Terms of Reference (under review by the Advisory Board)

Background, Objectives, Purpose and Scope

1. Following the proposal for the establishment of a Democracy Fund, and consultations conducted with Member States, the Secretary-General has established a United Nations Democracy Fund (UNDEF).

2. In the 2005 World Summit Outcome, the Heads of State and Government reaffirmed that democracy is a universal value based on the freely expressed will of the people to determine their own political, economic, social and cultural systems and their full participation in all aspects of their lives. They also reaffirmed that there is no single model of democracy, that it does not belong to any country or region, and reaffirmed the necessity of due respect for sovereignty and the right of self-determination. The Summit Outcome stresses that democracy, development and respect for all human rights and fundamental freedoms are interdependent and mutually reinforcing.

3. The Heads of State and Government renewed their commitment to support democracy by strengthening countries’ capacity to implement the principles and practices of democracy, and resolved to strengthen the capacity of the United Nations to assist Member States upon their request. They also welcomed the establishment of a Democracy Fund at the United Nations.

4. The Heads of State and Government invited the Secretary-General to help ensure that practical arrangements for the Democracy Fund take proper account of existing United Nations activity in this field. The United Nations is already engaged in useful and effective support of democracy in a variety of ways, through activities carried out by the Department of Political Affairs (DPA), the United Nations Development Programme (UNDP), the Office of the High Commissioner for Human Rights (OHCHR), as well as other entities in the United Nations system. The creation of the UNDEF would complement current efforts and contribute to a more focused approach.

5. The primary purpose of the UNDEF will be to promote democratization throughout the world. The UNDEF will provide assistance for projects that build and strengthen democratic institutions, promote human rights, and initiatives that are intended to ensure the full participation of all groups in the democratic process.

6. The UNDEF will provide assistance to government, non-government, national, regional, and international entities including relevant United Nations departments, offices, funds, programmes and agencies.

Structure and Administration

7. The UNDEF will be established as a Trust Fund by the Secretary-General under his authority, and will be administered in accordance with United Nations Financial Regulations and Rules. Every project to be supported by the UNDEF will be subject to the standard programme support cost reimbursement utilized by the United Nations Fund for International Partnerships (UNFIP).

8. An Advisory Board will be established by the Secretary-General to provide policy guidance for the development of programme frameworks and funding guidelines, and to consider proposals for funding. The Advisory Board will recommend funding proposals for approval by the Secretary-General.

9. The Advisory Board will comprise one representative from each of the six largest Member State contributors - as confirmed by firm commitments to the United Nations ; one representative each from five other Member States selected by the Secretary-General to reflect diverse geographical representation; three members to be appointed by the Secretary-General; two representatives of non-governmental organisations which will be selected by the Secretary-General; as well as the Executive Director of UNFIP who will serve in an ex officio capacity. The Advisory Board will normally meet quarterly.

10. The initial members will be appointed exceptionally for a period of 15 months from the first meeting of the Advisory Board. At the quarterly meeting of the Advisory Board, three months prior to the expiration of the exceptional initial period of 15 months, the membership will be reassessed on the basis of the cumulative level of contributions to UNDEF up to that point, as well as to facilitate rotation amongst the other categories of members. On the expiry of the initial period of 15 months, the members of the Advisory Board will be appointed for a period of one year.

11. The Advisory Board will select one of its members to be appointed as Chair by the Secretary-General. The eleven Member States and two NGOs will be responsible for designating their representatives on the Advisory Board. Members would not receive remuneration for their services.

12. The Advisory Board will be supported by an Office of the UNDEF that will consist of an Executive Head and other staff appointed by the Secretary-General. The appointment of the Executive Head will be made in consultation with the Advisory Board.

13. The Office of the UNDEF will be located within UNFIP. For administrative purposes, the Executive Head of the Office will report to the Executive Director of UNFIP, who reports to the Secretary-General through the Deputy Secretary-General. For substantive support to the Advisory Board, the Executive Head will deal directly with the Advisory Board.

14. The core functions of the Office of the UNDEF will be as follows:

(i) develop programme funding criteria, in consultation with the Programme Consultative Group
(ii) solicit and receive proposals on the basis of guidelines approved by the Board
(iii) review project proposals for submission to the Board
(iv) conduct outreach activities
(v) facilitate in-kind donations of technical assistance from States and NGOs
(vi) arrange monitoring and evaluation, as well as audit exercises
(vii) handle all aspects of the allocation, disbursement, accounting of funds
(viii) submit reports to the ACABQ and Fifth Committee of the General Assembly, as and when required

15. All staff costs, as well as all central support services, will be borne by the UNDEF. All financial management and administrative services will be provided by UNFIP on a reimbursable basis.

16. The Secretary-General will establish a Programme Consultative Group (PCG) which will provide advice to the Board on programme funding criteria and on project proposals, through the Executive Head of the Office of the UNDEF.

17. The PCG may comprise up to a total of seven senior representatives from DPA, UNDP, OHCHR and other relevant UN system organizations who will be appointed by the Secretary-General. One of the members will serve as Chair. The Executive Head of the UNDEF will be an ex officio member of the PCG and will be responsible for convening the meetings of the PCG.

18. The Advisory Board may request the Chair of the PCG to attend its meetings as appropriate.

19. In order to keep all donors to the UNDEF apprised of developments, a meeting of representatives from donors that have contributed to the UNDEF will be convened at least once a year by the Secretary-General or a designated Senior Official; this will also provide an opportunity for consultations between the Advisory Board and all donors.

20. The arrangements set out above may be revised by the Secretary-General in the light of experience and evolving needs after due consultations.