Digital Cooperation Fund 

Objectives

Scope

Vision
An Open, Free and Secure Digital Future for All.

Mission
To uphold human dignity and agency in the digital age and accelerate digital cooperation.

Approach
The Digital Cooperation Fund will take a strategic and coordinated approach to selecting and executing projects, to ensure complementarity and synergies with existing and emerging initiatives across geographic levels and thematic focus areas. Project selection The fund will coordinate closely with key initiatives across and beyond the UN system and strategically target to fill gaps, avoid overlap and reinforce existing efforts. Where international alignment of approaches between countries or regions is at stake (for example alignment on standards for technology governance), the fund will survey the landscape and identify key niches and policy windows within which new catalytic initiatives will be launched for maximal complementarity and impact.

Project execution
The fund will take a multi-pronged approach to ignite and sustain digital cooperation at a tactical level, including:

• Convening and enabling global, multi-stakeholder processes
• Developing policy and frameworks for cooperation  
• Advocacy  
• Aligning soft and hard norms for agile and effective governance
• Catalysing international learning
• Incubating and piloting exemplar initiatives

Through this approach, the fund will galvanise international collective action on key issues at the ripe times to shape global digital cooperation in support of its mission and vision and the SDGs. Outcomes (“Pillars”) under this fund will align with action areas of the Road Map and commitments of the GDC, strategically timed for stakeholder engagement and impact, especially in view of WSIS+20 review process and the High-level review of the Global Digital Compact during the eighty-second session of the General Assembly. Including governments, the private sector, civil society, international organizations, academic institutions, the technical community, and other relevant stakeholders

Ongoing Pillars target the critical policy window around a Global Digital Compact to support global cooperation on AI governance, safe and inclusive Digital Public Infrastructure, and international cooperation on Open-Source and data governance.  

Additional Pillars will be defined as new policy windows open and donor interest rises in areas of the Secretary General’s Roadmap on Digital Cooperation and GDC.  

Pillar 1. Digital cooperation on AI governance
(Roadmap Recommendation 3C, GDC Objective 5)

The pace of digital technology development is challenging governance systems. AI in particular shows how dangerous this governance gap has become. Applied well, AI also holds tremendous potential for economies, societies and the planet.

This Pillar will invite proposals that forward digital cooperation on AI governance in the interest of all humanity, supporting digital cooperation on AI in support of the Fund’s vision and mission, including follow-up to the Secretary-General’s Advisory Body on Artificial Intelligence and commitments under the GDC.

Pillar 2. Digital cooperation for safe and inclusive Digital Public Infrastructure (DPI)
(Roadmap Recommendations 1C and 3A, GDC Objective 1)

The race by governments and companies to deploy Digital Public Infrastructures without adequate attention to safety, inclusion and human rights risks compromising citizen trust in, and the economic development potential of, these transformative technologies.

This Pillar will invite proposals that forward cross-border digital cooperation on DPI standards that bring about alignment with human rights by providing guardrails for operational actors in the DPI space to align with when designing, developing and deploying DPIs.

Pillar 3. Global Digital Cooperation
(Roadmap Recommendations 5A and 5B)

The existing digital cooperation architecture has become highly complex and diffused but not necessarily effective, and global discussions and processes are often not inclusive enough. This situation is exacerbated by the lack of a common entry point into the global digital architecture, which makes it especially hard for developing countries, small and medium-sized enterprises, marginalized groups and other stakeholders with limited budgets and expertise to make their voices heard.

Pillar 4. Digital Cooperation on Data Governance
(GDC Objective 4)

The GDC recognizes that responsible and interoperable data governance is essential to advance development objectives, protect human rights, foster innovation and promote economic growth, and the urgent need for strengthened data governance cooperation at all levels with the effective, equitable and meaningful participation of all countries and in consultation with relevant stakeholders to unlock the full potential of digital and emerging technologies.

This Pillar will invite proposals that forward digital cooperation on data governance in the interest of all humanity, supporting digital cooperation on data governance in support of the Fund’s vision and mission, including support to the Commission on Science and Technology for Development’s dedicated working group’s engagement in a comprehensive and inclusive multi-stakeholder dialogue on data governance at all levels as relevant for development.

Pillar 5. Open-Source Cooperation
(Roadmap Recommendation 1B, GDC Objective 1)

The GDC and Roadmap acknowledge the importance of open-source software as a category of digital public goods. Open-source software offers significant advantages, including cost efficiency due to the elimination of licensing fees, increased transparency through publicly available code, and unparalleled flexibility for customization.

This pillar invites proposals furthering international cooperation on open-source software, such as the crossborder sharing of expertise between Open-Source Project Offices, and collective action to support the maintenance of globally crucial open-source elements.  

Pillar 6. Inclusive Participation
(Roadmap Recommendation 1A, GDC Objective 3)

The Global Digital Compact establishes the inclusive participation of all States and other stakeholders as a key principle guiding digital cooperation.  

This pillar will invite proposals to enable the inclusive participation of representatives and stakeholders in intergovernmental and multistakeholder processes and fora.  

Theory of Change

Across its pillars, the Digital Cooperation Fund will help uphold human dignity, agency and rights in the digital age while accelerating progress on the SDGs. It will do so by:

• Promoting collaboration across borders and stakeholder groups to set common frames of reference (principles, objectives, commitments, actions, and review mechanisms)
• Helping build global consensus on risks and opportunities of digital technologies and promoting international learning on governance gaps and responses.  
• Showcasing exemplars of how data and AI collaboration can drive SDG progress, addressing talent and infrastructure challenges while improving data interoperability across borders and across public and private sectors.  
• Promoting ecosystem-led (rather than solution-led) approaches founded on DPIs and Data, catalysing a shift beyond the ICTs for Development paradigm.
• Reinforcing governance of DPIs and data to enhance trust in technology for both users and innovators and protecting human rights.
• Focusing on catalysing public sector capacity building and a whole-of-government/whole-of-society approach to digital transformation. 

Governance

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Steering Committee  

The Steering Committee is the decision-making body of the Fund and ensures overall coordination. The Steering Committee is responsible for the following tasks:  

Strategy  

• Provide general oversight and exercise overall accountability of the Fund.  
• Approve the Fund's strategic direction and orientations.
• Decide on the allocation of un-earmarked contributions across the fund pillars and decide on the allocation of funds under the funding pillars.  
• Review and approve the criteria for the allocation of available resources (the UN chair signs off decisions on fund allocations).  
• Review the Fund's risk management strategy and approve residual project-level risks (as determined by the Secretariat).  
• Review resource mobilization and develop strategies.  

Review results  

• Supervise the progress of the Fund's results framework through monitoring, reporting and evaluation (programme-related and financial), prepared by the Secretariat and the MPTF Office.  
• Commission mid-term and final evaluations on the overall performance of the Fund.  
• Approve requests for programmatic changes to projects (delegated to the head of the Fund Secretariat).  
• Review periodic progress reports consolidated by the Secretariat and the MPTFO based on progress reports submitted by implementing organizations.  

Fund management

•  Approve update to the Fund's Terms of Reference, as required.
• Review the Fund's operational performance.
•  Review periodically the balance of funds.
•  Approve Fund's direct costs, specifically those related to the Secretariat support operations, evaluations and audits.  
• Approve extensions of the Fund's duration, as required.  

The Steering Committee meets on an ad-hoc basis, but at minimum once a year. Extraordinary meetings can be convened if necessary.  The consultation can occur through face-to-face or virtual meetings or by email, including non-objection. The Steering Committee endeavours to reach an agreement by consensus.  When consensus cannot be reached, the chair makes the final decision and instructs the Secretariat and Administrative Agent accordingly.    

The Steering Committee’s composition will include a senior representative from the following Organizations:  

• UN Office for Digital and Emerging Technologies as the Steering Committee Chair • UN University
• United Nations Development Programme
• MPTF Office as the Fund administrator (ex-officio member with no right to vote)
• Other Participating UN Organizations can be invited to participate as observers.

Secretariat  

The Secretariat is the entity responsible for the operational functioning of the Fund.  The Secretariat provides technical and administrative support to the Steering Committee and follows up on all aspects of the allocation and project cycles within the Fund.  The head of the Secretariat reports to the Office for Digital and Emerging Technologies. The Secretariat’s main functions are:  

Policy and Technical Advice  

• Advise the Steering Committee on strategic priorities, program-related and financial allocations.  
• Develop the fund level risk management strategy.
•  Analyse and manage the Fund's knowledge, including knowledge systematization, the establishment of good practices and lessons learned, and recommendations proposals.  Programme Cycle Management  
• Organize calls for letters of interest and appraisal processes.  
• Request the Administrative Agent to transfer funds based on advice provided by the Steering Committee and as authorized by the chair of the Steering Committee.  
• Organize monitoring and control of operational risks, compile and synthesize monitoring results and outcomes for the Steering Committee's consideration.  
• Manage project revision requests (e.g.: follow-up and support on budget revision, reprogramming, no-cost extensions, etc.).
•  Consolidate the narrative annual and final reports submitted by implementing entities and present the consolidated report to the Steering Committee for approval.  
• Liaise with the Administrative Agent on fund administration issues, including issues related to project/fund extensions and project/fund closure.  
•  Conduct monitoring and evaluation procedures.  

Administration and Coordination  

• Maintain an Operations Manual outlining procedures of the Fund.  
• Facilitate collaboration and communication between the Steering Committee and recipient organizations to promote effective project implementation.
• Organize an annual stakeholders' meeting.
• Engage with donors on questions related to the Fund.  
• Develop a Fund's communication strategy and/or facilitate sharing of public information with all stakeholders.
• Advise the chair on the organization of Steering Committee meetings, draft and circulate the calendar and agenda of the Steering Committee meetings and hold records of Steering Committee decisions through minutes of the meetings.  

The Fund Secretariat will be housed in the Office for Digital and Emerging Technologies. The costs of the Secretariat will be charged to the Fund as direct costs. The Secretariat's budget will be annually agreed and approved by the Steering Committee.  

Technical Committees

The Fund Secretariat will also function as the Technical Committee of the Fund. It can reach out to experts to:

• Advise the Fund Secretariat on priorities for allocations.
• Review proposals (both technical and financial) submitted for funding, ensuring conformity with the programme priorities in the call for proposals, and the fund guiding principles and programmatic approaches.
• Review periodic progress reports submitted by the Participating Organizations.

Administrative Agent  

The MPTFO administers the Fund under the pass-through management modality.  The Fund's administration services costs are 1% of received contributions.  

The MPTFO is responsible for the following functions:  

• Provide support to the design of the Fund.  
• Sign a Memorandum of Understanding (MOU) with United Nations Participating Organizations.  
• Sign Standard Administrative Agreements with donors that wish to contribute financially to the Fund.  
• Receive and manage funds including those of the Fund’s closure.
• Invest and reinvest Fund’s resources according to investment policies, practices and procedures. Any profits will be added to the Fund’s resources and will not be credited to the contributions of a particular donor.
• Provide updated information to the Steering Committee regarding the regular resource availability.  
• Subject to the availability of resources, transfer funds to recipient organizations per the Steering Committee's advice and authorized decisions by the United Nations co-chair.  
• Ensure the preparation of consolidated narrative annual and final reports submitted by implementing entities and present the consolidated report to the Steering Committee and each of the Fund's contributors.  
• Provide a Fund's final financial report, which includes a notice of the Fund's closure.  
• Release funds as direct costs for the running of the Secretariat, based on Steering Committee decisions.  
• Release funds for additional expenses that the Steering Committee decided to allocate.
• Provide tools for fund management to ensure transparency and accountability.  In addition, the MPTF Office, through its online portal, GATEWAY (http://mptf.undp.org), provides real-time financial data generated directly from its accounting system, giving relevant stakeholders and the general public the ability to track contributions, transfers, and expenditures.

Participating UN Organizations

Resources will be allocated to Participating UN Organisations (PUNOs), i.e: UN Specialized Agencies, Funds and Programmes that have signed the Memorandum of Understanding with the Administrative Agent.  

Each Participating UN Organisation will assume full programmatic and financial accountability for the funds disbursed to the Administrative Agent.  Each Participating UN Organization will administer such funds in accordance with its own regulations, rules, directives and procedures.  Indirect costs/remuneration of the Participating UN Organization recovered through programme support costs will be seven per cent (7%), with exceptions in line with UNSDG agreements.

Each organization shall establish a separate ledger account for the receipt and administration of the funds disbursed to it by the Administrative Agent.

A minimum threshold of USD100,000 per individual transfer to a United Nations organisation will be instituted though flexibility will be applied upon justification.

National government, civil society, academia and private sector are all potential implementing partners that can receive funding through the Participating UN Organisations.

Contributors  

Financial contributions to the Fund will be accepted from governments of Member States of the United Nations, intergovernmental organizations or non-governmental organizations, private sector companies or individuals.  

Acceptance of funds from the private sector will be guided by criteria stipulated in the UN system-wide guidelines on cooperation between the UN and Business Community (the UN Secretary General’s guidelines) and will be subject to the outcome of applicable due diligence processes.  A risk assessment will be conducted by the fund secretariat and will include approval of the partnership by the Steering Committee. The risk assessment will be presented to the MPTF Office for decision in accordance with the Administrative Agent policies and procedures on private sector due diligence.

A guiding principle for resource mobilization would be that donors are encouraged to contribute with multi-year unearmarked resources. Earmarking is generally discouraged, and donors are asked to contribute unearmarked funds to the degree possible. Unearmarked funding allows for the implementation of cross-pillar projects. However, if this is not possible, earmarking at the pillar level may be accepted. Earmarking to a Participating UN Organization or to a specific project is not possible.  

The Fund receives contributions in fully convertible currency or any other currency that can be readily used. Such contributions will be deposited to the bank account designated by the MPTFO. The value of the contributions, if made in a currency other than US dollars will be determined by applying the exchange rate in effect of the date of payment.

Non-UN Partners

In line with the UN Sustainable Development Group (UNSDG) Guidance Note on a New Generation of Joint Programmes (JP), where there is a strong programmatic rationale, non-UN partners may join a Joint Programme and implement, in parallel, with their own resources. In this context, non-UN Partners may include academic institutions, research organisations, think tanks, philanthropies, and other institutions with resources that further the success of a project, including business sector partners.

Non-UN Partners implement with their own resources and do not receive funds or supplies from PUNOs for implementation. The legal basis for non-UN partners is the signed Joint Programme document (ProDoc), including the results framework, work plan and budget.

Prior to joining a project, non-business, non-UN Partners will have to meet due diligence requirements defined in Annex B4 of the UNSDG Guidance Note on a New Generation of Joint Programmes, via a due diligence review conducted by the Joint Programme team, under the guidance of the lead PUNO. There is a separate procedure for business sector partners. Non-UN partners do not participate in fund or project decision-making.

Project Advisory Groups

The Steering Committee may invite donors and other stakeholders to form Advisory Groups per project, as appropriate. These Advisory Groups shall be advisory in nature only and have no decision-making role(s). 

Projects

Digital Cooperation Fund

Digital Cooperation Fund is currently supporting count_projects ongoing projectscount_globalInterregional and count_countries country-specific. This table shows the most recently approved ongoing projects.

All project financial information can be found in the Financials section, including delivery analysis by organization, theme and project; project financial status by country and by theme.

Digital Cooperation Fund

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