Action Team on Innovative Sources of Financing

Brief mission statement:

For many years, the use of space applications, mainly by developing countries, encountered various problems, including the lack of qualified personnel and equipment and especially the absence of financial resources for the implementation of the process. The large scope of the utilization of space technologies, mainly in Earth observation, has been demonstrated during the last 20 years. However, these promising technologies have not supported development as much as they should have.
In this regard, it was decided at UNISPACE III to conduct a study to adopt measures aimed at identifying new and innovative sources of financing at the international level, including in the private sector, in order to support the implementation of the recommendations of UNISPACE III in developing countries. The work plan of the Action Team for 2002 and 2003 was adopted by the Scientific and Technical Subcommittee at its thirty-ninth session, in 2002.

Findings:

The Action Team has identified three main prerequisite elements for any development project that involves the use of space applications:
(a) Funding: Lack of funding is often the major obstacle in introducing space technology into operational development programmes or projects. That obstacle is generally linked to (i) limited awareness of the possibilities and requirements for securing adequate financial resources to support priority programmes; and (ii) difficulty in proving the cost-benefit advantage of space application techniques to decision makers and potential users. Decision makers responsible for these programmes or projects must ensure they provide adequate information to the development banks or aid agencies;
(b) Political commitment: Government support is essential for projects or programmes of national scope and for projects for which international funding will be sought. The institutions that would participate in a pilot or demonstration project using space applications should make a firm commitment, in cash and/or in kind, to the implementation of the project, as this will add credibility to the project proposal. The institutions that have been identified as users in the project proposal should clearly indicate their commitment to using the space application upon demonstration of its cost-effectiveness;
(c) Education and training: There is a pressing need to provide developing countries with further education and training opportunities in all areas of space science and technology. Trained personnel are essential if space technologies are to be integrated into operational programmes.

Recommendations for further action:

(a) To study carefully, in close liaison with the space industry, how it can contribute to the existing Trust Fund for the United Nations Programme on Space Applications. This should be done by the Action Team in order to present proposals to the Scientific and Technical Subcommittee at its forty-first session, in 2004;
(b) The United Nations should urgently request all Member States to contribute to the Trust Fund for the United Nations Programme on Space Applications. It would be a matter of a strict application of the corresponding provisions of the resolution adopted at UNISPACE III, which stipulates that all States should be invited to support financially or in kind in an annual letter from the Secretary-General that will, inter alia, identify priority project proposals for enhancing and assisting technical cooperation activities, in particular for human resources development;a
(c) In order to mobilize space industry on the partnership issue, the Scientific and Technical Subcommittee should prepare a “white paper” that should be submitted to space industry. The document should contain a presentation of the main recommendations of UNISPACE III and the needs for the coming years;
(d) To study how to promote contributions by non-governmental entities, including space industry and individuals, to an integrated system for the management of natural disaster consequences;
(e) Experts in development banks or aid agencies are not always aware of the possibilities of space application techniques. It could be useful to include in the United Nations Programme on Space Applications the organization of short workshops for such experts in order to present the possibilities offered by space applications to support development, utilizing the results of pilot projects or techniques already used in application programmes.

Indication of impediments to implementation:

(a) The difficulty to convince development banks and aid agencies to support development programmes using space applications;
(b) Well-trained people are necessary, but they need good prospects. This requires a long-term political commitment.

Benefits to be derived from implementation:

Increased availability of funding sources for the implementation of the recommendations of UNISPACE III.

Progress made by the Action Team:

The report prepared by the Action Team (A/AC.105/L.246) should lead to greater awareness of the difficulties faced by developing countries in the utilization of space applications. The report should help decision makers, including those in development banks and aid agencies, in the use of space applications for the implementation of development projects. As the funding problem is inherent in a large number of recommendations of UNISPACE III, the proposals contained in the report should certainly be useful for enhancing the implementation of the recommendations.