United Nations Mandate Source RegistryBeta Version
UN Secretariat MandatesUN System Mandates
United Nations (opens in new tab)
(opens in new tab) (opens in new tab) (opens in new tab) (opens in new tab) (opens in new tab)
Donate (opens in new tab)
  • A-Z Site Index (opens in new tab)
  • Contact (opens in new tab)
  • Copyright (opens in new tab)
  • FAQ (opens in new tab)
  • Fraud Alert (opens in new tab)
  • Privacy Notice (opens in new tab)
  • Terms of Use (opens in new tab)

Establishment of the Special Fund

A/RES/1240(XIII)No PDF available

Who created this mandate?

A Resolution of the General Assembly, published in 1959.

What subjects does this mandate have?

11 topics
AdministrationDevelopment AssistanceEconomic DevelopmentEstablishmentFinancingFundsOrganizational StructurePrinciplesProject IdentificationTechnical CooperationTerms of Reference

What does this mandate say?

84 operative paragraphs
11
1255 (XIII). United Nations programmes of technical assistance (14 November 1958) (item 29 (a) ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
1256 (XIII). United Nations technical assistance in public administration (14 November 1958) (item 29 (c)) .. . . . . . . .. .. .. . .. . . .. . .. . .. . . . . . . . . ..
16
1303 (XIII). Question of assistance to Libya (10 December 1958) (item 30)....
16
1304 (XIII). Report of the Agent General of tht United Nations Korean Reconstruction Agency and progress report of the Administrator for Residual Affairs of the Agency (10 December 1958) (item 27) . . . . . . . . . . . . . . . . . . . .
17
1305 (XIII). Confirmation of the allocation of funds for the Expanded Programme of Technical Assistance in 1959 (10 December 1958) (item 29 (b))........
18
1316 (XIII). International co-operation for economic development of under-developed countries (12 December 1958) (item 28) .. . . . .. . .. . .. . .. . .. . . . .. .
18
1317 (XIII). United Nations capital development fund (12 December 1958.)
(item 28) . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
1318 (XIII). Promotion of the international flow of private capital (12 December 1958) (item 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
1319 (XIII). Transmission of the report on the proceedings of the symposium on the development of petroleum resources of Asia and the Far East ( 12 December 1958) (item 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
1320 (XIII). Rosters of scientific and technical personnel of the less developed countries (12 December 1958) (item 28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
1321 (XIII). Objectives and means of international economic co-operation (12 December 1958) (item 12) . . .. . . .. .. .. . . .. . .. . .. .. .. . .. . .. .. .. . . .. .
20
1322 (XIII). Promotion of international co-operation in the field of trade ( 12 December 1958) (item 12) .. .. . . .. . .. .. .. .. . .. . . .. .. . . .. . . . . .. . .. . ..
20
1323 (XIII). Questions relating to the promotion of international trade and to assistance in the development of less developed countries ( 12 December 1958)
(item 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
1324 (XIII). International commodity problems (12 December 1958) (item 12)..
21
1240 (XID). Establishment of the Special Fund Part A
1
Commends the Preparatory Committee on its work;
In conformity with the dete.rmination of the United Nations, as expressed in its Charter, to promote social
2
Establishes a Special Fund in accordance with the progress and better standards of life in larger freedom provisions set forth in part B below ; and, for these ends, to employ international machinery for the promotion of the economic and social advance-
Part B ment of all peoples,

I.

Conscious of the particular needs of the less developed countries for international aid in achieving accelerated
1
Pursuant to the provisions of General Assembly resoludevelopment of their economic and social infrastructure,
tion 1219 (XII) and pending a review by the Assembly of the
Recalling its resolution 1219 (XII) of 14 December scope and future activities of the Special Fund, as envisaged in section III of that resolution, the Special Fund shall: .1957,
Further recalling previous resolutions on the estab-
a
Be a separate fund; lishment of an international fund for economic develop-
b
Provide systematic and sustained assistance in fields ment within the framework of the United Nations,
essential to the integrated technical, economic and social development of the less developed countries ;
Noting the recommendations contained in Economic and Social Council resolution 692 (XXVI) of 31 July
c
In view of the resources prospectively available at this 1958,
time, which are not likely to exceed $100 million annually, direct 11
its operations towards enlarging the scope of the United Nations programmes of technical assistance so as to include special projects in certain basic fields as outlined hereunder. The Special Fund is thus envisaged as a constructive advance in United Nations assistance to the less developed countries which should be of immediate significance in accelerating their economic development by, inter alia, facilitating new capital investments of all types by creating conditions which would make such investments either feasible or more effective.
2
In establishing programmes, the Managing Director and the Governing Council of the Special Fund shall be guided by the following principles and criteria:
a
The Special Fund shall concentrate, as far as practicable, on relatively large projects and avoid allocation of its resources over a great number of small projects;
( b) Due consideration shall be given to the urgency of the needs of the requesting countries;
c
Projects shall be undertaken which will lead to early results and have the widest possible impact in advancing the economic, social or technical development of the country or countries concerned, in particular by facilitating new capital investment;
d
Due consideration shall be given to a wide geographical distribution in allocations over a period of years;
e
Due consideration shall be given to technical, organizational and financial problems likely to be encountered in executing a proposed project;
(/) Due consideration shall be given to the arrangements made for the integration of projects into national development programmes and for effective co-ordination of the project with other multilateral and bilateral programmes;
g
In accordance with the principles of the Charter of the United Nations, the assistance furnished by the Special Fund shall not be a means of foreign economic and political interference in the internal affairs of the country or countries concerned and shall not be accompanied by any conditions of a political nature ;
h
Projects shall be devised in such a way as to facilitate transfer as soon as practicable, of the responsibilities of the Special Fund to assisted countries or to organizations designated by them.
3
Projects may be for one country or a group of countries or a region.
4
Projects may be approved for the period of time needed for their execution, even if more than one year.
5
The Special Fund shall assist projects in the fields of resources, including the assessment and development of manpower industry, including handicrafts and cottage industries, agricu'iture, traTJsport and communications, building and housing, health, education, statistics and public administration.
6
In view of the resources prospectively available at the time of the initial period of the Special Fund's operations, projects to be assisted by the Fund might be in one or a combination of the following forms : surveys ; research and training; demonstration, including pilot projects. These may be implemented by the provision of staff, experts, equipment, supplies and services, as well as the establishment of institutes, demonstration centres, plants or works, and other appropriate means, including fellowships, in so far as they are integral parts of a specific project financed by the Fund, in such proportions as are judged necessary by the Managing Director for each project, taking into account the type of assistance requested by Governments. General AeaembJ;r-Thirteenth Se11ion Ill.
7
Participation in the Special Fund shall be open to any States Members of the United Nations or members of the specialized agencies or of the International Atomic Energy Agency.
8
There are established as organs of the Special Fund: a Governing Council, a Managing Director and his staff, and a consultative board. The Special Fund shall be an organ of the United Nations administered under the authority of the Economic and Social Council and of the General Assembly, which will exercise in respect of the Fund their powers under the Charter.
9
The Economic and Social Council shall be responsible for the formulation of the general rules and principles which will govern the administration and operations of the Speci~l Fund• the review of the operations of the Fund on the basis of th~ annual reports to be submitted by the Governing Council · and the consideration of the Expanded Programme of Te~hnical Assistance and of the Special Fund in relation to each other.
10
The Economic and Social Council shall transmit the report of the Governing Council, together with its own comments to the General Assembly. The Assembly wilJ review the p;ogress and operations of the Special Fund as a separate subject of its agenda and make any appropriate recommendations.
Governing C 011ncil
11
The immediate inter-governmental control of the policies and operations of the Special Fund shall be exercised by a Governing Council which will consist of representatives of eighteen States.
12
The Governing Council shall provide general poli~ guidance on the administration and operations of the Special Fund. It shall have final authority for the approval of the projects and programmes recommended by the Managing Director. It shall review the administration and the execution of the Fund's approved projects, and shatl submit reports and recommendations to the Economic and Social Council, including such recommendations as the Governing Council may deem appropriate in the light of the relevant provisions of General Assembly resolution 1219 {XII).
13
The States members of the Governing Council shall be elected by the Economic and Social Council from among Members of the United Nations or members of the specialized agencies or of the International Atomic Energy Agency.
14
There shall be equal representation on the Governing Council of economically more developed countries, on the one hand, having due regard to their contributions to the Special Fund, and of less developed countries, on the other hand,
taking into account the need for equitable geographical distribution among the latter members.
15
States members of the Governing Council shall be elected for a term of three years, provided, however, that of the members elected at the first election, the terms of six members shall expire at the end of one year and the ~rms of six other members at the end of two years. Retiring members shall be eligible for re-election.
16
Decisions of the Governing Council on important questions shall be made by a two-thirds majority of the members present and voting. These questions shall include questions of policy, the approval of projects and the allocation of funds. Decisions of the Governing Council on other questions shall be made by a majority of the members present ;uid voting.
17
The Governing Council shall adopt its own rules of procedure. includina the method of selectina- ita ofticer1.
18
The Governing Council shall normally meet twice a year and on such occasions as may be necessary, in conformity with its rules of procedure.
19
The Managing Director of the Special Fund shall participate without vote in the deliberations of the Governing Council.
20
The Governing Council shall make appropriate arrangements in its rules of procedure for the representation of the specialized agencies, the International Atomic Energy Agency and the Executive Chairman of the Technical Assistance Board. To this end, it shall take due account of the practice followed by the Economic and Social Council.
Managing Director
21
The Special Fund shall be administered by a Managing Director under the policy guidance of the Governing Council. The Managing Director shall have the over-all responsibility for the operations of the Fund, with sole authority to recommend to the Governing Council projects submitted by Governments.
22
After having consulted the Governing Council, the Secretary-General will appoint the Managing Director, subject to confirmation by the General Assembly.
23
The Managing Director shall be appointed for a term of four years, or for a shorter period. He shall be eligible for reappointment.
24
,Appropriate arrangements shall be made for the participation of the Managing Director in the Technical Assistance Board.
25
The _ Managing Director shall establish and maintain close and continuing working relationships with the specialized agencies concerned with those fields of activity in which the Special Fund will operate, and with the International Atomic Energy Agency. He may also establish appropriate contacts with other organizations which may be concerned with the activities of the Fund.
Consultative Board
26
A Consultative Board shall be established to advise the Managing Director. The function of the Board shall be to assist the Managing Director with advice in the examination and appraisal of project requests and proposed programmes of the Special Fund. The Board shall be composed of the Secretary-General of the United Nations, the Executive Chairman of the Technical Assistance Board and the President of the International Bank for Reconstruction and Development or their designated representatives.
'Zl. The Managing Director shall make, as appropriate, arrangements for representatives of the specialized agencies and of the International Atomic Energy Agency to be invited to the deliberations of the Consultative Board when projects falling mainly within their fields of activity are considered.
Staff
28
The Managing Director shall be assisted by a small group of officials to be selected by him or in consultation with him, on the basis of their special competence.
29
For other services, the Managing Director shall rely as far as possible on the existing facilities of the United Nations, the specialized agencies, the lnternation~ Atomic Energy Agency, and the Technical Assistance Board. These facilities should be made available to the Special Fund without charge except when clearly identifiable additional expenses are involved. The Managing Director may also, as required, engage expert consultants.
30
To facilitate the field co-ordination between the Special Fund and the Expanded Programme of Technical Assistance in the countries seeking assistance, the Managing Director shall enter into an agreement with the Executive Chairman of the Technical Assistance Board concerning the role of the resident representatives in the work of the Fund.

V.Sources and formulation of requests

31
Projects shall be undertaken only at the request of a Government or group of Governments eligible to participate in the Special Fund.
32
Governments shall present their requests for assistance in a form indicated by the Managing Director. Requests shall include all possible information on the intended use and benefits expected to be derived from the Special Fund's assistance, evidence of a technical nature regarding the projects for which assistance is requested, data bearing upon the economic appraisal of such projects, and statements concerning. the part of costs which the Government itself would be ready to assume. The Special Fund, the Expanded Programme of Technical Assistance, the United Nations, the specialized agencies and the International Atomic Energy Agency should be ready to assist and advise Governments, at their request, in the preparation of their applications for assistance.
33
The Special Fund shall utilize only the official channel designated by each Government for the submission of requests.
Evaluation and approval of requests
34
The Managing Director shall be responsible for the evaluation of project requests. In this evaluation, he will normally be expected to rely upon the assistance of existing services within the Expanded Programme of Technical Assistance, the United Nations, the specialized agencies and the International Atomic Energy Agency. He shall also be authorized to contract the services of other agencies, private firms or individual experts for this purpose, in case the services of the United Nations, the specialized agencies or the International Atomic Energy Agency are wholly or partly unavailable or inadequate.
35
On the basis of the evaluation of project requests, the Managing Director shall periodically develop programmes for submission to the Governing Council. In developing his recommendations to the Governing Council, he shall consult the Consultative Board.
36
The Managing Director shall, at the request of the Government or Governments which have submitted such projects, submit to the Governing Council for its consideration a report on project requests which he has been unable to include in his programme.
37
The Governing Council shall examine the programmes and projects submitted by the Managing Director. Each project shall be accompanied by:
a
An evaluation of the benefits expected to be derived by the requesting country or countries;
( b) A summary of its technical evaluation;
( c) A proposed budget showing the financial implications of the project in their entirety, including a statement on the costs which would be borne by the recipient Governments ;
d
A draft agreement with the requesting Government or Governments ;
e
When appropriate, a draft agreement with the agent or agents responsible for the execution of the project.
38
The Governing Council shall take final decision on the projects and programmes recommended by the Managing Director and authorize him to conclude the appropriate agreements.
Execution of projects
39
Projects shall be executed, whenever possible, by the United Nations, by the specialized agencies concerned, or by the International Atomic Energy Agency, it being understood that the Managing Director shall also be authorized to contract for the services of other agencies, private firms or individual experts in the cases mentioned in paragraph 34 above.
40
Arrangements for the execution of projects shall be subject to the approval of the requesting Government or Governments, and shall be specified in an agreement with these Governments. Such arrangements shall contain provisions regarding the cost, including any local costs, which the requesting Government will assume and those facilities and services which it wilt provide.
41
Where requests for assistance fall within the sphere of two or more organizations, arrangements shall be made for joint execution by the organizations concerned and for proper co-ordination.
42
The Managing Director shall make appropriate arrangements to follow the execution of projects:
43
The Managing Director shall report to the Governing Council on the status of projects and the financial position of the projects and programmes.
44
The Managing Director and the Governing Council shall take appropriate measures to ensure an objective evaluation of the results of projects and programmes.

VI.

45
The financial ::-esources of the Special Fund shall be derived from voluntary contributions by Governments of States Members of the United Nations or members of the specialized agencies or of the International Atomic Energy Agency. The Fund is also authorized to receive donations from non-governmental sources. It is recommended that contributions by Governments should be paid as early in each year as possible. Furthermore, while contributions will normally be on an annual basis, it is recommended, in view of the expected longer term of many of the Fund's projects, that contributions be pledged or indicated, whenever possible, for a number of years.
46
The Secretary-General is requested to convene annually a pledging conference at which Governments would announce their contributions to the Expanded Programme of Technical Assistance and to the Special Fund respectively. If a Government pledges an initial lump sum, it should, within a reasonably short period, indicate the division of its contribution between the two programmes.
47
Contributions shall be made by Governments in currency readily usable by the Special Fund consistent with the need for efficiency and economy of the Fund's operations, or shall be transferable to the greatest possible extent into currency readily usable by the Fund. To this end, Governments are urged to make available as large a percentage as they may find possible of their contributions in such currency or currencies as the Managing Director may indicate are required for the execution of the Fund's programme. The Managing Director should, consistent with the criteria set forth respecting the nature and utilization of contributions, endeavour to make the fullest possible use of available currencies.
48
The Managing Director shall, at the end of the first year of the operations of the Special Fund and subsequently as he deems necessary, report to the Governing Council for its consideration on the extent to which restrictions which may have been maintained on contributions have affected the flexibility, efficiency and economy of the Fund's operations. The Governing Council shall also consider what action may be necessary with respect to currency found not readily usable in order to facilitate the Fund's operations. Any action in this respect General Assembly-Thirteenth SeHion shall be subject to review by the Economic and Social Council and the General Assembly.
49
Contributions shall be made without limitation as to use by a specific agency or in a spedfic recipient country or for a speciirc project.
50
To the end that the multilateral character of the Special Fund shall be strictly respected, no contributing country should receive special treatment with respect to its contribution nor should negotiations for the use of currencies take place between contributing and receiving countries.
51
Since programmes shall be developed on a project basis, there should be no a priori allocation of funds on a country basis or among basic fields of assistance.
52
Recipient Governments shall be expected to finance part of the costs of projects, at least that part payable in local currency. This general rule may, however, be waived in the case of countries deemed financially unable to make even a local currency payment.
53
The Special Fund shall be governed by financial regulations consistent with the financial regulations and policies of the United Nations. The financial regulations for the Fund shall be drafted by the Secretary-General of the United Nations, in consultation with the Managing Director, for approvd by the Governing Council, after review by the Advisory Committee for Administrative and Budgetary Questions. In the preparation of these regulations, account shall be taken of the special requirements of the Fund's operations; in particular, appropriate provision shall be made to permit the approval of projects of more than one year's duration arid for an exchange of ·currencies between the Fund and the Special Account for the Expanded Programme of Technical Assistance. Provision should also exist under which the Managing Director is authorized in consultation with the Governing Council to establish appropriate financial rules and procedures.
54
The administrative budget prepared by the Managing Director with the assistance of the Secretary-General of the United Nations shall be submitted for approval to the Governing Council with the comments, if any, of the Advisory Committee on Administrative and Budgetary Questions. It shall be submitted to the General Assembly at the same time as the annual report of the Governing Council with the comments of the Advisory Committee on Administrative and Budgetary Questions.
55
The Special Fund shall be authorized to build up gradually a reserve fund by earmarking a specific percentage of the total contributions of each year up to an amount to be determined by the Governing Council on the recommendation of the Managing Director.
56
The Governing Council shall be authorized to consider allocating part of the resources of the Special Fund for assistance on a refundable basis at the request of Governments for projects within the terms of reference of the Fund.
PartC Reaffirms the conditions set forth in section IJI of General Assembly resolution 1219 (XII) under which the Assembly shall review the scope and future activities of the Special Fund and take such actior. as it may deem appropriate.
14 October 1958.

iParagraph content is machine-extracted from UN documents. For authoritative content, please refer to the official UN document.

Table of contents