"Globalization has fundamentally altered the world economy, creating winners and losers. Reducing inequalities both within and between countries, and building a more inclusive globalization is the most important development challenge of our time."-Kermal Dervis UNDP Administrator

The global economy had been especially strong in the years prior to 2007, with average worldwide per capita income growing. Review of the previous year made clear that a double challenge existed. The first challenge, critical to the entire United Nations development system, was the overall coherence and “delivering as one” agenda. The idea was not to merge the various mandates or organizations, but build on their skills and expertise to more effectively build links between what happens at the country level and the global policy debate. The second challenge was to continue efforts in poverty reduction, democratic governance, crisis prevention and recovery, and environment and energy. To address the needs of vulnerable groups affected by an increase in globalization, the United Nations attempts to provide a more inclusive, coherent, and single voiced response to global challenges. This report outlines their efforts in this regard.

Highlights

• At the end of 2006, UNDP began administering the UN’s new Global Peace building Fund. As a global fund, it has the flexibility to offer resources to individual countries when other funding mechanisms may not be readily available.
• In 2007, through drafting the 2008-2011 Strategic Plan UNDP embarked on a clearer alignment of programmes and operations.
• UNDP continues its concerted efforts to engage the private sector as the essential engine of dynamic and inclusive economies; UNDP worked with the private sector in 103 countries in 2006, a fifty percent increase from three years prior.