Doha Declaration on Financing for Development adopted as Key Official Comments outcome document of the Follow-up International Conference At the opening of the Conference, the UN to Review the Implementation of the Monterrey Consensus Secretary-General Ban Ki-moon, recalling that the Monterrey Consen- The Follow-up International Conference a provision for adequate policy space in sus marked "a new era on Financing for Development to Review developing countries. of cooperation, bridging the Implementation of the Monterrey the old North-South divide", stated that Mobilizing international resources for "the Monterrey vision could yet deliver Consensus was held in Doha, Qatar, on 29 development: the need to improve the all that, and more. Faithfully imple- November - 2 December 2008. The enabling environment and to expand the mented, it is a path out of our current Conference was chaired by the Emir of predicament." [Full statement] reach of private flows to a greater Qatar and included seven plenary meetings number of developing countries and to As the Conference and six multi-stakeholder round tables on the areas of investment such as human President, in his open- the major thematic areas of the Monterrey resources, transport, energy, ing remarks, Sheikh Consensus. Some 40 Heads of State or communications, information Hamad Bin Khalifa al- Government, 9 Deputy Heads of State or Thani, Emir of Qatar, technology, etc. emphasized the role of Government, 50 ministers and 17 vice- the Conference in form- ministers of foreign affairs, finance, International trade as an engine for ing a broad vision for development. development cooperation and trade, and development: the importance of “Development is an umbrella of peace concluding the Doha round of that protects everyone,” he said. [Full other high-level officials from 170 States, statement] multilateral trade negotiations as soon as well as representatives of all relevant stakeholders, participated in the as possible, with a strong development Welcoming "the re- content, taking into account special markable" Doha Decla- Conference. ration, General Assem- needs of the Least Developed bly President Miguel Countries. d'Escoto Brockmann Doha Declaration said it "highlighted a Increasing international financial and new sense of solidarity Following intense intergovernmental and goodwill among nations at a time technical cooperation for development: when we can be tempted to withdraw negotiations, culminating in its Main the importance of fully maintaining into our narrowly defined self- Committee, the Conference adopted the ODA commitments by donors while interests". [Full statement ] Doha Declaration on Financing for addressing special needs of low- and Development. The three key messages of On behalf of the UN middle-income countries, and the call Secretary-General, Sha the document are: (i) strong commitment for a close monitoring of ODA flows, Zukang, Under- by developed countries to maintain their as well as further exploring innovative Secretary-General for ODA targets irrespective of the current Economic and Social sources of finance. financial crisis; (ii) recognition that the Affairs, who steered UN External debt: the need to strengthen substantive support to the Conference, United Nations has a vital role to play in called the Declaration "an important addressing new challenges and emerging crisis prevention mechanisms and to milestone in the struggle for develop- issues in financing for development; and consider enhanced approaches for debt ment" that adds significant value to restructuring mechanisms. what was achieved in Monterrey in (iii) decision to hold a UN Conference at 2002. [Full statement] the highest level on the impact of the Addressing systemic issues: the need to current financial and economic crisis on review existing global economic development. governance arrangements, with a view to comprehensive reforms of the Other highlights of the Declaration are: international financial system and Domestic resource mobilization: the institutions; and the call for a UN importance of national ownership of conference to discuss the world development strategies and of an financial and economic crisis and its inclusive financial sector, as well as the impact on development, the modalities need for strong policies on good of which are to be decided by the end of © 2007 Design UN-NGLS, UN Geneva governance, accountability, gender March 2009. equality and human development, with (continued on p. 2)
Issue 19, December 2008 1
Other new and emerging issues: Many speakers emphasized that the duty-free and quota-free market access recognition of the development Doha Conference was taking place at a for all their exports. There was an ur- finance challenges posed by the fateful moment. All aspects of sustain- gent need to eliminate trade-distorting climate change and the fluctuations able development, including economic, subsidies. “Aid for Trade” was also in the prices of primary social and environmental dimensions, very important. commodities, including food and were essential to ensure the well-being It was proposed that the Doha meeting energy; and the need to strengthen of all people in every society. The role should send a strong message in these international cooperation in tax of the State should be strengthened, as trying times by strengthening the global matters. present circumstances indicated the in- partnership for development, including dispensable role of a pro-active State. Staying engaged: the call for in the context of ODA. Aid delivered Although each country was responsible strengthening the follow-up with more predictability and less condi- for its own development, joint efforts mechanism of the Monterrey and tionality would help developing coun- by all members of the international Doha Conferences, while tries to move onto a path of self-reliant community were necessary to ensure maintaining its inclusive, multi- development by complementing their sustained economic growth and devel- stakeholder character. domestic efforts. opment. Moreover, the Doha Conference should Plenary meetings The current finan- encourage grants and long-term financ- cial crisis com- The Emir of Qatar, the ing to the poorest and most vulnerable pounded food in- President of the General countries. African development was an security, the per- Assembly, the Secre- absolute priority and required a new sistence of ex- tary-General of the “Marshall Plan”. It was also critical to treme poverty and United Nations, the Di- increase support to LLDCs, especially the threats posed rector-General of WTO, in transport and related issues. North- by climate change. the Secretary-General South cooperation should adhere to To address the of UNCTAD and the Paris Declaration and Accra Accord on current crisis, the international commu- Administrator of UNDP spoke at the Aid Effectiveness. opening. In addition, deputy heads of nity should continue to strengthen mac- the World Bank and IMF, as well as roeconomic policy coordination, ex- It was critical that ODA commitments heads of other institutional stake- pand financial information sharing and were met at a time when developing holders, also made statements. Oral re- deepen cooperation in financial over- countries needed support more than ports on the Civil Society and Business sight. The United Nations should lead ever. Developed countries should strive Forums and on the Parliamentary Hear- efforts to alleviate the consequences of to achieve the ODA target of 0.7 per ing, which preceded the Conference, the current and future crises. There was cent of GNI. The United Nations were also delivered. a need to consider holding a major should play a leading role in monitoring United Nations international conference aid flows, in cooperation with OECD- In their statements, Member States took to review the international financial ar- DAC. Additional emergency financing stock of the progress made in the im- chitecture and global economic govern- was needed from IMF, the World Bank plementation of the Monterrey Consen- ance structures. and other sources. It was also important sus, identified obstacles and constraints to explore new and innovative sources It was recalled that the WTO negotia- encountered and put forward ideas and of financing for development. proposals to overcome these difficul- tions under the Doha round had stalled. ties. Many statements focused on the Rapid conclusion of these negotiations There was a general view that private consequences of the global financial was critical to maintaining and nurtur- sector development was important for a crisis for development and the need for ing the Monterrey Consensus. All coun- dynamic economy. At the same time, bold and urgent measures to address tries should strengthen their commit- making social responsibility mandatory them, including through strengthening ment to the principle of special and dif- for business was essential to enhance of the financial oversight and global ferential treatment of poorer countries. the contribution of the private sector to regulatory frameworks and building a In particular, LDCs should be granted development. An enabling environment reliable financial system. Much atten- tion was also devoted to the food and energy crises and to the untapped po- tential of innovative sources of finance. Among other new challenges and emerging issues, financial implications of the climate change adaptation and mitigation and the need to strengthen the financing for development follow- up process featured prominently on the agenda.
Issue 19, December 2008 2 was a critical element in fostering both essential. The United Nations should Given that developing countries are the development of the domestic private adopt a more effective intergovernmen- not fully integrated into international sector and for attracting foreign invest- tal mechanism that would warrant a forums on tax matters, the UN ment, especially to Africa. more substantive review process, while Committee of Experts on Interna- maintaining its inclusive and multi- tional Cooperation in Tax Matters It was suggested that the current crisis stakeholder approach. could play an important role for such was an opportunity to “green” the countries. To further promote such Earth’s economy. Investment in international cooperation, several “green” technologies would yield pay- Round table 1: Mobilizing participants supported the upgrading offs in the long term. It was recognized domestic financial resources for of the Committee of Experts to an that financial resources needed to com- development intergovernmental Commission. bat climate change could be generated from the carbon market. It was also im- Capital flight (estimated at $500 – portant to strengthen financial mecha- $800 billion per year), derived nisms for climate change mitigation and mostly from illicit financing flows, adaptation, especially in SIDS. tax evasion and avoidance, transfer- mispricing by TNCs and corruption, Several speakers stated that resources imposes large costs on development. released so far through debt relief had In order to prevent such capital been inadequate to permit debt- flight, it is necessary to strengthen distressed developing countries attain the exchange of information among the IADGs, including the MDGs. There tax authorities on a regular basis. was a need for fair and effective inter- Round table 1 was co-chaired by Emo- national mechanisms for debt relief and mali Rahmon, President of Tajikistan, Corruption is an issue for both de- to overcome illegitimate or odious debt. and John Michuki, Minister for Finance veloped and developing countries. In Debt relief programs therefore must be of Kenya. Justin Yifu Lin, Chief order to reduce corruption in the area stepped up so that a greater number of Economist and Senior Vice-President of natural resources, the Extractive poorer nations could benefit. of the World Bank, moderated the Industries Transparency Initiative should be recognized as an important Several participants stressed that it was panel. Presentations were made by the instrument. The UN Convention fundamental to invest in human capital, following panellists: Azizul Islam, against Corruption and the Stolen with a particular emphasis on education Minister for Finance of Bangladesh; Asset Recovery Initiative should be and social services. Infrastructure and Assane Diop, Executive Director, So- strengthened, extended and adopted technology development were also key cial Protection Section, ILO; Angel by more countries. to economic transformation and diversi- Gurría, Secretary-General of OECD; fication. Gender equality and the em- Michael Keating, Director of the Africa The increased taxation of natural re- powerment of women were essential for Progress Panel; Princess Máxima of the sources when the price is high as economic growth, poverty reduction, Netherlands, member of the UN Advis- well as fees on public services could environmental sustainability and devel- ers Group on Inclusive Financial Sec- supplement existing tax revenues in opment effectiveness. It was important tors; and Vito Tanzi, former State Un- developing countries. to mainstream gender into the design der-Secretary for Economy and Finance It is estimated that approximately 20 and implementation of development of Italy. per cent of the population in devel- policies. The following key points were made in oping countries (2 billion people) do It was observed that developing coun- the presentations and discussions: not have access to formal financial tries had been severely impacted by the Taxes represent the most important services, such as banking (savings detrimental effects of illegal financial resource for investment, which in and loans) and insurance. As a re- flows on their economy. The fight turn is essential for effective State- sult, the poor face both high transac- against tax evasion, money laundering building. Effective tax policies that tion costs and high risk in the infor- and transfer of illegal funds had to be a are fair, neutral, simple and broad- mal financial sector for sending and priority in development cooperation. based, together with a tax admini- receiving remittances. Also, the UN Committee of Experts on stration that is easy to comply with, In order to enhance incentives for International Cooperation in Tax Mat- are essential for sustainable devel- savings, it is necessary to ensure that ters should soon be upgraded into an in- opment. real interest rates are positive rather tergovernmental body to enhance its than negative. Financial depression impact and effectiveness. In order to support capacity-building in tax policy and administration in should be avoided. There was a general agreement that the developing countries, it is essential Taking into consideration the recent Monterrey Consensus was a far- to provide technical assistance in bankruptcy of some major financial reaching document to foster worldwide those fields, in particular to establish institutions, there is an urgent need development. An effective follow-up to bilateral tax treaties and the ex- to establish a guideline or regulation the Monterrey and Doha outcomes was change of information. for transparent loan terms and con-
Issue 19, December 2008 3
sumer-protection mechanisms for regulatory systems in developed Round table 3: International microcredit. countries. In light of this failure, trade as an engine for develop- there is a need to license, regulate Given the critical lack of productive ment and supervise all financial interme- capacity and relatively high cost of diaries, to overhaul and oversee cus- electricity in many developing coun- todial institutions, such as credit- tries, further investment in infra- rating agencies, and to revisit ac- structure, including energy, agricul- counting standards. ture and human development (espe- cially education), is essential. The following ways to encourage productive and sustained FDI were Round table 2: Mobilizing inter- suggested: (a) transparent reporting national resources for develop- of revenues by corporations and payment of taxes and fees to the ment: foreign direct investment Round table 3 was co-Chaired by Olga and other private flows Government; (b) ensuring that inter- national corporations comply with Algayerova, State Secretary of the Min- disclosure standards; (c) supporting istry of Foreign Affairs of Slovakia, enforcement and monitoring mecha- and Ana Vilma de Escobar, Vice- nisms for regional and international President of El Salvador. Valentina commitments on transparency, such Rugwabiza, Deputy Director-General as the UN Convention against Cor- of WTO, moderated the panel. Presen- ruption and the OECD Convention tations were made by the following against Corruption; (d) ensuring, panellists: Pedro Luiz Carneiro de through source-country Govern- Mendonça, Under-Secretary-General ments, that companies act with the for Economic Affairs of Brazil; De- same level of integrity abroad as bapriya Bhattacharya, Permanent Rep- Round table 2 was co-chaired by Denis they do within their national borders; resentative of Bangladesh to the UN Sassou Nguesso, President of the and (e) enforcement of a transparent Office in Geneva and President of the Congo, and Bob McMullan, Parliamen- financial system and investment in Trade and Development Board of tary Secretary for International Devel- infrastructure and human resources UNCTAD; Miguel Hakim, Secretary opment Assistance of Australia. Su- on the part of developing countries. for Iberoamerican Cooperation, Secre- pachai Panitchpakdi, Secretary-General taria General Iberoamericana; Abdoulie of UNCTAD, moderated the panel. There is a need to develop a solid Janneh, Executive Secretary of ECA; Presentations were made by the follow- foundation for entrepreneurship by Sun Zhenyu, Ambassador of China to ing panellists: Hiroto Arakawa, Senior increasing ODA in areas that would WTO; and Paavo Väyrynen, Minister Special Adviser, Japan International enhance the functioning of the busi- for Foreign Trade and Development of Cooperation Agency; Trevor Manuel, ness sector and the provision of Finland. long-term debt to entrepreneurs. Minister for Finance of South Africa The following key points were made in and Special Envoy of the Secretary- With respect to the activities of in- the presentations and discussions: General for the Conference; Joyce H. ternational financial institutions, de Ginatta, President, Federación In- special attention should be paid to In assessing the implementation of teramericana Empresarial of Ecuador; the development of small and me- five trade-related paragraphs of the Huguette Labelle, Chair of Transpar- dium-sized enterprises, particularly Monterrey Consensus, substantial ency International; Avinash Persaud, those that promote entrepreneurship progress was made in: (i) expanding Chairman of Intelligence Capital; and by youth and women. WTO accession; (ii) increasing fi- Kamalesh Sharma, Commonwealth nancial resources derived from trade; Secretary-General. FDI is not necessarily better than (iii) expanding bilateral and regional other forms of private capital flows. free-trade agreements; and (iv) re- The following key points were made in Over the long term, the outflow of doubling aid for trade. However, the the presentations and discussions: dividends could destabilize recipient conclusion of the Doha round of To promote FDI, especially in light country financial markets. Also, multilateral trade negotiations was of the current financial crisis, there is TNCs could use transfer-pricing to not achieved. Therefore, the Doha a need for an enabling environment, avoid taxation. Equity investment Conference needs to provide at least created through policy reform and flows, with the exception of the a political impetus and a road map institutions, and for risk mitigation. short-term loans, which could be de- for further negotiations. stabilizing in adverse financial envi- In both cases, ODA could have a In light of the current financial crisis, catalytic role in technical assistance. ronment, might have more stabiliz- ing effect on economy. A strong it is especially important to keep the The current crisis has exposed the regulatory framework is important in international trade open since it is in- failure of the existing crisis- limiting the volatility of private capi- trinsically related to growth and de- prevention system, including the tal flows. velopment, and to urgently complete
Issue 19, December 2008 4
the Doha round with a balanced out- Affairs of Hungary. Olav Kjorven, As- development cooperation, building come. One of the key objectives of sistant Secretary-General and Director, more effective and inclusive partner- WTO is to ensure a level playing Bureau for Development Policy, ship for development, increasing field for all its members and to help UNDP, moderated the panel. Presenta- productivity and concessionality of countries neglected by globalization tions were made by the following pan- aid and improving management of to integrate themselves into the elists: Bader Al-Dafa, Executive Secre- aid by recipients. Currently, 75 per world economy. “Aid for Trade” is tary, ESCWA; Ahmad Mohamed Ali cent of ODA from DAC donors to critical in that respect and should be Al-Madani, President, Islamic Devel- LDCs is untied. This amount must transparent and additional to ODA. opment Bank; Eckhard Deutscher, be further increased. Chair, Development Assistance Com- Many developing countries have Technical cooperation must be coun- mittee, OECD; Gargee Ghosh, Senior failed to benefit from international try-led and country-owned and do- Program Officer for Development Fi- trade. A successful Doha round nors should facilitate coordination nance & Policy, Bill and Melinda Gates could rebalance the system and bring between themselves to avoid frag- Foundation; Jean Ping, Chairperson, more benefit to a greater number of mentation. African Union Commission; and Sam countries. The current crisis threat- Worthington, President and Chief Ex- There is a need for greater political ens this opportunity and it is crucial ecutive Officer, InterAction. will and result-oriented framework to coordinate crisis-fighting and re- for ODA. In this connection, better sist protectionism. data and evaluation mechanisms for The major instrument for facilitating better policy making are required. the beneficial effects of trade for de- The need for new finance mecha- veloping countries is their special nisms was also pointed out, which and preferential treatment. It is should supplement existing ODA. hoped that emerging market coun- There have been some significant tries would follow the European Un- changes in the aid architecture, espe- ion lead in offering tariff-free and cially regarding the involvement of quota-free access to LDCs. the NGO community. In 2006, $54 Trade is the most important engine The following key points were made in billion of private funds for develop- for development of Africa in many the presentations and discussions: ment cooperation were disbursed ways. Given serious obstacles faced through NGOs. NGOs work with by the continent, a priority should be In addition to delivering on ODA Governments and partner with given to well-targeted “aid-for- commitments, it is important to community-based organizations, lo- trade” for ports, telecommunications make aid more effective. The re- cal businesses and foundations, usu- and customs capacity-building. quired adjustments include further ally in the framework of long-term untying of aid, improving coordina- programmes. NGOs add value at the In light of the current crisis, immedi- tion and harmonization and strength- local level, helping in local capacity- ate challenges include: (i) sustaining ening triangular and South-South building. They also partner with the the multilateral trading system and cooperation. United Nations. resisting hegemonic and protection- ist tendencies; (ii) concluding the The following additional ways to Innovative sources of financing Doha round with a balanced out- make aid more effective were put should be additional and comple- come, including tariff-free and forward: (i) encouraging more initia- mentary to ODA and new initiatives quota-free market access for all tives to share knowledge and innova- should be inclusive and participa- LDCs and their goods; and (iii) re- tion through development coopera- tory. Implementation of new initia- solving the commodities issue, the tion; (ii) helping recipient countries tives, such as the CTT, is welcome cotton issue being the prime exam- to graduate from aid; and (iii) realiz- and more Governments should join ple. Domestic policy and institu- ing that helping the poor is a “win- the Leading Group on Solidarity tional reforms are also necessary to win” situation. Levies to Fund Development. Aid ensure that trade benefits result in ODA has usually been reduced after for climate change should also be poverty reduction. a crisis. Failure to meet the goals set additional to ODA commitments. by the DAC donors would have a severe impact on the poor, particu- Round table 4: Increasing inter- larly in the wake of food and finan- Round table 5: External debt national financial and technical cial crises. To mitigate this, devel- Round table 5 was co-chaired by Isatou cooperation for development oped countries should lower agricul- Njie-Saidy, Vice-President of Gambia, Round table 4 was co-chaired by tural subsidies and improve market and Mario Delgado Alfaro, Deputy Di- Laurent Gbagbo, President of Côte access for developing countries. rector-General for International Finan- cial Affairs, Ministry of Economy and d'Ivoire, and Laszlo Varkonyi, State Further efforts are needed in Finance, Spain. Murilo Portugal, Dep- Secretary of the Ministry of Foreign strengthening country ownership of
Issue 19, December 2008 5 uty Managing Director, IMF, moder- the structural vulnerability, it was The current financial crisis, for ex- ated the panel. Presentations were made suggested to simplify the rule that ample, is caused by irresponsible fi- by the following panelists: Nancy Bird- determined access to IDA grants. To nancial behavior of some developed sall, President, Center for Global De- address the episodic vulnerability, it countries accompanied by too much velopment; Carlos Braga, Director, was proposed to create a automatic deregulation and living beyond their Economic Policy and Debt Department, and timely contingency that would means. This creates moral and ethi- World Bank; Benoît Coeuré, Co- delay debt service or otherwise re- cal issues, which should be ad- Chairman, Paris Club; Robert Gray, lieve debt in the event of an external dressed within the FfD agenda. Chairman, Debt Financing and Advi- shock and allow more borrowing sory, HSBC; and Mary Robinson, under the current debt sustainability President, Ethical Globalization Initia- framework. Round table 6: Addressing tive. systemic issues: enhancing the The role of debt in promoting devel- coherence and consistency of the opment raises many economic and international monetary, financial philosophical questions. On one and trading systems in support of hand, borrowing allows countries to pursue economic objectives, but on development the other hand, indebtedness could Round table 6 was co-chaired by Joon be harmful and on balance its effect Oh, Deputy Minister for Foreign Af- depends on how the new resources fairs, Republic of Korea, and Jorge Va- are utilized. lero, Vice-Minister for North America Debt Sustainability Framework and and Multilateral Affairs, Venezuela. Sha Zukang, Under-Secretary-General The following key points were made in debt relief mechanisms and terms of for Economic and Social Affairs, the presentations and discussions: treatment remain a challenge. Some of the features recommended for im- United Nations, moderated the panel. Substantial progress has been provements were speed, comprehen- Presentations were made by the follow- achieved in the implementation of siveness, realism, fairness and trans- ing panelists: Hany Dimian, Deputy the external debt chapter of the Mon- parency. Chairman, IMFC and Deputy Finance terrey Consensus. However, the cur- Minister, Egypt; John Eatwell, Profes- rent financial crisis has the potential Since 2002, the working relationship sor, University of Cambridge, United to undo some of this progress. The between the private and official sec- Kingdom; Adib Mayaleh, Chair of the debt distress situation in several de- tors in the area of crisis prevention G24 and Governor, Central Bank of veloping countries is worsening. and resolution has improved, con- Syria; Louis Michel, European Com- Many post completion point HIPCs tributing to a better dialogue on debt missioner for Development and Hu- are falling back into debt crisis situa- sustainability. Other developments manitarian Aid; Joakim Stymne, State tions: 14 out of 23 such countries are include: (i) the increasing realization Secretary, International Development now facing deep or moderate risk of that regulations have to be counter- Cooperation, Ministry of Foreign Af- debt distress. cyclical, in order to maintain debt fairs, Sweden; and Heidemarie Wiec- sustainability; (ii) the increasing in- zorek-Zeul, Federal Minister for Eco- Full delivery on the HIPC Initiative troduction of collective action nomic Cooperation and Development, would require more efforts. 18 coun- clauses in bond issues; and (iii) the Germany and Special Envoy of the Sec- tries didn’t reach decision point. If increased blurring between domestic retary-General for the Doha Review Gleneagles commitments are to be and external debt, creating a new set Conference. reached, there should be much faster of challenges. rate of growth of assistance to these countries. The question also remains Increased transparency, including in about ways of dealing with the post- complying with the IMF’s SDDS HIPC countries, which are in pre- and early dialogue between debtors crisis situation, as well as some low- and creditors, could contribute to re- and middle-income countries, to ducing misunderstandings by credi- which HIPC was not available. tors about debtor measures to restore confidence. Also, IIF’s Code of There is a need for short-term loans Conduct for Emerging Markets, en- to help developing countries deal dorsed by the G20 in 2004, could The following key points were made in with the consequences of the current contribute to stability of capital the presentations and discussions: financial crisis. flows. Two major issues on the systemic HIPC debt relief has failed to reduce Developing countries are affected by agenda are: (i) specific policies to the vulnerability of poor countries food, fuel and financial crises, as support a more effective functioning that face two kinds of vulnerability – well as by climate change, resulting and coordination of the international structural and episodic. To deal with from developed countries policies. financial architecture; and (ii)
Issue 19, December 2008 6
strengthening the role of developing tional monetary system, including International Business Forum, held countries and transition economies better management of external on 28 November at the La Cigale in global economic governance. shocks, macroeconomic policy coor- Doha Hotel under the theme: “The dination, efficient multilateral liquid- Impact of the Financial Crisis and The current financial crisis has ity provision and consideration of a Proposed Roadmaps: Mobilizing broadened the consensus on the ur- debt workout mechanism. Private Sector Resources for Devel- gency of a far-reaching reform of opment”. The Forum was attended global economic governance and the Civil society and business sector by more than 200 participants from international financial architecture. could provide new ideas and con- the private sector representing all re- Lack of an effective mechanism for tribute to government policy design gions of the world and a full range of management and resolution of finan- and implementation in addressing business sectors. cial crises is a major problem. systemic issues. Parliamentary Hearing on Financing The global financial system is facing for Development held on 28 No- a crisis of confidence. In restoring Pre-conference events vember at the Conference site. confidence, global coordination is needed. While fiscal stimulus pack- The Conference was preceded by the The key messages from those events, ages are important to restore market following important events: aimed at strengthening the global part- confidence, the global community High-level retreat on the global fi- nership for development, were deliv- has to step up efforts for prudent nancial crisis, hosted on 28 Novem- ered to the Conference. regulation of financial markets. ber at the Four Seasons Doha Hotel While looking for global solutions, it by the Secretary-General of the Flag raising ceremony is important to strengthen the integ- United Nations and the Emir of rity and accountability of the interna- Qatar and followed by the press- tional financial institutions. There is conference by the Secretary-General. an urgent need for an economic and The retreat was attended by some 30 political consensus on global multi- Heads of State or Government and lateral financial reform and a Bretton ministers from both developed and Woods II system. The reform proc- developing countries, as well as ess itself should be inclusive, legiti- high-level representatives of the ma- mate and transparent. jor institutional stakeholders. The re- treat was meant to serve as a While Governments are currently “bridge” between the discussions on struggling with short-term responses the financial crisis that had taken to the international economic and fi- place among smaller groups of coun- A symbolic ceremony to raise the flags nancial crises, in the medium term tries and the wider membership of of the United Nations and of the State they have to agree on effective the United Nations. All participants of Qatar, held on 27 November at the global regulatory reform. Financial indicated that the retreat discussions Conference site, included an exchange regulation of the system has been provided valuable inputs to the Con- of welcoming remarks between high- heavily biased towards firms. Ad- ference. level representatives of the world body justment measures would require a and of the host country – Mr. Sha Zu- fundamental overhaul of the interna- kang, Under-Secretary-General for tional financial architecture. Regula- Economic and Social Affairs, and H.E. tory approach should focus less on Mr. Mohammed Al-Rumaihi, Assistant the differentiation between types of Minister for Foreign Affairs. In deliver- financial institutions and more on the ing the message of the UN Secretary- scale of leverage that institutions en- General, Mr. Sha welcomed the world gage in. to the Doha Conference taking place at a time of great turmoil in global finance IMF should focus more on overall markets and the world economy. The systemic issues, including on ad- UN vital work to eradicate poverty and dressing the need for new forms of Global Forum of Civil Society, held promote development has been threat- global regulation. The Fund needs to on 26-27 November at the Ramada ened not only by an international credit strengthen its multilateral surveil- Plaza Doha Hotel, under the theme crunch, but also by higher prices for lance and pay more attention to the “Investing in people-centered devel- food, energy and basic commodities, consistency of macroeconomic poli- opment”. The Forum attracted par- accelerating climate change and a cies of developed countries and not ticipation of more than 250 civil so- stalemate in global trade negotiations. be distracted by the public sector ciety organizations and networks. A severe economic slowdown could governance issues in developing The Forum adopted a Civil Society have a chilling effect on trade, aid, in- countries. It should be active in pro- Declaration, including a number of vestment flows and efforts to achieve moting the reform of the interna- recommendations. the MDGs.
Issue 19, December 2008 7
At such times, he continued, “it is right Global Civil Society Forum bles for donor countries to reach the and necessary that the international (Ramada Plaza Doha Hotel, 26-27 No- 0.7% ODA/GNI target by 2015 at the community gather under the auspices of vember 2008) latest. Innovative sources of finance, the United Nations”. Since these were such as a small currency transaction global problems, affecting all people, tax, can provide much needed addi- they demanded global solutions, arrived tional resources for development. at with the involvement of all people. As for external debt, the Declaration That effort had become more urgent calls for a new debt architecture that is and complex as a result of multiple inclusive, participatory and democrati- global crises. Participants in the Doha cally accountable to the peoples it aims Conference were called on to think big to serve. The United Nations should and find practical solutions that would play a key role in its development and work for all the world’s people, espe- The Civil Society Forum was held un- the institutions and mechanisms should cially the poor who bear the fullest der the overall theme “Investing in be subject to international human rights brunt of the consequences. They should people-centered development”. More norms and treaties. show leadership and goodwill through- than 250 civil society organizations and With regard to systemic issues, the out their deliberations while keeping networks participated in the meeting, Declaration calls for a new mechanism the global good foremost in mind. which featured plenary sessions, round within the UN, which ensures imple- tables and side events. The Forum mentation of the internationally agreed Side events adopted a Civil Society Declaration, development goals and brings together which was presented by Ms. Gemma all institutional stakeholders. The UN More than 50 side events took place at Adaba, Representative of the Interna- should hold a major international the Conference site. In the spirit of tional Trade Union Confederation Summit-level conference in order to Monterrey, the mix of organizers (ITUC) to the United Nations at the comprehensively review the interna- included Governments, inter- plenary session of the Doha Conference tional financial architecture and global governmental and non-governmental on 29 November 2008. The declaration economic governance structures. organizations and the business sector. put forward a number of key recom- The issues of inclusive and innovative mendations, organized around the six financing for development featured thematic areas of the Monterrey Con- International Business Forum prominently in several side events. sensus. (La Cigale Doha Hotel, 28 November High-level speakers included: HRH 2008) On domestic resource mobilization, the Princess Maxima of the Netherlands, Declaration affirms that in order to The second International Business Fo- the President of achieve the international development rum on Financing for Development was Tanzania and goals and overcome dependence on ex- held under the theme “The Impact of Chair of the ternal sources, developing countries the Financial Crisis and Proposed African Union, a need to substantially increase revenue Roadmaps: Mobilizing Private Sector number of from national resources and channel Resources for Development”. Over 200 ministers from them towards meeting the needs of the business leaders, country delegations different regions, people living in poverty. and international financial institutions as well as heads participated in four plenary sessions of inter- With respect to foreign direct invest- and several round tables and side governmental ment, the Declaration calls for a holistic events. The outcome of the Forum was organizations. approach that includes, among others, presented by Ms. Louise Kantrow, The Secretary-General of the United the social development aspects, sustain- Permanent Representative of the Inter- Nations participated in four side events, able technology transfer and elimina- national Chamber of Commerce to the including those on “the role of tion of tax havens that deny poor coun- United Nations, at the plenary session microfinance” organized by UNCDF; tries much needed financial resources of the Conference on 29 November on the “economics of gender” for development. 2008. organized by Norway; on “innovative Concerning trade, it concludes that the financing” organized by the S-G’s Participants provided views on the im- impact of the global financial crisis in Special Adviser on Innovative pact of the global financial crisis on de- developing countries is exposing vul- Financing, Mr. Philippe Douste-Blazy, veloping countries. Discussions cen- nerabilities that stem from too much former Foreign Minister of France, in tered on how to limit potential damage emphasis on the liberalization of trade, cooperation with GAVI and UNITAID; and promote actions to increase finan- without looking at mechanisms for en- and on the "food crisis" organized by cial stability and aid effectiveness, such suring that trade provides a stable the US. The side events brought as closer cooperation between devel- source of development finance. additional dynamism and broader opment finance institutions, the private perspectives to the proceeding of the On the question of aid, civil society or- sector and NGOs. Participants pro- Conference. ganizations called for binding timeta- posed to lower private sector risk
Issue 19, December 2008 8 through development finance web por- Parliamentary Hearing particularly those in countries that tals that facilitate investor access to in- (Sheraton Doha Resort and Convention emerged from conflict, to build their formation in developing countries. Center, 28 November 2008) capacity and resources. He underlined that better parliaments and better deci- Speakers also discussed how to pro- The Parliamentary Hearing provided an sion-making required effective partici- mote globally balanced and ecologi- opportunity for Members of Parliament pation of women in parliaments and cally sustainable economic growth. A attending the Doha Conference to mainstreaming of gender issues. Impor- proposal was made to mainstream eco- evaluate the implementation of the tant measures included the adoption of system indicators and values in corpo- Monterrey Consensus, as well as dis- gender sensitive budgets and the critical rate management and annual reporting cuss new challenges and emerging is- evaluation of budgets from gender per- systems. Moreover, corporations should sues. The moderator, Mr. Theo-Ben spectives. seize new biodiversity business oppor- Gurirab, President of the Inter- tunities, including bio-friendly seg- Parliamentary Union (IPU) and Speaker Mr. Theo-Ben Gurirab referred to the ments within established sectors, such of the National Assembly of Namibia, IPU parliamentary message to the Doha as eco-agriculture, eco-tourism, certi- presented the outcome of the hearings Conference, which included many of fied forestry, as well as new sectors like to the plenary session of the Conference these issues. Its key recommendation biocarbon and biodiversity banking. on 29 November 2008. was to target the FFD agenda more ex- Public-private partnerships could help plicitly to the people and their present make business capacities more relevant The speaker underscored that parlia- and future needs. to conservation efforts. ments represented society in all its di- versity and offered a platform for pub- For more information, visit the Conference lic debate on national development website (www.un.org/esa/ffd/doha/) and policies to allow input from all stake- FfD website (www.un.org/esa/ffd). holders. Therefore, they should be at the centre of the collective effort to achieve the MDGs. Moreover, parlia- ments, in approving national budgets, Next NGLS GoBetween will focus could examine the effectiveness of the on Doha Outcome delivery and use of aid. The next issue of NGLS’ quarterly Parliaments should take urgent action to newsletter, the GoBetween, will be re- Participants urged developing country address systemic issues underlying the leased at the end of January 2009 and governments to work closely with the financial crisis and mitigate its effects. will carry a heavy focus on the Doha private sector and civil society to create Parliamentarians were hopeful that the Review Conference. In addition to a sustainable business-enabling envi- Doha Conference would send a strong various analytical pieces, the newsletter ronment that centered on economic message on the need for much better will feature several interviews includ- growth and job creation. This improved balance between market forces and ing: Ambassador Byron Blake, lead ne- cooperation would increase the capacity regulation. They also underscored that gotiator for the G-77 and China; Am- of donors to align their activities in the crisis should not divert resources bassador Johan Løvald, one of the two support of national and regional devel- away from development goals and from Co-Facilitators for the FfD process; Mr. opment and therefore enhance aid ef- the agreements contained in the Mon- Heiner Flassbeck, Chief Macroecono- fectiveness. terrey Consensus. Good governance mist at UNCTAD; and, reflections by should remain at the core of the imple- several key civil society actors. Specific ideas for development agen- mentation of the Consensus. cies and Governments to more effec- If you don’t already receive the GoBe- tively mobilize private sector resources The speaker pointed out the importance tween, you can subscribe on the NGLS for critical development needs in- of IPU assistance to many parliaments, homepage. cluded proposals to scale up risk mitigation and project development assistance, establish multi-donor Contact Information: funds on targeted deliverables and implement performance benchmarks FfDO: NGLS-NY: NGLS-Geneva: for multilateral development banks. DC2-2276 DC1-1106 Palais des Nations New York, NY10017 New York, NY 10017 Geneva 10, Suisse Finally, speakers called on Govern- Tel: 212.963.3664 212.963.3125 41.22.917.2076 ments, development agencies and the Fax: 917.367.5869 212.963.8712 41.22.917.0432 private sector to cooperate in meeting www.un.org/esa/ffd www.un-ngls.org emerging challenges, such as finance Email: [email protected] Email: [email protected] for small and medium companies, fi- nancial services to the poor and cli- Editor-in-Chief: Alex Trepelkov Project Coordinator: Elisa Peter mate and water challenges. Staff: Daniel Platz, Liliana Uruburo Staff: Zak Bleicher, Tomas Gonzalez
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