awareness about the potential of TCDC at the government level and in the UNDS may not be all-pervasive but certainly very significant. The concept of TCDC and the nature of the modality have general acceptance across the board.
Secondly, technical resources in the developing countries are indeed of high quality and available in sufficient quantity. A large number of developing countries are aware of them and can access them as well.
Thirdly, developing countries have greater confidence in their own capacities in technology, skills and management which they can mobilize and share with each other.
Fourthly, there are many development problems for which the only practicable solution can be found through TCDC and cooperative efforts of the developing countries themselves.
Fifthly, sustained momentum in economic growth demands economic cooperation among developing countries (ECDC) and expansion of South-South trade, both of which rely heavily on TCDC.
Sixthly, the squeeze on availability of external resources for developing countries makes it imperative to apply the less costly but either more or equally efficient TCDC modality.
Seventhly, developing countries are increasingly expanding TCDC through regional cooperation programmes and bilateral TCDC arrangements. The more well-placed among them are providing more financial resources for TCDC activities in their national budgets and sparing more experts and services for technical cooperation with other countries.
Eighthly, the dramatic transformation in the political and economic systems of Eastern Europe and Central Asia offers new opportunities for TCDC.
Finally, major initiatives and many intergovernmental decisions have placed high priority on TCDC. The South Commission Report has strongly underscored the importance of ECDC and TCDC. United Nations organizations are examining existing practices and searching for new ways to promote and enhance the application of TCDC. TCDC undoubtedly is given higher priority in terms of declared principles of United Nations organizations. Economic and Social Council resolution 1992/41 has given the TCDC option the highest priority.

THE STRATEGY FOR THE 1990s

20. TCDC has reached a turning point where application of the modality should be the "touchstone" by which progress should be measured. Progress in the implementation of the BAPA and the enhancement of TCDC in the 1990s are primarily measured by the degree of actual utilization of the TCDC modality in the implementation of programmes and projects. This in essence means the aggressive implementation of the "first consideration" exhortation embodied in Economic and Social Council resolution 1992/41.

21. A strategy for the 1990s should at least articulate the specific and priority objectives, the required actions/measures, and the means to enhance the wide utilization of TCDC in general.

22. A strategy for TCDC for a decade can only provide a broad framework that will enhance concerned effort and focus but it will not be a substitute for particular national, regional and agency needs and challenges. The development concerns to which priority is given, the types of capacities existing, the political commitment and resources available, experiences gained in cooperation activities among the countries in a country or a region, etc., greatly vary. These factors will determine the quality level, and the nature of activities carried out and given precedence for individual regions, even subregions.

23. The recommendations of the BAPA and the objectives and guidelines laid down therein and reinforced by subsequent decisions will continue to provide the chapeau within which TCDC will be pursued and the main tasks be fulfilled. A concentration on specific objectives during the coming years could, however, enhance TCDC more rapidly and qualitatively both within the United Nations system and in developing countries.

Strategy of the World Health Organization (WHO)

24. WHO traditionally has promoted collaboration between various medical training and research institutions of developing countries for joint action and sharing of knowledge and technical capacities. It has assisted technical meeting of senior health experts of developing countries. It has also prepared a TCDC directory in the health sector identifying needs and capacities and potential for cooperation. Its medium-term programme on TCDC for health for all covers the 1990-1995 period. The forty-fifth World Health Assembly in 1992, while reviewing TCDC, provided new directions for the future. 11/ In preparing national health plans and use of WHO cooperation, countries are urged to consider the TCDC modality. Cost-effectiveness of technical cooperation is sought to be enhanced by ensuring that TCDC receives first priority. Strengthening of focal points, sensitization programmes and training in TCDC are emphasized and field offices are urged to give priority to TCDC.

Strategy of the Food and Agriculture Organization of the United Nations (FAO)

25. FAO has identified elements of its TCDC strategy anew in 1991 in its medium-term plan (1992-1997). 12/ In 1992 it developed a handbook on TCDC, which is an attempt to clarify the modality and procedures and is intended as a general guide in connection with the orientation of FAO as well as that of national staff of developing countries on TCDC. 13/ Keeping the same objective in mind, FAO issues two newsletters a year on TCDC. The broad elements identified for the medium-term approach aim at integrated TCDC with the programming and implementation of developmental activities. The various measures in support of this strategy include: assistance to countries in building and improving the information base for TCDC, technical workshops and group training, networking and institutional twinning, evaluation and dissemination of lessons of experiences, catalysing financial support and enhancing awareness of TCDC modalities and operational procedures.

Strategy of the United Nations Industrial Development Organization (UNIDO)

26. In addition to traditional TCDC activities like networking, institution-building, exchange programme and seminars, the United Nations Industrial Development Organization (UNIDO) has been using three powerful instruments for promotion of TCDC. The solidarity meetings are UNIDO's own design of programming exercises for both TCDC and ECDC. The Industrial and Technological Information Bank (INTIB) and Technological Information Exchange System (TIES) are broader than TCDC-INRES but they make a positive contribution to TCDC as well. In its comprehensive strategy for TCDC and ECDC, articulated in 1992, UNIDO has broken new ground. 14/ UNIDO traditionally has been linking TCDC with ECDC and this policy continues. UNIDO is emphasizing the role of developing-country institutions for TCDC and these institutions are both industrial support institutions and public and private companies and organizations in the manufacturing sector. TCDC is to be applied by these institutions and UNIDO's policy is to make it happen. The other emphasis is on TCDC/ECDC at regional and subregional levels. Additionally, information exchange and use of INTIB and TIES is emphasized and linkage with TCDC-INRES is solicited. Promotion of industrial cooperation networks is another strategy objective. UNIDO recognizes financing as a crucial element and seeks to mobilize resources specifically for ECDC and TCDC.

Objectives

27. Several specific objectives need to be pursued if TCDC is to be a widely utilized modality in implementing programmes and projects. The following could, among many, be given priority attention:

The creation of a favourable environment for TCDC in developing countries by the adoption of clearly stated national policies on the priority attached to TCDC, the areas wherein it should be primarily applied; greater degree of appreciation of the potentials and comparative advantage of TCDC by development partners, particularly developing countries;
Qualitative and quantitative improvement and expansion of the information and data on capacities existing in developing countries and easy access thereto;
Wide application of the modality in the implementation of projects and programmes by rigorously implementing Economic and Social Council resolution 92/41;
Strengthened national mechanisms for the promotion and application of TCDC;
Expansion of opportunities to facilitate the launching of new cooperation activities through tested types of activities such as the matching of capacities and needs negotiations;
Strengthening of institutions which carry out or have the potential to undertake significant TCDC activities.

Elements of the strategy

28. The overall framework for promotion and application of TCDC in the 1990s, as developed following the reviews and consultations, continues the measures found to be useful in the past, strengthening and modifying them as necessary, and providing new emphasis. The main strategy elements are discussed below and the new directions are particularly highlighted.

29. Expansion of sensitization at the national level: To achieve greater awareness of the comparative advantage and to enhance a more favourable environment for TCDC, sensitization and orientation activities at the national level have to be further intensified. The sensitization workshops currently being carried out aim at government officials and private institutions responsible or involved in implementation work, planning and the coordination and management of technical cooperation. These activities should be greatly intensified and, to facilitate this, the UNDP Special Unit has began decentralizing sensitization activities to national focal points and UNDP field offices, while continuing to provide support in the form of resource persons who have been selected from the various regions and given orientation. This approach is less expensive and enables wider coverage and many more orientation workshops than the current average of five per year. A new training manual just issued, publications, as well as visual aids such as video tapes currently under preparation will be available as resource materials. Although the Special Unit plays a more active role in this regard, most of the United Nations organizations carry out sensitization and orientation workshops. The need for sensitization and orientation for internal staff of the United Nations organizations must also be recognized and it should be provided with the same rigour.

30. Articulation of national TCDC policy: Support should be given to Governments to formulate and articulate national TCDC policies. For the formulation and implementation of such policies UNDS will provide every assistance.

Formulation of national TCDC policy and its careful implementation are the best guarantees for enhanced application of TCDC. A simple declaration of preference for the TCDC modality is not sufficient. How the preference will be exercised and how the policy will be implemented will also have to be spelt out in sufficient detail.

The various elements of an effective national TCDC policy can be the following:

Positive decision on the principle of according first consideration to the TCDC modality. For this purpose a coordinating authority in the Government will have to lay down appropriate criteria. The idea put forward in the Latin American context of establishing a national commission on TCDC representing government, academic institutions bodies and private enterprises should be given due consideration.

Identification of capacities which the country can offer to other countries under the TCDC modality and similarly identification of areas in which the country can use technical resources of other countries. This will call for some judgment on needs and capacities of other developing countries. What needs to be ensured, however, is that priority sectors are determined where TCDC will be applied.

Institutional arrangements will have to be made to plan, implement and coordinate application of TCDC. this is where a properly constituted national TCDC focal point can play a vital role. How contacts between participating institutions are to be established and agreements for cooperation are to be finalized, under what terms and conditions trainees or experts are to be deputed or hosted, or how the progress in implementation or the quality of output is to be evaluated, will be among many of the mechanisms to be streamlined and standardized.

The orientation of the field staff of the UNDS and their commitment to TCDC will assume a crucial role in assisting national Governments or institutions in the private sector in proceeding in this manner in programming technical cooperation. This is one way of ensuring first consideration to TCDC modality.

31. Strengthening TCDC focal points: Strengthening TCDC focal points in all developing countries is recognized as a matter of high priority. At the same time TCDC focal points in agencies and organizations of the United Nations also need considerable strengthening.

The agency focal points face many constraints in the important promotional task they have to fulfill. Many of them are often given a marginal role in planning and programming activities and they do not have easy access to decision- or policy-making levels. The resources allocated to play active roles are far from adequate. In the meeting of the agency focal points it was recommended that their role should be strengthened by allocating greater resources for their promotional role, greater commitment to TCDC from top management, to which the agency focal points should have easy access and support. 10/

The national focal points are usually located in the Ministries of Foreign Relations, Finance, Planning or Economic Cooperation. In some countries they are a part of the Office of the Presidency or Prime Minister or even an autonomous agency. The important point about location is the influence or leverage it allows in policy, monitoring and a catalytic role.

The following general functions of the national focal points as recommended by meetings of regional focal points deserve serious consideration. 15/

To assist in the formulation of policies and strategies for the promotion and application of TCDC at the national level.

To monitor, provide guidance and facilitate the work of national institutions to launch activities that enhance and apply TCDC.

To assist as a source of documentation, data and information on capacities in developing countries, TCDC experiences and in the collection, dissemination and updating of information pertaining to TCDC. To organize in cooperation with UNDP and organizations outside the United Nations system orientation seminars to develop national awareness and to promote the wide use of TCDC at all stages of implementation of development programmes and projects.

To coordinate all TCDC activities and all available resources to promote and enhance application of TCDC under bilateral or multilateral programmes.

To serve as the channel of communication on TCDC between the Government and the United Nations organizations and intergovernmental and non-governmental organizations that deal with TCDC.

In order to strengthen national focal points as well as sectoral focal points, United Nations organizations will assist national focal points in establishing a comprehensive information system on all TCDC activities and initiatives of the country concerned. Support to strengthen contacts between national focal points will continue through the institutionalized arrangements of periodic meetings of regional focal points.

32. Database on capacities: For expanding knowledge on capacities and easily accessing technical resources available in the developing countries, the TCDC-INRES database is being updated and enriched. This is a computerized information referral system that was first established in 1976 to encourage and intensify the collection, processing, analysis and dissemination of information on capacities and needs of developing countries. It currently maintains a database of about 4,300 institutions, primarily capturing information on capacities existing in various developing countries.

The measures being implemented aim at vastly expanding information on capacities and improving its quality which will mean concentration on fewer and selected sectors of technology and expertise. Another target is to introduce a system of registration that will enable updating of all information every two years. About 20 national surveys per year are being undertaken, using national consultants in approximately 80 countries.

Providing easy access to this database to more developing country Governments and institutions is the other major objective in respect of TCDC-INRES. Limited decentralization of INRES at the regional or subregional, in preference to country, level have been planned. It is also planned that instead of only responding to inquiries, INRES information will be published and widely distributed. In fact, the first set of such publications will be available very shortly.

33. Mobilization and pooling of financing for TCDC: The BAPA lays down the general guideline that developing countries have the primary responsibility for financing cooperation activities. It also calls on the developed countries to provide support on a voluntary basis and "without prejudice to existing programmes, additional financial support for TCDC projects and activities, for example through third-country financing arrangements". The problem of financing TCDC is one of the most frequently discussed topics in TCDC-related forums. Two aspects should be considered to address this issue with clarity.

First, financing for promotional/advocacy activities, data and information gathering, studies and evaluation, specific meetings/workshops and programmes of institutional training or networking or mutual cooperation are some such activities. Even when the expertise and skills themselves are available free of cost, there are expenses to be met, such as travel costs. The most crucial cost element that has to be mobilized is foreign exchange.

Secondly, there is great potential, however, in the use of the modality in the preparation and implementation of programmes and projects for which resources are already available. TCDC can be used in any project regardless of source of financing and within the means available to a project. Greater efforts to implement programmes and projects, both national and externally funded, using the TCDC modality is hence of the highest priority if this form of cooperation is to be used widely. Economic and Social Council resolution 92/41 calls for giving first consideration to the TCDC option and aims at this objective.

The most common sources for financing of TCDC activities are: national treasuries and institutions of developing countries; United Nations system resources, particularly the IPF; foundations; and the private sector.

These constitute the more conventional sources but a number of other possible sources should be explored if the required resources for new activities and cooperation agreements are to be mobilized.

Bilateral assistance

Some donors are willing to have part of their bilateral assistance used by developing countries to finance projects implemented through TCDC. Such flexibility can greatly help minimize the serious constraint of lack of finance for travel and other costs which require foreign exchange. A host country could pay for local cost, the beneficiary country will continue to pay for all costs such as salaries, and donor finance could over travel and related costs through a cost-sharing arrangement. Bilateral assistance for TCDC could be more through a cost-sharing arrangement. Bilateral assistance for TCDC could be more readily and flexibly available than heretofore. Projects financed through bilateral assistance could hence be more widely implemented through this form of cooperation. Indeed, many developed countries use institutions and expertise from developed countries in the implementation of their cooperation programmes.

Complementarity of efforts and resources

Within the United Nations system, the complementarity of efforts and resources must be strengthened to pool resources in support of TCDC activities. There are good examples of cooperation in which FAO, WHO, DESD, etc., and the Special Unit have very productively and jointly helped the organization and financing of major workshops and capacities- and needs-matching exercises. This pooling of resources has meant that significant resources were mobilized and made available to finance and support important promotional activities.

Fund for support of TCDC

The need for a financing mechanism for TCDC has been underscored in many forums. The establishment of a fund to provide catalytic complementary finance to implement cooperation activities is an option often urged to be considered. It is well established that lack of finance for the implementation of cooperation agreements, resulting from programming exercises has proved to be an intractable problem. An interregional fund to finance foreign exchange components is often cited as an urgent need.

34. TCDC programming exercises for matching needs and capacities: Support to programming exercises will be increased for enhancing contacts, accessing knowledge in regard to needs and capacities and undertaking projects matching needs and capacities. Based on extensive evaluations of these exercises, steps have already been taken to concentrate on limited sectors in programming exercises, do a better job of preparatory work on compilation of needs and capacities, carefully developing projects in sufficient detail and arranging or identifying possible financial resources for implementing. In particular, monitoring of progress in project implementation and evaluation of achievements are being given special attention.

35. Networks and twinning arrangements: Networking and twinning arrangements should be given greater support and priority to facilitate sustained exchange in identified areas of cooperation. Networks provide for long-term relationship and enable the undertaking of activities such as joint research and training which require time and long-term cooperation.

36. TCDC in addressing common problems and issues: Another new area of focus is joint efforts on addressing common problems. It is not only a process of exchange of experience, but also an ongoing process of problem solving through cooperative efforts. In tackling new subjects like sustainable development, information networking or management of economic reforms, there may be joint arrangements set up by several countries to pool experiences and deal with emerging issues.

Notes

1/ See General Assembly resolution 33/134.

2/ Document DP/1990/77 (Governing Council of UNDP, thirty-seventh session). Report of the Meeting of the Group of Governmental Experts on the rules, regulations and procedures of the organizations of the United Nations development system concerning TCDC.

3/ See document A/40/456.

4/ Report of the evaluation mission on INT/83/904 - Promotion of action-oriented TCDC activities.

5/ Reports on INRES-South evaluation: Proposed agenda for INRES action: Major challenges to management for enhancing size, scope and value of database, August 1991; INRES-South evaluation Part II: business development analysis, September 1991.

6/ Report on evaluation of TCDC programming exercises. Prepared by A.M.A. Muhith, A. Riva, R. Hammelton. May 1991.

7/ Report of the Meeting of the TCDC Focal Points of the Organizations of the United Nations Development System (TCDC/7/6), 1991.

8/ Regional TCDC guidelines and strategies for the 1990s: SELA 23rd regular meeting (document SP/CL/XVIII.O/DT No. 17), September 1992.

9/ The Challenge to the South: The Report of the South Commission (London, Oxford University Press, 1990).

10/ See note 7.

11/ Forty-fifth World Health Assembly, "Improving technical cooperation among developing countries", report by the Director-General of WHO (document A/45/11), 6 April 1992.

12/ Food and Agriculture Organization of the United Nations, medium-term plan, 1992-1997 (document C91/23), 1991.

13/ FAO Handbook on TCDC (Rome, 1992).

14/ UNIDO Industrial Development Board, eighth session (document IDB, 8/13), 14 June 1991.

15/ Report of the TCDC National Focal Points Workshop at Damascus (SU/TCDC, UNDP), August 1992.

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