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CHILE FUND AGAINST HUNGER AND POVERTY CONCEPT NOTE I. Introduction The Chile Fund against Hunger and Poverty has been created by the Chilean Government and UNDP with the purpose of strengthening the Chilean’s cooperation policy through the creation and implementation of an international cooperation fund to fight hunger and poverty. The creation of this Fund intends to contribute to the achievement of the Millennium Development Goals (MDG) by promoting South-South Cooperation strategies, sharing the Chilean experience in economic and social issues, as well as the design, implementation and assessment of public policies with countries of the same or lower relative development. II. Background In order to finance Chile’s contributions to UNITAID and other initiatives to fight hunger and poverty in the World, on December 1, 2006, Chilean Congress approved a law (N° 20138) which authorizes contributions on behalf of the Government to up to US$5 million per year. These resources were approved as part of international initiatives against hunger and poverty, and are required to be channeled for such purpose, through the Funds, Programs and Agencies of the United Nations System. Since that year, Chile has implemented this innovative mechanism of international cooperation, contributing with approximately US$ 20 million to fight hunger and poverty around the world. On the other hand, United Nations member states have recognized the need to approach development issues from an associative, multilateral perspective; which was acknowledged as one of the Millennium Goals, specifically reflected in Goal 8: developing a global partnership for development. The search for innovative funding mechanisms, as well as the South-South Cooperation (SSC) appears then as a key element to achieve such goal. It is currently recognized that south-south cooperation not only helps strengthens technical capabilities of the countries involved in such exercise, but also contributes in strengthening bonds that are useful to draw nations closer together, and for fostering dialogue on areas beyond the activities within the framework of Cooperation exercises. The United Nations Country Team in Chile, formed by the heads of the United Nations Agencies present in the country, identified South-South Cooperation within Latin American, the Caribbean and other countries as one of the five priorities within the Assistance Framework for Development of the United Nations System in Chile (UNDAF) for the period 2011-2014. UNDAF´s goal is to support the consolidation of Chile as a meddle income contributing country, by enabling systemization of what the country has to offer for international cooperation as well as identifying other countries’ demands and channeling them efficiently. It proposes to foster the creation of cooperation initiatives and best practice exchange among the governments, civil society organizations of Latin American and Caribbean countries, as well as other developing countries, thus complying with the Goal number 8 of the MDG. The Country Program 2011-2014, as agreed between the United Nations Development Program (UNDP) and the Chilean Government, considers south-south cooperation as part of its joint programme. The Chilean Government considers international cooperation for development and the compliance with the MDG of vital importance. Within such context, one of the priorities of its foreign policy´s priorities is to increase cooperation, which is considered as an essential component of such policy and an efficient tool in the compliance with its goals. It is within such framework that the Chilean Government has decided to encourage the creation of a special Fund to fight hunger and poverty in lower and middle income countries, with part of the resources collected as a result of Law N°20.138 with the collaboration of the United Nations Development Program. III. Strategy The Chilean Government and the UNDP Office in Chile have agreed to enhance mutual cooperation to achieve MDG at an international level. The proposal is to achieve such purpose by creating and managing a Fund to support cooperation projects to fight hunger and poverty in countries of equal or lower relative development. The Fund’s aim is to satisfy the needs and priorities of requesting countries integrating in the execution of its activities, state or government entities both Chilean and foreign, as well as civil society and academic organizations. The purpose is to efficiently respond to demands of different nature, in a timely manner while focusing in those areas where the Chilean experience against hunger and poverty may be used as a good practice for other countries. IV. Fund’s Operation The Chilean Government and the UNDP will be responsible for the design, preparation, assessment and supervision of the activities financed by the Chile Fund Against Hunger and Poverty. For this purpose, a Steering Committee has been established, which is responsible for all final decisions regarding selection of projects and monitoring of their adequate implementation. 1. The projects submitted must aimed at contributing to the achievement of the Millennium Development Goals and the fight against hunger and poverty in countries of equal or lower income than Chile. The Steering Committee will prioritize for the first round projects in Haiti, Guatemala, Salvador, Nicaragua, Surinam, Guyana, Ecuador, Paraguay, Bolivia, CARICOM countries and Palestine. 2. Projects and activities aimed to deliver international cooperation on issues where Chile has shown significant achievements in public policies, and particularly those oriented to knowledge and experience transfer shall be prioritized. Initiatives in areas such as: Malnutrition, Food Security Fostering Employment and Decent Employment, Design of Social Programs, among other shall be funded. 3. Projects may include activities such as: experts exchange, missions, scholarships, volunteer work, training (courses, seminars) among others. Infrastructure or the purchase of assets (including vehicles for example) will not be eligible. 4. Public and private institutions will be eligible to participate, as well as UNDP offices and other United Nations agencies, as defined by the regulations established by the Steering Committee. 5. Project will need to be submitted before due dates defined by the Committee. 6. The Steering Committee integrated by representatives of the Chilean Government and the country office of the United Nations Development Program in Chile will select projects according to the following criteria: o Quality of the project’s formulation and design o Relevance for the achievement of the MDGs and the fight against hunger and poverty o Priority countries o Coherence among results, proposed activities, budget requested and chronogram o Impact and potential for sustainability of the proposed initiative o Contribution of the implementing institution to the project (not necessarily financial) V. Amount and duration of the projects The Fund shall finance projects of up to USD 200,000, with one-year duration. Projects need to be submitted to the Steering Committee by filling the Project Profile (document attached). VI. Projects’ Formulation The project profiles selected by the Committee for financing will be required to complete a Results and Resources Framework, with a detail of the activities to be carried out, budget, indicators and performance chronogram. All financed projects will be required to accompany implementation with a visibility strategy aimed at communicating the activities carried out, results obtained and individuals and groups benefitted by the intervention supported by the Fund.