UN agency helps developing countries improve postal services

Nearly 280 projects worldwide such as bringing postal services to outlying areas, primarily in least advanced countries, have been financed over the past five years by the Universal Postal Union (UPU), a United Nations specialized agency that is the world’s second-oldest international organization, it was announced today.

“While the United Nations are discussing best practices to finance development aid, the UPU Quality of Service Fund (QSF) proves its worth today, as a stable, regular source of funding for our member countries,” UPU Director General Edouard Dayan told a news conference in Geneva.

A unique tool for financing postal development, with a clear link to the UPU’s mission, the QSF funded 279 projects at a cost of $39.6 million between April 2001 and March 2006 to improve services in developing and least advanced countries. A further $47 million is still available for new projects.

Through the QSF, the UPU has increased its development aid eight-fold, earmarking 60 per cent of its annual budget of more than $29 million for projects in developing countries.

“The QSF is unique in that the funding is secured, and all the funds collected are distributed to the countries,” Mr. Dayan said. “Our initiative is unaffected by the snags which those supported from voluntary funds can face.”

The QSF is financed from a supplement to dues paid to the UPU, by industrialized countries in particular. The dues system, managed by the UPU, is used to compensate member countries for the delivery of incoming international mail. In 2004, 6 billion postal items were sent beyond national borders.

Although most projects normally involve one specific country, the QSF also promotes a regional approach. The Fund has, in fact, financed 13 such projects, enabling countries to pool their financial resources to set up a joint project for the benefit of an entire region.

Predating the UN by seven decades, the UPU was founded in 1874, the second-oldest international organization after the International Telecommunication Union (ITU). It is the primary forum for cooperation between postal services, setting the rules for international mail exchanges among its 190 members.

Each year, 5 million employees process and deliver 430 billion domestic letter-post items, some six billion international items and more than 5.4 billion ordinary parcels.