Empowering the Poor - Local Governance for Poverty Reduction

This paper outlines the United Nations Capital Development Fund (UNCDF)'s approach to poverty reduction. The paper is divided in two parts. The first part describes:

• Evolution of UNCDF's poverty reduction approaches from investments in physical capital and infrastructure to education and health services;
• Current initiatives on poverty and poverty reduction;
• Major conferences and summits organized and attended
• Poverty reduction strategies of major multilateral and bilateral organizations focused around:
  • Reaching the poorest, least empowered people and groups in the least developed countries;
  • Better planning and coordination for integrating various components of sustainable, multi-sectorial development over individual projects.

The second part of the paper highlights:

• UNCDF's mandate to help reduce poverty through local development programs and microfinance operations;
• Addressing specific dimensions of poverty, namely:
  • Lack of power,
  • Inadequate access to social services,
  • Insecure livelihood and vulnerability;
• Key Perspectives on poverty and governance:
  • Empowering people to reduce poverty,
  • Supporting administrative/political decentralization,
  • Fostering the impact of governance on public service.

The paper also presents a framework for action on the UNCDF strategy which involves:

• Defining a strategic tool for poverty reduction;
• Adopting an integrated and iterative approach;
• Targeting the poor.

Finally, the paper reiterates UNCDF and its partners' commitment to poverty reduction within the framework of the MDGs.