Group of 77—Representing 134 Nations, Plus China– Protest Funding Cuts for South-South Cooperation

Credit: UN/Monicah Aturinda Kyeyune

By Thalif Deen
UNITED NATIONS, Feb 3 2026 (IPS)

A sharp cut in funding for “South-South Cooperation” (UNOSSC) has triggered a strong protest from the 134-member Group of 77 (G-77), described as the largest intergovernmental organization of developing countries within the United Nations.

The protest has been reinforced by four UN ambassadors, two of them former chairs of the G77—Colombia (1993) and South Africa (2015), along with Brazil and India.

Traditionally, the G77 has been backed by China, the world’s second largest economy, and a veto wielding member of the Security Council

A letter of protest, addressed to Alexander De Croo, Administrator, UN Development Programme (UNDP), which funds and oversees the UNOSSC, says South-South cooperation remains a central pillar of the work of the United Nations and is of particular importance to the Group of 77 and China.

The UNOSSC, established by the UN General Assembly at the initiative of the G-77, “plays a critical role in supporting, coordinating and implementing South-South and triangular cooperation initiatives and projects across the United Nations development system, including in support of the UN development agenda”.

“Against this background, the G-77 and China wish to express its serious concern regarding the significant reduction in resources proposed to be allocated by UNDP to UNOSSC under the 2026–2029 Strategic Framework,” says Ambassador Laura Dupuy Lasserre, Permanent Representative of Uruguay to the United Nations and Chair of the Group of 77, in a letter to the UNDP Administrator.

The scale of the proposed reduction is described as “substantial and, if implemented, would severely constrain the Office’s ability to effectively deliver on its mandate.”

The reduction is estimated at 46% of funds allocated by UNDP to UNOSSC under the proposed 2026-2029 Strategic Framework. And in dollar terms, the proposed allocation amounts to USD 16.6 million, down from the USD 30.7 million under the 2022-2025 Strategic Framework. (the amount actually disbursed was approximately USD 22 million).

Of particular concern, is the potential impact of these funding reductions on the management and operational capacity of Trust Funds administered by UNOSSC, including the Perez-Guerrero Trust Fund for South-South Cooperation (PGTF) and other financing mechanisms that provide critical support to developing countries.

The G77 Chair has received a demarche from the Chair of the Committee of Experts of the PGTF conveying the concerns that the ability of the PGTF to continue fulfilling its regular operations might be at stake.

“Reduced institutional capacity to manage these Trust Funds would undermine their effectiveness and would have adverse consequences for beneficiary countries that rely on these instruments to advance development priorities”, warns the letter.

The Group of 77 (and China) is of the view that consideration of the proposed Strategic Framework requires further clarification before approval and should therefore be postponed.

Furthermore, the Group underscores the importance of continued transparency and structured dialogue with Member States.

“Any proposals involving the restructuring or reconfiguration of UNOSSC should be submitted for review and approval, in line with the fact that the Office was established by a resolution of the General Assembly and therefore falls under the authority of Member States.”

“In light of the above, the Group of 77 and China respectfully requests that UNDP give due consideration to all available options to substantially increase the allocation of resources to UNOSSC.”

Such action, the letter said, would be essential to safeguard the effective implementation of the Office’s mandate, protect the integrity and functionality of Trust Fund operations, and avoid negative impacts on developing countries.

Meanwhile, the letter from the four ambassadors reads:

1 “South-South cooperation remains a central pillar of the work of the United Nations and is of particular importance to developing countries. The United Nations Office for South-South Cooperation plays a vital role in supporting, coordinating and implementing South-South cooperation initiatives across the United Nations development system, including in support of the Sustainable Development Goals (SDGs).

2. It is, therefore, with grave concern that we note the dramatic reduction (46%) of funds allocated by UNDP to UNOSSC under the proposed 2026-2029 Strategic Framework: only USD 16.6 million, down from the USD 30.7 million allocated under the 2022-2025 Strategic Framework, the amount actually disbursed having been approximately USD 22 million.

3. While we fully understand the current financial difficulties faced by the UN system as a whole, we believe that the allocation of funds proposed to South-South cooperation imposes losses that are considerably higher than the average reduction experienced by UNDP programs. In addition, given the said current difficulties, it is even more likely that, in 2026-2029, the actual disbursement could be significantly less than the original allocation.

4. In this case, UNOSSC would be left with very modest funding. It is beyond doubt that expected deep cuts in funding will negatively and profoundly impact the Office’s ability to continue providing its invaluable support to developing countries, including in trust fund management. In this particular regard, reduced capacity in UNOSSC to properly support trust funds would be detrimental to the best interests of dozens of developing countries.

5. In light of the foregoing, we kindly request that UNDP promptly consider all means at its disposal to substantially increase allocation to UNOSSC, thus allowing for the effective implementation of the Office’s mandate and avoiding damage to many developing countries.

6. A second concern relates to the proposed shift of the Office toward a more policy-oriented approach, which could aggravate the steep cut in funding mentioned above. While we fully recognize the importance of policy guidance, we strongly believe that an appropriate balance between policy and programming functions must be preserved in UNOSSC, thus ensuring that strategic orientation is underpinned by adequate programmatic capacity.

7. We trust that these considerations will be duly taken into account, acted upon and unambiguously reflected in the final version of the Strategic Framework for 2026-2029.”

IPS UN Bureau Report