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What is the Full Form of UNCDF? History, Objective, Work etc.

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The United Nations Capital Development Fund was created to fund public and private finance for the poor in the world’s 46 least developed countries (LDCs). UNCDF provides a “last mile” finance model that unlocks public and private resources, especially at the household level, to reduce poverty and support local economic development with its capital mandate and tools. It is the last stage where resources available for the product are scarce, market failures are most evident, and those who benefit from national development are excluded.

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UNCDF: UN Capital Development Fund


Created by the General Assembly in 1966 to promote economic development, UNCDF was officially established as “an autonomous organisation within the United Nations” with the aim of “assisting developing countries in the development of their economies”, which complements existing sources of capital support using grants and loans”.

In 1973, the Governing Council focused UNCDF’s activities toward “first and least developed countries”, and it began focusing on the world’s least developed countries in 1974.

UNCDF Overview

Today UNCDF is functioning in additional than 46 member countries. It works with public and private finance for the poor in the world.

UNCDFUnited Nations Capital Development Fund
HeadquartersNew York, USA
Executive SecretaryPreeti Sinha
Works46 least developed countries

Main Function of UNCDF

UNCDF’s financing models work through three channels

  1. inclusive digital economies: Which connects individuals, families and small businesses to a financial ecosystem that catalyses participation in the local economy and provides the tools to break out of poverty and manage an economic life;
  2. local development finance: This enables localities through financial decentralisation, innovative municipal finance and structured project finance to drive local economic expansion and sustainable development
  3. investment finance: Which provides catalytic financial structuring, de-risking and capital deployment for SDG impact and domestic resource mobilisation.

What makes UNCDF different?

UNCDF is a small but focused organisation with a primary job to do. With a unique capital mandate in the United Nations Development System, the UNCDF helps keep finance flowing to the least developed and excluded people, places and small enterprises. UNCDF shows every day how small amounts of official development assistance can help LDCs leverage public and private resources for maximum impact in the last mile.

UNCDF is innovative – It can help introduce new and innovative technologies, financing tools and partnerships to tackle inequality and exclusion in LDCs;

UNCDF is catalytic – In the rapidly changing development finance landscape, UNCDF can support LDCs to use Official Development Assistance (ODA) to take advantage of other sources of finance. UNCDF’s innovative finance model and public-private partnerships can also help in risk-free markets to encourage investment and promote sustainable development;

UNCDF promotes inclusion – UNCDF helps LDCs build more inclusive and resilient communities and economies by assisting them in targeting areas and sectors that other development finance institutions have not yet focused on. It is crucial to meet the challenges of the 2030 Agenda to leave no one behind.


Q. What is the Full form of UNCDF?

Ans. UN Capital Development Fund (UNCDF).

Q. How many countries are in the UN Capital Development Fund?

Ans. There are 46 least developed countries.

Q. Who is the head of the UNCDF?

Ans. Preeti Sinha is the Executive Secretary of the UN Capital Development Fund.

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