The Doha Review Conference on Financing for Development

Doha, Qatar 29 November - 2 December 2008

Published by the Financing for Development Office Department of Economic and Social Affairs

asdf United Nations New York Note: The United Nations does not take responsibility for any omissions or discrepancies that may inadvert- ently appear in transcriptions of speeches where the text was not submitted by delegations or in the interpretation of speeches where the corresponding translations were not provided by delegations to the Secretariat.

United Nations Publication Published by the Financing for Development Office, Department of Economic and Social Affairs, United Nations, New York Copyright © United Nations, 2011 All rights reserved Contents

Doha Declaration...... 1

Opening Summit Plenary Session...... 21

Statements by Heads of State or Government...... 31

Statements by Ministers...... 111

Statements by Major Stakeholders...... 221

Closing Summit Plenary Session...... 251

Summaries of Roundtable Discussions...... 265

Civil Society Forum...... 281

International Business Forum...... 291

Parliamentary Hearings on Financing for Development...... 293

Calendar of Side Events...... 295

Selected Press Releases...... 301 Chapter 1 Doha Declaration on Financing for Development: outcome document of the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus

Reaffirming the goals and commitments Consensus. We reiterate that each country has pri- of the Monterrey Consensus mary responsibility for its own economic and social 1. We, Heads of State and Government and High development and that the role of national poli- Representatives, gathered in Doha, Qatar, from cies, domestic resources and development strate- 29 November to 2 December 2008, almost seven gies cannot be overemphasized. At the same time, years after the landmark International Conference domestic economies are now interwoven with the on Financing for Development,1 held in Monter- global economic system and, inter alia, the effec- rey, Mexico, reiterate our resolve to take concrete tive use of trade and investment opportunities can action to implement the Monterrey Consensus and help countries to fight poverty. National develop- address the challenges of financing for development ment efforts need to be supported by an enabling in the spirit of global partnership and solidarity. We international economic environment. once again commit ourselves to eradicate poverty, 3. We recognize that the international context has achieve sustained economic growth and promote changed in profound ways since we met in Monter- sustainable development as we advance to a fully rey. There has been progress in some areas, but ine- inclusive and equitable global economic system. quality has widened. We welcome the substantial 2. We reaffirm the Monterrey Consensus2 in increase in public and private flows since 2002, which its entirety, in its integrity and holistic approach, has contributed to higher economic growth in most and recognize that mobilizing financial resources developing countries and a reduction in global pov- for development and the effective use of all those erty rates. Yet we express our deep concern that the resources are central to the global partnership for international community is now challenged by the sustainable development, including in support severe impact on development of multiple, interre- of the achievement of the internationally agreed lated global crises and challenges, such as increased development goals, including the Millennium food insecurity, volatile energy and commodity Development Goals. We also reaffirm the impor- prices, climate change and a global financial crisis, tance of freedom, peace and security, respect for as well as the lack of results so far in the multilateral all human rights, including the right to develop- trade negotiations and a loss of confidence in the ment, the rule of law, gender equality and an over- international economic system. While acknowledg- all commitment to just and democratic societies ing the response of the international community to for development, as spelled out in the Monterrey these crises and challenges to date, such as the High- level Conference on World Food Security, held in 1 Report of the International Conference on Financing for Development, Monterrey, Mexico, 18‑22 March 2002 Rome from 3 to 5 June 2008, and the recent Summit (United Nations publication, Sales No. E.02.II.A.7). on Financial Markets and the World Economy, held 2 Ibid., chap. I, resolution 1, annex. in Washington, D.C., on 15 November 2008, we are The Doha Review Conference on Financing for Development determined to take immediate and decisive actions 7. We welcome the decision to convene the and initiatives to overcome all these obstacles and Fourth United Nations Conference on the Least challenges through achievement of people-centred Developed Countries at a high level in 2011. development and to devise important measures for the full, effective and timely implementation of the Mobilizing domestic financial Monterrey Consensus. resources for development 4. We recall that gender equality is a basic human 8. In the years following the Monterrey Confer- right, a fundamental value and an issue of social ence, a number of developing countries have made justice; it is essential for economic growth, poverty significant progress in the implementation of devel- reduction, environmental sustainability and development policies in key areas of their economic opment effectiveness. We reiterate the need for frameworks, often contributing to increased mobi- gender mainstreaming into the formulation and lization of domestic resources and higher levels of implementation of development policies, including economic growth. We will continue to build upon financing for development policies, and for dedi- this progress through promoting inclusive and cated resources. We commit ourselves to increas- equitable growth, eradicating poverty and pursuing our efforts to fulfil our commitments regarding ing sustainable development in its economic, social gender equality and the empowerment of women. and environmental dimensions, and by ensuring 5. The spectre of terrorism continues to haunt us the necessary enabling environment for mobilizing and is on the rise. This has serious implications for public and private resources and expanding pro- economic development and social cohesion, apart ductive investments. Greater efforts are required from its horrific human misery. We resolve to act to support the creation and sustenance of a con- together stronger than ever to address terrorism in ducive environment through appropriate national all its forms and manifestations. and international actions. 6. We reaffirm the political declaration on “Afri- 9. We reaffirm that national ownership and lead- ca’s development needs: state of implementation ership of development strategies and good gov- of various commitments, challenges and the way ernance are important for effective mobilization forward”,3 adopted at the high-level meeting of of domestic financial resources and fostering sus- the General Assembly on 22 September 2008. We tained economic growth and sustainable develop- further reaffirm our commitment to provide and ment. In this context, we should take into account strengthen support to the special needs of Africa the different characteristics and specificities of and stress that eradicating poverty, particularly each country. in Africa, is the greatest global challenge facing 10. We recognize that a dynamic, inclusive well- the world today. We underline the importance of functioning and socially responsible private sector accelerating sustainable broad-based economic is a valuable instrument for generating economic growth, which is pivotal to bringing Africa into growth and reducing poverty. In order to foster the mainstream of the global economy. We reaf- private-sector development, we shall endeavour firm the commitment of all States to establish a to promote an enabling environment that facili- monitoring mechanism to follow up on all com- tates entrepreneurship and doing business by all, mitments related to the development of Africa as including women, the poor and the vulnerable. The contained in the political declaration on “Africa’s international community, national Governments development needs”. All commitments to and by and regional economic groups should continue to Africa should be effectively implemented and support these efforts. given appropriate follow-up by the international community and Africa itself. We underscore the 11. We will continue to pursue appropriate policy urgency of addressing the special needs of Africa and regulatory frameworks at our respective national based on a partnership among equals. levels and in a manner consistent with national laws

2 Doha Declaration on Financing for Development to encourage public and private initiatives, includ- national economic policy, that is, the scope for ing at the local level, and to foster a dynamic and domestic policies, especially in the areas of trade, well-functioning business sector, while improving investment and international development, is now income growth and distribution, raising produc- often framed by international disciplines, commit- tivity, empowering women and protecting labour ments and global market considerations. It is for rights and the environment. We recognize that the each Government to evaluate the trade-off between appropriate role of Government in market-oriented the benefits of accepting international rules and economies will vary from country to country. commitments and the constraints posed by the loss 12. Human development remains a key priority, of policy space. and human resources are the most precious and 15. We reiterate that macroeconomic policies valuable asset that countries possess. The reali- should be aimed at sustaining high rates of eco- zation of full and productive employment and nomic growth, full employment, poverty eradica- decent work for all4 is essential. We will continue tion, and low and stable inflation, and seek to min- to invest in human capital through inclusive social imize domestic and external imbalances to ensure policies, inter alia, on health and education, in that the benefits of growth reach all people, espe- accordance with national strategies. The provision cially the poor. They should also attach high prior- of, and access to, financial and credit services to ity to avoiding abrupt economic fluctuations that all is also important. Such facilities have begun to negatively affect income distribution and resource show results, but increased efforts, where appro- allocation. In this context, the scope for appropri- priate, supported by the international community, ate counter-cyclical policies to preserve economic are needed. We stress the importance of fostering and financial stability should be expanded. Public diverse local and supporting industries that create investment, consistent with medium- and long- productive employment and strengthen local com- term fiscal sustainability, may have a proactive role munities. We will strive to ensure social security and encourage a virtuous cycle of investment. systems that protect the vulnerable in particular. 16. We will continue to undertake fiscal reform, 13. To advance towards the goals of the Monterrey including tax reform, which is key to enhancing Consensus, policies that link economic and social macroeconomic policies and mobilizing domestic considerations are required to reduce inequalities public resources. We will also continue to improve within and among countries and guarantee that budgetary processes and to enhance the trans- the poor and vulnerable groups benefit from eco- parency of public financial management and the nomic growth and development. Measures aimed quality of expenditures. We will step up efforts to at integrating the poor into productive activities, enhance tax revenues through modernized tax sys- investing in the development of their labour skills tems, more efficient tax collection, broadening the and facilitating their entry into the labour mar- tax base and effectively combating tax evasion. We ket are necessary. In this regard, greater efforts will undertake these efforts with an overarching are required for mobilizing more resources, as view to make tax systems more pro‑poor. While appropriate, to provide universal access to basic each country is responsible for its tax system, it is economic and social infrastructure and inclusive important to support national efforts in these areas social services, as well as capacity-building, taking by strengthening technical assistance and enhanc- special care of women, children, older persons and ing international cooperation and participation persons with disabilities in order to enhance their in addressing international tax matters, including social protection. in the area of double taxation. In this regard, we 14. The increasing interdependence of national acknowledge the need to further promote inter- economies in a globalizing world and the emer- national cooperation in tax matters, and request gence of rules-based regimes for international the Economic and Social Council to examine economic relations have meant that the space for the strengthening of institutional arrangements,

3 The Doha Review Conference on Financing for Development including the United Nations Committee of Experts their economic empowerment, and effectively on International Cooperation in Tax Matters. mainstream gender in law reforms, business support services and economic programmes, and give 17. The development of a sound and broad-based women full and equal access to economic resourc- financial sector is central to the mobilization of es. We will further promote and reinforce capacity- domestic financial resources and should be an building of State and other stakeholders in gender- important component of national development responsive public management, including, but not strategies. We will strive for diversified, well-reg- limited to, gender budgeting. ulated, inclusive financial systems that promote savings and channel them to sound growth gener- 20. Capital flight, where it occurs, is a major hin- ating projects. We will further refine, as appropri- drance to the mobilization of domestic resources ate, the supervisory and regulatory mechanisms to for development. We will strengthen national and enhance the transparency and accountability of the multilateral efforts to address the various factors financial sector. We will aim to increase the domes- that contribute to it. It is vital to address the problem tic supply of long-term capital and promote the of illicit financial flows, especially money-launder- development of domestic capital markets, including. Additional measures should be implemented ing through multilateral, regional, subregional and to prevent the transfer abroad of stolen assets and national development banks. to assist in the recovery and return of such assets, in particular to their countries of origin, consist- 18. To achieve equitable development and fos- ent with the United Nations Convention against ter a vibrant economy, it is vital to have a finan- Corruption,3 as well as to prevent capital flows that cial infrastructure that provides access to a variety have criminal intent. We note the efforts of the of sustainable products and services for micro-, United Nations Office on Drugs and Crime and small- and medium-sized businesses, with particu- the World Bank Group through the Stolen Asset lar emphasis on women, rural populations and the Recovery Initiative and other relevant initiatives. poor. We will make sure that the benefits of growth In this regard, we urge as a matter of priority all reach all people by empowering individuals and States that have not yet done so to consider becom- communities and by improving access to serving parties to the International Convention for the ices in the fields of finance and credit. We recog- Suppression of the Financing of Terrorism, and call nize that microfinance, including microcredit, has for increased cooperation with the same objective. proven to be effective in generating productive self- employment, which can contribute to the achieve- 21. The ongoing fight against corruption at all lev- ment of the internationally agreed development els is a priority. Progress among countries has varied since 2002. Corruption affects both developed goals, including the Millennium Development and developing countries, and both the public and Goals. Despite some progress, there is widespread private sectors. We are thus determined to take demand for microfinance. We underline the need urgent and decisive steps to continue to combat to appropriately support, in a coordinated manner, corruption in all of its manifestations in order to the efforts of developing countries, including in reduce obstacles to effective resource mobilization capacity-building for their microfinance, including and allocation and avoid the diversion of resources microcredit institutions. away from activities that are vital for development. 19. Gender equality and women’s empowerment This requires strong institutions at all levels, includ- are essential to achieve equitable and effective ing, in particular, effective legal and judicial - sys development and to foster a vibrant economy. We tems and enhanced transparency. We welcome the reaffirm our commitment to eliminate gender- increased commitment of States that have already based discrimination in all its forms, including ratified or acceded to the United Nations Conven- in the labour and financial markets, as well as, tion against Corruption, and, in this regard, urge inter alia, in the ownership of assets and property rights. We will promote women’s rights, including 3 Resolution 63/1.

4 Doha Declaration on Financing for Development all States that have not yet done so to consider rati- a number of African countries, least developed fying or acceding to the Convention. We call upon countries, landlocked developing countries, small all States parties to fully implement the Convention island developing States and countries emerging without delay and to work jointly in the establish- from conflict or recovering from natural disas- ment of a mechanism for follow-up on implemen- ters. Such efforts could include the provision of tation of the Convention. technical, financial and other forms of assistance; the promotion and strengthening of partnerships, While the pursuit of economic resilience is 22. including public-private partnerships; and coop- important for all countries, it requires constant eration arrangements at all levels. and more concerted efforts in small and vulnerable economies. These national efforts need to be 24. We will enhance efforts to mobilize invest- reinforced by international support for capacity- ments from all sources in human resources, building, including through financial and technical transport, energy, communications, information assistance, and United Nations operational activi- technology and other physical, environmental, ties for development in accordance with national institutional and social infrastructure that serve development strategies and priorities. In devel- to strengthen the business environment, enhance opment cooperation policies, we will pay special competitiveness and expand trade in develop- attention to the efforts and specific needs of Africa, ing countries and economies in transition. We the least developed countries, landlocked develop- recognize the need for bilateral and multilateral ing countries and small island developing States. partners to provide technical assistance and share Similarly, special and sustained attention is needed best practices relating to these efforts. The pro- to support post-conflict countries in their rebuild- grammes, mechanisms and instruments at the ing and development efforts. disposal of multilateral development agencies and bilateral donors can be used for encouraging business investment, including by contributing to Mobilizing international resources for mitigating some of the risks faced by private inves- development: foreign direct investment tors in critical sectors in developing and transi- and other private flows tion economies. Official development assistance 23. We recognize that private international capi- (ODA) and other mechanisms, such as, inter alia, tal flows, particularly foreign direct investment, guarantees and public-private partnerships, can are vital complements to national and interna- play a catalytic role in mobilizing private flows. At tional development efforts. We appreciate the rise the same time, multilateral and regional develop- in private international capital flows to development banks should continue to explore innovative ing countries since the Monterrey Conference and modalities with developing countries, including the improvements in business climates that have low- and middle-income countries and countries helped encourage it. However, we take note with with economies in transition, so as to facilitate concern that a significant number of developing additional private flows to such countries. countries have not experienced a rise in private 25. Experience has shown that providing an ena- international capital flows. We will seek to enhance bling domestic and international investment cli- such flows to support development. In this context, mate is fundamental to fostering domestic and we will strengthen national, bilateral and multilat- foreign private investment. Countries need to con- eral efforts to assist developing countries in over- tinue their efforts to achieve a stable and predictable coming the structural or other constraints which investment climate, with proper contract enforce- currently limit their attractiveness as a destination ment and respect for property rights. We will con- for private capital and foreign direct investment. To tinue to put in place transparent and appropriate that end, we acknowledge the need to particularly regulations at the national and international levels. assist those countries that have been at a particu- Efforts should be enhanced to upgrade the skills lar disadvantage in attracting such flows, including and technical capabilities of human resources,

5 The Doha Review Conference on Financing for Development improve the availability of finance for enterprise, opportunities for the local labour force, including facilitate public-private consultative mechanisms women and young people. It is also important to and promote corporate social responsibility. Bilat- enact and uphold, as appropriate, labour and envi- eral investment treaties may promote private flows ronmental protection and anti-corruption laws by increasing legal stability and predictability to and regulations in accordance with obligations investors. It is important that bilateral investment undertaken in relevant international conventions. treaties, as well as tax treaties and other tax meas- We welcome efforts to promote corporate social ures to facilitate foreign investments, take into responsibility and good corporate governance. In account regional and multilateral cooperation, this regard, we encourage the work undertaken including at the regional level. We acknowledge at the national level and by the United Nations, the importance of supporting capacity-building including through the United Nations Global Com- in developing countries aimed at improving their pact, and the promotion of internationally agreed abilities to negotiate mutually beneficial invest- corporate social responsibility frameworks, such as ment agreements. It is important to promote good the International Labour Organization Tripartite tax practices and avoid inappropriate ones. Declaration. We reaffirm that every State has, and shall freely exercise full permanent sovereignty 26. To complement national efforts, there is a over, all its wealth, natural resources and economic need for the relevant international and regional activity. We support measures to enhance corporate institutions, as well as appropriate institutions transparency and accountability of all companies, in source countries, to increase their support taking into account the fundamental principles of for private foreign investment in infrastructure domestic law. We take note of voluntary initiatives development and other priority areas, including in this regard, including, inter alia, the Extractive projects to bridge the digital divide in developing Industries Transparency Initiative. countries and countries with economies in transition. To this end, it is important to provide export 28. We realize that the perception of a country’s credits, co-financing, venture capital and other current economic conditions and prospects influ- lending instruments, risk guarantees, leveraging ences the international private financial flows that aid resources, information on investment oppor- it attracts. The provision of objective, high-quality tunities, business development services, forums information from all sources, including private and to facilitate business contacts and cooperation public entities, such as national statistical agencies, between enterprises of developed and developing the International Monetary Fund (IMF), the World countries, as well as funding for feasibility studies. Bank, the United Nations system, investment advis- Inter-enterprise partnership is a powerful means ers and credit-rating agencies, is vital for informed for the transfer and dissemination of technology. decisions by potential domestic and foreign inves- In this regard, strengthening of the multilateral and tors alike. We will continue to strengthen modali- regional financial and development institutions ties, including through the efforts of the country is desirable. Additional source country measures itself, the United Nations system and relevant mul- should also be devised to encourage and facilitate tilateral agencies, to enhance and improve the level investment flows to developing countries. and objectivity of information regarding a country’s economic situation and outlook. 27. We recognize that the development impact of foreign direct investment should be maximized. 29. Remittances have become significant private We further recognize that the transfer of technol- financial resources for households in countries of ogy and business skills is a key channel through origin of migration. Remittances cannot be consid- which foreign direct investment can positively ered as a substitute for foreign direct investment, impact development. We will strengthen national ODA, debt relief or other public sources of finance and international efforts aimed at maximizing link- for development. They are typically wages trans- ages with domestic production activities, enhanc- ferred to families, mainly to meet part of the needs ing the transfer of technology and creating training of the recipient households. The manner of their

6 Doha Declaration on Financing for Development disposal or deployment is an individual choice. A better respond to the needs and interests of all large portion of migrants’ incomes is spent in des- developing countries, in particular the least devel- tination countries and constitutes an important oped countries. This is particularly important at stimulus to domestic demand in their economies. a time when the systemic impact of the financial In this regard, we will strengthen existing meas- crisis is affecting us all. We call for the implemen- ures to lower the transaction costs of remittances tation of the ministerial declaration of the World through increased cooperation between originat- Trade Organization adopted at its Sixth Ministe- ing and receiving countries and create opportuni- rial Conference, held in Hong Kong, China, on the ties for development-oriented investments. central importance of the development dimension in every aspect of the Doha Development Agenda work programme and its commitment to making International trade as an engine for development the development dimension a meaningful reality. We emphasize that maximizing the benefits 30. We reaffirm that international trade is an and minimizing the costs of international trade engine for development and sustained economic liberalization calls for development-oriented and growth. We also reaffirm that a universal, rules- coherent policies at all levels. based, open, non‑discriminatory and equitable 32. We are very concerned that, despite significant multilateral trading system, as well as meaning- efforts, the Doha Development Agenda round of ful trade liberalization, can substantially stimulate multilateral trade negotiations has not yet been development worldwide, benefiting all countries at concluded. A successful result should support the all stages of development. We are encouraged that expansion in the exports of developing countries, international trade, especially the trade of devel- reinforce the potential for trade to play its due role oping countries as a group, has expanded at a fast as the engine of growth and development, and pace in the current decade. Trade among devel- provide increased opportunities for developing oping countries has now become one of the most countries to use trade to support development. It dynamic elements in world trade. However, many is important to make progress in key areas of the developing countries, in particular the least devel- Doha Development Agenda of special interest to oped countries, have remained at the margins of developing countries, such as those outlined in these developments and their trade capacity needs paragraph 28 of the Monterrey Consensus, reaf- to be enhanced to enable them to exploit more firming the importance of special and differential effectively the potential of trade to support their treatment referred to therein. To this end, flex- development. We also reaffirm our commitment to ibility and political will are essential. We welcome meaningful trade liberalization and to ensure that recent commitments concerning trade and the trade plays its full part in promoting economic critical importance of rejecting protectionism and growth, employment and development for all. We not turning inward in times of financial uncertain- recall our commitment in the Monterrey Consen- ty, especially as this might particularly affect devel- sus to the decisions of the World Trade Organiza- oping countries. On this basis, we will urgently re- tion to place the needs and interests of developing engage and strive to reach agreement by the end of countries at the heart of its work programme and the year on modalities that lead to a successful and to implement its recommendations. early conclusion to the World Trade Organization 31. A well-functioning multilateral trading sys- Doha Development Agenda with an ambitious, tem can bring benefits to all and can contribute to balanced and development-oriented outcome. enhancing the integration of the developing coun- 33. We acknowledge that the optimum pace and tries in the system, in particular the least devel- sequence of trade liberalization depends on the oped countries. We reiterate our urgent resolve specific circumstances of each country, and that to ensure that the ongoing efforts to improve the each country will make this decision based on its operation of the multilateral trading system to own evaluation of the costs and benefits. Trade

7 The Doha Review Conference on Financing for Development liberalization must be complemented by appro- Appropriate consideration and support should be priate action and strategies at the national level provided to these countries to help facilitate their for the expansion of productive capacities, the effective participation in the global economy. In development of human resources and basic infra- this regard, we encourage progress in the imple- structure, the absorption of technology and the mentation of the World Trade Organization work implementation of adequate social safety nets. programme on small economies, mandated in the Achieving the positive impact of trade liberaliza- Doha Ministerial Declaration.5 tion on developing countries will also depend to a 36. Aid for Trade is an important component of significant extent on international support for the the measures that will assist developing countries above measures and actions against policies and in taking advantage of the opportunities offered by practices that distort trade. the international trading system, the outcome of 34. We recognize the particular challenges faced the Doha round and regional trade agreements. A by least developed countries in integrating ben- critical aim of Aid for Trade should be to enhance eficially into the international trading system. We trade capacity and international competitiveness acknowledge that least developed countries require while ensuring ownership and alignment with special measures and international support to ben- national development strategies of individual efit fully from world trade, as well as in adjusting to developing countries. Aid for Trade should aim to and integrating beneficially into the global econo- help developing countries, particularly least devel- my. We welcome the decision at the Sixth World oped countries, with trade policy and regulations; Trade Organization Ministerial Conference, held trade development; building productive capacities; in Hong Kong, China, from 13 to 18 December trade-related infrastructure; trade-related adjust- 2005, on improved market access for least devel- ment and other trade-related needs. However, Aid oped countries as set out in the decision and its for Trade is a complement and not a substitute for annex,4 and call for its full implementation. We a successful outcome of the Doha Development also welcome the actions taken by some individual Agenda or any other trade negotiation. Success- countries since Monterrey towards the goal of full ful programmes under the Aid for Trade Initiative duty-free and quota-free market access for all least require joint efforts by concerned partners. The developed countries, and call on other developed commitments by individual donors relating to and developing countries declaring themselves in Aid for Trade should be fully implemented in a a position to do so to take steps towards this objec- timely manner. It is also important that the Aid for tive. We will also reinforce efforts to provide tech- Trade needs and priorities of recipient countries nical assistance to least developed countries that are fully integrated and reflected in their national request it in order to enable them to participate development strategies. United Nations specialized more effectively in the multilateral trading system, agencies that have a relevant mandate in this field including through the effective operation of the should continue to help developing countries build Enhanced Integrated Framework for Trade-related their trade-related productive capacities. Technical Assistance to Least Developed Countries 37. Broader and effective participation of devel- and by providing support to allow them to partici- oping countries in the multilateral trading sys- pate effectively in international trade negotiations. tem, including in any round of multilateral trade 35. We also recognize the particular challenges negotiations and in the World Trade Organiza- that may be faced by other developing countries, tion Doha Development Agenda negotiations, are including small and vulnerable economies, to key objectives. We note progress in this area since fully benefit from the multilateral trading system. Monterrey, as evidenced by the countries that have acceded to the World Trade Organization, the 4 International Labour Organization Declaration on countries that have newly engaged in World Trade Social Justice for a Fair Globalization; see, inter alia, Economic and Social Council resolution 2007/2. 5 United Nations, Treaty Series, vol. 2347, No. 42146.

8 Doha Declaration on Financing for Development

Organization accession and the countries that have Increasing international financial and made progress towards World Trade Organization technical cooperation for development accession over the past six years. We welcome addi- 40. We recognize the severe impacts that the cur- tional progress in this regard. We also reaffirm our rent financial and economic crises are having on the undertaking in Monterrey to facilitate the acces- ability of developing countries to mobilize resourc- sion of all developing countries, particularly the es for development. We stress the importance that least developed countries, as well as countries with ODA plays, leveraging and sustaining financing economies in transition, that apply for membership for development in developing countries. In this in the World Trade Organization. In this regard, we regard, we recall our commitments to the interna- note the decision of the Sixth World Trade Organi- tionally agreed development goals, including the zation Ministerial Conference to give priority to Millennium Development Goals, and call for the the ongoing accessions with a view to concluding international community to redouble its efforts to them as rapidly and smoothly as possible. facilitate the achievement of these goals. 38. We recognize that regional integration as well 41. We reaffirm the essential role that ODA plays, as bilateral trade and economic cooperation agree- as a complement to other sources of financing for ments are important instruments to expand trade development, in facilitating the achievement of and investment. We should continue to ensure development objectives, including the interna- that these agreements promote long-term devel- tionally agreed development goals, in particular opment, advance the goals of the World Trade the Millennium Development Goals. For many Organization and are complementary elements African countries, least developed countries, small of the multilateral trading system. International island developing States and landlocked develop- support for cooperation in trade and other trade- ing countries, ODA is still the largest source of related areas can be catalytic in strengthening and external financing. ODA can play a catalytic role consolidating regional and subregional integra- in assisting developing countries in removing tion. We stress the importance of increased sup- constraints to sustained, inclusive and equitable port to South-South trade and cooperation ini- growth, such as enhancing social institutional tiatives in trade-related areas, including through and physical infrastructure; promoting foreign triangular cooperation, consistent with World direct investment, trade and technological inno- Trade Organization rules. vation; improving health and education; fostering 39. We welcome the ongoing work of international gender equality; preserving the environment; and institutions that assist developing countries in real- eradicating poverty. izing the benefits of trade liberalization, in particu- 42. We are encouraged by the recovery of ODA lar the United Nations, the World Trade Organi- from its declining trend before the Monterrey zation, the World Bank, IMF and the regional Conference (ODA in real terms increased by 40 development banks, and encourage their continu- per cent between 2001 and 2007), while noting ing efforts to facilitate trade that results in econom- that a significant part of aid flows after 2002 com- ic growth and development. In this context, we prised debt relief and humanitarian assistance. welcome the outcome of the twelfth session of the However, we note with concern the overall decline United Nations Conference on Trade and Devel- in ODA in 2006 and 2007, driven in particular by opment (UNCTAD), held in Accra from 20 to 25 the drop-off in debt relief from its peak in 2005. April 2008, and reaffirm the role of UNCTAD in We are encouraged by the fact that some donor trade and development. countries have met or surpassed the ODA targets referenced in the Monterrey Consensus (0.7 per cent of gross national product (GNP) for ODA to developing countries and 0.15 to 0.20 per cent of GNP for ODA to least developed countries). We

9 The Doha Review Conference on Financing for Development

are also encouraged by others that have established for results. We strongly encourage all donors to timetables for fulfilling their long-standing com- establish, as soon as possible, rolling indicative mitments, such as the European Union, which timetables that illustrate how they aim to reach has agreed to provide, collectively, 0.56 per cent of their goals, in accordance with their respective GNP for ODA by 2010 and 0.7 per cent by 2015 budget allocation process. We stress the impor- and to channel at least 50 per cent of collective tance of mobilizing greater domestic support in aid increases to Africa, while fully respecting the developed countries towards the fulfilment of their individual priorities of Member States in develop- commitments, including through raising public ment assistance. We welcome the more than dou- awareness, and by providing data on aid effective- bling of ODA by the United States. We also wel- ness and demonstrating tangible results. come the declaration by the leaders of the Group of Eight in Hokkaido, Japan, that they are firmly 44. We stress the importance of addressing the committed to working to fulfil their commitments development needs of low-income developing made at Gleneagles, Scotland, including increas- countries, including through the provision of tech- ing, compared to 2004, with other donors, ODA to nical, financial and other forms of assistance, the Africa by $25 billion a year by 2010. We encourage promotion and strengthening of partnerships and donors to work on national timetables, by the end cooperation arrangements at all levels. of 2010, to increase aid levels within their respec- 45. We recognize that middle-income countries tive budget allocation processes towards achieving still face significant challenges in the area of pov- the established ODA targets. The full implementa- erty eradication and that their efforts to address tion of these commitments will substantially boost those challenges should be strengthened and sup- the resources available to push forward the inter- ported by the United Nations system, the international development agenda. national financial institutions and all other stake- 43. The fulfilment of all ODA commitments is holders, in order to ensure that achievements made crucial, including the commitments by many to date are sustained. We also acknowledge that developed countries to achieve the target of 0.7 per ODA is still essential for a number of these coun- cent of GNP for ODA to developing countries by tries and has a role to play in targeted areas, taking 2015 and to reach the level of at least 0.5 per cent into account the needs and domestic resources of of GNP for ODA by 2010, as well as a target of 0.15 these countries. to 0.20 per cent of GNP for ODA to least developed 46. We welcome increasing efforts to improve the countries. To reach their agreed timetables, donor quality of ODA and to increase its development countries should take all necessary and appropriate impact. The Economic and Social Council Devel- measures to raise the rate of aid disbursements to opment Cooperation Forum, along with recent meet their existing commitments. We urge those initiatives, such as the High-level Forums on Aid developed countries that have not yet done so to Effectiveness, which produced the 2005 Paris Dec- make additional concrete efforts towards the tar- laration on Aid Effectiveness, and the 2008 Accra get of 0.7 per cent of GNP for ODA to developing Agenda for Action, make important contributions countries, including the specific target of 0.15 to to the efforts of those countries which have com- 0.20 per cent of GNP for ODA to least developed mitted to them, including through the adoption countries in line with the Brussels Programme of the fundamental principles of national owner- of Action for the Least Developed Countries for ship, alignment, harmonization and managing for the Decade 2001-2010,6 in accordance with their results. Continued building on these initiatives, commitments. To build on progress achieved in including through more inclusive and broad-based ensuring that ODA is used effectively, we stress the participation, will contribute to enhancing national importance of democratic governance, improved ownership and making aid delivery more effective transparency and accountability, and managing and efficient and lead to improved outcomes. We also encourage all donors to improve the quality 6 See WT/MIN(05)/DEC, para. 47 and annex F.

10 Doha Declaration on Financing for Development of aid, increase programme-based approaches, use 48. There is a growing need for more systematic country systems for activities managed by the pub- and universal ways to follow quantity, quality and lic sector, reduce transaction costs and improve effectiveness of aid flows, giving due regard to mutual accountability and transparency and, in existing schemes and mechanisms. We invite the this regard, we call upon all donors to untie aid Secretary-General, with relevant United Nations to the maximum extent. We will make aid more system agencies, in close cooperation with the predictable by providing developing countries World Bank, the regional and subregional devel- with regular and timely, indicative information on opment banks, OECD/DAC and other relevant planned support in the medium term. We recog- stakeholders, to address this issue and to provide nize the importance of efforts by developing coun- a report for consideration by the Development tries to strengthen leadership of their own develop- Cooperation Forum. ment, national institutions, systems and capacity to 49. We reiterate our support for South-South ensure the best results of aid by engaging with par- cooperation, as well as triangular cooperation, liaments and citizens in shaping those policies and which provides much needed additional resourc- deepening engagement with civil society organiza- es to the implementation of development pro- tions. We should also bear in mind that there is no grammes. We recognize the importance and dif- one-size-fits-all formula that will guarantee effec- ferent history and particularities of South-South tive assistance. The specific situation of each coun- cooperation and stress that South-South coopera- try needs to be fully considered. tion should be seen as an expression of solidarity 47. We note that the aid architecture has signifi- and cooperation between countries, based on their cantly changed in the current decade. New aid shared experiences and objectives. Both forms of providers and novel partnership approaches, cooperation support a development agenda that which utilize new modalities of cooperation, have addresses the particular needs and expectations contributed to increasing the flow of resources. of developing countries. We also recognize that Further, the interplay of development assistance South-South cooperation complements rather with private investment, trade and new develop- than substitutes for North-South cooperation. We ment actors provides new opportunities for aid to acknowledge the role played by middle-income leverage private resource flows. We re-emphasize developing countries as providers and recipients the importance of the Development Cooperation of development cooperation. Regional coopera- Forum of the Economic and Social Council as the tion could also be strengthened as an effective focal point within the United Nations system for vehicle for mobilizing resources for development, holistic consideration of issues of international inter alia, by strengthening regional financial insti- development cooperation, with participation by tutions to better assist in upgrading critical sectors all relevant stakeholders. We shall pursue efforts, in developing countries. both in the United Nations and in collabora- 50. We encourage developing countries in a position with other relevant institutions, such as the tion to do so to continue to make concrete efforts Organization for Economic Cooperation and to increase and make more effective their South- Development (OECD)/ Development Assistance South cooperation initiatives in accordance with Committee (DAC), to advance dialogue and coop- the principles of aid effectiveness. eration among the increasingly diverse community of development partners. All development actors 51. We recognize the considerable progress made should cooperate closely to ensure that increased since the Monterrey Conference in voluntary resources from all sources are used in a manner innovative sources of finance and innovative pro- which ensures maximum effectiveness. We shall grammes linked to them. We acknowledge that a also pursue enhanced collaboration at the country number of the initiatives of the Technical Group level with the private sector, non‑official donors, created by the Global Action Initiative against regional organizations and official donors. Hunger and Poverty and the Leading Group on

11 The Doha Review Conference on Financing for Development

Solidarity Levies to Fund Development have training, exchange of expertise, knowledge trans- become a reality or are in an advanced stage fer and technical assistance for capacity-building, towards implementation. These include, inter alia, which involves strengthening institutional capac- the International Finance Facility for Immuniza- ity, project management and programme planning. tion; the pilot advance market commitments and The capacity of developing countries to absorb the airline ticket solidarity levies, which finance long-term development aid has begun to increase. health programmes in several developing countries, 54. We underline the important role of an effec- including the international drug purchase facility tive, well managed and adequately resourced Unit- UNITAID to help combat HIV/AIDS, tuberculosis ed Nations system through its operational activi- and malaria; and instruments based on the carbon ties in delivering capacity-building support for market. Other noteworthy initiatives include the development with long-term sustainability. This is United States Millennium Challenge Corporation, particularly important for least developed coun- the President’s Emergency Plan for AIDS Relief, the tries. Given that the level of core funding inevitably India Brazil-South Africa Fund, the Egyptian Fund affects the ability of the United Nations system to for Technical Cooperation and support to African fulfil this mandate, we urge donor countries and countries the Libya-Africa Investment Portfolio other countries in a position to do so to substan- and the PetroCaribe Initiative. We encourage the tially increase voluntary contributions to the core/ scaling up and the implementation, where appro- regular budgets of the United Nations develop- priate, of innovative sources of finance initiatives. ment system, in particular its funds, programmes We acknowledge that these funds should supple- and specialized agencies, and to contribute on a ment and not be a substitute for traditional sources multi-year basis, in a sustained and predictable of finance, and should be disbursed in accordance manner. We also note that non-core resources with the priorities of developing countries and represent an important supplement to the regu- not unduly burden them. We call on the interna- lar resource base of the United Nations develop- tional community to consider strengthening cur- ment system to support operational activities for rent initiatives and explore new proposals, while development, thus contributing to an increase in recognizing their voluntary and complementary total resources, while recognizing that non-core nature. We request the Secretary-General of the resources are not a substitute for core resources United Nations to continue to address the issue of and that unearmarked contributions are vital for innovative sources of development finance, public the coherence and harmonization of operational and private, and to produce a progress report by activities for development. We welcome the efforts the sixty-fourth session of the General Assembly, to improve efficiency, coherence and effectiveness taking into account all existing initiatives. of the United Nations development system. 52. We reiterate our resolve to operationalize the 55. The multilateral development banks, including World Solidarity Fund established by the Gener- the World Bank, regional and subregional develop- al Assembly and invite those countries in a posi- ment banks and other international institutions that tion to do so to make voluntary contributions to promote development, can be an important source the Fund. We also recall the establishment of the of financing for development. They provide -stra Digital Solidarity Fund and encourage voluntary tegic resources, including in the form of technical contributions to its financing, including through assistance, for such areas as governance, institution considering innovative financing mechanisms. and capacity-building and the promotion of best 53. We underscore the importance of capac- practices. They play an important role in enhancing ity development and strengthening technical the integration of developing countries in the world cooperation as important avenues for develop- economy and in supporting regional integration ing countries to attain their development objec- and other cooperation efforts. They also constitute tives. In this regard, we reiterate the importance a valuable forum for exchange of information on of human resources development, including best practices between developing countries. For

12 Doha Declaration on Financing for Development some countries, the net outflow of resources from 57. We stress the importance of continued flex- some of these institutions has become negative ibility with regard to the eligibility criteria for and, therefore, we will work with these institutions debt relief under HIPC and MDRI. We recall our to enhance their financing to developing countries encouragement to donor countries to take steps to as part of the measures for further implementation ensure that resources provided for debt relief do of the Monterrey Consensus. These institutions not detract from ODA resources intended to be should continue to explore innovative ways to use available for developing countries. their capital to leverage additional finance to fos- 58. We underline that heavily indebted poor ter development while preserving their capital and countries eligible for debt relief will not be able to ensuring their activity is sustainable. enjoy its full benefits unless all creditors, including public and private, contribute their fair share and External debt become involved in the international debt resolu- 56. The debt stock of developing countries as a tion mechanisms to ensure the debt sustainability group continues to increase, while key debt sus- of low-income countries. tainability indicators have improved significantly 59. We emphasize that middle-income developing since Monterrey, but care needs to be taken to countries are mainly responsible for the achieve- avoid a recurrence of unsustainable levels of debt. ment and maintenance of a sustainable debt situ- Debt repayment by several developing countries, ation and for addressing their external debt situ- debt relief under the Heavily Indebted Poor Coun- ation. While welcoming the Evian approach, we tries Initiative (HIPC), the Multilateral Debt Relief emphasize the importance of sustained efforts by Initiative (MDRI) and the Evian treatment in the all towards achieving sustainable debt of middle- Paris Club, together with other debtor countries’ income countries, including by improving their efforts and ongoing initiatives, such as the World sustainable debt management and through debt Bank/IMF Debt Sustainability Framework, have relief based on current debt mechanisms and debt contributed to achieving such progress. The HIPC swap mechanisms on a voluntary basis. initiative is estimated to provide a total of US$ 71 billion to 41 eligible countries, while MDRI is 60. We recognize that important challenges expected to provide an additional US$ 28 billion.7 remain. Debt service accounts for a significant Borrowing countries have also enhanced their debt portion of the fiscal budget and is still unsustain- management programmes and many have built able in a number of developing countries. The reserves. Debt relief initiatives also helped benefi- existing international debt resolution mechanisms ciary countries mobilize much-needed resources are creditor-driven, while taking into account for poverty reduction, as part of wider efforts to debtor country situations. More efforts are needed mobilize financial resources for development. We through international debt resolution mechanisms recognize that the current global financial and eco- to guarantee equivalent treatment of all creditors, nomic crises carry the possibility of undoing years just treatment of creditors and debtors, and legal of hard work and gains made in relation to the debt predictability. We are deeply concerned about of developing countries. The situation demands increasing vulture fund litigation. In this respect, the implementation of existing and any future bold we welcome recent steps taken to prevent aggres- and encompassing initiatives and mechanisms sive litigation against HIPC-eligible countries, to resolve the current debt problems of develop- including through the enhancement of debt buying countries, particularly for Africa and the least back mechanisms and the provision of technical developed countries, in an effective and equitable assistance and legal support, as appropriate, by the manner, including through debt cancellation. Bretton Woods institutions and the multilateral development banks. We call on creditors not to sell claims on HIPC to creditors that do not participate 7 See WT/MIN(01)/DEC/1, para. 35; and WT/L/447. adequately in the debt relief efforts.

13 The Doha Review Conference on Financing for Development

61. We will intensify our efforts to prevent debt relevant organizations should continue to play an crises by enhancing international financial mech- important role in this field, as appropriate, given anisms for crisis prevention and resolution, in their respective mandates. Preserving long-term cooperation with the private sector, and by find- debt sustainability is a shared responsibility of ing solutions that are transparent and agreeable to lenders and borrowers. To this end, we encourage all. These mechanisms need to be underpinned by the use of the joint IMF/World Bank Debt Sus- principles that have served us well in dealing effec- tainability Framework by creditors and debtors, tively with many debt problems. These include the as appropriate. Borrowers should strive to imple- need to ensure that debt resolution is a joint respon- ment sound macroeconomic policies and public sibility of all debtors and creditors, both State and resource management, which are key elements in commercial; to recognize that furthering develop- reducing national vulnerabilities. ment and restoring debt sustainability are the main 65. Particular attention should be paid to keeping objectives of debt resolution; to strengthen trans- the debt sustainability frameworks under review parency and accountability among all parties; to to enhance the effectiveness of monitoring and promote responsible borrowing and lending prac- analysing debt sustainability and consider funda- tices; to improve debt management and national mental changes in debt scenarios, in the face of ownership of debt management strategies; and to large exogenous shocks, including those caused facilitate equivalent treatment of all creditors. by natural catastrophes, severe terms-of-trade 62. We recognize that a shift has occurred from shocks or conflict. We stress the need to construct official to commercial borrowing and from exter- debt indicators based on comprehensive, objec- nal to domestic public debt, although for most low- tive and reliable data. We also need to increase income countries external finance is still largely information-sharing, transparency and the use of official. We note that the number of creditors, both objective criteria in the construction and evalua- official and private, has increased significantly. We tion of debt scenarios, including an assessment stress the need to address the implications of these of domestic public and private debt in order to changes, including through improved data collec- achieve development goals. We are convinced that tion and analysis. enhanced market access to goods and services of export interest to debtor countries is an important 63. In debt renegotiations, we stress the need for factor in enhancing debt sustainability. full involvement of debtors as well as creditors and the importance of taking into account debtors’ 66. Debt sustainability frameworks should also national policies and strategies linked to attain- give due weight to the development needs of ing the internationally agreed development goals, debtor countries, including benefits from expen- including the Millennium Development Goals. ditures and investment that have long-term social and economic returns. Given the imperative of 64. Technical assistance to manage debt and maintaining debt sustainability and the external address debt problems can be crucial for many financing requirements for meeting development countries, in particular the most vulnerable. We goals, particularly in least developed countries reaffirm the importance of adequate capacities of and low‑income countries facing increased risks debtor countries during debt negotiations, debt of debt distress, bilateral donors and multilateral renegotiations and for debt management. In this financial institutions should seek to increasingly regard, we will continue to provide developing provide grants and concessional loans as the pre- countries with the necessary assistance, includ- ferred modalities of their financial support instru- ing technical assistance, upon request, to enhance ments to ensure debt sustainability. debt management, negotiations and renegotiation capacities, including tackling external debt litiga- 67. We acknowledge the need to continue to tion, in order to achieve and maintain debt sustain- address all relevant issues regarding external debt ability. The Bretton Woods institutions and other problems, including through the United Nations,

14 Doha Declaration on Financing for Development and we will consider ways to explore enhanced Organization is needed, based on a clear under- approaches of sovereign debt restructuring mecha- standing and respect for their respective mandates nisms based on existing frameworks and princi- and governance structures. ples, with broad creditors’ and debtors’ participa- 70. We encourage better coordination and tion and ensuring comparable burden-sharing enhanced coherence among relevant ministries in among creditors, with an important role for the all countries to assist in the formulation and effec- Bretton Woods institutions. tive implementation of policies at all levels. We also encourage international financial and development Addressing systemic issues: enhancing institutions to continue to enhance policy coher- the coherence and consistency of the ence for development, taking into account diversi- international monetary, financial fied needs and changing circumstances. In order and trading systems in support of to complement national development efforts, we development call on all countries whose policies have an impact 68. Some results have been achieved since Monter- on developing countries to increase their efforts to rey in addressing systemic issues, but signifi- formulate policies consistent with the objectives of cant additional progress is needed. This is all the sustained growth, poverty eradication and sustain- more urgent given the current financial crisis. The able development of developing countries. progress expected after Monterrey with the man- 71. Stable international financial markets require dated work of the multilateral financial institutions, sound macroeconomic and financial policies. including the role of IMF in strengthening surveil- It is crucial that all countries manage their mac- lance, giving high priority to the identification and roeconomic and financial policies in ways that prevention of potential crises and strengthening contribute to global stability and sustained eco- the underpinnings of international financial sta- nomic growth and sustainable development. Solid bility, remains incomplete. The current financial and strong financial institutions at the national crisis, as well as the continued weaknesses in the and international levels are essential pillars of a international financial system, further underline well-functioning international financial system. the need to strengthen the international financial Countries should continue to pursue sound mac- architecture. The reform of the international finan- roeconomic policies and, as appropriate, structural cial architecture should focus on providing greater reform while also strengthening their financial sys- transparency and strengthening the voice and par- tems and economic institutions. ticipation of developing countries and countries 72. New and highly globalized financial instru- with economies in transition in international deci- ments continue to change the nature of risks in the sion-making and norm-setting. Thus, we resolve to world economy, requiring continuing enhancement undertake appropriate and timely steps to improve of market oversight and regulation. To strengthen the functioning of the international economic and the resilience of the international financial system, financial system. It is essential to maintain the we will implement reforms that will strengthen the involvement of the United Nations in these under- regulatory and supervisory frameworks of finan- takings. This is crucial for an integrated implemen- cial markets as needed. We will strive to improve tation of the Monterrey Consensus. key accounting standards to remedy weaknesses 69. We resolve to strengthen the coordination of and deficiencies, including those exposed by the the United Nations system and all other multilat- current financial crisis. National regulators should eral financial, trade and development institutions enhance financial information and transparency to support economic growth, poverty eradication at the domestic level. We will further enhance and sustainable development worldwide. Great- cooperation among national regulators from all er cooperation between the United Nations, the countries to strengthen international financial Bretton Woods institutions and the World Trade standards. These efforts should address timely

15 The Doha Review Conference on Financing for Development

and adequate risk disclosure standards in order the international financial system, can be instru- to improve the foundation of decisions of inves- mental in fostering development and financial tors. There is also a need for enhanced transpar- stability among their members and should be in ency by financial institutions. Enhanced disclosure line with multilateral frameworks, as appropri- practices and transparency should assist efforts to ate. Those arrangements can facilitate financial reduce illicit capital flows. flows and lower transaction costs and may serve as 73. We reaffirm that the international financial mechanisms that assist in the prevention of finan- institutions, including the Bretton Woods institu- cial crises and render parties to such arrangements tions, need to be further reformed. The reformed more resilient. multilateral financial institutions should have the 75. Credit rating agencies also play a signifi- technical capacities, credit facilities and financial cant role in the provision of information, includ- resources to deal with the management and swift ing assessment of corporate and sovereign risks. resolution of financial crises in a manner that elic- The information provided by credit rating -agen its and facilitates international cooperation and cies should be based on broadly accepted, clearly that is consistent with their respective mandates. defined, objective and transparent parameters. The The international financial institutions should ongoing financial crisis has revealed weaknesses continue to foster the multilateral cooperation and raised concerns about accounting standards needed to restore and safeguard international and the way credit rating agencies currently oper- monetary and financial stability and should stand ate. We will exercise strong oversight over credit ready to quickly make available sufficient resourc- rating agencies, consistent with the agreed and es to help countries in overcoming crises. The strengthened international code of conduct, and International Monetary Fund, in collaboration take additional action to strengthen financial mar- with an expanded and representative Financial ket transparency and enhance the convergence of Stability Forum and other bodies, should work to global accounting standards. better identify vulnerabilities, anticipate potential stresses and act swiftly to play a key role in crisis 76. We recognize the need to address the often response. Similarly, the World Bank can also play expressed concern at the extent of representation of a significant role to mitigate the difficulties coun- developing countries in the major standard-setting tries face. The Bretton Woods institutions must bodies. We therefore welcome the proposed expan- continue, within their respective mandates, to sion of the membership in the Financial Stability help developing countries to deal with the adverse Forum and encourage the major standard-setting effects of exogenous shocks, such as large fluctua- bodies to review their membership promptly while tions in the prices of key commodities, for exam- enhancing their effectiveness. ple, through the reformed IMF Exogenous Shocks 77. We underscore that the Bretton Woods insti- Facility. We also recognize the need for keeping tutions must be comprehensively reformed so under review the allocation of special drawing that they can more adequately reflect changing rights for development purposes. economic weights in the world economy and be 74. Regional development banks play a vital role more responsive to current and future challenges. in supporting economic development and assist- We reaffirm that the enhancement of voice and ing regional integration efforts. We encourage participation of developing countries in the Bret- continued cooperation and coordination among ton Woods institutions, in accordance with their the regional development banks and other inter- respective mandates, is central to strengthening national financial institutions, as appropriate. We the legitimacy and effectiveness of these insti- should review the adequacy of resources required tutions. We recognize the governance reforms to accomplish their tasks, as necessary. Other that the international financial institutions have regional cooperation frameworks, such as finan- already undertaken, including the recent agree- cial and monetary arrangements that complement ment regarding the quota review and voice reforms

16 Doha Declaration on Financing for Development at IMF and related steps in the World Bank, and take concerted global action to address all these encourage further reforms in that direction. areas while consistently furthering economic and human development for all. 78. Welcoming the ongoing international discussions on global economic governance structures, 81. We are deeply concerned by the impact of we acknowledge the need to ensure that all coun- the current financial crisis and global economic tries, including low-income countries, are able to slowdown on the ability of developing countries effectively participate in this process. This debate to access the necessary financing for their devel- should review the international financial and mon- opment objectives. Developing countries and etary architecture and global economic governance countries with economies in transition risk suf- structures in order to ensure a more effective and fering very serious setbacks to their development coordinated management of global issues. Such a objectives, in particular the achievement of the debate should associate the United Nations, the internationally agreed development goals, includ- World Bank, IMF and the World Trade Organi- ing the Millennium Development Goals. It is criti- zation, should involve regional financial institu- cal to adopt further decisive and prompt actions tions and other relevant bodies and should take to contain the current crisis and restore sustained place in the context of the current initiatives aimed economic growth. Given this global context, we at improving the inclusiveness, legitimacy and call the attention of all donors to the situation and effectiveness of the global economic governance needs of the poorest and most vulnerable. We also structures. Greater cooperation among the United urge all donors to maintain and deliver on their Nations, the Bretton Woods institutions and the ODA commitments and call on the international World Trade Organization is needed, based on a community, including the World Bank and IMF, clear understanding and respect for their respec- to draw on the full range of their policy advice tive mandates and governance structures. and resources, as appropriate, to help developing countries and countries with economies in tran- 79. The United Nations will hold a conference at sition to strengthen their economies, maintain the highest level on the world financial and eco- growth and protect the most vulnerable groups nomic crisis and its impact on development. The against the severe impacts of the current crisis. conference will be organized by the President of In this context, it is also important for develop- the General Assembly and the modalities will be ing countries to maintain sound macroeconomic defined by March 2009 at the latest. policies that support sustained economic growth and poverty eradication. Other new challenges and emerging issues 82. The concern of the international community about climate change has increased markedly since 80. We commit ourselves to reinvigorating the the adoption of the Monterrey Consensus. We reit- global partnership for development in order to erate the importance of reaching an agreed outcome effectively address the full range of financing for at the fifteenth session of the Conference of the development challenges facing the world today. Parties to the United Nations Framework Conven- We recognize that multiple financing for develop- tion on Climate Change, to be held in Copenhagen ment challenges and opportunities have emerged from 30 November to 11 December 2009, and urge since the Monterrey Conference, including the all parties to engage constructively in negotiations impact of the financial crisis, additional costs of consistent with the Bali Action Plan. Ongoing and climate change mitigation and adaptation and potential responses to tackle this phenomenon damage to the Earth’s environment, price volatil- have major financing for development implica- ity in international markets of key commodities, tions and will incur substantial additional costs on expanding economic cooperation and the grow- all countries, thus requiring additional resource ing needs for reconstruction and development of mobilization, including from the private sector, post-conflict countries. We reaffirm our resolve to particularly for developing countries to address

17 The Doha Review Conference on Financing for Development

the challenges of climate change, in order to sup- 84. We acknowledge the recent volatility in ener- port appropriate national adaptation and mitiga- gy markets and its impact on low- and middle- tion strategies and actions. We reiterate that it is income countries. We will strengthen cooperation critical to address the pressing needs of developing to develop energy systems that can assist in meet- countries, especially those that are particularly vul- ing development needs and are consistent with the nerable to the adverse impacts of climate change, efforts to stabilize the global climate, in accord- such as the least developed countries, small island ance with the principle of common but differenti- developing States, and other affected countries in ated responsibilities and respective capabilities. We Africa. In this regard, we urge all parties to engage will strengthen our efforts to substantially increase in the ongoing process in a manner that will ensure the share of renewable energies and to promote an agreed outcome commensurate with the scope energy efficiency and conservation. We reaffirm and urgency of the climate change challenge. The that access to basic energy services and to clean States parties to the Kyoto Protocol welcome the and sustainable energy is important to eradicate extreme poverty and to achieve the internationally launching of the Adaptation Fund within the struc- agreed development goals, including the Millen- ture of the United Nations Framework Convention nium Development Goals. on Climate Change and look forward to its early operationalization with full support. 85. We acknowledge the recent efforts to bring to light the particular challenges faced by middle- 83. We also underscore the special challenges income countries in the area of development, pov- emerging from volatility in international commod- erty eradication and inequality. We note the confer- ity markets, particularly the volatility of food and ences held in Madrid in March 2007, in Sonsonate, energy prices. We take note of recent initiatives El Salvador, in October 2007 and in Windhoek in and will continue to mobilize resources to assist August 2008 on international development coop- developing countries, in particular the least devel- eration with middle-income countries. We wel- oped countries, attain food and energy security. At come the positive impact of expanding economic the same time, we recognize the necessity of a sub- relations among middle income countries, as well stantial sustainable expansion of food production as recent initiatives by the international financial in developing countries by enhancing investments institutions to enhance their facilities for them. and productivity in the agricultural sector, includ- 86. Consensus has emerged since Monterrey that ing in small-scale farms, promoting rural develop- countries emerging from conflict are an important ment and intensifying agricultural research. It is part of the international agenda. Many of the poor- critical to eliminate barriers to food production, to est continue to live in post-conflict States where improve processing and distribution over time and inadequate infrastructure and low investment pre- to have carefully targeted safety nets in the event of vent the delivery of basic social services and limit food crises. We recognize that food insecurity has the productive capacity of the economy. We affirm multiple and complex causes and that its conse- the importance of providing seamless assistance quences require a comprehensive and coordinated to peacebuilding efforts, including humanitar- response in the short, medium and long terms by ian assistance, rehabilitation and nation-building, national Governments and the international com- and assistance for governance and improvement of munity. We thus encourage the development of an social and economic infrastructure. We welcome inclusive global partnership for agriculture and the efforts of the international community to pro- food. We acknowledge the work of the High-lev- vide flexibility to post-conflict developing coun- el Task Force on the Global Food Security Crisis tries regarding debt relief and restructuring and established by the Secretary-General and encour- stress the need to continue those efforts in order age its continued engagement with States Members to help those countries, especially those that are of the United Nations, relevant organizations, the heavily indebted and poor, to achieve initial recon- private sector and, especially, farmers. struction for economic and social development,

18 Doha Declaration on Financing for Development particularly for the early recovery period. We will international community should continue to draw step up our efforts to assist countries in accessing upon the expertise, data and analysis available in financing for development in the post-conflict con- multiple forums, while enhancing information- text. In this regard, we welcome the valuable work sharing and dialogue between the various United of the United Nations Peacebuilding Commission Nations and non-United Nations bodies that mon- and the Peacebuilding Fund, as well as commit- itor progress on financing for development issues. ments outlined in the Accra Agenda for Action.8 There is substantial room to enhance the sharing of best practices. Staying engaged 89. We acknowledge the need for a strengthened 87. We recommit ourselves to staying fully and more effective intergovernmental inclusive engaged, nationally, regionally and internationally, process to carry out the financing for develop- to ensuring proper and effective follow-up to the ment follow-up, which would review progress in implementation of the Monterrey Consensus, tak- the implementation of commitments, identify ing into account the intergovernmentally agreed obstacles, challenges and emerging issues and pro- outcome document adopted at this Conference. We pose concrete recommendations and actions, tak- will also continue our unremitting efforts to build ing into account various proposals that have been bridges between all relevant stakeholders within put forward. We request the Economic and Social the holistic agenda of the financing for develop- Council to consider this matter during its spring ment process. We appreciate the role played by meeting and at its substantive session of 2009, in the United Nations as a focal point for the financ- consultation with all relevant stakeholders, with a ing for development follow-up process. It will be view to making appropriate and timely recommen- important to maintain this role to ensure the con- dations for final action by the General Assembly as tinuity and dynamism of our process. We reaffirm early as possible in its sixty-fourth session. the need to further intensify the engagement of all 90. We will consider the need to hold a follow-up stakeholders, including the United Nations system, financing for development conference by 2013. the World Bank, IMF and the World Trade Organi- zation in the follow-up and implementation of the commitments made in Monterrey and reiterated here at Doha. 88. We recognize that maintaining a comprehensive and diverse multi-stakeholder follow-up process, including with civil society and the private sector, is critical. We also recognize the core responsibility of all participants in the financing for development process to exercise ownership of it and to implement their respective commitments. It is important that the follow-up process be undertaken in an integrated fashion, including through the continued engagement of all relevant ministries, in particular ministries of development, finance, trade and foreign affairs. An integrated treatment of financing for development issues in national development plans is also important in enhancing national ownership and implementation of financing for development. The

8 A/CONF.191/11.

Chapter 2 Opening Summit Plenary Session

Qatar the stability of individuals and societies is associated with the effectiveness of development rather Opening Statement by Host Country: than merely the accumulation of investments and His Highness profits. Sheikh Hamad Bin Khalifa Al-Thani Amir of the State of Qatar and President In fact, if we look at the causes of recession which of the Follow-up International Confer- the developed world is about to enter, dragging ence on Financing for Development to along with it the rest of the peoples on our planet, Review the Implementation of the we shall discover that when development is delayed, Monterrey Consensus the social balance is at risk. And if we look at crises, especially the recent one, we shall discover that the 29 November 2008 lack of development and hesitation in addressing it In the Name of God has much to do with the causes of crisis. The Most Compassionate, The Most Merciful The effects of the current world crisis confirm Your Excellencies and Highnesses, that there is no special privilege or exemption from Your Excellency President of the United Nations crisis because we live in the same world. This is a General Assembly, Your Excellency the Secretary- lesson which all of us must learn and remember as a General of the United Nations, Honourable basis for discussing the issue of the comprehensive Audience, development of societies as a necessity, requirement It is my pleasure to welcome you in Doha and and hope for all peoples of the world. Comprehen- to wish your Conference success in attaining its sive development in its true sense means striving goals. While we appreciate the General Assembly’s to improve the quality of life of individuals, com- decision to hold the Follow-up International Con- munities and homelands in all spheres, from the ference on Financing for Development to Review economic, social, intellectual and pragmatic to the the Implementation of the Monterrey Consensus in health, welfare, constitutional and legal spheres. Qatar, we underline the vital role being played by In short, the meaning of full-scale develop- the Conference in the economic, social and related ment, which has no single dimension but many fields to shape a wide-scale developmental vision. dimensions associated with the movement and History teaches us that man could only obtain vitality of world communities and their potentials the keys to progress when he began to develop his and resources. resources and capabilities. Politics teaches us that Development has been considered by many people only felt secure when they learned to devel- from only one dimension, namely the financial op their economy and culture. dimension, but we have learned from the lessons Crises such as the violent financial crisis that of history, politics and crisis that development is a is now afflicting the whole world teach us that comprehensive whole that is not subject to division The Doha Review Conference on Financing for Development

because it represents the wider arena of extensive request but also a path for stability, progress, peace human progress. and security for the community of States in all continents. We must turn the hardships facing us to If in this Conference we are interested in, and our advantage by strengthening our determination work under the slogan of, “Financing for develop- and unifying our efforts to serve the advancement ment”, then it should be evident at the same time of human life in the whole world. that financing is merely a stimulus for all to take action to implement their due and legitimate rights. May God guide you to success and may the We know that several homelands and peoples do peace, mercy and blessings of God be upon you. not lack hopes and aspirations but they do lack the means and tools to realize them, and financing is one of the most important of these tools, therefore General Assembly when we pay attention to it, we do so hoping that it will be an incentive for progress and implementa- of the United Nations tion. But we have to agree that financing is only one Opening Statement by of many human incentives and we should always Mr. Miguel D’Escoto Brockmann ensure that other key incentives are fully integrated President of the General Assembly of the into our efforts and regulated by all the necessary United Nations controls, the most important of these being integrity and transparency guarantees. 29 November 2008 Here I want to refer to two points which I feel I must put forward with the utmost sincerity and Your Highness, Emir of Qatar, impartiality. Honourable Heads of State and Government, Excellencies, First, sometimes we have the impression that Mr. Secretary-General, there is an attempt to put the whole burden of devel- Representatives of Civil Society, opment on the oil-producing countries, and in that Dear Friends, attempt we see some prejudice and denial, and we 1. As President of the General Assembly, I am believe when we talk about Qatar that our country pleased and honoured to welcome you to this Con- has fulfilled its obligations in the past and continues ference, which has been facilitated with the gener- to fulfil them in the present within the context of its ous and able support of the Amir of Qatar, Sheikh responsibility and capacity. But frankly speaking, Hamad bin Khalifa Al-Thani. I wish to express my sometimes we feel that expectations are imposed deep gratitude to His Highness for his kind gener- on the oil-producing countries beyond their capa- osity and hospitality in hosting this major Confer- bilities, even to the point of confusion. ence. I admire the way in which Qatar has chosen Second, the developed countries have no right to play an ever more important role as a leader in to tell other countries what to do, giving them advice the international community—trying to convince and guidance while exempting themselves from the haves of this world to pay more attention to the their due contributions to the issue of development increasingly urgent demands of the have-nots. according to their capabilities. Some of the devel- 2. All the splendour of beautiful Doha must not oped countries should recognize that development for a minute allow us to forget why we are here. We is a peace umbrella that protects all, and in many have gathered to reflect on the lives of the half of conditions of human progress it is more helpful to the world’s people who know no splendour—only peacekeeping than merely piling up weapons. squalor, hunger and levels of poverty that contra- Honourable Audience, dict their inherent human dignity and rights. Development is a great responsibility in this 3. But we are here to take action as well—actions global community and it is not only a just and decent proportionate with the immensity of the multiple,

22 Opening Summit Plenary Session confluent crises that are causing so much suffering with the Monterrey commitments to financing the and death, particularly among the poor. development of the world’s poorer countries. 4. For our meeting to be meaningful, we must 9. The Monterrey meeting marked the first time adopt the point of view of the victims of our fal- that the Group of 77 had orchestrated a major tering economic and financial system. We have a United Nations conference. It was also the first moral duty to do more than rearrange our faltering time that systemic issues relating to the financial system: we must transform it as well. More than and economic system were dealt with in the Unit- new regulations, the world needs new alternatives. ed Nations and not just within the Bretton Woods institutions, as had always been the case. 5. Every day, tens of thousands of our brothers and sisters die from hunger. Entire peoples watch 10. Even now, six years after Monterrey and in the as their cultures and ways of life disappear. As our face of crisis, the G-8 has only reluctantly expanded environment deteriorates due to hyper-consumer- its ranks to become the G-20, but some countries ism and exploitation by the wealthy nations, mil- still want to keep systemic issues outside of the United Nations and its all-inclusive grouping—the lions are forced to leave their homes, uncertain G-192. Those who noisily advocate democracy in whether they will be accepted in other lands. This the world recoil from the idea of democratic gov- systemic war against the poor, I believe, is the most ernance of our international institutions, including pervasive form of terrorism in today’s world. We the United Nations. must put an end to this by moving from profit-centred development to people-centred development 11. According to the Monterrey Consensus, free before it is too late. trade was to be the main force that would eradicate poverty. But the massive agricultural subsidies 6. With the trillions that are currently being and protectionist policies of the European Union, spent on wars of terror, this whole process could be Japan and the United States have made this impos- reversed. But this, obviously, requires a change of sible to achieve. Foreign direct investment has also logic. The world desperately needs for us to move failed to significantly reduce poverty. away from the logic of “I and mine”, which is the logic of death and terror, towards the logic of “We and 12. The long-standing commitment to provide 0.7 per cent of gross domestic product (GDP) by the ours”, which is the logic of solidarity, life and peace. wealthy countries as development assistance for 7. We have come together here as a perfect storm the developing world has also remained unrealized; continues to gather force around us, a conflu- and debt-servicing remains a staggering burden on ence of crises that overshadow our work and add many developing countries, crippling their capac- ever-greater urgency to our central task. In spite ity to provide adequate social services or meet the of the news of sporadic violent outbursts around Millennium Development Goals. the world, we are experiencing, perhaps, the calm 13. There is no doubt that the international com- before the storm, one whose devastation could munity has been dragging its feet with regard to overwhelm us. We must take advantage of our compliance with the commitments assumed at gathering here in Doha to prepare as calmly, but Monterrey. Our purpose here in Doha is to expe- also as quickly as we can, to avert the human catas- dite these promises and infuse the development trophes that now threaten us all. process with a sense of urgency in the face of new 8. In 2002, with their economies staggering global challenges. For this reason, it is imperative under the burden of neo-liberal economic policies, that the outcome document of this Conference be developing countries pressed for an International as strong and clear as possible. Conference on Financing for Development, which 14. As you know, delegations of United Nations was held in Monterrey, Mexico, in 2002. Our meet- Member States in New York have been working ing today is a follow-up to evaluate compliance very hard over the last two years to make this

23 The Doha Review Conference on Financing for Development

Conference a reality and we should be proud of and I hope that the results of this Conference will their work, particularly the many initiatives of give us new ground on which to build together. developing countries. 19. New proposals and ideas on innovative sources 15. As a result, I have the great honour to present of finance for development have been put forward, and submit for your consideration the draft out- including for climate change and food security, and come document of the Conference as contained these should be explored further. This is also an in document A/CONF.212/3. On behalf of all of opportunity for us to seriously consider support- us, I wish to pay special tribute to the two very ing the proposal to create an ad hoc commission to able Facilitators who were appointed for this pur- identify innovative solutions on debt. pose, Maged Abdelaziz of Egypt and Johan Løvald 20. At the same time, developing countries need of Norway. They have given generously of their support to strengthen domestic resource mobiliza- time all throughout the process and I am person- tion. They need to improve their domestic govern- ally deeply grateful to them. Now it is your job to ance, create standards for regulating the economy complete this document and arrive at an early and and institutionalize an equitable and democratic balanced consensus that reflects appropriately the rule of law. These will help to attract healthy, non- needs and aspirations of all our nations during speculative foreign direct investment, which when these troubled times. it complies with national laws and priorities and is Friends, embedded with social responsibility constitutes an important complement to public investment and 16. Without taking too much time, let me say a official financial aid. few words about some of the issues that we will be tackling at this Conference. There is ample recog- 21. On trade, let us decide to restart negotiations nition that these crises demand concerted global on the Doha development round and hold all action and they offer us a tremendous opportunity countries to their commitment to make interna- to improve our way of doing things, of interacting tional trade agreements give particular attention to with one another and with the environment. the needs of poorer countries. Brothers and sisters, friends all. 17. We cannot revert to a status quo. Rather, profound changes must be made in the governance of 22. The above measures and ideas should be seen, the global financial system and in the values driv- rather than expressions of charity, as a moral duty ing it. We must take advantage of the unique forum of social justice. I think this is what the Monterrey provided by the United Nations to work towards Consensus was all about, and we must keep, and agreement on building such a system, including build on, that spirit here in Doha. viable international financial, monetary and trad- 23. It is hard to exaggerate the importance of this ing structures and institutions. The recent G-20 Conference. Some important players in the inter- Summit in Washington, D.C., on the international national arena didn’t attend this gathering because financial crisis was an important first step, but it they honestly want the world to continue on the was only that, a first step towards raising inclusive- same course that has led us to where we are today. ness in international economic decision-making. Others didn’t come because they honestly have lost 18. As President of the General Assembly, I am hope in our capacity to come up with meaningful deeply committed to the objective of the democ- change. But the vast majority of the countries of the ratization and reform of the United Nations and its world are represented here and want to see an open, system of agencies, which includes of course the inclusive process unfold in the months ahead. international financial and trade institutions as part 24. Together, we must rise to the occasion and send of the architecture of the international economic a clear message of hope to our dispossessed broth- order. I have appointed a Commission of Experts ers and sisters who are hungry not only for food but to advise me on these and other related matters, also for the good news that their voices are being

24 Opening Summit Plenary Session heard. As people of profound ethical convictions, The global financial crisis has brought an let us act according to our conscience. But as peo- abrupt end to a long era of global growth. It comple of faith, let us also ask the most loving, merciful pounds other major threats: climate change, food and compassionate God to strengthen our collec- insecurity and the terrible persistence of extreme tive political will so that we may decide to do what poverty. No nation has been spared. But it is the is right and just and thus ensure a better and safer poorest countries that will feel the blow most world for all present and future generations. sharply. If not handled properly, today’s financial crisis will become tomorrow’s human crisis. Social Thank you. unrest and political instability will grow, exacerbating all other problems Major economies have responded with fiscal and monetary rescue pack- United Nations ages and stimulus plans. Opening Statement by The emergency G-20 summit in Washington Mr. Ban Ki-moon showed that Governments are deeply concerned Secretary-General of the United Nations and trying to coordinate their actions. This is welcome. But we need to do more. Probably much 29 November 2008 more. Wherever possible, fiscal measures must be bold and decisive. And many studies show Your Highness Sheikh Hamad bin Khalifa Al- that they will be much more effective if they are Thani, Amir of the State of Qatar, strongly coordinated. To promote that coordina- Heads of State and Government, tion, we need to build a bridge between the G-20 Mr. President of the General Assembly, and the rest of the world—the entire community Excellencies, of nations. That is what I told our informal, high- Ladies and Gentlemen, level gathering yesterday. And today I repeat it to you, the full membership of the United Nations. At the outset of this meeting, I would like to reaffirm our solidarity with the Government and That bridge must stand on three pillars. One people of India, as they mourn the victims of the pillar is cooperation. Our stimulus programmes outrageous terrorist acts in Mumbai. Leaders must be well coordinated among all nations. The around the world unanimously condemn in the old proverb puts it just right: we must hang togeth- strongest terms the violence we have seen in Mum- er or else we shall most assuredly hang separate- bai in the past three days. No cause or grievance can ly. And as we work together, we must protect the justify indiscriminate attacks against civilians and poorest and most vulnerable. Rescue and assist- the perpetrators must be brought swiftly to justice. ance packages should not stop at the borders of rich and powerful countries. The Millennium Develop- Thank you, Your Highness, for your generos- ment Goals are in jeopardy. Are we to “economize” ity and hospitality in hosting this Conference. We on official development assistance (ODA), worth gather at a fateful moment. I am particularly grate- some hundred billion dollars, while trillions of ful to the many Heads of State and Government dollars are mobilized in the rich countries to fight who, in spite of their very busy programmes, have their financial problems? endeavoured to join us here today to show their Governments’ strong commitment to the global Another pillar is sustainability. Through low partnership for development that is the foundation carbon green growth, we can create jobs, conserve of the Monterrey Consensus. Without exaggera- energy and combat climate change—in short, tion, we can say that the well-being of our people address several challenges at once. We must all think along these lines. and the health of our societies—even the future of our planet—depend on what we do today and in A third pillar is inclusive governance. We need the weeks to come. a new multilateralism that recognizes the world of

25 The Doha Review Conference on Financing for Development

the twenty-first century. Virtually all growth in 2009 impeding investment and government spending will come from emerging and developing economies. that might otherwise contribute to growth and Without them, the global economy would sharply economic development. contract. The new multilateralism must acknowl- Fifth, mobilizing local resources. In the new edge this role—not merely because this is fair and just but also as a matter of practical necessity. climate, financing for development will come increasingly from within. National Governments Excellencies, must develop new ways to raise revenues, while Ladies and Gentlemen, encouraging domestic firms to make productive The Monterrey Consensus was a major achieve- investments. We need to help show the way. Spe- ment. At the time, it was seen as opening a new cifically, we need more international cooperation era of cooperation, bridging the old North-South to minimize harmful tax competition and to stem divide. The Monterrey vision could yet deliver all the loss of tax revenues, particularly in resource- that, and more. Faithfully implemented, it is a path rich nations. out of our current predicament. Sixth, protectionism. Beggar-thy-neighbour Let me briefly discuss six aspects of develop- trade policy responses benefit no one. Instead, we ment financing as I see them in our current con- should renew our commitment to ensure a truly text. First, liquidity. The wealthiest nations have development outcome for the Doha round of mul- moved to keep credit flowing at home. We must tilateral trade negotiations. We need to see the ensure that developing countries can do so as well. Doha trade round revived and concluded success- We therefore need additional emergency financing fully as soon as possible. from the IMF, the World Bank and other sources. Without it, the credit crisis will spread to emerging Excellencies, economies. Growth will stall, hurting them and the Like wayfarers in a boat on troubled seas, we world as a whole. are all in this together. Second, the Millennium Development I cannot stress enough that now, more than ever, Goals. An increase in grants and long-term lend- we must be bold and summon the will to lead. ing should be part of our response. Above all, we must hold to our pledges of assistance. I welcome Thank you for your commitment and leader- the announcements by several Governments, the ship in being here today. International Monetary Fund and the World Bank in this regard. Reducing aid to the poorest nations under current circumstances would have devastating consequences. Third, climate change and green growth. We must rededicate ourselves to fighting climate change as part of the solution to the current economic downturn. Investments in green technologies will yield pay-offs in the long term for a safer environment and more sustainable growth. Already, the record shows that green investment can produce jobs and spur growth. Fourth, debt relief. We must step up the debt relief programmes granted to the poorest nations so that a greater number can benefit. This burden will only weigh more heavily in the current climate,

26 Opening Summit Plenary Session

World Trade Organization While trade can serve as a catalyst, a new mind- set has appeared during the past 10 years. If trade is Opening Statement by to make its full contribution to sustainable develop- Mr. Pascal Lamy ment, growth and job creation, it must be accom- Director-General panied by adequate financial resources to address infrastructure and supply constraints. Aid for Trade 29 November 2008 exists. But making trade possible is only one aspect of the question: we also need to make it happen. Excellencies, As we all know, it was long thought, first that the Ladies and Gentlemen, solution was trade, not aid, and then the reverse— The World Trade Organization (WTO) might that it was aid, not trade. The United Nations Mil- be called the best advertising agency for the city lennium Declaration established a new consensus: of Doha and the State of Qatar; there’s no need to yes to a more open, more equitable world trade pay for expensive spots on Al Jazeera, CNN or the system, but also yes to development financing for BBC. The new series of global trade negotiations the members of our global family that have limited that was launched in this city about seven years ago resources. We’ve gotten as far as trade for develop- was called the Doha development round and since ment; now we need to get to aid for trade. then, the names of Doha and WTO have been Since 2005, we have been working in close closely linked. cooperation with our United Nations partners, the World Bank, the regional development banks, It is therefore no surprise that you, like many the Organization for Economic Cooperation and other WTO members, are doing your utmost to Development (OECD), the International Mon- ensure that “Doha” means “success”—a success etary Fund (IMF), the regional economic commu- commensurate with the developing countries’ nities and governments to mobilize resources and hope for a better life thanks to a more open and political support for the global Aid for Trade pro- more equitable trading system. gramme in order to supplement the outcome of the The Doha round was launched out of a shared Doha development round. conviction that trade can be an engine for develop- In 2007, we all met in Geneva for the First ment and that a multilateral trading system based Global Aid for Trade Review. We gained a better on more open, more transparent and more equita- understanding of national and regional priorities ble rules and better able to address the problems of and launched a process aimed at implementing its poorest members is necessary in order to fulfil projects on the ground. this potential. In 2008, there was considerable progress in WTO simply translated into its area of activ- the implementation of trade capacity-building ity the hopes expressed in the Millennium Devel- projects. Major development partners such as the opment Goals that were adopted by the United World Bank, the Inter-American Development Nations in 2000. World leaders recognized their Bank, the Islamic Development Bank and many collective responsibility by laying the foundation others formulated Aid for Trade programmes and for a more peaceful, more prosperous and more a network began to develop. The United Nations just world. They undertook to cooperate more Development Programme (UNDP) and many closely in addressing global economic challenges, United Nations agencies are helping the develop- including those of trade. ing countries incorporate trade into their development strategy, and we are also trying to improve Completion of the Doha development round follow-up to and evaluation of these projects in will therefore promote achievement of the Millen- order to measure the progress made and the multi- nium Development Goals. plier effect of these projects on the ground.

27 The Doha Review Conference on Financing for Development

All this work will feed into the Second Glo- the saying goes: “A bird in the hand is worth two bal Aid for Trade Review, which the World Trade in the bush”. Organization will host in June 2009. In recent months, we have witnessed unprec- But this will not be possible if resources are not edented fluctuations in oil and commodity prices. mobilized, if financing does not flow, if promises We have witnessed a severe food crisis. And as if all are not kept. And this is why this Conference is a that was not enough, we are facing one of the worst timely reminder that, despite the dire economic financial crises since the 1930s. We are faced with situation, we must keep our focus on our global policy challenges on a scale not seen since the end solidarity endeavour. of the Second World War. But if Aid for Trade is important, the success of A major difference between the current eco- the Doha development round is a bigger prize. nomic crisis and previous ones is that the world is today more globalized. Today, we are all in the The Doha development round will address the same boat—big countries and small, rich and poor, distortions in agricultural trade caused by unfair strong and weak. There is also a growing consensus agriculture subsidies, an issue of vital importance that only multilateral solutions can address these for many developing countries. Let us not forget challenges. that more than two thirds of the world’s poor live in rural areas. Let us not forget the African cotton A few days ago, during a visit to Cambodia, I producers for whom the World Trade Organiza- learned that the majority of their textiles and cloth- tion is their only chance of disciplining the subsi- ing companies that export to rich-country markets dies given by the United States of America and the do not have contracts from buyers beyond Febru- European Union to their producers. ary 2009. This is an industry that currently employs 300,000 people. Now imagine what the impact to The Doha development round will reduce tar- the Cambodian economy will be if these people iffs and barriers in industry, clean technology and lose their jobs. services and thus create new trade opportunities, in particular in sectors of interest to developing But there are also growing difficulties in servic- countries. It will deliver on the promise of duty- ing existing contracts for the lack of availability and free and quota-free access for the exports of the affordability of trade finance. Roughly 90 per cent world’s poorest. It will facilitate trade by addressing of international trade is financed with short-term the customs red tape that imposes a huge burden credit, and therefore any drying up of this financ- on small and medium-sized traders. It will for the ing channel will have a serious impact on devel- first time discipline the fishery subsidies that are oping countries. The World Trade Organization contributing to the depletion of our oceans. And I recently hosted regional and financial institutions, could continue the list. together with export credit agencies, to address this problem. And we are starting to see responses, After seven years of continuous negotiations, including the recent World Bank announcement of many of these elements are already on the table, the tripling of the ceiling for its trade finance guar- but they will not materialize unless we conclude antees, action by the Organization for Economic the whole package. In the meantime, the potential Cooperation and Development and by export benefits of the Doha development round remain credit agencies. This issue needs to remain high on in limbo. our list of priorities to cushion the impact of the Any good negotiators would want to maxi- current financial crisis on developing countries. mize the results. A 2 per cent increase here and a In the current economic conditions, there may 5 per cent increase there. The question we have to be a tendency to embrace inward-looking poli- ask ourselves today is: “Would this be worth it if cies that put domestic interests ahead of interna- we have to wait three, four or five years for it?” As tional cooperation. In tough times, it is too easy for

28 Opening Summit Plenary Session politicians to blame the foreigner for the nation’s ills, shutting foreign products out of the market and slashing foreign-aid budgets. The community of the United Nations, meeting this weekend in Doha, can send a powerful message to the world: • That we stand united to address global challenges. • That we will strive to find multilateral solutions. • That we will avoid unilateral, beggar-thy- neighbour responses. • That we will maintain our commitment to help the poorest and weakest among us. This weekend, Doha must send a signal of the urgency of delivering on trade and aid. There is no better place to reaffirm your commitment to ensuring that development is placed at the heart of the global trading system than here in Doha, where it all began. Excellencies, ladies and gentlemen, please, keep the Doha promises alive. Thank you for your attention.

Chapter 3 Statements by Heads of State or Government

internationally agreed development goals. Now, Benin more than six years later, it has to be said that Statement by despite the efforts that have been made the record His Excellency remains mixed, particularly with regard to coun- Mr. Yayi Boni tries in sub-Saharan Africa. Furthermore, it is President of the Republic of Benin worth highlighting that as this meeting is taking 29 November 2008 place, the world is encountering an enormous financial and economic crisis; and although it started in the industrialized countries, it has Allow me, at the outset, to express my sincere con- sparked off serious consequences for the econo- dolences, on behalf of the people of Benin, to the mies of developing countries. This crisis shows people and Government of India, following the tar- more than ever the scale of the challenges facing geted and planned terrorist attacks that have taken those countries who are already encountering a place in that country over the past few days. food crisis, coupled with an energy crisis, not to Mr. President, I would like to add my voice to mention the negative effects of climate change. those speakers who have congratulated and praised In the face of this situation, allow me to remind you on your election. I should also like to express the international community that in order to my deep gratitude and that of my delegation to the attain the Millennium Development Goals, bold Government of Qatar and to the Emir for the invita- measures must be taken in terms of the main pil- tion, the warm hospitality and the excellent facilities lars of the Monterrey Consensus. Hence, in terms provided to ensure the success of this Conference. of mobilizing domestic resources, it is vital that As well, I wish to express to the Secretary-General we help poor countries to use the benefits from of the United Nations, His Excellency Mr. Ban Ki- their own resources by stepping up international moon, the happiness and gratitude of the people of cooperation in the area of combating capital flight the Republic of Benin for his continuing efforts to and tax evasion. To do this, we can enhance the ensure that the issue of financing for development United Nations Committee of Tax Experts. For its remains the focus of the international communities part, my country has striven over the last several concerned, thus increasing the chances of achiev- years to improve its public finances. This has led ing the Millennium Development Goals. to an increase in domestic resources of 9 per cent By adopting the Monterrey Consensus in annually, on average. March 2002, the international community com- Furthermore, Benin has adopted a Nation- mitted itself to resolving the problem of financ- al Development Plan based on the Millennium ing for development in order to achieve the Development Goals. This requires a budget of The Doha Review Conference on Financing for Development

approximately $1 billion over seven years. Despite Benin once again appeals to developed countries to the efforts which have allowed us to increase our put a stop to the practice of trade-distorting subsi- domestic resources, it will be difficult to mobilize dies to the detriment of agricultural producers in such an amount, particularly in this time of crisis, our countries. where the urgent measures that have been taken by Our fervent hope is to see poor countries par- my Government have unfortunately worsened the ticipating alongside rich countries in transforming budget deficit. the architecture of the international financial sys- All this means that in terms of mobilizing tem. Once updated, that system must take account international resources, developing nations, and of the development aspirations of countries that are that includes my country, Benin, are still awaiting currently marginalized when it comes to managing developed countries to respect their commitments international crises for which they bear the brunt. to allocate, by 2015, 0.7 per cent of their grosss I express the hope that the talks here will allow national income for official development assist- us to develop a consensual vision on the best way ance (ODA), with 0.15 to 0.2 per cent going to to breathe new life into the Monterrey Consen- the least developed countries. So far, the level of sus in order to promote a financing for develop- ODA coming from most developed countries has ment strategy that allows all States to achieve the remained level or has actually declined. In Benin, Millennium Development Goals, with a view to for example, it has plunged from 13 per cent of eradicating poverty. gross national product in 2001 to only 7 per cent in 2006. Benin believes it is possible to increase devel- In this respect, it would be important to estab- opment assistance. This has been illustrated by the lish a monitoring mechanism that could inform many efforts that have already been made by devel- the international community about events taking oped countries to mobilize in record time several place, and alert them particularly to crises which trillions of dollars in order to stem the current make it more difficult for us to achieve the Millen- financial crisis. Furthermore, I believe it is indis- nium Development Goals by the deadline of 2015. pensable that the multilateral institutions should take a greater part in efforts to mobilize resources for poor countries, particularly through the African Bulgaria Development Fund and the International Develop- Statement by ment Association of the World Bank. His Excellency Mr. Georgi Parvanov I would also like to point out that the idea of President of the Republic of Bulgaria increasing the percentage allocated to agriculture in ODA from 3 to 10 per cent is a strategic choice, 29 November 2008 which should be implemented with a political will that is up to the level of the challenge. It is appro- Allow me, on behalf of the Republic of Bulgaria, priate to pay tribute to those countries that have to thank the Government of Qatar and our host, already made solid pledges to allocate additional His Highness Sheikh Hamad bin Khalifa Al-Thani, resources to this end. for their hospitality and the excellent organiza- In Monterrey in 2002, the international com- tion of this Conference. I join in the condolenc- munity declared that trade was the engine for es expressed by others to the people of India for development. Greater attention must, therefore, be the tragedy that befell them. I would also like to paid to the issue of international trade. We must express our high appreciation for this forum, while seek a trade system at the international level that underscoring our support for the final document is fair and that favours development. It is therefore and our satisfaction with the constructive spirit of vital to relaunch the Doha trade talks, which repre- all the countries involved, whose tireless efforts, sent a light of hope for many developing countries. patience and dedication have made this a success.

32 Statements by Heads of State or Government

Financing for development in most of its it has become a favourable place for investment aspects is one of the significant means of eradicat- and tourism. At present, Bulgaria is setting itself ing poverty, for overcoming inequality on a global even more ambitious goals, commensurate with scale and for bringing nations closer together in those of other European member States. Turn- the process of globalization. In 2002 in Monterrey, ing the country from a net beneficiary into a net we achieved consensus with respect to the main donor in the international community will make directions in which we should make our efforts for our contribution to the international cooperation development. The Monterrey Consensus, adopted and development system even more significant. In six years ago, is comprehensive and balanced. It is a addition, Bulgaria is prepared to share with other framework document for global partnership, based countries in the region, and of course with other upon the shared and differentiated responsibilities regions in the world, its experience of the transi- of all participants in the process. This Conference tion to democracy and a market economy and in in Doha makes it possible for us to review what building democratic institutions of the State. we have accomplished and agree on increasing the Here at this forum, as a representative of effectiveness in pursuing the goals of Monterrey. a country whose transition to democracy has We can take stock of the fact that significant recently finished, I would like to ask you several progress was made in recent years. The economic questions: first, what in your view is the basis for growth in many developing countries shows high development, and what makes the significant push rates, while in the countries of Africa, including for speeding up development? My answer to this is sub-Saharan Africa, it is 2 percentage points higher that there are two key elements: modern and ade- than the average for the world. Positive trends are quate infrastructure, and quality education for all. observed in the development of trade and invest- Building transport, energy, communications and ments, official development aid is growing, and the infrastructure is one of the most effective means to writing off or alleviation of national debt provides stimulate the development of any country, region an impetus for the development of the economies or a whole continent. This is one of the fastest ways of a number of countries. to provide sustainable growth for coping with poverty, disease and war. Alongside that, the new challenges, such as the financial, food and energy crises, have raised On the other hand, the second element, in my more acutely than ever the issue of eradicating view, is no less important than the others. And I poverty and providing a just and dignified future am talking about education. We all agree that a for ordinary people all over the world, but mostly State cannot attain sustainable development if its in developing countries. In this sense, Bulgaria, as nationals are illiterate. We all agree that education a member of the European Union, is supportive of is the basis of technological and scientific progress the results achieved in the Group of Twenty (G20) for mankind. We are all aware that underdeveloped meeting in Washington, D.C., and fully shares the countries have huge unused human potential in which they should invest. I take the liberty of say- conclusion that national “rescue measures” by ing that on behalf of a country which until recently, themselves are not enough. What we need today the 1990s, has provided education and training to is a concerted international reaction that would lay thousands of students from Africa, Asia and Latin down the main principles of the world economy in America, who have graduated from Bulgarian uni- the twenty-first century: public control, transpar- versities to become doctors, engineers and special- ency and accurate risk assessment. ists in a range of other fields. As I recall this con- Bulgaria has successfully effected the transi- tribution of ours, I would like to underscore that tion to democracy and a free-market economy, and Bulgaria will continue to uphold the need for high- the process of reform has become a powerful factor quality, modern education for all, and state with for attaining the Millennium Development Goals. conviction that it will participate fully in the delib- The country has high economic growth rates, and erations relating to this part of the final document

33 The Doha Review Conference on Financing for Development

of this meeting because we believe that education unified world built, one in which the most devel- is the key to resolving many other issues of the oped countries would accept the necessity of pro- developing world, such as the fight against poverty, viding more support to the less well-off. That was illegal migration, crime and corruption. the Monterrey Consensus. This meeting is taking place at a difficult time. This Conference, which is held under the aus- Without a doubt, the present economic and finan- pices of the United Nations and whose initiative we cial situation in the world raises additional serious appreciate, gives us an opportunity to examine the challenges to the efforts to attain the Millennium progress made in implementation of the Monterrey Development Goals and to fulfil the commitments Consensus. The global economic evolution of the last undertaken, by both the developed and the devel- few decades has been characterized by ongoing pov- oping countries. But the fact that we are gathered erty in developing countries. The underperformance here today means that we have the political will to of the economies of these States has been exacerbat- cope with these problems, and I sincerely believe ed by the arbitrary lowering of official development that we will succeed. assistance (ODA) flows in spite of commitments made by the international community. Additionally, the recent hike in food commod- Burkina Faso ity prices has taken a heavy toll on the economies of Statement by African countries, in particular those of the Sahel His Excellency region, already facing the whims of the weather. Mr. Blaise Compaoré This situation risks destroying the progress made President of Burkina Faso in combating hunger and malnutrition.

29 November 2008 It would also be useful to recall that the slow down of global economic growth, punctuated by As I address my enthusiastic and warm congratula- the financial and energy crises, is in addition to tions to the organizers of this Follow-up Interna- the challenges already faced by developing coun- tional Conference on Financing for Development, tries. Moreover, subsidies granted by developed I wish to express to His Highness Emir Sheikh countries to their own agricultural sectors have Hamad bin Khalifa Al-Thani and the people of continued while, at the same time, the agriculture Qatar our sincere and ongoing friendship, and of developing countries has suffered a merciless pledge our will to continue to consolidate the links financial crunch. Even worse, our countries have of solidarity and cooperation which unite Qatar had to abandon any type of public assistance to and Burkina Faso. I pay tribute to His Highness for their own agricultures. This paradox is not one on the enlightened leadership with which he has been which we can build through the efforts made by guiding the destiny of his country, whose prestig- the countries of the South to increase agricultural ious capital Doha, already the namesake of the sec- production. For us cotton producers, this paradox ond round of global trade negotiations, has greeted is even more meaningful. It could even call into us in its pure tradition of legendary hospitality. question the philosophy underpinning development. Greater mobilization of additional resources I add to these tributes one to Mr. Ban Ki- is therefore needed to support the effort of our moon, Secretary-General of the United Nations, as countries in seeking higher performance from our well as to the competent heads of specialized agen- agriculture, as well as an elimination of subsidies of cies, who, for the last five years, have not stopped rich countries to their producers. developing initiatives to improve the well-being of Six years after the Monterrey Consensus, we the world’s most vulnerable. must recognize that the State and the private sector For six years now, the history of the Monterrey alone will not be able to establish sustained eco- Conference has engendered hopes to see a just and nomic growth, nor will they be able to implement

34 Statements by Heads of State or Government the Millennium Development Goals by 2015. And quickly and take up the challenges of development, so the partners need to stick to their commitments thereby making it possible to achieve the Millen- in terms of ODA by providing 0.7 per cent of their nium Development Goals on time, by 2015. gross national income to low-income countries. However, in spite of the lukewarm will of rich countries to free up enough funding, allowing equi- Burundi table market access, I would note that Burkina Faso Statement by has benefited from the assistance of the international His Excellency community, mainly focused on financing develop- Mr. Pierre Nkurunziza mental projects and programmes. So it is appropri- President of the Republic of Burundi ate for me to welcome the community of partners involved in my country and to ask them for an even 29 November 2008 more vigorous and harmonious participation. We would like to express to the people of India The issue of partnership for development has our sympathies following the terrorist attacks and been one of the major concerns of the Monter- to offer our deepest condolences to the families of rey Conference. In fact, an effective partnership the victims. is vital in order to generate a long-term sustainable path of progress. And so in this area, it is Mr. President, I should like to add my voice to important not only to increase external supports those of previous speakers in congratulating you and volume but also to improve the quality of the on your election. We firmly believe that your expe- assistance and to take into consideration the pri- rience will allow this Conference to have a prom- orities of beneficiary countries under the Paris ising outcome. We would also like to pay special Declaration on Aid Effectiveness. tribute to the United Nations and to its Secretary- Moreover, our conviction is affirmed that the General, Mr. Ban Ki-moon, for his commitment instability of international financial markets, as we and the efforts he is making in favour of peace and are currently experiencing it, is an instruction to the reduction of poverty throughout the world. It is regulators, particularly the Bretton Woods institu- our wish that the work of this Conference will lead tions, to readjust the mechanisms of the financial to practical decisions that will achieve the aspira- system. This type of reorganization/reorientation tions of humanity as a whole, for the well-being of would allow us to do a better job of preventing all, in a climate of cooperation and solidarity. financial crises and help economies and develop- My country, Burundi, has just emerged from a ing countries, as well as support those economies civil war that lasted for more than ten years, caus- that are most vulnerable in dealing with the delete- ing the deaths of many people and leading to an rious effects of commodity price fluctuations. increase in the number of widows and orphans. And so Africa wishes to be fully associated It also wiped out considerable infrastructure, led with decision making on the critical reorganiza- to internally displaced peoples and destroyed the tion of the international financial system. Moreo- social fabric. Burundi has now drawn a major les- ver, we must highlight among global priorities the son from its history. Our Government is firmly Millennium Development Goals and all interna- convinced that dialogue is the main way to achieve tional objectives having to do with development, reconciliation between the sons and daughters of including the successful conclusion of the Doha our nation and to attain a lasting peace. Round of negotiations. It is my hope that, togeth- This is the very first time in the history of er, as we leave this Conference, we will be able to Burundi that it has enjoyed more than three years commit ourselves with more determination, com- with democratically elected institutions. The hope mit ourselves with true solidarity, so that we may in a better future for Burundi and its people is implement the commitments of Monterrey more now possible because steps have been taken by our

35 The Doha Review Conference on Financing for Development

Government for peace, stability and national uni- resources which we cannot find on our own. Yes, ty; it has taken the proper measures to ensure that indeed, the World Solidarity Fund for Poverty people enjoy the benefits of peace. Eradication and the Promotion of Social and Human Development, as well as the Global Fund Amongst these measures, the Government has to Fight AIDS, Tuberculosis and Malaria, do exist. promoted education, infrastructure, agriculture, However, despite these initiatives, the progress that free health care for children up to five years of age has been made has been mixed. We therefore make and for pregnant women, and has provided infra- an appeal to developed countries that have not yet structure for public health. We welcome the fact that done so to implement the promise of allocating 0.7 the people of Burundi have supported these meas- per cent of their gross national income to official ures by building many schools, while the Govern- development assistance. ment has provided material that has been difficult to obtain, including cement and other resources. This I would like to close by expressing the hope is the moment to thank, in particular, the Secretary- that this international Conference will be a major General of the United Nations for his commitment step forward in establishing international rela- to the cause of peace and development, which he has tions that embody these objectives and that pre- continued to demonstrate to our country, by helping pare a better future for humanity as a whole. Long it to consolidate peace and stability. live international cooperation! Long live North- South cooperation! The current global economic situation requires that all States should enhance their relations of cooperation and solidarity in order to establish a fair and Cambodia balanced economic order that allows us to estab- Statement by lish a genuine partnership between developing and His Excellency advanced countries, resulting in enhanced secu- Mr. Keat Chhon rity and stability throughout the world. We firmly Deputy Prime Minister, Minister of believe that in face of the growing gap between Economy and Finance, the Kingdom of industrialized and developing countries, there is Cambodia a need to undertake measures which will allow 30 November 2008 all States to catch up with technological progress and to draw benefits from the possibilities that are We are really pleased to represent Cambodia at this opened up by the computer revolution and by eco- very important and timely Follow-up International nomic changes that are more and more rapid. Conference on Financing for Development to Review Burundi welcomed with considerable enthusi- the Implementation of the Monterrey Consensus. At asm the challenge that is represented by the Mil- the outset, we would like to join other speakers in lennium Development Goals that were adopted in expressing our deep gratitude to the Government 2000, and which were reasserted in the outcome and people of the State of Qatar for their warm document of the meeting of Heads of State and hospitality, and to the Financing for Development Government in September 2005. We are glad to Office for organizing this important Conference. We be able to tell you that with the policy of free pri- would also like to extend our sympathy to the Indian mary education and health care for children up people and Government and to the families of the to the age of five years, and for pregnant women victims of the tragic events in Mumbai. through childbirth, Burundi has made consider- Given time constraints, I will not read my able progress; however, it needs to be supported. whole statement, which I would like to submit to While thanking those countries and peoples the Secretariat for the record and circulation, but that have helped us since the launch of this policy rather focus on the following: we are meeting today in 2005, we would like to call for international soli- under the very dark clouds of a continually accel- darity because it requires considerable government erating financial meltdown, of unprecedented and

36 Statements by Heads of State or Government unforeseen proportions, never known before. As thus enhancing the transparency of our public Cambodia is moving rapidly towards integration finance management. Under the Financial Sec- with the global economy, we are not immune from tor Development Strategy, we are also rigorously the impact of this global crisis. We are beginning implementing measures which are central to mobi- to feel the pain of high inflation, a slowing econ- lizing domestic financial resources and strengthen- omy, decreased tourism and reduced exports, as ing our financial system. mentioned by Mr. Pascal Lamy, Director-General While Cambodia is making sustained efforts of the World Trade Organization, yesterday. This in these areas, developed countries must recognize has put our recent impressive success in reducing that without a substantial increase in, and better poverty at risk. We can no longer sustain the dou- targeting of, ODA, the liberalization of trade and ble-digit growth rates which we enjoyed in the past an end to protectionism and the opening of mar- few years, and inflation will remain higher than we kets in their countries, as well as the removal of the would like for some time. Our immediate concern is to protect the poor from sliding back into pov- barriers to a greater flow of foreign direct invest- erty, from which they have recently emerged. ments, our economic growth cannot be sustained. This would have a negative impact on our efforts to To mitigate the negative impact of the current increase the mobilization of domestic resources to global financial crisis on our path of growth and finance development. poverty reduction, the Royal Government of Cam- bodia has adopted three strategic measures for the We reiterate that the current global financial immediate and medium term. First, to focus on crisis was caused by the rich countries, and poor and investment to enhance agricultural productivity, vulnerable countries must not be made to suffer as which will help to broaden the economic base and a result. We, therefore, urge the rich nations and the sustain growth, as well as accelerate poverty reduc- developed world not to shy away from their com- tion; second, to continue to mobilize resources, mitment to increase their ODA to the level agreed including domestic ones, for investment in infra- upon at Monterrey, so that the agreed Millennium structure, which has a high potential for promot- Development Goals can be achieved. We also call for ing growth; and third, to strengthen the country’s faster and larger debt relief for the least developed absorptive capacity to mobilize official develop- countries and other vulnerable economies, and for ment assistance (ODA) to finance reform pro- an increase in the grants and concessional loans by grammes and development projects, using it in an multilateral financing institutions as the preferred efficient and effective way. instruments for ensuring debt sustainability. Our experience has shown that the key to We look forward to successful negotiations increasing the mobilization of domestic resources at the Doha trade talks and agreements on fair, for development is a high level of sustained eco- balanced and equitable market openings for our nomic growth. Like a number of other developing manufactures and agricultural products and serv- countries, Cambodia has been able to make sig- ices. Finally, we seek the full implementation of nificant progress in implementing policies which the 2005 Paris Declaration on Aid Effectiveness have contributed to double-digit growth rates and and the 2008 Accra Agenda for Action, to enhance a sizeable increase in the mobilization of domes- greater ownership and leadership in the recipient tic resources in the recent past. We have been countries for the effective use of ODA. In conclu- successful, and widely recognized for making sion, we would like to express Cambodia’s support great strides, in the area of fiscal reform through for the Doha outcome document on reviewing the enhanced Public Financial Management and the implementation of the Monterrey Consensus. Accountability Project. We commit ourselves to staying fully engaged to We are putting in place various measures to ensure its proper and timely implementation, in increasingly modernize our budgetary process, the spirit of global partnership and solidarity.

37 The Doha Review Conference on Financing for Development

terms of loan reimbursement. In this way, we can Central African Republic break the vicious cycle of debt accumulation and Statement by avoid a difficult future for our upcoming genera- His Excellency tions. This is the place to remind ourselves of our Mr. Faustin-Archange TouadÉra common need to involve LDCs in decision-making Prime Minister of the Central African Republic on development. This requires aid coordination as well as debt mitigation. The question that we have 30 November 2008 to answer is what other resources can we mobilize when it comes to ODA which are not solely budget- The President of the Republic and Head of State, ary in origin? This is the meaning then of the Doha His Excellency General Francois Bozize, who took Conference. We trust we shall be able to emerge part in the opening ceremony of the Follow-up with new solidarity. As we seek new resources, a International Conference on Financing for Devel- tribute must be paid to France, which pointed the opment yesterday, has asked me to convey to you way with its airline ticket solidarity levy. This is a his sincerest apologies for being unable to be with pioneering step that should be an example to all you this morning. He has had to return to our States. For its part, after this Conference, the Cen- country for the commemorations tomorrow, 1 tral African Republic will prepare consultations at December 2008, of the fiftieth anniversary of the the sub-regional level within the Economic and proclamation of the Central African Republic. As Monetary Community of Central African States I speak on his behalf, may I commence by thank- (CEMAC) to adopt measures within the frame- ing you for inviting the Central African Republic work of development funding. You can rely on to this Conference and for the very warm welcome us to become actively involved in the movement extended to our delegation. Mr. President, I wish of solidarity. Our country will be first in the line to join my voice to those who have congratulated of beneficiaries. New mechanisms of funding for you. I wish also to express our thanks to the Gov- development must be established so that our States ernment of Qatar for the warm welcome given to can effectively combat poverty. But the challenge us and for all the measures taken to ensure that this is not just one of mobilizing resources. In addi- Conference proceeds smoothly. tion, developing countries in Africa must shoulder their responsibility to ensure good governance of The choice of the title, Financing for Devel- the means made available to our States and in this opment, is a most apposite one. Indeed, in this regard combating corruption is very important. time of globalization and technological progress, a corporation, even when it is very solid, has to Despite the restrictions curbing international meet new demands which require new reactions. migration, unlike other factors leading to glo- As I thank you for having invited us here, may I balization, recent deliberations have shown that just emphasize the relationship between certain the links between migrants and their countries of issues that have been raised since this Conference origin are a determining importance in the world started? Official development assistance (ODA) is economy. The relationship between international an essential source of financing for the aims and migration and the opening up of trade or foreign objectives of the programme for the least devel- direct investment (FDI) is a complementary one. oped countries (LDCs). It is important, therefore, The transfers of savings from emigrants’ remit- to examine both the qualitative and quantitative tances, together with other sources of financing, aspect of effective coordination. Amongst the con- provide substantial resources for southern coun- ditions which are necessary to achieve our goals, tries as public and private aid fluctuates and drops. we need to recall the requirement for a significant The return of highly-qualified migrants, under cer- increase in the volume of ODA. There is no need to tain conditions as to information regarding levels emphasize the benefit here for all stakeholders in of qualification and technology transfers, can have terms of economic and social results, not solely in a positive effect on human capital in the countries

38 Statements by Heads of State or Government of origin. It is important to reduce the cost of dis- development agencies, the World Bank group, the patching remittances, as it would benefit all the African Development Fund, and all regional or parties involved: the host countries, the countries sub-regional development-funding banks. While of origin and the migrants, both men and women. we acknowledge that our countries are largely As we committed ourselves to achieving the dependent on ODA, we continue to endeavour to Millennium Development Goals in 2015, we have attract other external resources, either from FDI or caused legitimate hope to arise in the developing income from exports, which we hope would go to world. We have no right to create disappointment more equitable markets. FDI in LDCs exists, but, when it comes to these hopes as there is a risk of measures aimed at attracting more are essential in worsening the North-South divide, with incalcu- our national development strategies. These must be lable risks for governance and stability amongst supported with basic infrastructure so that invest- our States. A little more than five years have passed ment costs can be reduced. Exports, again, must since the Millennium Summit and progress has enable us to obtain these resources as well as those been achieved, but we must acknowledge that from ODA and private capital. there are many countries in Africa and elsewhere We therefore appeal to the international com- whose people still live in abject poverty. The Mil- munity so that the Brussels measures for LDCs can lennium Development Goals are the best way of be implemented without delay. This Conference ensuring progress and welfare for our countries. must not just be isolated without any connection We need stable, adequate and predictably lasting to the past or the future. Its conclusions must con- funding to achieve them. We consider, therefore, tribute to the effective implementation of the com- that this Conference is a logical sequel to the Third mitments of the Millennium Summit and those in United Nations Conference on the Least Devel- the Brussels Programme of Action for LDCs. It is oped Countries, leading to the greater involvement therefore of paramount importance that the fol- of international institutions, and also to conscious- low-up procedure for the Brussels Conference be ness-raising, in order to mobilize and transfer carefully coordinated so that the development of appropriate financial resources to meet the com- all LDCs can be achieved and financial resources mitments entered into at the Brussels Conference. can be examined as an issue. I wish to address a particularly important sub- I address this Conference as a representative ject, that of debt reimbursement. It is undeniable of one of the poorest LDCs. I urge industrialized that debt weighs heavily on our fragile economies. countries to ensure that the ranks of our group be It curbs economic growth and development, which reduced by the next conference because some of is one of the major causes of the failure of previous us wish to change categories, thanks to our efforts programmes of cooperation established to support and the support we received. On the occasion of developing countries and their development poli- various international conferences we have made cies. We appreciate the debt alleviation measures relevant statements. We now have to “walk the adopted but they are still inadequate. Our countries talk”. We have the means. If we act with resolve in need a new impetus. We believe that the rapid and solidarity, then the time that we so ardently desire total cancellation of all bilateral public debts and all multilateral debts of all LDCs would be a con- will come for a true, new partnership. tribution to the eradication of poverty. At the same time, a development-funding action must be intensified and should involve grants, rather than loans, to a greater degree. This, then, is why we appeal to the international community, especially the most developed countries, particularly the Group of Eight. We urge them to increase their contributions to multilateral institutions, particularly the regional

39 The Doha Review Conference on Financing for Development

the scope of actions undertaken. As a result, the Chad restoration of peace and peacebuilding in these Statement by regions remain prerequisites for the attainment of His Excellency the Millennium Development Goals and allowing Mr. Idriss Déby Itno our people to thrive. President of the Republic of Chad Since actions in 2003 for the exploitation of 29 November 2008 our oil resources, my country has devoted the bulk of its resources to basic infrastructure to underpin Allow me, first of all, on behalf of the people of our socioeconomic development. Unfortunate- Chad, the Chadian Government, and on my own ly, however, our national financial resources fall behalf, to convey my condolences to the people and short of our needs. Therefore, external assistance Government of India for the terrorist acts which is indispensable in numerous sectors in order to have claimed so many lives in Mumbai. Through strengthen our capacity to better meet the chal- me, Chad vigorously condemns this hateful act. lenges posed by poverty and growth. In this On behalf of my delegation, I should also like to regard, in implementing its investment projects, warmly congratulate His Highness Sheikh Hamad Chad favours an approach based on co-financing Bin Khalifa Al-Thani, Emir of the State of Qatar, and with all our external partners. the Secretary-General of the United Nations, for the All the efforts of our Government, already organization of this important Follow-up Interna- hampered by punishing natural obstacles, are tional Conference on Financing for Development. further undermined by the security situation in This Conference is being held at a crucial the country, as the Darfur crisis has resulted in a moment in the development of economic rela- massive displacement of peoples. Currently, there tions and international financial ties. These ties are are more than 300,000 Sudanese refugees in Chad profoundly marked by a series of major crises. The and 60,000 more refugees from the Central Afri- food, energy and financial crises pose challenges to can Republic, in addition to 180,000 Chadian dis- the international community and are obstacles that placed persons. we must overcome. I welcome the broad mobiliza- We welcome the significant support of the tion conveying the spirit of international solidarity international community to help secure refugee and the growing resolve to find common solutions camps, displaced persons camps and the camps to the woes affecting our planet. of humanitarian organizations through the imple- The risks currently unsettling our global, finan- mentation of a United Nations and European pres- cial and economic order oblige our States to meet ence. May all contributing countries receive the the commitments made both in the Millennium gratitude and acknowledgment of the Chadian Declaration as well as in the Monterrey Consensus people. We have no doubt whatsoever that improv- on Financing for Development. Indeed, the inter- ing the living conditions of these peoples currently national financial crisis persists. It has given rise in distress is a major concern for many of you. to harmful consequences for the implementation We must not lose sight of the need to preserve the of the Monterrey Consensus, particularly official environment in this part of my country, which is development aid, trade flows, the debt of countries already greatly affected by the pressure exerted by of the South and global trade. the influx of refugees. We are here today due to our staunch resolve In conclusion, allow me to recall the legiti- to eradicate poverty, to attain viable economic mate expectation of our peoples to see a further growth and to promote sustainable development. strengthening of the spirit of solidarity and of glo- However, we must acknowledge that the prolifera- bal partnership derived from the Monterrey Con- tion of local, sub-regional and regional conflicts in sensus. At a time when global governance has been Africa have laid waste to efforts and have reduced severely affected by a whole host of difficulties, the

40 Statements by Heads of State or Government reaffirmation of our commitments for a more reso- recent years, could see a drastic fall in the months lute mobilization of resources for development is and years to come if promises are not kept? How more necessary than ever before. This is a major can we remain indifferent when the likely fall in challenge that we can meet, that we must meet, and consumption and demand in rich and emerging that we can meet together. countries could also lead to a fall in prices on commodities, which for many African countries continue to be the main source of foreign exchange? Comoros How could we not be alarmed in this uncertain Statement by time when we expect a slow down in private invest- His Excellency ments and in the transfer of funds from the diaspo- Mr. Ahmed Abdallah Mohamed Sambi ras, which for a country like mine are vital sources President of the Union of the Comoros of foreign exchange? Finally, how can we continue 29 November 2008 to respond to the basic social needs of our populations while at the same time keeping our commitments to repay external debt, which places more At the outset, I would like to join the previous and more constraints on our national economies? speakers who have spoken here at this august rostrum and express to His Highness Sheikh Hamad However, paradoxically, this time of uncertain- bin Khalifa Al-Thani, Emir of Qatar, and to the ty, which is also full of challenges, has also never people and Government of Qatar, the profound been so full of extraordinary promise. If we have gratitude of the delegation of the Comoros not the courage to make the decisions which could only for the warm and fraternal welcome they have change the course of history, and which could make given us, but also for the facilities they have made poverty a thing of history, the commitment of the available for this meeting as it is so important for international community to development and to the community of nations to take stock of the situ- respect for human dignity has shown in recent ation regarding financing for development. I would years that poverty, which is intellectually indefen- also like to express our thanks to His Excellency, sible and morally unacceptable in the world today, the Secretary-General of the United Nations, Mr. can and must be conquered. Thus, the determina- Ban Ki-moon, for the exemplary way that he is car- tion shown by members of the international com- rying out his noble duties. munity to carry out large-scale concerted action For several months, all continents and all to eradicate poverty, particularly by achieving the countries have been experiencing an international Millennium Development Goals. This determina- financial crisis that is unprecedented, and which tion must be given effect. experts are calling the most serious since that of The Monterrey Consensus was the point of 1929; this has been preceded by the dual food and departure for a new partnership between rich and energy crises. This crisis today is having an effect poor countries, for mobilizing leaders, citizens on both rich and poor countries. If the recession and groups of civil society. This Consensus gave affects the well-off countries with full force, you rise to popular movements, which has put great can imagine the situation for developing countries, pressure on leaders. It is also proving necessary to including my country, the Union of Comoros, a assess world trade today, which is not favourable small developing State which is poor and in a post- to development, in moral terms. It is necessary conflict situation, where all of the efforts made by to allow African countries to have the means to the Government to reduce poverty and to achieve make efforts on an equal footing against unjust the Millennium Development Goals have largely subsidies and prohibitive customs duties through been compromised. more equitable representation within the Interna- How can we not be alarmed when official devel- tional Monetary Fund, the World Bank and the opment aid (ODA), which has seen a decrease in Group of Twenty (G20).

41 The Doha Review Conference on Financing for Development

We countries in development are increas- effective, by doubling aid to Africa, by mitigating ingly making commitments to formulate strategies the adverse effects of the transfer of private capital, for growth and poverty reduction while respect- which is volatile, and by allowing developing coun- ing human rights. And we are sparing no effort to tries to be better heard and more closely involved establish microeconomic policies and incentives to in decisions with respect to the global economy. mobilize domestic savings, to attract international We can, and we must, refute poverty because it investment and to make more effective use of ODA. is an absurdity which has no place in our world. I Much remains to be done to keep the promises would not want to conclude my intervention with- that have been made to invest in their human capi- out expressing the sincere condolences of the peo- tal and to mobilize the national resources. And the ple and Government of the Comoros to the people doors of our countries are largely open to enter- and Government of India, and to all the victims prises and to investments. However, in facing the of the terrible acts that have been carried out in current crisis, which compromises these efforts, we Mumbai. My country condemns with the greatest need assistance without fail from our development firmness these barbarous and unjustified acts, the partners and we await concrete and ambitious deci- goal of which is to sow terror and chaos. sions from them. We expect that the commitments made with respect to the cancellation of debt will be scrupulously upheld and that development aid Costa Rica that has been promised will be effectively mobi- Statement by lized to help the fight against poverty. We have eve- His Excellency rything to gain from this if society is more stable, Mr. Óscar Arias Sánchez markets are stronger and the global economy is President of the Republic of Costa Rica well-regulated. 29 November 2008 The cardinal principle of the Monterrey Con- sensus, and the very essence of the development It is an honour for me to be on Arab soil, where partnership, is that States are responsible not only my veins still feel the flow of the blood of the past. to the people that they serve but also to each other. The Islamic world runs parallel in the lineage of Thus, we must act together so that this Conference all ancestral descendants of the Spanish people, will yield the expected results. This is an opportu- who, in the midst of adventures and racial mixes, nity to be seized to serve the cause of development have forged what we call Latin America. My land as well as the causes of security and human rights, of magical realism and enchantment holds onto its which are closely linked. Thus, the international nourishing element. This is why my visit, from one community has a duty out of solidarity with the of the youngest regions of the world to one of the least developed countries to acknowledge that most ancient, is also a return, a return to the roots they cannot live in economic distress, and that that nourish our culture and our history. The dis- they are making efforts in the absence of univer- cussion that brings us together today is one of the sally accepted rules for all. most fundamental of our modern times. It is a dis- We are aware that responsibilities are a two-way cussion with an ethical basis, a discussion on the street for rich and poor countries. Many countries, solidarity that should govern a globalized world. including my own, have thus made a commitment At this stage, it cannot be debated that our to uphold their promises, to strengthen the rule of national destiny is increasingly determined by law, uphold legality, fight corruption and develop the progress, or lack of progress, of all mankind. their institutions. Developed countries, on their Frontiers can divide our territories but they do not part, that have committed to help us must more divide our problems or our challenges. Perhaps than ever uphold their promises, particularly by there is no better example of this phenomenon making the international financing mechanism than the energy, financial, food and climate crises

42 Statements by Heads of State or Government that at the present time lead into one and the same This crisis cannot be looked at as an essentially maelstrom of pessimism and confusion. What hap- internal or national one. Its effects have been felt in pened on a New York Stock Exchange thousands the farthest corners of the world and it is in those of kilometers from the home of a Latin American, countries that it can create the worst harm. Incipi- Arab or Asian mother has affected her ability to ent economies simply will not be able to weather purchase food for her children. Those hectares of the storm without considerable economic flow in forest that somebody cut down in a tropical jun- terms of international assistance. gle meant the ruin for an Indian peasant who has seen his crops lost in the heat of a long summer. Developed countries have two options: either The oil barrels that Chinese consume as purchased they provide resources to the poorer countries or last year have meant that a young African has had they provide resources to combat immigration to drop his secondary school studies to contribute coming from the poorest countries. I believe that to income in his home. If we have collectively suf- the first option is the most profitable and is certain- fered the misfortunes of our species, how is it that ly also the most ethical. The developing world is a we still do not share the profits? The development world forever standing and waiting. Its importance of all of the world’s nations that we have desired has always been secondary on the agenda of devel- for centuries has so far bought a banquet for the oped nations. The figure established by the United chosen few, where only they sit at the table and the Nations, that of 0.7 percent of GNI for develop- rest of us pay the bill. ment assistance, is a tiny figure in comparison with the budgets of developed countries. To me too, it It is not correct that developing nations are will not lead to anyone’s bankruptcy but denying presently facing the consequences of a crisis that it could lead to moral bankruptcy, the collapse of we have not caused, but it is more unjust that we the bank of justice, the bank that Martin Luther are doing this without the aid of those nations King Jr. spoke to us about in one of the strongest that have brought it on. Here, at this summit, all speeches in the history of the world. And what we the leaders of the world have decided to come to are talking about is morality. discuss the issue of financing for development in accordance with the commitments of Monterrey. Certainly, it is no badge of honour that world However, in this room some of the representatives military expenditure is $3.3 billion a day, while of the most powerful countries of the world are a sixth of mankind survives in abject poverty. If absent. They are the ones who should be provid- the international community is going to discuss ing that financing. The gap between poor and rich the issue of financing for development, it needs countries will continue to grow remorselessly until to start by ensuring that such financing be in we learn to be partners in good times and bad. fact for development. This might appear to be a As I mentioned in our meeting prior to this tautology but it is not when some of the poorest exchange, there are three issues that Costa Rica nations of the world prefer to supply and provide believes are absolutely necessary to include in a for armies before educating their children; when discussion on financing for development: the need money is being spent on a single combat which to maintain or even increase the objectives pro- would, or could, purchase 200,000 laptops for posed by the United Nations, which means that children with low incomes; and when the pur- developed countries need to provide as a mini- chase of one single helicopter means that those mum 0.7 percent of their gross national income countries are depriving 5,000 children at risk of (GNI) to international development assistance. dropping out of school of a scholarship of $100 Then, there is the need to revive Article 26 of the per month. Although it is painful to acknowledge, United Nations Charter, and the need to include many developing nations have further turned in the international financial mechanisms criteria their populations into canon by denying them that will favour investment in human development the resources that they require for a dignified life as opposed to military expenditure. and dedicating this to the military operators.

43 The Doha Review Conference on Financing for Development

In 1946, when the smoke of the worst war Charter. All I ask for is your support to ensure that in human memory was only just vanishing, the the Costa Rica Consensus can become a reality. At founders of the United Nations wrote in Article 26 this moment in this international crisis, we will see of the United Nations Charter the following: “In if we are able to reward not only those who spend order to promote the establishment and mainte- in an orderly fashion, as so far, but also those who nance of international peace and security with the spend ethically. least diversion for armaments of the world’s human Friends, the history of assistance for develop- and economic resources, the Security Council shall ment in the world has been for decades the history be responsible for formulating … plans … for the that we read of in “One Thousand and One Nights”. establishment of a system for the regulation of arma- In each crisis, at every extraordinary moment, we ments.” The drafting of this article of the Charter is start discussions on change but they hang from one deliberate. It establishes an opinion which should day to the next as the stories of the famous Arabian be understood in full. The expenditure on weapons storyteller. We cannot continue along this path. The is a diversion of human and economic resources, Millennium Development Goals were courageous that is to say, for a use which is not appropriate, words but they will never be more than words if at a minimum. The Charter asked that we accept we do not take action here and now, if we do not that excessive military expenditure has an infinite strengthen the commitments that we have already opportunity cost. Article 26 so far has been a dead entered into in terms of assistance for develop- letter in that enormous symmetry of intentions for ment, if we do not comply with the promises that peace in the world. But the possibility of reviving are within the United Nations Charter, and if we Article 26 is in our hands, in providing the content do not introduce ethical criteria into international that those who preceded us dreamt up. financial mechanisms that allow us to reward those Our nation, Costa Rica, is a nation without who stand for people and not for weapons. weapons but it is not a naïve nation. We have not We are still in time to invite excluded nations come here to pressure for the abolition of all armies. to the development banquet. We are still in time We have not even come to ask for the drastic reduc- to share the profits of this global economy, which tion of world military expenditure. But a gradual brings us together in its indissoluble grasp of fears reduction is not only possible, it is absolutely nec- and hopes. We are still in time, but we need to be essary, especially so for developing nations. up to it, up to the promise that we always have been I know full well that no country can decide on the pages of history. how many resources should be expended by others on arms and soldiers, but it is possible to decide how much international assistance should be provided to those countries and based on what prin- Côte d’Ivoire ciples. This is why my Government has promoted Statement by the Costa Rica Consensus, an initiative that would His Excellency establish mechanisms to forgive debts and sup- Mr. Laurent Gbagbo President of the Republic of Côte d’Ivoire port with international financial resources those developing countries that invest increasingly in 29 November 2008 environmental protection, education, health and housing for their people and correspondingly less I would like to express my condolences and sympa- on weapons and soldiers. In other words, this ini- thy to the Government and people of India for the tiative seeks to provide assistance to developing disaster that has hit them in the last recent days. countries that are poor or middle income and to reward those countries for diverting less economic At the outset, I would like to thank His High- and human resources to the purchase of weapons ness Sheikh Hamad bin Khalifa Al-Thani, and the as established by Article 26 of the United Nations Government and people of Qatar, for the warm

44 Statements by Heads of State or Government welcome we received upon our arrival and the This Conference is taking place at a time when attention we have been given. I would like to take prospects for development have been obscured by advantage of this meeting to welcome the President repeated crises, which the world in general and of the sixty-third session of the General Asembly, developing countries, in particular, are facing. Glo- Miguel d’Escoto Brockmann; and, Mr. Secretary- bal financial markets are facing unprecedented tur- General, to thank them both for their tireless bulence, characterized by slowdown in growth and efforts in favour of peace and development. uncertainty about economic prospects. This does not spare developing countries from facing such a This meeting in Doha is taking place in the situation, even as developed countries continue to context of the international financial crisis, which be worried about their own fate. The consequences is mobilizing the major powers and is a source of for financing for developing countries are problem- serious concern to the world, particularly to small atic because what guarantees do we have that we and developing countries. It is in this context will see the promises made implemented when they that we are meeting here in Doha, to take stock were not when the economic situation was good? of progress made in the implementation of the Monterrey Consensus. For my part, I continue to believe that the sal- vation of developing countries lies in their ability Six years after this commitment, what can we to provide assistance to themselves against exter- say about the results? Several other conferences nal shocks. And accordingly, I would like to recall have dealt with the question of financing for devel- our proposal to the Group of 77 and China dur- opment since the Monterrey Consensus. In this ing the meeting in June in Yamoussoukro in Côte respect, I would like to cite just the most recent, d’Ivoire. We talked about the urgency of strength- and most important, initiatives: the Paris Dec- ening South-South cooperation, particularly in laration in 2005 on Aid Effectiveness, the Accra the financial areas. We believe that it is urgent to Agenda for Action in 2008, the global forum on create a South development bank, a development Aid Effectiveness, also in Accra, and the Group of for the South financed by our export revenues. We Eight (G8) Summit in Gleneagles in 2005. And we are prepared in Côte d’Ivoire to hold the meeting must note that the results in terms of flows of aid of experts of the G77 and China to examine the and targeting of aid are still far from being satisfac- modalities for implementing this proposal. tory. Although, acknowledging the efforts that are One of the major problems that the developing being made in terms of debt relief and humanitar- world is getting used to, especially on the African ian assistance, we regret that these operations have continent, is that of debt, which continues to pose not led to an increase in the resources available for a major challenge to African policy makers and financing for development. the entire continent. While welcoming the Heavily For Africa, in spite of the commitments made, Indebted Poor Country (HIPC) Initiative, we do flows of official development aid (ODA) have not express regret with respect to its implementation, changed greatly since 2004. Moreover, the targeting and to its ability to provide long-term solutions to of ODA to social sectors and to emergency assist- the problems of external debt. Moreover, it is wor- ance does not assist the productive sector, which rying to see that in some countries the resources leads to growth and sustainable development. The freed up by debt relief are spent on public and Monterrey Consensus recognized that ODA would social services and very little is spent on productive not be enough to finance development in poor sectors of the economy. We continue to encourage countries and thus urged the search for new and investment in the social sectors because it helps to innovative sources of financing. This appeal led to reduce poverty, but at the same we cannot neglect the productive sectors. the establishment of tools such as the International Finance Facility for Immunisation, the air ticket It is well-recognized that Africa makes up only levy and guaranteed market access. a very small part of global trade. This is why one

45 The Doha Review Conference on Financing for Development

of the major challenges will be to reverse the trend Croatia in world trade and to make trade a driving force for development in Africa. This would be done by Statement by diversifying production and exports in African His Excellency Mr. Stjepan Mesić countries, which largely depend on commodi- President of the Republic of Croatia ties that are sensitive to external shocks and to terms-of-trade instability. Development partners, 29 November 2008 therefore, have an important role to play in helping African countries to achieve their goals and First of all, let me express my sincere condolences diversification. To do so, it is necessary for Afri- to the people and Government of India and to con- ca to have improved access to developed country demn the terrorist attacks in Mumbai. markets. Developed countries can also help Africa We have met to discuss a topic which is both with its diversification efforts by increasing finan- important and pressing. And I believe that I share cial flows and by creating infrastructure. the expectations of all of us present here that this Finally, it is necessary to strengthen capacity meeting in Doha, in spite of the modest past results, building to help with trade and infrastructure. This will end on an optimistic note. Or, in other words, initiative must be associated with the classical pro- that we shall leave this place with the conviction posals for capacity building. That is a fact. That sup- that the world will succeed in establishing more port is not enough if the interest of the donors has equitable conditions in international exchange. been put ahead of the interest of the beneficiaries. I have in mind relations which would justify our proposition according to which the right to devel- The current crisis means that there is a need opment is one of the fundamental human rights. to reform the international financial institutions More precisely, it is the right of States and their and to establish a system for regulation of finan- citizens alike. cial markets that would be independent and would better take into account the points of view and the But at the very beginning of our considera- needs of developing countries. Africa, in spite of its tions, we must ask ourselves: do realistic prereq- demographic weight, has been insufficiently repre- uisites for that exist? Today, probably they do not, sented in organizations which take very important but I expect that they will come into being at an decisions that have major consequences for Africa. accelerated rate in the next period. My voicing However, the International Monetary Fund and such an expectation at a time when the world is the World Bank have made important efforts to swept by the global financial and economic crisis strengthen the voice of African countries in their may appear to be odd, but this very crisis is the decision-making bodies. It is essential to correct the basis of my conviction. I believe that it is precisely democratic deficit that the governance of the Bret- the crisis that should open the door to the changes ton Woods institutions suffers from, and to ade- that have been awaited for decades when we talk quately take into account the evolution of economic about the development of poor and underdevel- realities. Parity between advanced and developing oped countries. countries in voting structures must be affirmed. The development of these countries ground to a halt in a period coinciding with the prevalence of the so-called neoliberal economic model. It produced the request for the maximum deregulation of economic life and the least possible interference by the State in the economy. The State was to be concerned with stability and fiscal discipline and not with development. At the same time, the underdeveloped were asked to open up their own markets

46 Statements by Heads of State or Government to foreign goods and capital, to privatize everything, success have improved. Experience has taught us including both services and natural resources, and that no crisis can be overcome by damage control to adjust their labour legislation to the interests of or cosmetic measures. the employers. All these are common knowledge. Deep changes have always been necessary, Both the theoreticians and the practitioners and the State has played a major role in them. This of neoliberalism claimed that their model would point has recently been discussed at great length. balance out wages in the global economy, and that Thus, essential changes are being announced even poor countries would develop faster than the rich in the global economic order. It is here that I see ones. Their predictions did not materialize. Quite our chance, maybe even our last chance! This does the contrary—the gap between the poor and the not mean that I am advocating the abandonment rich has even widened. This has also been tragical- of globalization or of the liberalization of interna- ly demonstrated by the latest food crisis. We have tional trade. I am not, nor would that be possible. all felt it, but it has affected the poorest countries However, let me make this concluding point: the most of all. rules must also give poor countries an adequate When some people gave it a thought, they opportunity for development. recalled that the richest countries developed in a Although a small country of relatively modest way totally differing from what is being prescribed material potential, Croatia has always been pre- by the current neoliberal economy model. Without pared to provide its own contribution to the crea- exception, they all protected their own production tion of a more equitable and more humane world and their own markets, whether by customs or by order. I am only sorry to note that, barring excep- various non-customs barriers. There is no need to tions, I see no representatives, at the highest level, list those countries individually. Still, no changes of those who need to lead the efforts focused on occurred. The neoliberal model donned the halo that goal, and who need to understand and accept as the main weapon for the breakup of the rem- their responsibility for the materialization of such nants of the communist economy and, thereby, a common venture. communist ideology. It was proclaimed the most important element of transition to modern capitalism. In the process, it has become an ideology rather than an economy. Djibouti Statement by Moreover, need I remind you of a proverb, His Excellency existing in many languages, which says that eve- Mr. Deleita Mohamed Deleita rything is ephemeral, only interests are eternal? In Prime Minister of the Republic of other words, once the specific rules of the game Djibouti are set, interests served by the rules follow in their wake. There is no need to add anything to that. 30 November 2008 As long as an important part of the world followed the neoliberal model, as long as interna- On behalf of my delegation and on my own behalf, tional financial institutions implemented it as their let me convey my warm thanks to His Highness fundamental ideology, all efforts to promote faster Emir Sheikh Hamad bin Khalifa Al-Thani and development of poor countries had few chanc- to the fraternal people of Qatar for their cordial- es, even those under the umbrella of the United ity and hospitality since our arrival in this beauti- Nations. This is also the reason why we are basically ful city of Doha. There is no doubt that with this repeating what we concluded in Monterrey seven important event, which is dedicated to a review of years ago, but even before that in Cancun, Hong the commitments of the Monterrey Consensus, the Kong and elsewhere, at such or similar meetings. State of Qatar has become a reference point on the Yet, let me repeat, I think that today our chances of international scene.

47 The Doha Review Conference on Financing for Development

I would like to join with those who have pre- path of financing for development according to the ceded me in expressing my sadness and my com- principles of predictability, assistance by donors, passion towards the innocent victims of the rep- appropriation of assistance, adapted conditionali- rehensible attacks in Mumbai and to present our ty—where assistance will be granted based on the concerned condolences to the Government and specific objectives of the receiving country—and people of India in the face of these tragic events. the conditions of aid. We are aware that good gov- We are unified in their grief. ernance, characterized by a legal and institutional environment that is conducive to financing by I would also like to address my thanks to the the private sector, and an efficient policy valuing United Nations Secretary-General and his team human resources through policies on employment, for all the efforts leading to the organization of this education and health, are critical to draw in finan- Conference, the holding of which has unfortunate- cial resources. ly coincided with the current financial crisis. I am very pleased to be participating in this Follow-up Today, our concern is even greater since the International Conference on Financing for Devel- financial crisis that is now hitting industrialized opment, being held after the 2005 World -Sum countries is spreading like a contagion to emerging mit on a review of the Millennium Development countries. This crisis has become economic, more Goals and the High-level Dialogue on Financing than financial, and now we are seeing the begin- for Development, which was held in New York in nings of recession for developed countries as well October 2007. as a slow down of growth for other countries. For Africa, we have noted the weak liquidity of the The time has come today to take stock honest- financial sector as well as the low degree of impact ly of the situation in terms of combating poverty of this crisis on the financial sector. Nevertheless, and economic growth of the countries most heav- economically speaking, some effects of the cri- ily hit by it. The holding of this Conference half- sis are already beginning to be felt in Africa, with way through the Millennium Development Goals, the plummeting of raw material prices that results which we have been following since September from a decline of growth in developed economies 2000, shows how important the objectives are to and emerging countries. Additionally, some bank- our strategy for economic development and pov- able projects could be suspended or cancelled and, erty reduction. in the short term, some analysts are predicting We must all be aware that implementation of a reduction of activity in export sectors for raw the Millennium Development Goals in Africa has materials, tourism and manufacturing. Everything become a genuine challenge because, according to militates for reorganization of the international the studies of experts, only 13 countries will reach financial architecture so that the response to this even one of the goals. The Republic of Djibouti, crisis will be global. Africa must have its voice unfortunately, is among those States for which the heard, so that as a major player it is not absent from Millennium Development Goals will remain a dif- the new structure. Africa is not asking for hand- ficult challenge to meet by 2015 without the sup- outs but rather development assistance, allowing it port of our partners. With this alarming thought to be a solid and enduring passenger on the train in mind, it is the attitude of the international com- of economic growth and human development. This munity and the non-compliance with commit- crisis must not be a pretext for shrinking public ments by them which need to be highlighted, more assistance for development, because implement- particularly, those made in Greeneagles to double, ing the Millennium Development Goals is both an by 2010, official development assistance for Africa economic and moral necessity. Furthermore, in the and to reduce the weight of external public debts. end, the development of poor countries with poten- The Accra Agenda for Action, developed on the tial will open up encouraging long-term prospects basis of the objectives of the Paris Declaration, is for international trade. It is the principle of win- to be an echo of these concerns, trying to study the win which needs to prevail in our partnership.

48 Statements by Heads of State or Government

Moreover, the food crisis, coupled with the integration contemplated by COMESA, because energy crisis, has dealt a serious blow to our econ- we are convinced that if regional integration is omies, which are already fragile and have already very strong in Africa it will allow us to have bet- compromised social stability as a condition of our ter integration globally. A result of this bold policy development. Of course, healthy though the reac- is that a growth of 5.3 per cent in gross domestic tions of the international community are to help product was achieved in 2007, and direct foreign us deal with the harm done by skyrocketing food investment is increasing very much. Neverthe- commodity prices, they are not in and of them- less, this growth is insufficient to turn around the selves sufficient to bring about long-lasting solu- phenomenon of poverty for now. Our efforts at tions to the crisis. socio-economic development are being thwarted It is crucial to attack the causes of the crisis— by shortages of water and chronic drought, caused particularly the crisis of agricultural production, by climate change, that we are suffering from in caused by knee-jerk use of fossil fuels and the our country. The expansion of the desert, reduc- policy of subsidies in developed countries—rather ing food and livestock, has upset the life of rural than its symptoms. populations, while scarce rainfall is causing floods and major damage to our infrastructure. The sig- Against the backdrop of this crisis, I would nificant actions that we have undertaken under the like to take the opportunity given to me to briefly Millennium Development Goals are being under- present to you the economic and social situation mined by the resurgence of inflation and by the in the Republic of Djibouti, which is strategically skyrocketing prices of oil and raw materials. The located on one of the most used sea lanes and is Monterrey Consensus has embraced the concept of one of the least developed countries. My Govern- trade as the engine of development, with the cen- ment has realized since the beginning that the best tral idea of more access for products from devel- way to consolidate and maintain the major bed- oping countries to markets of developed countries. rock of all development is peace and stability. This But now we note that access to these markets has way, for the last 30 years, has been distinct in our been limited, culminating in the impasse in the country, in a region regularly buffeted by conflicts trade negotiations in Doha. As a result, there must and instability. The second choice of approach is that from the beginning the Government has be an agreement for an adequate space for a trade called for an economy that is open, one based on policy allowing developing countries to determine development of the private sector, on trade and their priorities and strategies. Hyper-liberalization the development of transport infrastructure. Since must not be imposed upon us when we are in a 2000, public-private partnership has been the critical phase of our own development. I must say, model advanced by our Government where we are in conclusion, that we are very much committed to trying to gain advantages for development. Our the Monterrey Consensus and we are fully mindful geographical position, our convertible currency that what we have to do has been going slowly but and membership in the Common Market for East- is critical for the future of our nations. ern and Southern Africa (COMESA) makes our country an ideal port for roll-on/roll-off of cargo and for merchandising. Also, the Government has called for public-private partnerships in giving the management of the ports, the international airports and the free trade zone to Dubai Port World, one of the largest global port operators. This exchange of know-how has truly strengthened the performance of the port, which is now positioned as one of the hubs on the sea lane between Asia and Africa. This vision is part of the approach of regional economic

49 The Doha Review Conference on Financing for Development

in particular with regard to climate change, as well El Salvador as the stalemate of multilateral trade negotiations Statement by within the World Trade Organization, leading to a Her Excellency loss of confidence in the institutions that shape the Ana Vilma de Escobar international economic architecture. Vice-President of the Republic of El Salvador We wish to express our concern as the con- fluence of all of these obstacles jeopardizes the 29 November 2008 achievements that our country has made to date in implementing the internationally agreed devel- On behalf of the Government of El Salvador, I opment goals, including the Millennium Devel- wish to thank His Highness Sheikh Hamad Bin opment Goals. El Salvador recognizes that every Khalifa Al-Thani, Emir of the State of Qatar, for country bears the principal responsibility for its his kind hospitality and leadership in hosting this own economic and social development. However, Follow-up International Conference on Financing we reaffirm our belief that international private for Development. capital flows, in particular foreign direct investment and international cooperation for development, In turn, I would like to commend Father are a vital tool to strengthen efforts geared towards Miguel d’Escoto Brockmann, in his capacity as the sustainable development. Further, we remain con- President of the sixty-third session of the United vinced of the urgent need to adopt coordinated Nations General Assembly, for the coordination measures in the multilateral and national sphere to and successful conclusion of the preparatory meet- overcome the negative effects of the financial cri- ings of this Conference, as well as for the tireless sis, seeking to promote a broad and comprehensive work of the co-facilitators, Ambassador Magued approach to resolve these problems. The Group of Abdel Aziz of Egypt and Ambassador Johan Løvald Twenty (G20) meeting was a positive step in this of Norway. I should also like to thank the Secretary- regard. However, we acknowledge that in these General of the United Nations, Mr. Ban Ki-moon, circumstances we must adopt new measures to for the substantive and logistical support of the address this crisis. We must consider the need for Secretariat in the preparation of this Conference. all United Nations Member States to unite in find- We would like to convey our deepest heart- ing a collective and coordinated solution to it. This felt condolences to the people and Government of Conference here in Doha is a first opportunity to India for the recent acts of terrorist violence which make progress in this direction. have taken place in Mumbai, leading to the irrepa- El Salvador reaffirms its conviction of the rable loss of human lives. El Salvador reiterates its necessity of ensuring that the human individual most energetic rejection of terrorism in all its forms is placed at the centre of development policies, and manifestations and calls for the strengthening so that human development remains a top prior- of multilateral actions to combat terrorism. ity in national and international political agendas. El Salvador welcomes the convening of this Full and productive employment and decent work significant Follow-up International Conference on for all are fundamental in order to overcome the Financing for Development, in particular, six years current global economic and financial crisis. For after meeting the commitments established within this reason, we welcome the multilateral initiatives the Monterrey Consensus and at a time when the geared towards improving aid effectiveness and international community is facing challenges result- international cooperation, avoiding new condi- ing from the severe impact of multiple and interre- tionalities, which limit the principle of national lated unprecedented crises. They have affected the ownership. We underscore the urgent need for a economic sphere, as reflected in food and security substantial increase in official development assist- and energy price volatility. They have also affected ance (ODA) and other additional resources so that the global financial sphere and the environment, developing countries, including middle-income

50 Statements by Heads of State or Government countries, are able to attain sustainable develop- the formulation of national policies for risk pre- ment. We highlight the need to implement the pro- vention and disaster risk mitigation to address nat- posal taken up by the Paris Club for debt swap for ural disasters as well as improve disaster response social capital invested in projects linked with the capacity. El Salvador underscores the need to fur- Millennium Development Goals and environmen- ther strengthen the follow-up mechanism agreed tal protection projects. upon in Monterrey, which in our delegation’s opinion has not lived up to its expectations. Therefore, El Salvador reiterates its acknowledgment of we emphasize consideration of the proposal of the those countries that have met the objective of allo- Rio Group, submitted during the preparatory proc- cating 0.7 per cent of their gross national income to ess of this Conference, which is geared towards ODA and calls upon donors that have not yet done improving the current follow-up mechanism of the so to reaffirm their political commitment and to Monterrey Consensus and for the agreements to be adopt specific measures in order to attain this goal. attained here in Doha. We underscore the need for continued sup- To conclude, allow me to reaffirm the politi- port for middle-income countries in their efforts cal resolve of the Government of El Salvador to to fight poverty and reduce internal asymmetries. continue the implementation of the commitments At the same time, we recall the invitation issued to enshrined in the Monterrey Consensus as well as the international community to consider addition- the outcome of this Follow-up International Con- al, more effective, criteria for providing assistance ference on Financing for Development, which, to them, including through implementing new and without a doubt, will contribute to finding a com- innovative mechanisms for cooperation that is bet- prehensive and coherent response to the challenges ter focused, as needed. that we face in the twenty-first century for the ben- We reaffirm the significance of South-South efit of our peoples. cooperation and of triangular cooperation, as these are complementary instruments for the provision of aid. We recall that South-South cooperation has significant features that distinguish it from North- Equatorial Guinea South cooperation. El Salvador acknowledges the Statement by key role played by multilateral and regional devel- His Excellency opment banks in addressing the development Mr. Aniceto Ebiaca Moete Deputy Prime Minister of the Republic of needs of developing countries, including middle- Equatorial Guinea income countries. We also reaffirm the commitments made in 30 November 2008 the United Nations Framework Convention on Climate Change and in the Kyoto Protocol. We On behalf of the President of the Republic of appeal for a further strengthening of the financ- Equatorial Guinea, His Excellency Obiang Ngue- ing mechanisms for activities related to climate ma Mbasogo, and the delegation with me, may I change, recalling the aspiration that such mecha- briefly congratulate the other participants in this nisms be inclusive and equitable, and that they important Conference. Mr. President, may I echo implement the guidelines in accordance with the the congratulations of speakers who have taken principles and mechanisms of development aid, the floor before me in expressing the recognition such as national ownership and alignment with and tribute that you so richly deserve, for the great national development priorities. responsibility that you hold in conducting this very important event. We welcome the efforts of the United Nations support group for the International Strategy for Let me take this opportunity to express our Disaster Reduction, which is working to promote total rejection and condemnation of the terrorist

51 The Doha Review Conference on Financing for Development

acts perpetrated in India, which have led to the the Government of Equatorial Guinea adopted deaths of so many innocent people, and extend our a macroeconomic and fiscal policy of a counter- solidarity in condolences to the bereaved families cyclical nature based on the hypothesis of ongo- and the people of India. ing revenues and a long-term view expressed at the second National Economic Conference held We are living in times of great upheaval on the in 2007, which set out strategic guidelines up to international front, where the trends of global ills 2020. In this connection, public investment in that we have recently seen in our planet, such as infrastructure, economic diversification, human hunger, war, armed conflict, social conflict, natural resources, degeneration of fiscal surpluses, the disasters, the great pandemics: AIDS, malaria, and implementation of stabilization and saving funds other endemic diseases, the use of terrorists and for future generations, are just some of the main mercenaries whose sole purpose is to destabilize aspects of our Government’s economic policy. In nations and overthrow legitimate Governments, addition, combating corruption, good governance and also the international networks of unlawful and transparency are crucial factors in administer- trafficking of migrants, women and children and ing public resources. To this end, the participation other social ills—together with the economic and of civil society plays an essential role and, for this financial crises, the food crisis, the energy crisis reason, we feel that Equatorial Guinea’s support of and others—undermine and jeopardize the basic the initiative of transparency in extractive indus- principles and objectives of the United Nations. tries will make it possible to improve the adminis- In the face of these threats, we feel that it is neces- tration of oil revenues. sary and timely to work together to eradicate these ills besetting our planet and work, in particular, to The mobilization of foreign direct invest- achieve peace as an essential condition for guaran- ment, primarily through international financial teeing the development of peoples. resources, is one of the main mechanisms to promote private investment to ensure technology This meeting in Doha is being held at a time transfer and training of local labour, with a view of particular importance due to the international to achieving sustainable economic growth. In this financial crisis, the solution of which does not regard, efforts to attract foreign investment should appear to be on the immediate horizon. We are not only be directed towards the extractive activi- most concerned to note that the historic consensus ties but also to sectors that generate added value in Monterrey is being undermined by this crisis. If that help to achieve diversification of the economy in times of plenty in the world economy the devel- and thereby guarantee sustainable jobs. This will oped countries had not yet met the commitments make it possible to achieve economic security and entered into in this connection, then we wonder will ultimately lead to a reduction of poverty and what will happen now that we are entering a period ensure sustainable development. To that end, we of huge economic upheaval. must improve the climate for business and mobilize The reflections of the Government of Equato- international financial resources directly towards rial Guinea on the review of the implementation of the private sector, and we welcome some initiatives the Monterrey Consensus are based on the follow- that have been raised during this meeting. We also ing aspects: for nations such as ours, whose econo- congratulate all those speakers who have dwelt on mies depend to a large extent on oil resources for such matters. the allocation of domestic resources, it is not only The opening of the economy to international necessary to stimulate economic development but trade will make it possible to improve efficiency also to achieve intergenerational equity once these and this is a key factor in enhancing well-being. natural resources have been exhausted. To this Nonetheless, we must recognize that the intransi- end, in response to the Monterrey recommenda- gence of economies that have thus far dominated tions regarding the mobilization of national finan- the globalized world economy hampers the con- cial resources, and during the period 2002-2008, clusion of negotiations at the Doha Round and

52 Statements by Heads of State or Government jeopardizes the increase of exports from develop- to systematic subjects, we should recognize that ing countries and the transition economies and, the world economic crisis was triggered by finan- thus, the increase of the share of the least devel- cial problems. As a result, it is urgent to strengthen oped countries in world trade. As a result, we urge the monetary and financial systems. Governments Governments to work in a sincere and dedicated should do everything possible to improve trans- manner to conclude the Doha Round in order to parency and the regulation of financial interme- ensure a fair and equitable agreement, bearing in diation in an increasingly globalized world. mind the specific circumstances of each individual country. Regional integration and bilateral agree- The world is facing new challenges: increasing ments are other instruments that should be used food prices, the negative effects of climate change, to achieve a growth in trade and, thus, the States of the volatility of capital flows and exchange rates, Central Africa, through the Economic Communi- and also swings in the prices of main commodity ty of Central African States, of which our country prices. All these lead to uncertainty and prevent is a member, have made progress in this direction. a clear, long-term view. In this regard, Govern- Therefore, we request the support of the interna- ments should coordinate action and restate their tional community to implement the Regional Eco- commitment to moving forward to achieve the nomic Programme that our community is prepar- objectives of the Monterrey Consensus. Lastly, we ing to achieve greater sub-regional integration. In should ensure that all nations can participate in the the case of Africa, the international financing of reform of the international financial system, there- technical cooperation should be directed primarily by ensuring their representation in the administra- to achieving the Millennium Development Goals tion and governance of that system. and combating HIV/AIDS and other diseases, such as tuberculosis and malaria. Thus, both donors These and other thoughts show us that we and beneficiary countries would improve coor- should achieve the development goals that were dination to avoid fragmentation of resources and agreed upon in Monterrey, with a view to equip- overlap of effort. Although it is true that countries ping our peoples with better conditions and oppor- like Equatorial Guinea have improved their per tunities for achieving well-being. We hope, there- capita income substantially through oil revenues, fore, that the conclusions and recommendations nonetheless, the human development indicators emanating from this Doha Conference will serve continue to be low. This situation calls for focused as a reference for carrying out our obligations in technical assistance to eradicate poverty and gen- our respective countries in a cordial environment erate a more equitable society. In this connection, of mutual understanding, with a view to achieving our Government is developing programmes to the development of the whole planet. meet the needs of the most vulnerable sectors of the population through the establishment of the I would not like to end without repeating our Social Development Fund. thanks to the Secretary-General of the United Nations, His Excellency Mr. Ban Ki-moon, for his Since the adoption of the Monterrey Consen- outstanding efforts on the international scene. Also, sus, progress has been noted in reducing external debt. Nonetheless, domestic debt in many coun- we extend our congratulations to the President of tries has increased and servicing this debt is a the United Nations General Assembly, Mr. Miguel major burden on budgets and ultimately creates d’Escoto Brockman, and our thanks to His High- greater vulnerability. For my country, the foreign ness, the Emir of Qatar, Sheikh Hamad bin Khalifa debt constitutes almost less than 0.5 per cent of Al-Thani, for his guidance of the people of Qatar gross domestic product. Likewise therefore, we and in offering hospitality for this event in the urge the Bretton Woods institutions, and espe- beautiful city of Doha. We also thank the organ- cially the International Monetary Fund, to focus izing committee and all those who have directly or particular attention on this matter. Turning now indirectly contributed to the Conference.

53 The Doha Review Conference on Financing for Development

But that response should not only address the glo- European Commission bal financial and economic governance. Here, too, Statement by we need not only a stronger, more inclusive, multi- Mr. Josė Manuel Barroso lateralism but also coordinated efforts for a global President of the European Commission economic recovery and a renewed commitment to 29 November 2008 promote global prosperity, namely, through development and trade. I fear I must begin on a somber note, by offering We must retain our commitment to reach the my sincerest thoughts of solidarity and condolence Millennium Development Goals under the devel- to the Government and people of India for the ter- opment targets. They are all the more necessary. rible attacks they have suffered in Mumbai and, of 1.4 billion people are living in extreme poverty, course, in particular to the victims and their fami- notably in Africa, on less than one $1.25 a day. I lies. The terrorists have hit out at the most popu- am proud to tell you that the European Union reaf- lous democratic state in the world, and they must firmed its 0.56 per cent and 0.7 per cent targets in understand that we will always stand together to the European Council this June. I join what was oppose terror. Those who act in such a barbarous said by President Sarkozy, as President in Office manner must never prevail. of the European Council, some minutes ago. All donors must respect their commitments. We also As we meet here in Doha, we confront an have to be very innovative about financing, includ- unprecedented global financial crisis, hundreds ing adaptation for climate change, which is going of millions of people facing extreme poverty, the to be crucial for developing countries. challenge of climate change, global concerns about food and energy security, stalled World Trade This Conference in Doha and the one in Poznan Organization talks for a new trade round, and the that will start next week on climate change have reality of economic recession for many economies. to move forward together, hand in hand. Climate So we are facing a global and multi-dimensional change is also part of the development agenda. We crisis and we have to address it in a truly multi- must also meet new challenges along the way. That lateral manner. That is why I really welcome and is why I am so proud of the agreement by the Euro- congratulate Secretary-General Ban Ki-moon for pean Union last week to adopt a €1 billion Food the leadership he is giving to the global communi- Facility, in line with the proposals I made earlier ty, putting so high in the agenda development and this year. This is additional assistance above and climate change concerns. beyond the €800 million that we pulled together earlier in the year to help poor farmers prepare for As I said in Washington, D.C., at the Group of a better harvest. Twenty (G20) meeting, it has to reach out to the rest of the world. We need human rescue as well as Finally, trade. Probably the most significant financial rescue. This is the first major internation- action we could take right now would be the rapid al meeting since Washington, and here, in Doha, conclusion of the Doha Trade Round. Let us not we need to build a bridge, a basis of understanding forget that this is also the Doha Development on what needs to be done between all economies, Agenda. We need trade for development and the whether developed or developing. So, none of us European Union is committed to improving both can do it alone. We need each other more than ever. the quality and the volume of the Aid-for-Trade it We must swim together or sink together. This global provides to developing countries. crisis requires global answers and global alliances, A successful Doha Trade and Development based on shared responsibilities. Doha is the place Round will be a major boost for the world econ- to build this bridge for the future. At the G20 meet- omy and show that we reject protectionism. It ing in Washington, we agreed on principles that will be good for development and good for the paved the way for a response to the financial crisis. global economy. So we want to see an action-

54 Statements by Heads of State or Government oriented outcome this week to maintain, promote impact brought about by the increased food inse- and implement the Monterrey Consensus. We are curity and volatility of commodity prices. These determined, as the European Union, to see this unfavourable developments will put a strain on Doha Conference succeed. The success of Doha in our economies and could further weaken our trade and Doha on aid will be crucial for the pros- capacity to deliver on some of our Millennium perity of the peoples of our planet. Development Goals. In this regard, the convening of this Interna- tional Conference as a follow-up to the Monterrey Fiji International Conference on Financing for Devel- Statement by opment is a timely and appropriate one, and I con- His Excellency gratulate the United Nations Secretary-General for Mr. Josaia Voreqe Bainimarama the arrangement of this meeting. Prime Minister of the Republic of Fiji I would like to join those earlier speakers 1 December 2008 who have called for more official development (ODA) flows, and for our development partners Let me begin by extending my appreciation to the to deliver on the commitments made in Monter- Government of Qatar for the warm reception and rey, Mexico, in 2002. We cannot over-emphasize hospitality extended to me and my delegation, as the importance of these commitments in sup- well as my congratulations on the excellent facili- porting our endeavour to eradicate poverty in our ties provided for this Conference. own developing economies. While the quantum of ODA is critical, its effectiveness and implementa- It would be remiss of me if I proceeded with- tion are perhaps more important. The 2005 Paris out joining others in extending my Government’s Declaration stresses that aid effectiveness can be condolences and sympathy to the Government of enhanced by increased recognition and alignment India and to the families of those affected by the of procedures and processes for delivering exter- tragic events of the last few days. These recent acts nal assistance to local systems. While increased of violence and terrorism in Mumbai bring to the harmonization to local systems has generally been fore the greater need to reaffirm our commitments accepted to increase aid effectiveness, very slow and promises to each other, to ensure that the eco- progress has been made. I also wish to add that nomic and financial gap between the “haves and our development partners need to place greater have-nots” is narrowed, that poverty is eradicated recognition in using local human resources when and that the dividends of global growth are shared delivering aid. They play an effective role in reduc- more with the developing world. ing transactional costs. On the home front, I have conveyed my con- I recognize the primary responsibilities of dolences to the Prime Minister of the Republic of developing countries to design and own their Korea, His Excellency, Dr. Han Seung Soo, for the national policies and strategies to development. deaths of four Korean nationals who were involved In this process, we recognize the inextricable in a tragic vehicle accident in Fiji. To their families, links between our domestic economies to the I wish to express the condolences of the Govern- global economic system. We, in Fiji, like other ment and the people of Fiji. developing countries, continue to review our We are meeting at a moment when the stabil- development policies and strategies to assist us ity of the global financial system has been badly in addressing our own economic and political shaken and threatened by the financial crisis. The challenges. We continue to pursue reforms on the second-round effects of this crisis on our different fiscal front, including tax reforms, to encourage economies are still unfolding, and to most devel- private investments and enhance transparency in oping countries these will exacerbate the adverse public finance management.

55 The Doha Review Conference on Financing for Development

Recently, fiscal measures were announced to I reiterate the calls made by a few small island assist the poor in absorbing the impact of rising economies for greater recognition of small island food prices. These include the reduction of fiscal States, like ours. We tend to be forgotten and duties on basic food items and the raising of the tax obscured from international aid, and trade and threshold. The management of the national budget development policies. In this regard, we support an has now been strengthened by centralizing budget early conclusion to the Doha Development Round information and monitoring the spending of all of trade negotiations, with a sharpened focus on the Government ministries through a new financial management of the impact of international trade management information system. on small island states like Fiji. I would add that in In the 2009 budget, additional incentive meas- any new trade agreement greater emphasis should ures were announced in various areas, particu- be placed on increasing the opportunities for small larly in the agricultural sector. These are aimed island States to widen and deepen their export bas- at attracting private investment funds to increase es, with better conditions to access bigger markets. the productivity of the agriculture sector and our We, in Fiji, have continued to ensure a sound, land resources. In this policy, we recognize that well-regulated and inclusive financial system, the mobilization and more effective use of domes- which is central to mobilizing domestic resources tic resources are critical to increasing growth and and accumulating savings that can be channelled to domestic wealth. But, most times, our efforts to sound growth-generating projects. But, the failure ensure an environment conducive for investments of the international monetary and financial system are constrained by the level of domestic resourc- to detect early warning signs of the recent financial es we channel into infrastructure development, meltdown is of great concern to us and our finan- especially in the rural area. This is where we can cial system. I, therefore, fully support reforms in unleash the economic potential that can generate our Bretton Woods institutions and welcome the more economic opportunities for our people, and initiative taken by the United Nations to set up a in an area where we fervently believe our develop- Commission to review the workings of the global ment partners can support us. financial system. I urge the Commission to take At this juncture, I would like to recognize the on board the interests and vulnerabilities of small contributions of a few understanding bilateral part- island economies, like Fiji. ners that have stayed engaged, true to their commit- Mr. President, I submit the above issues for ments to see us progress, and who continue to pro- consideration, and I thank you very much for vide funds for the development of our small island your attention. economy, in the midst of our political challenges. I reaffirm my Government’s commitment to continue to bring peace and security to all our people and to ensure that respect for human rights France continues to prevail. My Government has pro- Statement by gressed well towards finding a home-grown solu- His Excellency tion to our political challenges in communicating Mr. Nicolas Sarkozy and consulting with the people of Fiji through President of the French Republic the national charter process. To our development (on behalf of the European Council) partners, I cannot stress enough the importance of 29 November 2008 understanding and patience in these challenging times in Fiji’s history. I remain fully committed to As President of the European Council, my role here this process and its outcomes. We will continue to seek the engagement of our multilateral partners, was to be in Doha. This is my place to tell you with- where appropriate, to support us in achieving our out any ambiguity whatsoever that development of desired and collective goals. countries that most need it cannot be sacrificed

56 Statements by Heads of State or Government to the economic crisis. Given this unprecedented within the International Monetary Fund the devel- financial crisis, in addition to an economic crisis oping countries must have a seat and a much more which is also unprecedented, Europe called for important role to play. We believe that the Group of the meeting of the Group of Twenty (G20), which Eight (G8) format that was useful is now obsolete. took place in Washington, D.C. Europe wanted Who can think that one can resolve this financial the African Union to be represented through its and economic crisis without China, without India, chairman; we wanted the Chairman of the African without Brazil, without Mexico, without any South Union to be present at that meeting. Unfortunately, American country? And we know perfectly well that did not happen. Europe also wanted the Gulf how important South Africa is, but it alone cannot Cooperation Council, through the Emir of Qatar’s represent an entire continent. presidency, to also be present at that meeting, and I regret that that did not occur. I hope that at the From this crisis, let us turn it into an oppor- next Summit of the G20, which will take place in tunity for change. This is the twenty-first century London, the African Union and the Gulf Coopera- and we have been working with the institutions of tion Council will be represented. the twentieth century. What do people expect us to change? You are not the only ones able to make Why did Europe seek this Summit? It is because this change. We need to help you. We need all the we are facing a global unprecedented crisis now. regions of the world, and we demand this change. Because of this crisis we could adopt two attitudes. And if we do this then things will change. In this The first would be to do business as usual, and to continue with that policy without learning any les- crisis, we have debated this question within the sons from the past. And the second would be to European Union, but we are all facing growing dif- turn this unprecedented crisis into an opportunity ficulties, including increasing unemployment. to change the world, to change the world’s institu- We decided not to sacrifice the Millennium tions, to change the global financial system, to use Development Goals and to live up to the prom- this as an opportunity for regions such as Africa, ises made in terms of official development assist- in particular, to develop. In our globalized world, ance (ODA). Those promises are real because right our futures are interconnected. The environmen- now 60 per cent of ODA comes from Europe—60 tal world is interconnected. We countries need to per cent, Mr. Secretary-General. That’s why I real- develop with the developing countries. We need ly wanted to be here today, to reaffirm this basic to restore growth in the world. We need you to do political commitment of Europe. Many people this. You need us to do it. throughout the world talk of ODA: Europe pays 60 At the the next Summit of the G20, Europe will per cent of it, $61 billion for 2007, and it has just bring its desire to adapt the global institutions to decided to add €1 billion for food aid to deal with the new political, economic and financial realities. the unprecedented food crisis. And I say this for the benefit of the African Heads of State and Government, many of whom are Europe will keep its commitment of 0.7 per present today. Africa must have a seat—you have cent. That is a major political commitment. It is a to have your fair place—in international global political choice, which was unanimously accepted, institutions. The United Nations Secretary-Gener- and I call upon countries that are present here and al, France and Europe appreciate your work and we that are not part of Europe to consider that with say that it is not reasonable that there is not a single these social difficulties, with the economic, finan- African country that is a permanent member of the cial and political difficulties that we are facing, this United Nations Security Council. choice must be a fundamental choice. One cannot resolve the major problems of the world when a billion inhabitants of Africa do not have their seats at the table. We think that

57 The Doha Review Conference on Financing for Development

Of course, some timid progress has been Gabon made on a number of these points, but we must Statement by recognize that if you look at them all together the His Excellency results achieved to date are hardly satisfying. We Mr. Jean Eyeghe Ndong are surprised at how few tangible results have been Prime Minister of the Gabonese Republic achieved in terms of mobilizing external resources. 30 November 2008 While net transfers to developing countries have continued to progress, we must still note that It is my honour to convey to you the message of only the least developed countries are truly the His Excellency El Hadj Omar Bongo Ondimba, real beneficiaries of these amounts. What, then, about medium-income countries, such as Gabon, President of the Republic of Gabon, to the Inter- which had already talked about possible exclu- national Follow-Up Conference on Financing for sion in March 2002 with respect to the objective of Development to Review the Implementation of the strengthening its national trade? Gabon can only Monterrey Consensus. It is as follows: regret the suspension of the Doha Round, which As this Conference proceeds, I would like to was launched in 2001 by the World Trade Organi- say to you how much I would have wished to be zation, and was supposed to open an era of devel- with you and to take part in your deliberations per- oping fair trade. sonally. Major internal political reasons, unfortu- The general assessment of results obtained by nately, have not enabled me to do so. And so I have official development assistance (ODA) is hardly a asked the Prime Minister, Head of the Government source of optimism either. Since 2006, the volume of the Republic of Gabon, to represent me. of ODA has been going down on a steady basis so I am pleased, first of all, to congratulate and that today not only projections for years to come thank the Emir of Qatar, as well as Mr. Ban Ki- remain well below the volumes of assistance nec- moon, Secretary-General of the United Nations, for essary to implement the Millennium Development having organized and greeted us at this important Goals, but it is regrettable to note as well that up to meeting on the critical question of financing for now only one country, Norway, has gone beyond development. I would also like to take this oppor- the threshold of 0.7 per cent of gross national income, enshrined by the Monterrey Consen- tunity in this important meeting to present my sin- sus. Beyond these hardly flattering statements, cere condolences to the Government of India and we must admit that some significant progress has to the bereaved families after this reprehensible been made and this should be welcomed, such as terrorist action, which we condemn vigorously. the innovative approaches which have emerged This Conference must get down to a scrupu- for financing developments. We should be pleased lous evaluation of the progress made in implement- with that, of course. But the efforts made should ing the Monterrey Consensus. We should recall its be extended to other sectors just as critical, par- contents to better appreciate the objectives sought. ticularly on questions of the environment, and our The Consensus divides responsibilities for mobiliz- country is paying specific attention to this. For ing national and external resources for the purpos- example, among other things, we are establishing es of development. It notes that international trade a carbon fund. is the true engine for development. It attributes to Whatever the record might be, the Monterrey public developmental assistance, another source of Consensus must be consolidated. So it is from this external financing, a critical place in policies seek- standpoint that my country has been resolutely ing to increase developmental capabilities. The determined to respect commitments contracted Consensus establishes a causal link between debt in this framework. In fact, year after year, Gabon viability and growth. It calls for a retooling of the has been resolutely committed to improving its global financial system. economy. By better mobilizing national financial

58 Statements by Heads of State or Government resources, the Government has been continuing task should be to develop agriculture, rather than to consolidate its macroeconomic framework, to reduce agricultural production. That is what I thus allowing it to achieve a satisfactory gross proposed, on behalf of France on 3 June in Rome, domestic growth product rate. It is also doggedly speaking to the Food and Agriculture Organiza- pursuing its efforts to improve public finance. In tion. I stated that Africa needs to be helped to feed addition, in order to make better use of our natu- itself, and to help feed the world. Europe has there- ral resources, we are unswervingly implementing fore decided to open up its markets without any an economic policy that is favourable to direct duties on agricultural products produced by the foreign investments. poorest countries of the world. With respect to the viability of the debt, Gabon ODA is important, but at the same time we has reached an accord on the early retirement have learned that it is not the only condition for of its external public debts in an agreement with development. We must help private investment to creditors of the Paris Club. This operation had take place. We need to help out with micro-credits. the major advantage of reducing debt servicing France has established €200 billion to help small and improving the profile of our country. It has African businesses. For us, the development of also allowed Gabon to have access to international Africa is an absolute priority, and I would like to capital markets and has assisted in developing the close on that point. We are aware of our responsi- regional financial markets. My country remains bilities. We are aware of our duties. The world has deeply committed to the Monterrey Consensus just skated across a catastrophe because it reflects and we are available to assist in its implementa- financial speculation rather than economic devel- tion, bearing in mind, of course, the challenges opment. The world was so close to disaster because related to the implementation of the Millennium it had grown used to profits which were used by Development Goals, such as the food crisis and banks to hand out loans to anyone who asked for the global financial crisis, which risk mortgaging them. The world had grown used to some becom- success in this area. ing richer and richer, whereas others became poorer and poorer. We must courageously and vigorously attack the dysfunctions which undermine the interna- We have a historic opportunity to change the tional financial architecture so that it will give situation, and I am making this point to our Afri- more attention to concerns of development. I call can friends. We will keep our development prom- on partnering countries to join us in a new tone in ises, and I am telling developing countries now that their commitments. We would like their efforts to we will live up to them in Europe. We in France, correspond to ours, to our wish to strengthen glo- we in Europe, will introduce a new balance to the bal partnership for development. financial institutions, but each country must do its part in these changes, in these reforms. The world May the Monterrey Consensus have a shared can wait no longer. momentum, an appropriate path for the emergence of a world full of life, of prosperity and of You need our support, our economic and vigour. Such is the major hope that I would like to financial support. We need your political will. It is leave you with, and that Doha will mark a phase not that there are those who live outside the world which is of major significance and determinative and others who live in it. No, it is the same world. It in its process. is the same political will that is required. I would add that in these changes that I am Mr. Secretary-General, Europe did respond to calling for, and following what Mr. Lamy said just your appeal because this was a just appeal. Europe now, there is a major problem: the world food crisis. wanted to be in Doha with our friends from Qatar The world cannot feed itself. So that the world does because this meeting is a meeting of the millen- not forget the priority that agriculture is, 900 mil- nium. We will live up to our promises. South Afri- lion people in the world are dying of hunger. The can, South American and African friends, let us

59 The Doha Review Conference on Financing for Development

all pull together for reform. Let us all pull together and healthy reserve cover since the introduction for change. Let us all pull together to reject paraly- of the Structural Adjustment Programme in 1986. sis. We are much stronger acting together. Let us After a pause between 2002 and 2003, there was tackle these causes because if we continue with a surge in productivity growth, with rising con- business as usual the same causes will produce the sumer confidence and investment supported by same effects. prudent monetary and fiscal policies. Real growth in gross domestic product (GDP) averaged 6.3 per cent between 2003 and 2007. Economic growth Gambia was broad-based, with increased value added in all major sectors of the economy, showing the effects Statement by of sound macroeconomic policies, structural Her Excellency reforms and efforts by the Government to diversify Ms. Isatou Njie-Saidy the economy. Vice President of the Republic of the Gambia However, for 2008, GDP growth is projected to decline to 6.1 per cent, due largely to contraction 29 November 2008 in the services sector, which reflects the ongoing instability in the global financial markets, result- First and foremost, I have the singular honour to ing in tighter lending conditions and exacerbated read the statement of His Excellency Dr. Alhaji by higher energy and food prices. These unfavour- Yahya A.J.J. Jammeh, President of the Republic able developments, however, will no doubt lead to of The Gambia, to this very important and timely reduced exports, tourism receipts, remittances and Conference. foreign direct investment, all of which will surely The President expresses his solidarity with the hinder growth. Government and people of India, and, like the rest It is an agreed fact also that fast and sustained of his colleagues here present, extends his condo- economic growth is a pre-requisite for poverty lences to them. He indeed joins the international reduction. However, due to recent developments in community in condemning this very heinous act. the international economy, these pose challenges Let me also express our sincere gratitude to and constraints to the fight against poverty, the pro- His Excellency, the Emir, the Government and the motion of food self-sufficiency, the maintenance of people of Qatar, for the very warm welcome and broad macroeconomic stability and the attainment brotherly hospitality that we have received since of our Millennium Development Goals. our arrival in this very beautiful city of Doha. I In response to these challenges, my Govern- also want to express our sincere appreciation to ment continues to implement appropriate policy the United Nations for organizing this very criti- measures and structural reforms, aimed at miti- cal Conference at a time when global growth is gating the impact of the unsettled conditions in decelerating, reflecting the three major unwelcome the global financial markets and the rapid decel- interrelated global developments of food, fuel and eration of global growth. Furthermore, to sustain financial turmoil crises, in addition to climate the momentum of good economic performance in change. Without a doubt, the impact of these glo- The Gambia, my Government is enjoined to focus bal crises will be felt more by least developed econ- on improving the investment climate in areas such omies, such as ours, and especially so in the social as infrastructural development, creating a mass sectors and, indeed, among vulnerable groups, for of skilled workforce, efficiency in public service example, the disabled, the old, women, youth and and its delivery, and a free, fair and speedy justice others, who usually bear most of the brunt. delivery system. The Gambia enjoyed broad macroeconomic We also do recognize that we live indeed in an stability, characterized by low inflationary growth interconnected and interdependent world, a world

60 Statements by Heads of State or Government in which economic transformations in one part of Georgia the world affect the rest of the world economies. A case in point, of course, is the financial crisis in the Statement by United States of America, which currently is hav- His Excellency ing a ripple effect in all parts of the world—as the Mr. Mikheil Saakashvili President of Georgia saying goes, “When America sneezes, the world catches the cold,” and vice versa. We must, there- 2 December 2008 fore, recognize the fact that no country can achieve economic growth and development by itself alone. I am honoured and inspired to be here in Doha, a Hence, there can never be a better time than now stunning city that has come so far in such a short for us to stand together as partners in finding a glo- time. In just one decade, it has become a pre-emi- bal solution to the current global problems. nent financial, cultural and intellectual capital of In order to avoid the looming threat of an addi- the twenty-first century. It is a great inspiration to tional 100 million people falling below the poverty every small country that aspires to become devel- line, we would need to mobilize not only domestic oped, to create a solid basis for the development resources but also urgent international finance for of the future generations of its own citizens. So, I development. Substantial resource flows therefore would like to thank our gracious hosts, especially, from our development partners in the form of bal- His Excellency the Emir of Qatar, Sheik Hamad bin ance of payments support, foreign direct investment Khalifa Al Thani, whom I had the honour of meet- and other forms of aid would significantly assist us ing earlier today. to maintain broad macroeconomic stability, sustain output growth and increase pro-poor spending. No cause is more urgent than the one that brings us here this week. In the midst of a global The emergence of non-traditional bilateral crisis, we are being asked to come together to lift donors is also a welcome move. In addition, the the poorest people from the depths of poverty and resumption of the Doha Round of trade negotia- to honour the commitments we made six years ago tions and its successful conclusion would hope- in Monterrey. This is not a matter of charity. It is fully foster an increase in exports, employment a matter of equity, justice and human rights—the and income growth in our developing economies very values that tie us together as part of the inter- in particular. national community—and it is also a matter, quite In conclusion, I call on development partners frankly, of mutual survival. to make good on their pledges to developing coun- In a world where the grain grown in the tries in the spirit of partnership and solidarity in Ukraine feeds millions of mouths in China, where order to achieve sustained economic growth, erad- the natural gas beneath the Caspian heats homes in icate extreme poverty, improve the living standards Cologne, and where capital from London underlies of our people and position our nations to achieve the building of a hospital in Liberia, no country is the Millennium Development Goals. I therefore an island and we are all in this together. We gather keenly look forward to greater commitment from under the darkest economic clouds our world has our partners in our collective drive to make the seen in a century. Over the past few days, we have world a better place for all of us. heard the experts tell us that we are on the verge of As Europe and France, through President the first drop in global production since the 1930s. Sarkozy this morning, have reaffirmed, and José Investment flows to developing countries are plung- Manuel Barroso has reiterated, Europe at least is ing, trade flows slowing and financial markets tum- committed, and we hope the rest of the interna- bling. This pathway of an investor, as such, might tional community will come forward and comple- disappear altogether for a while! The euphoria we ment their efforts in this regard. felt just eighteen months ago has turned to despair.

61 The Doha Review Conference on Financing for Development

In Georgia, we have had our experiences with invasion of Georgia should serve as a parable for how quickly fate can turn. Indeed, there were pre- how development depends, above all, on security. dictions on the agenda. If you look back at news- There were no winners from the conflict in August. papers one year ago, two years ago, we predicted Today, over 30,000 Georgians remain displaced by totally one thing for the world, and then we found the war, joining another 450,000 who were forced ourselves in totally another place. And we in Geor- to flee Abkhazia in the 1990s. And the occupying gia have also learned the hard way that develop- army rests just 40 kilometres from our capital, on ment can only be built on a foundation of security, Georgian soil.. democracy and sustainability, in the context of the Meanwhile, the international markets have strong international alliances found in our values. exacted their own revenge on Russia, which has Five years ago, I took over a country which seen its equity markets lose –three-quarters per was a failed state by every measure. It was steeped cent of their value since the invasion and are cur- in corruption, cronyism and incompetence. Our rently decimating foreigners. Foreign investors are people made a choice to ally ourselves with coun- fleeing the country and the reputation of Russia’s tries that shared our values and, thus, to put Geor- investment climate is ruined, as well. So they did gia on a democratic path. In a few short years, we not benefit from this at all, as well. The people of tamed corruption. According to the World Bank, Georgia, however, have proven extraordinary resil- we became the number one fighter of corruption ient in the face of strife and hardship. This is due among traditional economies. We moved up several in large part to the solidarity of the world com- dozen positions on the Transparency International munity. This was generously demonstrated in an list. We eradicated cronies and incompetence. In exceptional way in October when over 50 coun- addition, we basically turned little Georgia into the tries joined forces to pledge $4.5 billion to help fastest growing economy in Europe. revive our economy, rebuild our infrastructure and house those Georgians who remain homeless after The World Bank named us the number being forced to flee during the invasion. In addi- one reformer in the world. We were the number tion, the International Monetary Fund has come one recipient of foreign direct investment in our up with additional funds to stabilize Georgia’s cur- region per capita. We were ranked by the World rency. Georgians are humbled by this generosity, Bank—in terms of a business-related environment, especially at a time of grave financial stress around business climate, the assurance credential business the world, and we understand that in receiving the environment, and business regulations—ahead of world’s political and financial support we incurred every country, rising from the 147th position to a profound obligation in return. the 15th position in the world this year. So, things were looking very well. Despite even the economic I am not speaking of the need to use the recon- embargo imposed on us by our biggest trading struction funds wisely, well and with full transpar- partner in 2006, we still managed to have 12 per ency. This is self-evident. And my Government is doing everything possible to ensure that not a cent growth—sustainable growth—and we almost cent is wasted. I am speaking of another, deeper tripled our economy in nominal terms for the last commitment, the one we feel to rebuild Georgia’s five years. democracy even stronger than it was before. Fol- Then, this summer, tragedy struck. We were lowing the invasion, my Government understood reminded that development can be derailed from that Georgia’s very survival depended on becoming one day to the next by the violent force of a neigh- an even more open and democratic society, firmly bouring army. As we talk here about so many criti- embedded in the country of the community of cal aspects of development—from international free nations. To be sure, our democracy like many trade to external debt, to mobilizing domestic others is still a work in progress, but it is a bea- and foreign financial resources—we should pay con in a difficult, yet vital part of the world. Given heed to the role of security and development. The that Georgia lies at a crucial energy crossroads,

62 Statements by Heads of State or Government an open, transparent government is of that much Robert Schuman. He said, so eloquently, in 1951: more importance. The Georgia we will rebuild will “Europe will not be made all at once, or according contribute to the prosperity and security of our to a single plan. It will be built through concrete citizens and to that of the entire international com- achievements which first create a de facto solidar- munity. It will do so by providing sustainability in ity”. The same could then, and must be, said about our part of the world, serving as a model for demo- the international community’s efforts to fulfill the cratic development. Monterrey Consensus. It will be built concrete step, by concrete step. It will not be easy, not at all. But Each and every day, post-war Georgia moves I have enormous faith in the international com- on, one more step away from the August invasion. munity, just as I do in my own people, the fighting Our answer to the assault we experienced this people of Georgia. summer is not closing down, is not circling the wagons, but, rather, a greater openness on many fronts. As a democracy, Georgia should have nothing to fear. As a democracy, we have an obligation Guinea-Bissau to our people and to the international community Statement by to be even more open and transparent. Georgia His Excellency was attacked because it was a successful democ- Mr. Carlos Correia racy and had a successful economy in our part Prime Minister of the Republic of of the world, where it didn’t come naturally. Our Guinea-Bissau response is to make our democracy and economy 30 November 2008 even more robust ones. We will, in short, fight the specter of aggression with the most potent weapons in our arsenal, namely, our commitment to I am privileged to address this august assembly ever-expanding freedoms within our own borders: on behalf of His Excellency João Bernardo Viera, stronger democracy, broader rights of free expres- President of the Republic of Guinea-Bissau. It sion, a fiercely independent judiciary, rule of law, is indeed a privilege for me to express the deep more robust checks and balances among our dem- appreciation of my delegation to the Government ocratic institutions, further liberalization, further and friendly people of the State of Qatar for their deregulation, further combat with corruption and warm and friendly hospitality. We are most grate- further economic success. So, we have learned the ful to His Highness, the Emir of the State of Qatar, lessons of security and solidarity the hard way. Sheikh Hamad bin Khalifa Al-Thani, for hosting us so gracefully, and for the increasingly prominent Here, in Doha, we do not aspire to create glo- role played by Qatar on the international stage in bal security architecture, but we are charged with the pursuit of lasting peace and security in the a task that is equally important, that is to say, of world and in promoting international cooperation establishing a sense of true solidarity, rooted in for development, in particular. deeds among all the peoples of the world. We must At this time, as we meet in this beautiful city not fall short of our commitments in this regard of Doha, which has become a world forum for despite the dire crisis we face. The Monterrey Con- international trade negotiations, and specifically sensus is nowhere near to being fulfilled. We are the Doha Round, the international community is falling short of our pledge to reach $130 billion for facing its most challenging crisis during the first international development aid by 2010, as a part of decade of this century. Although it was not caused the Millennium Development Goals. Such a grand by the weakest and most vulnerable among us, its and vital vision takes true leadership. consequences are not confined to the most power- Many times, as Georgia faced one obstacle to ful countries in the world. The current internation- its development after another, I have turned to the al economic and financial crisis adds further obsta- wisdom of one of the great architects of Europe, cles to the already insurmountable difficulties and

63 The Doha Review Conference on Financing for Development

even disasters caused by the energy crisis and the We express our gratitude to the members of food crisis, as well as the devastating consequences the European Union for their decision to maintain of climate change in different parts of the world their strong support for developing countries and that are felt so harshly in the sister countries of the those in Africa, in particular. It is indeed important Caribbean, such as Cuba and Haiti, in particular. for us all to remain engaged in the fight to eradicate poverty and endemic diseases, such as HIV/AIDS, Six years after the adoption of the Monterrey tuberculosis and malaria, which, unfortunately, Consensus, which remains a historic achievement in continue to have such damaging consequences for fostering international cooperation for development the populations of poor countries. It is essential that based on greater equity and solidarity among peo- we stand shoulder to shoulder in bringing about the ples and nations of our world, this Conference could most needed reforms in the international financial not be timelier. We are grateful to the Secretary- system, in particular, by creating new mechanisms General of the United Nations, Mr. Ban Ki-Moon, and greater equity and larger participation in the and the presidents of the General Assembly who decision-making of the Bretton Wood institutions. served during this period, for their tireless efforts in The developing countries and the emerging econo- bringing about this international gathering. mies especially must play a more prominent role in defining the policies of the International Monetary I salute the presence among us of our distin- Fund and the World Bank. The world economy and guished partners for international development the international financial system cannot remain from so many different countries, financial institu- hostage to a speculation-based system, whose sole tions, international organizations, the private sector, concern is to consistently make profit at any cost. non-governmental organizations and civil society, Urgent changes are needed and the participation of that are represented here. We are gathered in Doha the international community is essential here, as is to generate a synergy to tackle the many challenges political support from us all, in order to ensure the currently faced by the international community success of these reforms. and, most particularly, in combating poverty and In this global village of ours, where interde- hunger in the world. It remains a fundamental ques- pendence has become a tangible reality, it is in our tion as how best to support the endeavours of the common interest to find innovative and practical developing countries, and it should be addressed ways of strengthening cooperation and solidarity in a practical and efficient manner, in a spirit of in order to address the many challenges, new and human solidarity. Obviously, we are aware of the old. We must work together; we must join hands, effects the present world economic and financial minds and resources in creating better conditions crisis might have on the willingness of our partners of living for the poorest and neediest of the world. for development to honour their commitments to Achieving the Millennium Development Goals ensure that the decisions of the Monterrey Con- by the year 2015 should remain the priority of the sensus are put into practice. There can be no doubt entire international community. We must work that much remains to be done. The temptation to together in mitigating the disastrous consequences focus primarily on addressing domestic issues by of climate change on our planet, with particular some in the developed countries, and the possibil- focus on the most vulnerable among us, the island ity of a return to protectionist measures, are mat- States, especially. We must act decisively to com- ters of serious concern to the most needy among bat international terrorism which, unfortunately, us. We must therefore build our capacity to adapt yet again, has taken innocent lives without distinc- to the new situation and challenges by seeking new tion of race, religious belief or social background and innovative sources of funding and financing in Mumbai in India. that are commensurate with the nature and com- I would like to take this opportunity to present plexity of a global crisis, the solution to which calls from this rostrum, on behalf of +the Government for more effective international cooperation. and people of my country, Guinea-Bissau, my

64 Statements by Heads of State or Government deepest sympathy and condolences to the Govern- urgent measures that must be taken by the interna- ment and people of India for the loss of so many tional community in order to achieve the Millen- human lives, including citizens of foreign countries. nium Development Goals. In these challenging times, global issues On behalf of the 58 members as well as the demand bold and concerted responses. Interna- observers of the Pilot Group, it is my honour to give tional cooperation and solidarity are indeed the new you a summary of the statement that was adopted paradigms of our global village. It is this reality that at its fifth ministerial meeting, held in Conakry should inspire us in our deliberations and guide us from 6 to 7 November 2008. In a comprehensive in the pursuit of practical and durable solutions. review of the measures it has taken since 2006, the Pilot Group highlighted the broad range of financing mechanisms for development that have been Guinea tried out. These include taxes on globalized activities, pre-financing mechanisms in the financial Statement by markets, and financing mechanisms supported by His Excellency the markets, and the facilitation by public authori- Mr. Ahmed Tidiane Souaré ties of voluntary contributions coming from the Prime Minister of the Republic of Guinea private sector. 29 November 2008 With the contribution of the solidarity tax on airline tickets, the tax on international financial On behalf of His Excellency General Lansana transactions, the Digital Solidarity Fund, remit- Conté, President of the Republic of Guinea, it is tances, efforts to combat illegal capital flows and a great pleasure for me to convey to the distin- voluntary contributions through credit cards, the guished participants in this important Conference Pilot Group now has a range of instruments to col- the warm wishes of the people of Guinea, who also lect funds. Nevertheless, coordinating and harmo- wish it every success. nizing these different mechanisms is essential in order to avoid duplication and ensure an effective I would like to express the sympathy of the global impact. Republic of Guinea to the Government and people of India, who have encountered terrorism once Because of the range of the challenges and the again, and which is a challenge to peace and security timetable for the Millennium Development Goals, throughout the world. I would also like to express the Pilot Group has decided that for the period to His Excellency, the Emir of Qatar, the deepest 2009-2015 it will launch a phase of identifying and gratitude of my delegation for having agreed to implementing new innovative financing mecha- host this Conference. This illustrates once again his nisms. The setting up of the task force on airplane commitment to greater international solidarity for tickets, the enlargement of innovative funding in development. I would also like to thank the Presi- sectors for infrastructure, transport, housing, rural dent of our Conference and the President of the development and enhancing South-South coop- sixty-third session of the General Assembly, as well eration, and also aid effectiveness, as well as insti- as the United Nations Secretary-General, Mr. Ban tutional reforms to enhance the effectiveness of the Ki-moon, for having taken this excellent initiative Pilot Group and its permanent secretariat, are all to organize the Conference. measures that are certainly the main features of this new phase. Allow me to speak on behalf of both the Pilot Group on International Solidarity Contributions If, in general terms, innovative financing must for Development, of which Guinea is currently always respect the principle of aid effectiveness as the Chairman, as well as the Government of the defined in the Paris Declaration on Aid Effective- Republic of Guinea. The Government has set forth ness, and the Accra Plan of Action of September its vision on financing for development and the 2008, the Conakry Declaration shows clearly how

65 The Doha Review Conference on Financing for Development

much the added value of the sources of financing enjoyed should also apply to efforts to combat depends upon them being additional and stable, poverty and underdevelopment, which are indeed compared with traditional public assistance. With ongoing crises. It all depends on the capacity of its aim to enlarge and broaden its activities, the Pilot the international community to respect its many Group is now established as an emerging force. It commitments. will mobilize additional resources for development I would like to close by reasserting the fact needs that cannot be met either by traditional pub- that the Government of Guinea, for its part, and lic assistance or by the market. this despite the current very difficult situation, is The Pilot Group, therefore, calls upon the continuing with determination to strive towards Conference to stress the importance of innovative good governance, democracy, peace and sustain- financing in the final declaration of Doha. It calls able development. for the entire international community to support the spirit and the letter of the innovative mechanisms. We also express the hope that other States Iran and organizations will join the Pilot Group to bet- Statement by ter ensure that we meet the Millennium Develop- His Excellency ment Goals by 2015. Mr. Mahmoud Ahmadinejad On behalf of the Republic of Guinea, I would President of the Islamic Republic of Iran like to stress that our Conference is taking place in a particularly difficult international context. Every- 29 November 2008 body has pointed this out. There is a combination of crises that threaten the main macroeconomic I am grateful to the Almighty, and pleased to be and financial equilibrium, particularly those affect- here at this gathering. I thank His Highness, the ing fragile countries, such as my own. They create Emir, and the Government of Qatar, for their warm concern and uncertainty in the financial markets hospitality. I should like to express my condolences and bring about new concerns for the traditional to the people and Government of India regarding players in development. the killing of a number of people in the terrorist attacks in India, Indeed, the opening of markets to trade and investment is now threatened by the upsurge in We have come together to discuss different protectionist trends. Financial turbulence and the methods of financing for development. But in view destructive effects on real economies are a real of the current crises, it is necessary to review togeth- threat to growth and international economic rela- er the consequences arising from the unprecedent- tions. Food, fuel and metal prices are varying at ed economic crisis in the capitalist bloc. There is uncontrollable rates. no doubt that knowing the root causes and reasons is the best way to address the problem. Although Finally, we have the risks linked to climate the capitalist bloc is facing fundamental problems, change, which are increasing the vulnerabilities at and has reached an impasse both in its conceptual the national and international levels. The financial and philosophical thinking and in cultural, politi- crisis and its economic consequences introduce cal and economic arenas, I will focus only on eco- the threat of a considerable drop in official devel- nomic difficulties. The main causes of the current opment assistance and the freezing, or at least the crises are as follows: slowing down, of direct investment. 1. The nature of the capitalist economy For all these reasons, it is to be hoped that this Doha meeting will not be yet another meeting. The foundation of the capitalist system is based on To ensure that this is not the case, the same rapid profit maximization, without any boundaries and response that the international financial crisis has limits, and the omission of rules and regulations

66 Statements by Heads of State or Government in the name of economic freedom. Ethics, human 4. Development planning values and justice have no place in this system. In accordance with existing development planning, This arises from the general attitude of the capital- which has been borrowed from Western models, all ist ideology toward humankind and the world. If, countries aspire to have a positive balance of trade for argument’s sake, all nations of the world pur- and payments, and an endless race evolves that will sued profit maximization, would we not eventually only take us to a dead end. The principal purpose face a dead end and collapse because of the lim- of such a development planning system, which is ited resources of the earth? Thus, this economic a remnant and an imposition by the capitalist bloc system cannot be universal and be embraced by on other nations, is designed first to swallow and all nations. Only certain groups and a number of digest all self-reliant economies into the global Governments can plan for a future that is based on economy, and then to establish mechanisms that the foundation of the capitalist system. The crea- are tools to transfer budget deficits and capitalist tion of a world of haves and have-nots, the domi- inflation and distortions to others. In turn, they neering and the dominated, is the direct result of pump the resources and wealth of other nations the capitalist system. to countries of the capitalist bloc. This planning system destroys culture, national values and self- reliant national planning. 2. Unjust and imposed behavior 5. Global financial, monetary and banking The capitalist bloc regards itself as the principal systems owner and the superior class of this world and allows itself the right to impose its standards uni- Although the capitalist system tries to justify its economic policies and programmes by resorting laterally on others. For example, while it prices its to scientific explanations, we have seen that these goods by itself and imposes such prices on others only serve to disturb the balance and order of self- by using political and cultural tools, at the same reliant economies and to make them more depend- time it determines the prices for the commodi- ent on capitalist economies. ties of other nations to secure its own interest by using deceptive economic ploys. The situation of It is regrettable that the capitalist system has the oil and commodities markets comes into play imposed its intentions and views for many decades by using financial monetary and economic mecha- in the form of absolute principles of economy and finance. It is even more regrettable that this sys- nisms, even political pressure. The capitalist system, led by the Government of the United States, tem imposes its problems on others and diverts the permitted tens of thousands of dollars to be put wealth of other nations towards its economy. into circulation in other countries as the prevailing monetary unit but has never allowed other parties, 3. Unlimited and frequent creation of money or even its own people, to oversee the working of and paper assets the Federal Reserve system and its financial centres. Also, complacency by international monetary By using unfair methods of repeated money and and banking institutions in evaluating Western paper-asset creation many times over—through financial systems, as well as their inability to pre- banks, speculation and risky transactions—with- dict crises, has led to the unrealistic risk assess- out equal tangible goods, services, labour and real ment of a number of economies. Today, the heart assets, and by consuming the fruits of the excessive of the crisis is inside countries that for years, based generation of money, the capitalist system transfers on the assessment of such organs and international the destructive consequences to other nations. The institutions, were considered the safest of locations misuse by the Government of the United States of for economic investment. This inappropriate and America is sufficient enough to create a crisis for unjust behavior provided an undeserved attrac- the whole world. tiveness and the concentration of activities and

67 The Doha Review Conference on Financing for Development

resources in limited locations around the world, conferences, in order to force other Governments and the subsequent concentration and increase in to get involved in this crisis, to cover part of their global risk. For more than 40 years, these factors losses. We have been told that they have even pre- worked together. The consequences of creating vented the withdrawal of oil-rich and Arab coun- and printing tens of thousands of billion dollars of tries assets from the United States and insist that unreal and cheap money fueled greed and profit- $300 billion of the financial reserves of these coun- eering from speculation and bubbles in the finan- tries be confiscated as financial aid. In the past, they cial market. They, in turn, have imposed heavy and made huge profits and were dismissive of including one-sided conditions on other countries. Today, as others, and today they wish to get others involved a result of the economic growth of other nations, in their losses; they only look for, and speak of, and the inability of global economies to absorb partners when it is time to share them. more cheap dollars, the waves of this crisis have Second, those who are the main culprits of the now washed over the epicenter of the crisis: in oth- existing global crisis wish to portray themselves as er words, the United States, some parts of Europe the initiators of a new economic system by criticiz- and, by association, economies which have had the ing the current financial status quo and by calling greatest connection with the capitalist system. for justice and change. This deceptive behaviour is Some believe that the recent developments are in fact the continuation of the same capitalist pol- a great ploy or game by the United States to weaken icy. We were expecting the leaders of the capitalist its rivals and to attract their wealth to the American bloc to learn from the existing situation and correct economy. Although this argument, assuming that their behaviour. Everyone should know that the it is true, is another reason that proves the corrupt- era of the merciless, unilateral and unjust capital- ness of the capitalist system, we must note that the ist economic system has come to its end. And the American economy before the invasion of Iraq was capitalists’ current efforts will be fruitless. Social- on the verge of a crisis. One of the goals behind the ist economies also met with the same fate and will Iraqi campaign was to delay the economic crisis in never return. the United States. Today, the crisis has manifested This is the question which we are facing. As itself fully. Also, the depth and scope of the crisis I said earlier, after the fall of socialism and the are much greater than what has been reported by capitalist system and the free market economy, the capitalist media. the economy which was totally in the control of Unfortunately, leaders of the Western bloc, capitalists and acted in their favour has completely instead of learning from their mistakes due to their failed. What do we need to do to reform the world’s wrongful and bullying behaviour, have started to economy? design and adopt two parallel measures to save For the establishment of a flourishing and sus- themselves and to revive their ill-intended policies tainable global economy, I propose the following: of the past. (1) All Governments, intellectuals and those whose First, they are trying to extend their own crisis hearts beat for the world must work towards an eco- to the rest of the globe, to portray it as global, if you nomic system based on real justice, respect for the will. But they are facing a crisis that came into being rights and dignity of all peoples and nations, and as a result of their own improper behaviour. They on friendship and service to our fellowmen. A sys- imply and act as if this crisis is a global one, hop- tem of deceit, destruction of the economy of others, ing to compensate for their own losses by misusing creation of false money, a domineering approach, the resources of other countries. By false portrayals speculation and creation of economic bubbles, and force, they intend to cope with their financial shall have no place. The new system will be based and economic losses by using the assets of other on ethical values, sincerity, respect for others, and nations. They have dispatched different delegations will contribute to justice, prosperity and welfare for to other countries, and hold regional meetings and all. It will not be based on unlimited maximization

68 Statements by Heads of State or Government of profits. The monetary, financial and banking Jordan mechanisms of such a system must especially be Statement by new and must incorporate spiritual teachings, reli- His Excellency gious teachings and non-usury practices. Mr. Nader Dahabi (2) A new development planning scheme shall be Prime Minister of the Hashemite Kingdom established, based on indigenous and humanistic of Jordan models, which will generate wealth from within. It 30 November 2008 shall be based on the concept of justice, and the increased and real participation of all people. Like previous speakers, I wish to express my sym- (3) We also need to resist impositions and the pathy to India for the tragedy which occurred in expansionist policies of global capitalism and call Mumbai. We are determined to combat terrorism on those leaders to act in a just manner and friend- by every possible means. ship, and to renounce bullying and oppressive May I express my very warm thanks to His tactics. We must also work to prevent the tattered Highness, Monsieur bin Khalifa Al-Thani, the and decrepit existing economic system from being brother and leader of Qatar, for hosting this Fol- rebuilt and revived. low-up International Conference on Financing for Development, because it is a matter of primordial The United Nations at this juncture has a great importance given the economic problems affecting and historic responsibility to shoulder. It must ful- both developed and developing countries. fill its mandate and support independent nations. This year has seen a major economic challenge The Islamic Republic of Iran is fully prepared facing countries throughout the world. We have to take all measures to help realize the above ideas. witnessed an unprecedented rise in energy prices It also extends its full cooperation to all Govern- and this has been coupled with the food crisis. The ments and bodies which favour prosperity and jus- effects have been sorely felt in both developing tice for all nations and the design of a justice-based and industrialized countries in a similar fashion. economic system. Hence, many countries have seen their economies plunge. Forecasts are pessimistic with regard to the Before I end my comments, it is necessary for possible worsening of the situation unless urgent me to mention the oppressed people of Palestine measures are adopted, making it possible to over- and the dear inhabitants of Gaza, who, under the come the crisis affecting the world today. This is worst conditions and the atrocities of uncivilized why an invitation, indeed an appeal, must be put Zionists—who, in turn, enjoy the undying sup- out to world leaders to shoulder their responsi- port of arrogant powers—have been denied their bilities to restore confidence in the international most basic human rights. Women and children financial system. are denied water, electricity and medicine. I sym- The policies and reform programmes which pathize with the people of Gaza and Palestine and we have adopted in Jordan have made it possible warn murderous Zionists. I announce that the to mitigate the effects of this international financial Zionist regime has reached the end of the road, and crisis in our country. Our policy is one of openness. by increasing its atrocious behavior it cannot save Jordan is a member of the World Trade Organiza- itself. In the near future, the concepts of aggression tion and we have therefore been able to increase and Zionism will fade from this world. our exports. Like other developing countries, Jor- dan is highly dependent on external aid as well as I pray to the Almighty, to guide humanity on soft loans, and we attribute great importance to towards a better life, under the leadership of per- improving our relations when it comes to aid and fect human beings. loan mechanisms. We have been able to fund our

69 The Doha Review Conference on Financing for Development

development projects in order to achieve our aims Kenya regarding sustainable development. Aid has thus borne fruit and helped the worst-off in our society. Statement by His Excellency The hike in food prices will negatively affect Mr. Mwai Kibaki Jordan and other developing countries. It will lead President of the Republic of Kenya to an increase in poverty and deterioration in the 29 November 2008 living standards of our fellow citizens. It is therefore imperative that, first and foremost, the food crisis must be resolved. In Jordan, we are ready I wish to begin my remarks by joining other leaders to overcome this challenge. We have, therefore, who have conveyed their sympathies to the people designed national strategies to increase our agri- of India, following the deadly terrorist attacks in culture production and to reduce poverty. We have Mumbai. Kenya condemns the attacks on innocent also endeavoured to improve agriculture yields. citizens and calls on the world community to join This is in accordance with the White House ini- hands in our concerted efforts to fight terrorism. tiative of the United States administration. As far I also take this opportunity to express my com- as we are concerned, the agricultural sector is the pliments to the Government and the people of the cornerstone of our national food security. It lies at State of Qatar for hosting this important Confer- the basis of our national security. If we are to over- ence. We are most grateful for the generous hospi- come the challenges facing us and to achieve that tality that has been extended to us since our arrival sustainable development to which we all aspire, in Doha. It is my hope that the Conference will both developing and developed countries must mark an important step towards the achievement strive together. In this connection, the meeting of of our common goal of development and the crea- the Group of Twenty (G20) in the United States is a tion of a secure and better world for all. step in the right direction. The states there account As will be recalled, the International Confer- for roughly 80 per cent of world production. States ence on Financing for Development was held six throughout the world expect to receive aid from years ago in Monterrey. At the Conference, both the the privileged countries. In Jordan, we launched developed and developing countries came together an appeal to the major economies of the world so under the auspices of the United Nations to forge that they will help the most vulnerable countries a bold new partnership for development. In the to overcome the food crisis and the development consensus that was reached, developing countries crisis by 2015. Technical aid and food aid, as well took primary responsibility for their development as an increase in investments and the opening of through the mobilization and appropriate utiliza- markets to developing countries, are called for. tion of domestic resources. On the other hand, As I conclude, I should like to express my deep developed countries pledged to promote an inter- thanks to His Highness, the Sheikh of Qatar, as national environment conducive to development well as all our friends and brothers in Qatar, for through an increase in official development assist- the lavish, warm reception to the participants in ance (ODA) to developing nations to enable them this Conference. to achieve the Millennium Development Goals, among other development objectives. At the midpoint since the Consensus, progress on the Monterrey commitments has been one of mixed blessings. Some regions, particularly in sub-Sahara Africa, are clearly not on track, and expectations under the Consensus have not been met. Moreover, the commitment to increase ODA has not been achieved as expected. While levels of

70 Statements by Heads of State or Government

ODA, including new commitments, increased after developing economies to attract private and multi- the year 2002, they fell beginning in 2006. Indeed, lateral investments. In this regard, we should con- the sustained increase in aid required to meet tar- sider the introduction of international and national gets agreed at Monterrey have not materialized. investment guarantee schemes. Revised risk rating Furthermore, the commitment to create an inter- arrangements should also be considered in order national environment conducive to the growth of to direct larger private investment flows to devel- developing countries has remained elusive, follow- oping countries that cannot attract such transfers ing the collapse of the World Trade Organization through normal market mechanisms. negotiations here in Doha. Third, while we welcome debt relief initiatives Accordingly, progress on the Monterrey Consen- under the Heavily Indebted Poor Countries Ini- sus must be cast in a less than flattering light. Many tiative and the Multilateral Debt Relief Initiative, people in the developing world remain steeped in much more needs to be done. Indeed, the resources poverty and other challenges of underdevelopment. released through debt relief are inadequate to enable In recent times, the situation in most developing developing countries to realize the internationally countries has been worsened by the challenges of agreed development goals, including the Millenni- climate change, the high costs of food and energy, um Development Goals. The gap in the availability as well as the current global financial crisis. These of net concessional financing remains far too large. dynamics and the overall situation in most develop- The situation clearly demands urgent, bolder and ing countries underline the need for a review of the more encompassing initiatives to solve the external Monterrey Consensus and the strengthening of the debt problems of developing countries in an effec- international partnership for development. tive, enabled and development-oriented manner. In reviewing the Consensus and in seeking Fourth, there is need for a comprehensive to forge a stronger partnership, there are several reform of the international finance architecture. considerations that require, in my view, our close The world needs to develop a strategic consensus attention. First, for the majority of the developing on a comprehensive reform of the international countries, consensus finance remains an essential financial and monetary system to facilitate rapid, input for the realization of the Millennium Devel- balanced and sustained economic growth across opment Goals and other development goals. The the world. In particular, action is needed to increase need for developed countries to enhance ODA the voice and participation of developing countries flows, particularly meeting the 0.7 per cent target, in the international financial institutions. This is is therefore an absolute imperative. In addition to essential for the legitimacy, ownership and effec- this, there is need for harmonization and coordina- tiveness of these institutions. tion of available donor funding. This is critical in Fifth, in an integrated and globalized world ensuring predictability, proper planning and opti- economy, developing countries are increasingly mal utilization of resources to guarantee greater vulnerable to actions and policies originating in the aid effectiveness. developed countries, over which they have no con- Second, foreign direct investments play a trol. This is particularly true as regards the innova- critical role in spurring economic development tive and complex financial products developed and through capital outlays, especially in critical sectors introduced in the markets of the advanced coun- such as infrastructure. Many developing countries tries. There is clearly a need for stronger regulatory lack the ability to attract private investment flows mechanisms and greater transparency in the management of such new products and instruments required to finance expensive projects, which are considering the recent impact they have had on fundamental to sustained development. The Unit- global financial markets. ed Nations system, in collaboration with relevant stakeholders, should put together a plan of action Finally, developed countries should demon- here in Doha aimed at enhancing the ability of strate the political will and commitment required

71 The Doha Review Conference on Financing for Development

to break the current deadlock in the Doha Round Kuwait of trade negotiations and to work towards their resumption and timely completion. In this regard, Statement by it is important to recognize the mandates con- His Excellency Mr. Sheik Mohammad Sabah Al-Salem tained in the Doha Ministerial Declaration, the Al-Sabah World Trade Organization General Council deci- Deputy Prime Minister and Minister for sion of August 2004, and the Hong Kong Minis- Foreign Affairs of the State of Kuwait terial Declaration, in order to meaningfully integrate the developing countries into the multilateral 30 November 2008 trading system. As regards my country, Kenya, it remains It gives me great pleasure to represent His Excel- dedicated to the commitments of the Monterrey lency Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Consensus. Indeed, we have developed Vision the Prince of Kuwait, at this important Conference. 2030, which is our blueprint towards transform- I would like to take this opportunity to extend my ing Kenya into a newly industrializing, middle- congratulations on his behalf to those who suc- income economy, providing a high quality of life ceeded in organizing this Conference, and to to all its citizens. We are acutely aware of the mas- express our thanks for the generous hospitality. I sive resources that are required to fully realize our would also like to express the condolences of the objectives under Vision 2030. State of Kuwait to the people and Government of India and to the victims of the recent terrorist Nevertheless, although we are exploring inno- acts. We reiterate our condemnation of these acts, vative ways and means of mobilizing our resourc- regardless of the motives. es, we will require the support of our development partners in order to succeed. Kenya, like other As we meet here six years after the conven- developing countries, can only be on a sustained ing of the International Conference on Financing growth path if increased development assistance for Development in Mexico, we are all facing this and debt relief supplement our efforts. financial crisis that has affected all economies of the world. Of course, we know that there are many In conclusion, I wish to express my hope that reasons for it, including financial speculations this Conference will arrive at concrete positions rather than planning for economic development. that will re-energize the international community The endeavour to meet the needs of the present towards tackling challenges facing the develop- at the expense of those of future generations also ing world. The challenges are certainly surmount- fails to meet the commitment to support and assist able. What is remaining is a genuine commitment the poorer countries in coping with disease, pov- amongst us all to create a better world of equal erty and hunger. The international community is opportunities for all mankind. now called upon more than at any other time to confront the dangers of this international financial crisis and its repercussions on the international economy, as well as on the economies of the developing countries, in particular. We know, of course, that in order to meet the Millennium Development Goals by 2015, we need to get together to actually implement the Monter- rey Consensus and to increase developmental assistance from the developed to the developing countries so that the internationally agreed upon objectives of 0.7 per cent of gross national income

72 Statements by Heads of State or Government can be attained. In addition, the making of a just to projects aimed at protecting the environment. international economic system would decrease The Fund also gives special attention to support- the burdens on exports from developing countries ing organizations that implement developmental and enable them to have more access to the world projects, particularly small projects and micro market. We would also like to call upon the finan- projects, by extending assistance to local develop- cial institutions established as a result of Bretton ment banks and also to social funds. In addition, Woods to really take the developmental ambitions it finances small businesses and job-creating busi- of the developing countries into consideration. nesses, which especially contributes to the efforts exerted by the low-income population. Last April, Naturally, the State of Kuwait is anxious to because of the importance of giving incentives to meet its commitments and also to contribute to the economy and raising living conditions in order just causes in the world. It calls for holding an Arab to decrease poverty to the utmost extent possible, economic summit in January next year in order to the Prince of Kuwait, Sheikh Sabah Al-Ahmad Al- discuss issues related to different aspects of devel- Jaber Al-Sabah, announced the initiative to estab- opment in Arab countries, as well as to study the lish the Decent Living Fund, with a capital of $100 repercussions of the financial crisis. We foresee in million, to support the countries that are damaged the summit an emphasis on the continuous policy by the rise in the prices of basic food products, and of tackling regional issues and facing concerns and also to enhance their capability to increase agri- challenges. Undoubtedly, the recommendations cultural production. The State of Kuwait allocated and decisions of that economic summit will repre- $300 million to combat poverty in Africa through sent a collective social responsibility to ensure sus- the Islamic Development Bank, in addition to tainable development, which we do hope will meet extending lots of humanitarian assistance to coun- our common interests. tries that faced natural disasters. My country, the State of Kuwait, is in the fore- In conclusion, in wishing every success to the front of the countries that extended assistance to work of this Conference, I would like to emphasize the developing countries and the least developed the full commitment of the State of Kuwait to its countries. We contributed about 0.2 per cent of our recommendations. gross domestic product, equaling three times more than the agreed percentage. Within this framework, since its establishment in 1961, the Kuwait Fund for Arab Economic Development has con- Lebanon tributed to social and economic efforts in more Statement by than 100 countries around the world—especially His Excellency in developing countries and, more specifically, in Mr. Fuad Siniora lower-income countries—by extending loans and Prime Minister of the Lebanese Republic easy-term credit to finance infrastructure projects. 30 November 2008 The total amounts of assistance include 750 projects in agriculture, transportation, energy, telecommu- At the outset, I would like to express our deep nications, water, sewerage, health and education, appreciation to His Highness, the Emir of Qatar, with a total value of $14.5 billion. for hosting this Follow-up International Confer- With an awareness of the Millennium Devel- ence on Financing for Development to Review the opment Goals in 2000, the Kuwait Fund took Implementation of the Monterrey Consensus. We measures to support the procedures taken by are quite confident that under the capable chair- developing countries to combat poverty. It also manship of His Highness we will be able to make encouraged beneficiaries to give special attention substantive progress and would like to assure you to projects in the sectors of food (and in the proof Lebanon’s continued support and cooperation in vision of food), education and health, in addition this international effort.

73 The Doha Review Conference on Financing for Development

We would also like to express our appreciation when a crisis occurs there are no longer borders or to the President of the General Assembly and the rules that would keep a group of countries or any Secretary-General for their insightful statements region immune from being affected by it. This is true and for their continued efforts to make this Con- about financial crises and economic slowdowns or ference a success. We would like, furthermore, to recessions, as well as poverty, violence, terrorism, associate ourselves with the statement made by the climate change and many other calamities. Most distinguished representative of Antigua and Bar- recently, terrorism hit Mumbai and nationals of buda, on behalf of the Group of 77 and China. many countries were victims of this act of violence that we all condemn. Let me, on behalf of Leba- We have all joined together at this Conference non, express our deepest condolences to the Gov- against the backdrop of financial and economic ernment and people of India for the loss of these events of historic magnitude. The implications of innocent lives, and also to the rest of the world, the turmoil will be felt everywhere and at every level. which really suffered the same losses. Hence, it is The progress made over the last years, that brought high time to realize that the problems we face are us closer to achieving the Millennium Develop- global and that to be effective the solutions to them ment Goals, is at risk of being jeopardized. should be global as well. However, solutions cannot Our Conference should not be content with be the responsibility of the wealthy few. All need to just renewing the unequivocal and crucial com- join their efforts, including, most noteworthily the mitment to eradicate poverty and promote devel- industrialized countries. The Millennium Develop- opment, as stated in the Monterrey Consensus. It ment Goals, which are the reason for our meeting should strengthen the follow-up mechanism for today, cannot be met unless we exert a coordinated the implementation of the commitments made as global effort to sincerely help achieve them. well as address the new and emerging challenges The second lesson is the need to rethink, with which could adversely impact development. a view to improving not altering it, an economic Good governance at the international level, model that has sometimes emphasized unsustain- especially within the global financial, economic able growth over fundamentals, financial innova- and trading regimes, is essential. Developed and tion over financial stability and wealth of the few developing countries, alike, need to address cor- over inclusiveness. Policies, and sometimes politics, ruption and elicit financial flows. In addition, the have often placed a much greater weight on fast building or boosting of institutions both locally growth rather than on the right growth. Further- and globally that promote transparency, the rule of more, consideration of weights to the advantage law, freedom and democracy are as urgent as ever. of economic fundamentals, financial stability and social inclusiveness is not only long overdue but is a No efforts spent on dealing with the conse- must today, so that our global economic and finan- quences of the global financial crisis will fully bear cial system is placed back on the right track. fruit unless we understand the fundamental forces behind it and draw the appropriate lessons from it. In this respect, more coordination and better What we are witnessing today are the direct con- supervision of financial markets and banking sec- sequences of the economic and financial policies tors that protect without choking them is a must. of the developed world that create significant and What would be very dangerous and wrong would unsustainable imbalances. Unless we take away be to draw the wrong lesson: that more protection some crucial lessons from this crisis, we are at risk and restrictions are the way to lessen the painful of putting our global economic system to a serious implications of the crisis on the real economies of test every decade or so. the developed world. The first lesson is that coordinated internation- When the storm came along, we realized we al regulation is essential in an interconnected world were all in the same boat and that the barriers with- with new global threats. It has become clear that in it make us more vulnerable and weaker. If the

74 Statements by Heads of State or Government developed countries’ reaction to the crisis is more We do appreciate Conferences such as this protection, more tariffs and more bans and not more one, as it allows our voice to be heard and, hope- free trade, more implementation of Doha Round fully, to be considered. We, therefore, express our recommendations and more accessions of develop- full support for the establishment of a follow-up ing countries to the World Trade Organization, then mechanism and for holding a follow-up confer- they will have sadly, I repeat sadly, missed another ence by 2013. chance to turn a challenge into an opportunity We have managed in Lebanon—as a result of sound macroeconomic policies that were designed Lesotho to handle the specific conditions that the country Statement by went through, as well as with the coordinated efforts His Excellency of the Government and the Central Bank—to pro- Mr. Pakalitha Bethuel Mosisili tect our banking and financial system from the cri- Prime Minister and Minister for Defense sis. Our well-regulated and conservative banks had and Public Service of the Kingdom of no exposure to any toxic debt relating to the global Lesotho crisis. We continue to believe that creating an ena- 29 November 2008 bling environment for private sector activity can only be done through financing productive investments, providing microcredits and access to finan- Allow me, at the outset, to express our sincere cial services affordable and accessible to all who are gratitude to you, Mr. President, and, through you, capable of generating and adding value. the Government and People of the State of Qatar for the warm welcome and generous hospitality Still, we are not complacent. We are pushing extended to me and my delegation. I should also ahead with our reform agenda, including on the like to acknowledge and, indeed, commend the fiscal front, the infrastructure upgrade and, most United Nations initiative in convening this impor- importantly, on the social component, in order to tant Conference. fortify our domestic market. We are also seeking ways to launch a private-public partnership that This Conference takes place at a time when would implement a balanced development and the world economic and financial environment is sustainable growth strategy on the local regional quite different from that of the Monterrey Con- level, thereby stimulating the inner forces of supply ference held in March 2002. Today, the concerns and demand of our nation. But we are well aware— are different, though the basic goals of achieving well aware—that we do not live alone either in the growth, development and financial stability remain world or in the global village. What was decided unchanged. Since the Monterrey Conference, was undertaken and implemented at the global developments in the economic arena have shifted level. This has affected our small open democracy in favour of the developing countries, particularly in the most direct ways. the high-performing ones like those in Asia. As we realize how interconnected our world The current era of globalization has been asso- has become, we in Lebanon, are convinced more ciated with a considerable rise in world income than ever, of the need to address the true obstacles as well as rapidly expanding trade and invest- to development in our region: I mean the continu- ment flows. For many years, the developing ing occupation that our people and our country world, particularly the least developed countries, suffer, and the lack of progress in solving the Pal- has not shared in these benefits. But since 2000, estinian problem. The role of the United Nations that situation has begun to change. Today, some and the industrialized world is central to making developing countries are enjoying a positive eco- peace and stability reign to reduce the impedi- nomic performance, boasting record levels of eco- ments to development. nomic growth, export growth and foreign direct

75 The Doha Review Conference on Financing for Development

investment. However, despite these uplifting signs, These are further complicated by the current crisis serious challenges remain. in the world financial markets. We therefore urge the industrialized countries to honour their prom- Although private capital flows have continued ises and fulfil the commitments which they made to increase, they remain concentrated in a handful at the Monterrey Conference in 2002. In addition of rapidly growing economies, bypassing the vast to the issues raised in the Monterrey Consensus, majority of poor countries, which continue to have the developing countries need the following: low rates of economic growth, low levels of exports and 1ow inflows of foreign investment. Their weak 1. A commitment that while serious effort is made performance is due to a strong dependence on a by donors to reach the aid levels needed for real- narrow range of primary commodities or low-tech izing the Millennium Development Goals by 2015, manufactures, such as garments. Consequently, aid programmes will be aligned with the national the economic growth of these countries cannot be development priorities of the recipient countries sustained. Furthermore, economic growth in these and that aid delivery mechanisms will be harmo- countries has frequently failed to generate signifi- nized and aid made more predictable. cant productive employment opportunities. Thus, 2. A strategy that will result in private foreign capi- it has failed substantially to reduce poverty. tal flows reaching a wider set of developing coun- The implementation of Monterrey commit- tries, instead of being concentrated on only a few, ments has, by and large, been mediocre. Delivery and a strategy that will support economic develop- on the commitments to increase official foreign ment, rather than one that engages in speculative aid has been particularly disappointing. It seems activities. unlikely in these circumstances that aid will reach 3. Genuine discussion on ways of resolving the the target of the $150 billion a year needed to external debt problem of developing countries with- achieve the internationally agreed Millennium in the framework of Financing for Development. Development Goals by 2015. The Paris Declaration on Aid Effectiveness of March 2005 set out to rem- 4. Resuscitation and conclusion of the Doha edy weaknesses in aid delivery and architecture. Development Round of negotiations, which is now But progress towards giving aid recipients greater deadlocked. It is disappointing that the developed control over how they want to use the resources, countries continue to press for greater opening as well as on harmonizing programmes among up of markets on the part of developing countries donors, and generally reducing the cost of doing while offering modest reductions in their own agri- business, has been limited. cultural protection. The Highly Indebted Poor Countries (HIPC) We call for a successful conclusion of the Doha Initiative has helped to reduce official external debt Development Round of trade negotiations. We also for some of the poorest countries, but it has not call for opening up the discussion on the neglect- succeeded in pulling many of them from the bur- ed international trade issues of special interest to den of debt. The Initiative itself had its own limita- developing countries, such as commodity prob- tions. For instance, it is not only unfortunate but lems and the high market concentration of export ironical that some least developed countries, like markets of developing countries. my country, Lesotho, got punished for being able Furthermore, we are concerned about the pro- to service their debt efficiently, while those that liferation of bilateral trade arrangements, which borrowed beyond their means to pay were reward- undermine the efforts of the developing countries ed with debt cancellation. to industrialize, while violating the World Trade The economies of the developing world, at Organization’s core principles of most-favoured- present, face a number of uncertainties including nation treatment. It is our belief that this Con- the problem of climate change, which poses dispro- ference will make a clear and unequivocal com- portionate risks for those least able to adapt to it. mitment to expedite the conclusion of the Doha

76 Statements by Heads of State or Government

Round so as to restore the wor1d’s confidence in We are now meeting here in Doha six years the multilateral trading system and in the WTO as after adopting the Monterrey Consensus and an organization. under the dark cloud of the collapsed Doha trade negotiations and global financial crisis. We appre- Lesotho is hopeful that this Conference will ciate the opportunity to assess the progress made be fruitful and results oriented. Its outcome, in its implementation, reaffirm our commitments however, depends wholly on the willingness of to eradicate global poverty, and to share best prac- our development partners to engage in a serious tices and lessons for attaining sustainable growth dialogue on issues that threaten global prosperity and development. It is my hope that this Confer- and the ability of poor countries to achieve decent ence will not turn out to be another talk shop. living standards. You are aware that as part of their commitment towards the Monterrey Consensus, developing countries have introduced sound economic and Malawi social policies to improve governance, eradicate Statement by corruption and create a domestic regulatory envi- His Excellency ronment aimed at achieving sustained socioeco- Mr. Bingu Wa Mutharika nomic development. On the other hand, although President of the Republic of the Republic the industrialized countries pledged to provide of Malawi financial resources to kick-start macroeconomic 29 November 2008 growth and to reduce poverty in Africa, little or no progress has been achieved in this direction. Africa still faces formidable problems of access to markets First of all, I wish to convey Malawi’s deepest sym- of developed countries. pathy to the leadership, Government and people of India for the loss of life through terrorism. Malawi We are also concerned that the development dimension of the Doha Round of the World Trade believes that terrorism has no place in civilized Organization is now in limbo and that the flow of society and, therefore, calls for comprehensive foreign direct investment (FDI) to Africa is not international action to combat it in all its forms. sufficient to promote greater technology transfer I am happy to have this opportunity to address and improve the international financial architec- this distinguished gathering on International ture in order to protect African countries from the Financing for Development as a follow-up to the financial crisis. Monterrey Consensus. I thank His Highness Sheikh Malawi appreciates the concrete action taken by Hamad bin Khalifa Al-Thani, the Emir of the State some donors to increase resource allocation to Afri- of Qatar, the Government and the people of this ca, including FDI to promote development. We real- great nation for the warm hospitality extended to ize that such aid flows involve great sacrifices for the me and to my delegation since we arrived in this Group of Eight (G8) and member countries of the beautiful city of Doha. I would also like to thank Organization for Economic Cooperation and Devel- the Secretary-General, His Excellency Mr. Ban Ki- opment (OECD). However, Malawi wants to draw moon, and his dedicated staff for the preparations the attention of the world to the need to guarantee for this Conference. more donor financing to mitigate the impact of the I believe that we all agree that the most impor- current global financial crisis so that more people in tant challenge facing developing and developed Africa do not slide into the poverty trap. Specifically, countries alike is how to achieve sustained eco- Malawi wishes to highlight the following: nomic growth and to eradicate poverty. The chal- First, Malawi is concerned that over the past lenge of global poverty is an issue that requires col- three to four decades there has been a reduction laboration. We must work together. in financing to agriculture by the World Bank

77 The Doha Review Conference on Financing for Development

and other multilateral and bilateral development Development Round of multilateral trade negotia- finance institutions. This has led to chronic food tions so that African countries would have a chance shortages, insecurity and soaring world food prices. to generate adequate earnings from exports. Malawi We therefore appeal to donors to shift their mind- further supports the call upon developed countries set and to significantly increase aid and investment to open their markets to products from develop- to finance agriculture, food production, irrigation ing countries, including industrial and agricultural and water development to ensure adequate food manufactured goods. production at an affordable cost. Fifth, Malawi appreciates the measures taken Development finance should also be chan- to bail out the financial and banking institutions nelled to climate change, the environment, rural in North America and Europe. But let us not for- infrastructure, food storage facilities, and soft loans get the commitment of the Millennium Develop- and credits to poor as well as commercial farmers. ment Goals to eradicate poverty. The solution to In that regard, Malawi appreciates the European the financial crisis should not divert resources Union’s allocation of €1 billion towards agriculture away from poverty reduction programmes. Malawi in Africa. This will save millions of lives from pov- therefore appeals to the G-8 and OECD member erty, hunger and malnutrition. countries and Governments to understand that I believe that an investment made in agriculture the world’s poorest people, mostly in sub-Saharan and food now will guarantee world economic and Africa, who live in absolute poverty, need to be financial stability. This observation is made against bailed out of poverty, hunger, malnutrition, mater- the background that less than 10 per cent of arable nal mortality, infant mortality, illiteracy, depriva- land in Africa is under agriculture and less than 4 tion and readily preventable diseases. One way is per cent of Africa’s vast water resources are now through a fair and equitable international financial used for irrigation farming and power generation. and trading system that developing countries are seeking under the Doha Round. Second, Malawi appeals to this Conference to consider agricultural input subsidies as an integral Let me conclude by assuring you that Malawi part of the implementation of the Monterrey Con- strongly believes that the Monterrey Consensus sensus. In Africa, much of the food production is and this Follow-up Conference give us a unique in the hands of poor farmers who cannot afford to opportunity to make a difference for future genera- buy fertilizers, improved seeds, insecticides and tions. This is a defining moment and a challenge to herbicides. Therefore, without subsidies to enable world leaders to address the issue of global financ- peasant farmers to produce beyond subsistence, ing for development and global poverty. Africa will be harder hit by the financial crisis than In that regard, the financial and monetary is generally realized. supervision by the International Monetary Fund Third, Malawi appeals for subsidies for agri- and the World Bank needs to be revived as part of culture. We feel that each Member State of the the implementation of the Monterrey Consensus. United Nations has a sovereign right to introduce It is my hope that we will leave this place with a subsidies as part of its national development policy. new commitment to achieve the objectives of the Therefore, we understand why the American and Monterrey Consensus and that mechanisms will be European countries have been granting huge sub- put in place to protect poor African nations against sidies to their farmers. Similarly, we appeal to these the ongoing global financial crisis. developed countries to equally understand why subsidies are needed for our farmers in Africa. Fourth, Malawi wishes to add its voice to request developed countries to facilitate the resumption and successful conclusion of the Doha

78 Statements by Heads of State or Government

and the Monterrey Consensus, leading to the Doha Mauritania Conference today and its expected outcome. Yet, in Statement by spite of international efforts in this regard, develop- His Excellency ing countries remain far from achieving the desired Mr. Moulaye Ould Mohamed Laghdaf Millennium Development Goals because of their Prime Minister of the Islamic Republic of difficult economic circumstances, which have been Mauritania aggravated by the successive international crises that 30 November 2008 I have just mentioned. Therefore, I am going to take this opportunity to appeal to developed countries, especially rich countries, to enter into a true part- Allow me, at the outset, to express my sincere con- nership with developing countries that takes into dolences to the Government and people of India consideration the need to open their markets to the for their losses as a result of the brutal bombings in exports of developing countries and to remove bar- Mumbai. I also would like to express our deep grat- riers, including customs barriers. Every effort should itude to His Highness, the Prince of Qatar, Sheikh be exerted to create a trade balance between the two Hamad bin Khalifa Al-Thani, Emir of Qatar, for parties, including, for example, debt relief, because the splendid reception and generous hospitality we debts are a great obstacle to development in devel- have enjoyed since we reached this great country oping countries and have a direct negative effect on amidst these wonderful people. As well, we wish to the balance of payments of these States. Developed convey our thanks to the President of the General countries should also try to supply developing coun- Assembly for organizing this Conference and to the tries with advanced technology in all industrial and people and Government of Mexico for their great agricultural fields, as these are the cornerstones of efforts that led to the success of the Monterrey Con- any sustainable development. ference on Financing for Development in 2002. The Government of Mauritania, with instruc- Our meeting today takes place more than six tions from the Head of the State Supreme Coun- years after the Monterrey Convention on Financ- cil and the President of the State, has been actively ing for Development. However, the challenges working very hard, despite our limited means, in and difficulties that we faced at that point have order to embody the substance of the Monterrey increased today more than ever before because Consensus on Financing for Development, based on of the accelerating events in relation to the world our faith that the primary source for development food crisis. These have been added to recently by is each human being. Therefore, the Government of the world financial crisis, which is expected to lead Mauritania has sought to achieve universal educa- to a reduction of 3.8 per cent in the global rate of tion and to make primary education compulsory, as growth of 2007. well as to provide health education throughout the As a result, some economies in the developed country, paying special attention to the youth. countries have, in fact, started suffering from a We have also tried to promote foreign trade recession. In poor countries, the effect is expected as a primary source of funding for development to be even worse. It is anticipated that they will face through the encouragement of investment in our a decrease in the prices of primary goods that they country and by attracting investors. To this end, we export as well as a reduction in the financial assist- prepared a comprehensive investment code that ance that they receive. All this comes on top of the provides investors with all the necessary guarantees growing natural disasters that they suffer, prima- and a suitable investment climate. In addition, the rily caused by climate change. Government has established an appropriate minis- Undoubtedly, development in general has terial staff with the task of promoting investment received great international attention, whether it in the country, supported by a strong judiciary and was in relation to the Millennium Summit and its a modern banking system. In terms of eliminat- outcome document or to the Monterrey Conference ing and combating poverty, the Government has

79 The Doha Review Conference on Financing for Development

created a commission in charge of food security world leaders to take stock of progress in the past that is tasked with combating poverty through a several years and to discuss emerging issues for national strategy for its elimination. This involves financing for development. financing microprojects that create income in the The Monterrey Consensus has a critical role countryside and small villages, in order to comple- to play in forging a global partnership for devel- ment the role that is carried out by credit funds and opment and achieving the internationally agreed saving funds by providing credit on easy terms to development goals, including the Millennium citizens with limited means, as well as other efforts Development Goals. The ongoing global financial, to develop the agricultural sector and to reform energy and food crises continue to evolve in ways, it. The Government is implementing a national and in directions, over which neither international plan to strengthen infrastructure, starting with institutions nor most Members States have much distributing plots of land to residents of the slums influence or control. Therefore, comprehensive surrounding the capital, building new roads and global solutions are called for. It is crucial to iden- providing them with water, electricity and other tify ways and means to collectively survive the sanitary services, as well as hospitals and schools. current odds. In this respect, Mongolia attaches In this quest, we emphasize the need for our importance to this Review Conference, that holds partners in development to continue supporting us promise for renewed international cooperation and in our efforts to implement our development plans, provides an opportunity to reaffirm the commit- all of which will lead to improving the living condi- ments of both the developing and developed coun- tions of ordinary Mauritanian citizens. tries regarding development assistance, as well as internationally agreed development goals, includ- The individual efforts of States will remain inca- ing the Millennium Development Goals, amid the pable of dealing with problems of this scale. There- deteriorating global economy and worsening glo- fore, it is necessary, as I stated earlier, for the inter- bal financial crisis. national community to collaborate in a manner that can confront the challenges facing us today. In the Although there have been major developments same vein, we must also tackle with strong resolve and achievements in implementing the Monterrey the problem of climate change, which has varied Consensus since its adoption by Heads of State effects on development. At the same time, we appeal and Government in Monterrey in 2002, the inter- to industrialized States to exert efforts to limit the national community, particularly the developing emissions that cause the greenhouse effect. countries, are still facing new challenges in order to sustain development efforts against the backdrop of the global crisis. Mongolia Mongolia considers that the current crises highlight the need for effective fiscal policy and Statement by sound macroeconomics management. It firmly His Excellency believes that each country has the primary respon- Mr. Miyegombo Enkhbold Deputy Prime Minister of Mongolia sibility for its own economic and social development, and that effective national policies play an 30 November 2008 important role in bringing about long-term growth and development. In this regard, our Comprehen- At the outset, I wish to extend my delegation’s high sive National Development Strategy is a major long- appreciation to the Government of Qatar for host- term development policy that Mongolia strives to implement, in close cooperation with bilateral and ing the Follow-up International Conference on multilateral donors and partners in coming years. Financing for Development to Review the Imple- mentation of the Monterrey Consensus. It is an Increasing complexity in international capital important global event that has brought together flows and new developments in areas such as foreign

80 Statements by Heads of State or Government direct investment (FDI) in both developed and its Millennium Development Goals. Recently, the developing countries show that greater efforts need Parliament considered the national report on their to be made at the national, regional and international implementation. The progress made looks mixed: levels in order to better utilize these sources to assist along with encouraging achievements, difficult the real development efforts. Mongolia recognizes challenges remain. In cooperation with the United the importance of sharing best practices in promot- Nations Development Programme, Mongolia also ing and attracting FDI by enhancing domestic insti- conducted a Needs Assessment/Costing exercise tutional capacity and physical infrastructure. which concluded that achievement of the Mil- I wish to reaffirm Mongolia’s position that lennium Development Goals would require $14 trade could play a vital role in promoting econom- billion. Mobilization of such resources will entail ic growth and development if developing countries increased and focused support on the part of our were better placed and prepared to benefit from development partners as the total gross domestic global free trade. In this respect, we express the product of Mongolia stood in 2007 at approxi- hope that the Doha Round of multilateral trade mately $3.9 billion. negotiations will be completed soon, with due With a view to achieving national develop- focus on its development dimensions. We believe ment goals, increasing foreign trade and creating that the international community should provide a favourable business environment, the policies real, tangible support for the efforts of small and that promote entrepreneurship and competitive- vulnerable developing economies, especially the ness, harmonization of aid and other technical landlocked developing countries, to cope with the assistance are set forth as priorities in the Action consequences of the world economic slowdown that has severely hit their fragile, commodity-based Plan of the newly formed Government of Mongo- economies. lia. Although Mongolia is not immune to the current global economic slowdown affecting many Effective aid is an important, and often the larg- developing countries, it is embarking on a path of est, source of external financing for development rapid economic development, relying on its abun- in many developing countries. Effective utiliza- dant natural resources and export-oriented vibrant tion of official development assistance (ODA) and economy. Innovative and effective measures aimed strengthening good governance and the absorptive at increasing financing for development would capacity of developing countries will be crucial in greatly contribute to this growth and progress. making aid work for the poor and to achieve the intended results. In this respect, Mongolia is com- In conclusion, amid the global crisis and its mitted to the 2005 Paris Declaration on Aid Effec- imminent negative impact crisis on developing tiveness. It is making the utmost effort to strength- countries, I am confident that the Doha Follow-up en aid management in coordination by improving International Conference on Financing for Develop- the legal environment, by adopting the Law on the ment will be successful in finding common solutions Coordination of Foreign Loans and Grant Aid, and to common problems, and will act decisively to ful- by setting up a mechanism for ODA. fill the promises and commitments in implement- Many developing countries remain mired ing the internationally agreed development goals, in the vicious circle of poverty, lacking produc- including the Millennium Development Goals. tive capacity and with supply side constraints, dependent often on a single commodity. They are vulnerable to external economic turbulence and are unattractive for commercially driven investment. Many of them are far from achieving the Millennium Development Goals by 2015. Mon- golia stands committed to the implementation of

81 The Doha Review Conference on Financing for Development

Morocco At the international level, praiseworthy efforts have been made by donor countries, especially Statement by to support government aid for development and His Excellency increase its efficiency, and also to alleviate the Mr. Abbas El Fassi external debt of the most indebted poor countries. Prime Minister of the Kingdom of Morocco However, there is still a wide gap between the results achieved and the pledges made, especially 30 November 2008 the commitment to allocate 0.7 per cent of gross national income to official development assistance I would like at the outset, in the name of the King- (ODA). Moreover, there is still a wide range of dom of Morocco, to express my sincere condolenc- obstacles and constraints facing the implementa- es to the Government and people of India, and to tion of the Monterrey Consensus. The most signifi- the families of the victims. cant impediments are related to indebtedness, the slackening flow of capital and faltering multilateral His Majesty, the King of Morocco, has asked trade negotiations, in addition to the growing trade me to convey his best wishes and to deliver his deficits and increasing capital flows from countries statement to this Conference, which is follows. of the South towards developed countries. First, I wish to express my sincerest thanks Most countries, especially in the South, are now and appreciation to my dear brother, His High- unable to keep up with the functioning of the exist- ness Sheikh Hamad bin Khalifa Al-Thani, Emir ing international financial system, or to impact it. In of the State of Qatar, for the arrangements made addition, there is no system of economic and finan- for the successful outcome of this important gath- cial governance which makes it possible to correct ering. I also want to commend our sister nation, such malfunctions and disparities and which would Qatar, for the influence it carries with the interna- also reflect the growing influence of the countries tional community, especially in respect of its sup- of the South on the world economy. Furthermore, port for development. the increase in the prices of agricultural products, the fluctuations of energy prices in the global mar- We are meeting today at a critical juncture in ket, as well as the effects of climate change, have all the international environment, marked by an acute jeopardized the efforts made by most developing global financial crisis, combined with the crises countries and undermine their chances to achieve relating to energy and basic food commodities. All the Millennium Development Goals. these factors are likely to have a significant impact on the Monterrey process. Morocco’s participation Thus, the High-level Meeting on Africa’s in this Conference reflects our firm commitment to Development Needs, and the Summit on the Mil- carry on with the process initiated by the Monterrey lennium Development Goals, held in New York Consensus. The aim is to tackle the major challeng- last September, have provided an opportunity not es facing developing nations in the area of devel- only to take stock of what has been achieved thus opment financing, mainly through targeted actions far, but also to identify the impediments and deter- and initiatives which are commensurate with the mine the steps to be taken, at domestic and inter- scope and magnitude of the current challenges. In national levels, so as not to miss the 2015 target. this connection, I wish to praise the collective com- Although certain developing and middle- mitment that has been expressed in support of the income countries are on track to achieve some of effective implementation of the Monterrey Con- these objectives, wide gaps still remain among these sensus. Developing countries have made signifi- countries and even within the same country. We, cant headway in their endeavour to upgrade their therefore, call on the international community to macroeconomic policies and foster an investment- focus its attention and action on the poorest coun- friendly environment at the domestic level. tries, which cannot do without ODA. In addition,

82 Statements by Heads of State or Government donor countries and international financial insti- active part in shaping financial policies and play a tutions should continue to provide their support to greater role in international financial institutions. middle-income countries. In its ongoing endeavours to achieve the As for the situation in Africa, the entire inter- Monterrey objectives, the Kingdom of Morocco has national community should remain concerned exerted relentless efforts to meet its commitments. that, in spite of the fact that most African countries Substantial progress has already been made, mainly have taken bold measures to liberalize their econ- through overhauling our macroeconomic policies. omies, establish good governance practices and Morocco has embarked, since the early 1980s, enhance the rule of law, they still will not be able to on an ongoing process of structural and sectoral achieve the development goals without meaningful reforms. It is pursuing an economic and financial support from their partners. policy aimed at fostering the appropriate environ- Morocco, together with developing countries, ment to achieve strong, sound and sustainable growth, which is the key to achieving the Millen- is hopeful that the international community will nium Development Goals. It is our firm intention seize the opportunity we have today to make sub- to carry on with this readjustment process, by ini- stantive decisions with a view to giving fresh impe- tiating a new generation of economic and social tus to implementing the Monterrey Consensus and reforms, while strengthening democratic practices, upgrading international cooperation for develop- consolidating the rule of law and observing good ment, in order to meet current and future challeng- governance across the board. We have been able to es. We, therefore, wish to use this platform to call carry out these reforms, thanks to rational man- upon the international community to lay down and agement of our resources and stimulation of pro- endorse a precise road map which takes into account ductive investment. existing constraints and potential challenges. As far as the management of public debt is con- In this connection, efforts should be made to cerned, Morocco has opted for a strategy to replace increase the flow of development assistance and foreign debt by domestic debt, with a view to reduc- bring it up to the level set by the international coming the vulnerability of public finance to the fluc- munity, in terms of quality, efficiency and predict- tuations of exchange rates and interest rates on ability. This requires enhancing national ownership international financial markets. In an effort to pro- capabilities, in light of the priorities of the countries mote good governance and bolster economic activ- benefiting from such aid, as provided for in the Par- ity, substantial reforms have been introduced in the is Declaration and the Accra Plan of Action. tax system, including the modernization of fiscal administration. These measures have been behind Moreover, it is necessary to adopt the neces- the good performances achieved with respect to tax sary instruments and mechanisms to identify income over the last few years. In addition, Moroc- innovative financing sources, and ensure follow-up co is pursuing an open economic and commercial and implementation of initiatives that have been policy and is, thus, supporting the multilateral trade launched since 2006. At the same time, the debt system. In an effort to diversify and expand existing burden of developing and middle-income coun- opportunities, Morocco has set out to modernize tries must be alleviated. the legal framework for trade, foster a more appro- We also call on all countries, particularly priate environment for business, and implement a advanced countries, to display the necessary flex- number of free trade agreements concluded with ibility in order to bring the multilateral trade our major partners, in particular. negotiations to a conclusive and successful end. In As for its commitment to the Millennium addition, we urge them to undertake a comprehen- Development Goals, Morocco has managed to sive reform of the international financial system to achieve several of them, especially those related to make it possible for developing countries to take an promoting human development, improving social

83 The Doha Review Conference on Financing for Development

and health care services for needy and vulnerable city of Doha. I would also like to extend our appre- populations, and providing infrastructure and ciation to the United Nations for convening this basic facilities. Conference related to the implementation of the Monterrey Consensus and commend the United In this connection, the National Initiative for Nations Secretariat for the substantive and logisti- Human Development, launched in May 2005, has cal support available to us. begun to bear fruit, thanks to a policy based on close proximity and monitoring, which is aimed at ending Mozambique subscribes to the statement made poverty and precariousness in urban, as well as rural by the President of the African Union, the President areas, in addition to improving living conditions of the United Republic of Tanzania, His Excellency and achieving balanced development at regional Jakaya Kikwete. Six years have elapsed since the and local levels. Notwithstanding these important Monterrey Conference on Finance for Develop- achievements, there are still major challenges which ment, held in Mexico in 2002. I vividly remember, need to be tackled, including the risk of slackening as if it was yesterday, the enthusiasm, the cohesion, economic growth, climate change hazards, and the the harmony that drove us to the milestone agree- relative inadequacy of some social indicators in the ment reflected in the final document known as the areas of education, health and employment. Monterrey Consensus. There is still a long way to go. However, Over the last six years, tremendous efforts Morocco is firmly determined to rise to the chal- have been made to deliver on the promises made lenges of sustainable development, and to build on in Monterrey, cognizant of its importance to fos- effective solidarity with the countries of the South ter sustainable socioeconomic development and and on fruitful cooperation with the countries of achieve the Millennium Development Goals. Nev- the North. ertheless, the recent review of global development achievements indicates uneven progress in fulfill- The Kingdom of Morocco is firmly commit- ing our commitments and in achieving our goals, ted to applying the recommendations of the final with Africa lingering behind in most of the agreed Declaration, the outcome document, which will goals. This scenario is exacerbated by the high costs emerge from this evaluation Conference. They will of pursuing the Millennium Development Goals be duly taken into account in our National Devel- and the unparalleled global crisis that the world opment Strategy, which aims to support interna- has been witnessing. tional solidarity and to bolster the development process which is underway in our country, for the It is worth emphasizing the tremendous impact benefit of present and future generations. that the energy and food crises, as well as climate change and the financial crisis, are having on our economic growth and the serious threat it repre- Mozambique sents to our security, stability and development. Statement by In terms of access to financial resources, world Her Excellency economic prospects also give us a very pessimis- Ms. Luisa Dias Diogo tic scenario with developed countries’ foreign aid Prime Minister of the Republic of expenditures declining for the second consecutive Mozambique year. We note with concern the stagnation of official development assistance (ODA) in recent years, as 29 November 2008 well as its decline in 2007. We hope that the current financial crisis will not be used as a justification to Allow me, at the outset, to express our profound reduce ODA. If the declining trend continues, in gratitude to the Government of the State of Qatar the medium term the impact will be more visible for the warm hospitality accorded to us since our and painful in developing countries, where the arrival in this beautiful country, particularly in the lack of financial resources will make it impossible

84 Statements by Heads of State or Government to maintain the economic development achieved issues like ownership, predictability, use of national so far. Therefore, the United Nations should lead systems, procurement and capacity building. the international community, as a whole, to bear its Last but not least, financing for development responsibility and take the appropriate measures to is not all about aid effectiveness alone. Debt relief alleviate the consequences posed by this clash, paris an issue that is still claiming our attention, at the ticularly in non-oil producing countries. same time as we address the urgent need for a suc- I would like to highlight the commendable cessful conclusion to the Doha Round of multilat- efforts made by developing countries to ensure eral trade negotiations. Those are also important national ownership of the commitments made in elements in our joint efforts for the desired devel- Monterrey and thus fulfil their responsibilities as opment of our countries. one of the stockholders in the process that we all It is our hope that at the end of this Conference agreed to successfully undertake. In this regard, we will be able to come up with new constructive Mozambique undertook measures to improve the strategies that will guide us in our task for building business environment and provide incentives for a prosperous world. foreign and national investors. Significant progress has also been made in good governance and macroeconomic policy reforms. As a result, the national Republic of Korea overall economic performance was reasonably Statement by good in the last five years, with continued growth His Excellency reaching about 7 per cent of real gross domestic Mr. Han Seung-soo product. In 2005, the Government of Mozam- Prime Minister of the Republic of Korea bique had decided to align the New Partnership 29 November 2008 for Africa’s Development and the Millennium Development Goals with the national development policies and priorities, through integrating I would like to begin by expressing my deep appreci- them into the Government’s five-year programme ation to the United Nations and the State of Qatar for that reflects our action plan to combat poverty as organizing and hosting this Conference on Financ- a unique mechanism for planning and monitoring ing for Development. My special gratitude goes to His Highness Sheikh Hamad Bin Khalifa Al-Thani, the country development. the Emir of Qatar, and His Excellency Mr. Ban Ki- The sustainability of our economic achieve- moon, Secretary-General of the United Nations, ments relies on the shared responsibility between for their stewardship in consolidating international us, developing countries and our development efforts for development at this critical time. partners. In this context, we strongly call upon As we were gathering here in Doha, we were developed countries to double their efforts with a all shocked and outraged by the terrorist attack in view to fulfilling their commitment and making Mumbai, India. On behalf of the Korean Govern- available the already pledged 0.7 per cent of their ment, I strongly condemn these heinous acts of gross national income for development assistance, terrorism and extend my deepest condolences to as well as increase the participation of foreign aid the Government of India and to the families of capital flows, including foreign direct investment the victims. and public-private partnership, so as to enable them to finance development programmes. The tragedy in Mumbai painfully reminds me of 11 September 2001. In the afternoon of In the context of aid effectiveness, we would like that very day, I was to be elected President of the to reiterate the position stressed in the Accra Con- fifty-sixth session of the United Nations General ference which was held recently to see our develop- Assembly. The election was delayed until the next ment partners more harmonized and committed to day, and the first resolution of that session was to

85 The Doha Review Conference on Financing for Development

condemn the terrorist attacks. It is saddening and of strategic industries played pivotal roles in our outrageous to witness the recurrence of terrorism development. I also recognize the increased con- today despite the efforts we have made all these tribution of foreign direct investment and other years to prevent it. private investment flows that expand development resources. However, I would like to point out the In spite of the tragic incidents at the beginning, need to address the imbalance of the benefits and my Presidency of the General Assembly had some the concentration of these resources in a limited moments of enthusiasm and success as well. The number of countries. Greater efforts at the multi- Monterrey Conference of 2002 was one of them. lateral level should be directed at channelling the I still recall how so many leaders of the world private flows into those countries in need, particu- worked hard to reach the Monterrey Consensus, larly the least developed countries. united by the determination to push for poverty reduction and to advance the Millennium Devel- We also need to further boost Aid for Trade opment Goals. and adequate national strategies to enhance export competitiveness of developing countries. As illus- Now, six years after the Monterrey Consen- trated in Korea’s export-driven growth strategy sus, though we have come a long way, our goals during its developmental stage in the 1970s and still remain in the distance. We are also facing new the 1980s, international trade plays a critical role in challenges ranging from climate change, the energy promoting economic development, consequently and food crises, to the current global financial cri- leading to poverty reduction. In this regard, special sis. The unstable nature of the global system makes efforts should be made for a successful conclusion developing countries more vulnerable. The poorest of the World Trade Organization’s Doha Devel- of the poor are being threatened to fall off the track opment Round negotiations at the earliest possi- towards a better life through development. This ble date. We should avoid at all costs reverting to global financial crisis reminds us once more of the economic protectionism as a misguided option for importance of addressing the uneven benefits of overcoming the current crisis. globalization, which requires constant effort to fix the volatile international systems. I am encouraged that the global official development assistance (ODA) volume has stead- The international financial system should be ily increased since the Monterrey Consensus. This reformed in a way that strengthens financial stabil- momentum should be further strengthened. By ity and transparency. The international community doing so, we can squarely address the concern that must strengthen its cooperation mechanism to pre- the financial constraints of donors due to the cur- vent a recurrence of the financial crisis and of poor rent crisis could lead to an aid crisis. All donor coun- countries bearing the brunt of the volatile system. tries should take proactive actions to enhance their Now, more than ever, given the growing share of efforts to fulfill commitment to increasing ODA. It the emerging economies in global economic activi- is notable that innovative financing mechanisms ties, I hope that the voices of these countries could developed thus far are yielding concrete results. I be better reflected in the system. hope that more countries participate in these efforts Over the past few years, many developing and contribute to mobilizing further development countries have been undertaking initiatives to resources. On our part, Korea joined in 2007 the mobilize domestic financing for development that initiative of the Air-ticket Solidarity Levy. have yielded tangible results. I would like to express Having transformed itself from a recipient Korea’s full support for these endeavours to assume to a donor country in a relatively short period of ownership for national development. We encour- time, the Republic of Korea is firmly committed age them to strengthen those efforts. to support the development of other countries As demonstrated by the case of Korea, domes- and to share our development experiences. We tic investment financed by savings and the growth are doing our best to increase our contribution

86 Statements by Heads of State or Government to international development cooperation. Korea performance, persistent and new crises and chal- places high priority on enhancing the quantity, as lenges that we have come to Doha, with positive well as the quality, of ODA. Korea’s ODA, which expectations and hope, to add our contribution, stands at around $l billion today, has been scaled small as it may be, to the collaborative identifica- up three times since 2000 and we plan to achieve tion of pathways to tackle the challenges we face. another threefold increase by 2015. Korea is also Since the Monterrey Consensus, and even well launching the East Asia Climate Partnership to before that, developing countries like Samoa, my support developing countries’ adaptation to cli- own country, have liberalized and significantly mate change with funding of $200 million over the reformed their macroeconomic policy framework, next five years. upgraded their infrastructure and enhanced their To cope with the food crisis, we have pledged decision-making processes. We have strength- $100 million over the next three years for emer- ened fiscal management and legal systems towards gency food aid and agricultural capacity-building improved governance structures, and to a large in developing countries. In order to strengthen and extent we have met most of our commitments harmonize our development cooperation with the towards achieving the Millennium Development development community, Korea plans to join the Goals, with the dedicated support of the small Development Assistance Committee of the Organ- number of donor countries and multilateral finan- ization for Economic Cooperation and Develop- cial institutions that are engaged in our development by 2010. Based on our unique experience of ment efforts. development, we hope to contribute to bridging the In the spirit of a coordinated global approach gaps between traditional donors, emerging donors to this Doha meeting, we have concurred strongly and partner countries. that it is time that there is serious effort to address In closing, I would like to underscore once the systemic issues necessary to enhance the con- again the importance of having developing coun- sistency of the international monetary, financial tries more integrated into the world economy with and trading systems in support of development. new flows of financing for development. At this While the onus for financing our development critical juncture, which threatens our progress for is on us, we continue to urge for a renewed com- the goals of poverty eradication and sustainable mitment to increase official development assist- development around the globe, it is now the time ance (ODA) to complement domestically generated for us to reaffirm our commitment to the Millen- resources. ODA should be scoped and committed nium Development Goals and to the pledge we on a long-term basis and should come in a variety originally made in Monterrey. of forms. We would emphasize that mutually agreed alternative pathways for delivery should be the focus of ongoing dialogue. This situation is crucial to my Samoa country as we head towards graduation out of our Statement by least developed country status. Furthermore, we His Excellency would welcome assurances that resources provided Mr. Tuilaepa Sailele Maliele Gaoi for debt relief do not detract from ODA resources Prime Minister of the Independent State intended for developing countries like mine. of Samoa Let us, together, take the commitments of the 30 November 2008 Accra Agenda for Action to the next level. We ask for greater predictability so that we can exercise It is an honour for me to address this auspicious forward planning and enhance risk management forum as Prime Minister of one of the smallest and capabilities. We applaud the efforts by a number of vulnerable island developing States. It is against donors to put in place multi-year programmes. We a backdrop of deteriorating global economic ask for greater use of national financial management

87 The Doha Review Conference on Financing for Development

and procurement systems and, in return, we will remains distant. We see Aid for Trade as an impor- focus on results and build on a better framework tant component of measures to effectively benefit for mutual accountability. from the Doha Round, but this should be complementary to a successful conclusion of the Doha Furthermore, we acknowledge the emergence development agenda and not a substitute. We of increasing cooperation amongst developing emphasize the importance of increased support to countries, an alternative pathway that is open and South-South cooperation initiatives in trade related responsive to us, as and when needed, and deliv- areas, including through triangular frameworks. ered on a timely basis. Emerging new donors provide a solution to a perennial problem we face, Finally, I wish to thank the Government and namely, the low levels of foreign direct investment, people of Qatar for the generous support towards particularly in the infrastructure sector. Similarly, the participation of my delegation, and for the we acknowledge the readiness of our donor part- wonderful hospitality extended to us. ners to continue to provide support through new It is up to all of us to ensure that Doha aptly approaches, despite the rippling impacts of the transforms the challenges of today, to meet our financial crisis on all our economies. The impacts, expectations of tomorrow. as we see today, remind us of how integrated the global economy is and that the same coordinated approach is the way to find solutions to the challenges we face. Sao Tome and Principe As a small island developing State, our vul- Statement by nerability to climate change poses a real challenge His Excellency Mr. Fradique Bandeira Melo de Menezes to our already fragile environment. Therefore, President of the Democratic Republic of we would request that assistance towards mitiga- Sao Tome and Principe tion and adaptation be additional to current levels of ODA. Urgent attention must be paid to 29 November 2008 programmes to reduce vulnerability and climate- proofing of investments. Additionally, small island At the outset, I would like to make note of the fact countries that are also least developed should not that you are listening to me in French because Por- be obligated to take out loans to adapt to rising sea tuguese, which is the official language of Sao Tome, levels, a phenomenon due mainly to the carbon is not being used at this Conference. This means, I footprints of other countries. must speak in another language. I would like to start The food crisis we are witnessing today clearly by thanking His Highness, the Emir of the State of underscores the urgency for a new agenda in agri- Qatar, for hosting this Conference. I would also culture. Despite the demonstrated high rates of like to thank you, Mr. Secretary-General, for your return and the reduction of hardship that come continuing concern over the situation in which we, from investment levels and policy commitments in the developing countries, find ourselves. agriculture, real attention to this vital sector con- The Monterrey Consensus of 2002 created tinues to decline. A more robust agriculture sector great hopes for us and great expectations for our will need to be framed within a new agenda that peoples. Unfortunately, it must be noted that these not only matches today’s rural and global realities hopes today have not been justified and we must but also engages smallholder farmers and rural think about doing better. With respect to Sao households to generate sustainable livelihoods. Tome and Principe, one can take issue with that Will we ever see the windfalls of the interna- in a framework such as this Conference. I will tional trade regime? It has been more than 15 years speak of the important issues of roughly 20 years since we applied for membership in the World ago. My country undertook a structural adjust- Trade Organization, yet the goal towards accession ment programme, facing a vicious cycle of poverty,

88 Statements by Heads of State or Government with restrictions on our people who had not been Seychelles mobilized and provided with the minimum level of financing to be able to launch the development Statement by of the country. But in spite of the partial debt relief His Excellency Mr. James Alix Michel that we received last year, debt continues to be an President of the Republic of Seychelles obstacle for the national economy, which is the future of our nation. 29 November 2008 The Monterrey Consensus called on the international community, particularly the multilateral First of all, I would like to join the previous speak- development banks, to continue to play a vital role ers in conveying to the Government and people of in responding to our needs, the needs of develop- India my thoughts and prayers following the recent ing countries. With the application of structural act of terrorism and violence, which has inflicted adjustment programmes, it must be said that so much pain and grief on innocent people. my country today has had its agricultural sector In times of uncertainty such as this, leadership bankrupted, and this is as a result of following is essential. As leaders, we are gathered in Doha the advice given by international experts, advice to find the solutions which will allow us to move which failed us. The development of human forward. We cannot content ourselves with plati- resources has been under-financed and they are, tudes. We must be able to put forward solutions for therefore, of mediocre quality. our peoples. We must be able to direct our good- We are not able to finance the essential infra- will into concrete solutions. As leaders, we all have structure for development, which requires higher a global responsibility. Sometimes when we get rich, we forget about the less fortunate. We forget levels of financing than those we have. All of these that prosperity is not something that just happens restrictions are leading to dissatisfaction within the when the right conditions are in place; it has to be population, and this is creating social and, even, nurtured and shared. In this Conference, we have political problems. This is a threat to the stability of to devise new ways by which future prosperity can our democratic regime, the proof of which is that be shared for the benefit of all. there have already been two attempted coups. The meltdown of the global financial - mar We believe that it is time for a few more imagi- kets has left many countries reeling. The collapse native efforts and for us here to find other ideas. of the housing market, banks and the currencies Perhaps we will be capable of designing other of a few countries reflects how deeply the crisis is approaches which would be more creative and entrenched. Throughout this year, I have travelled helpful to our populations and would take account to Rome, Tokyo and New York to highlight the of their suffering. Perhaps it is time for us here to issues we small islands did face. I called for action. think about development with a human face. I pleaded for less hypocrisy. I pleaded that we move Should countries like mine continue to imple- away from reams of resolutions to concrete actions ment structural adjustment programmes as we and swift implementation of decisions. I pleaded have been doing for another 20 years? This is our for more justice and fairness because I believe that question. That would be difficult for our develop- small islands can be the barometers of the world, ment. And, those are some of the questions that we even if we are rarely on the front pages. Whether we would like to see discussed in this forum. are talking about commodity prices, food security or energy issues, small islands feel it first. And while cutting interest rates as well as providing corporate bailouts may provide acceptable fixes for large economies in the short term, they cannot make the current international financing system sustainable.

89 The Doha Review Conference on Financing for Development

In recent years, the concept of sustainable been recognized by most international develop- development had been high on the international ment institutions. Today, we reiterate that human agenda, but with current conditions the interna- resources are our most valuable asset. Sustained tional financing of such development will remain investment in infrastructure is also essential. We only a myth. From the perspective of a small island need to identify the financing mechanisms that State, the current negative situation in terms of the will make this possible as a matter of urgency. international economy poses a challenge. There I will also take a moment to talk about the issue was a concept of development itself. Development of debt, which is a pressing one for all countries at implies progress. That concept means that every this time. Sustainability of debt involves both lend- State aspires to a better tomorrow, improved educa- ing institutions and countries contracting debt to tion, better health care and eradication of poverty. re-look at the process involved. In Seychelles, we are proud of our achieve- Seychelles has contracted debt over a number ments in terms of being able to provide free uni- of years that has proved unsustainable in the recent versal education and primary health care. But climate. We thank all our partners who are sup- we are now faced with a development paradox, a porting us in various ways as part of a structuring middle-income trap. There are many small- and exercise. I hope that we can count on the goodwill medium countries in a similar situation that have of others who have not yet done so. But we are not effectively used development financing in the past ashamed of our debt. We progressed because we and now find themselves asking “where to now?”, spent concessionary loans judiciously. Subsequent- as they watch their achievements being eroded by ly, Seychelles no longer qualified for soft loans and unfair principles and unfair practices. we had to borrow at commercial terms to meet We aspire to further develop our economies development goals. We have put the funds to good and diversify. However, the constraints in the global use and invested in our children’s future by build- context are evident. Small island developing States ing schools, hospitals and social housing. and middle-income countries are not eligible for There are no easy answers to debt problems, most forms of grants and concessionary funding. but playing a blame game will not get us any closer But we are often the ones that are most vulnerable to solutions. The way forward involves tackling to shocks. We are most often the countries that are debt burdens in a realistic manner, while also most reliant on imports and we are the ones with ensuring that those who need affordable credit can the least room to maneuver through economies of have access to it. scale. But we are determined to look forward and not back. We are determined that we should be Since the Monterrey Consensus set the frame- able to rise to the challenges before us. work for international development corporations six years ago, there have been encouraging com- Seychelles, a small island State with a popula- mitments from individual countries and institution of 85,000, has recently entered into a stand- tions. However, it would be foolish to assume that by arrangement with the International Monetary existing financial structures are sufficient to deal Fund, as have many other countries. I would like to with our current problems. take this opportunity to express our appreciation to all our friends who are supporting us through The world we face today is very different. We this process. We are making the necessary fiscal need new architecture for development financing. and microeconomic adjustments to ensure that we We need to re-look at the concept of sustainability emerge stronger and more resilient. It is essential and think not only of the sustainability of individu- that in this difficult period we maintain our social al countries but of the system as a whole. We recog- cohesion, that we are able to preserve our social nize the leadership role to be played by the United skin. We are extremely encouraged by the impor- Nations system in developing this architecture. We tance of investment in human capital, which has recognize as well the central role of Bretton Woods

90 Statements by Heads of State or Government institutions in this process, as also regional fund- Conference on Financing for Development in this ing agencies, such as the Asian Development Bank. beautiful city of Doha. Our special thanks go to But we must not procrastinate. We must move fast the Government of Qatar for providing invaluable and resolutely. support to the delegation from Solomon Islands to participate in this Conference. For the way forward, I would like our partners to consider the following. We need green financing. Secondly, let me also join my fellow delegates Investment in the environment, in conservation in condemning in the strongest possible terms the and in alternative energy is long term and does not wanton destruction of life and property in the Indian always bring immediate returns. Preferential terms city of Mumbai. I wish to express our most sincere should be available for all grants and loans linked sympathy to the Government and people of India, to environmental sustainability. We need a just especially those who have lost their loved ones. trading system that recognizes specificity of coun- Let me now turn to the task at hand. Solomon tries and regions. Marginalization from the world Islands notes the difficulties faced by all nations of trade system is a real risk for many countries and the world, especially the Group of 77, in achiev- communities. Let us carefully consider the benefits ing local, regional and international development of different trading regimes. Those that provide goals in an environment of complex partnership, advantages to the weak, vulnerable and marginal- the management of deteriorating governance and ized should be enhanced. Yes, it is difficult. No, it is declining resources and the ensuing adverse effects not impossible. More funds are needed, but funds of climate change. committed also need to be disbursed more quickly, and more directly, to the areas where it is needed. It is unfortunate that when it comes to global issues, especially the macroeconomic consid- I began my intervention by stressing the need erations, the focus on the Pacific region is dimin- for leadership and I cannot end without saluting ished and at times gets completely forgotten. Let the leadership of His Highness Sheikh Hamad bin me remind this Conference that the Pacific region Khalifa Al-Thani, the Emir of Qatar, in hosting is an important and integral part of planet earth this Conference, which is of ultimate importance and it is time that the United Nations system and at this time. international conferences took account of the real- I also thank His Excellency Mr. Ban Ki-moon ities of the region and the problems that we face, for providing inspired direction within the United impinging as they do on what we are talking about Nations system. in this Conference. The Pacific Island States are characterized by remote and dispersed geographical locations, small Solomon Islands populations, narrow natural resource endowments Statement by and frequency of natural disasters. The populations His Excellency of the Pacific region are highly dependent on bio- Mr. Fred Fono logical resources and healthy ecosystems for sur- Deputy Prime Minister of the Solomon vival. The region is globally significant from both a Islands terrestrial and a marine perspective. 30 November 2008 Climate change, extreme weather events and the rise in sea levels constitute some of the greatest First of all, as have all the other delegates, let barriers to sustainable development in the Pacific. me extend my sincere gratitude to His Highness The extent of these effects is hard to predict because Sheikh Hamad bin Khalifa Al-Thani for his gen- of the complexity of the global climate. Interna- erous hospitality and for the wonderful arrange- tional action to stabilize greenhouse gases in the ments made for this Follow-up International atmosphere under the Framework Convention on

91 The Doha Review Conference on Financing for Development

Climate Change and its Kyoto Protocol has been in domestic resource mobilization, foreign direct slow. International and regional collaboration is, investment, trade, official development assistance therefore, essential in maintaining international (ODA) and debt relief. calls for mitigation, and for securing resources and Overall, there have not been any major success best practice methods for adaptation in the quest stories coming out of the Monterrey Consensus, for development. which highlighted many intentions without any There are worrying health trends in a rapidly binding commitments. The 2008 surveys show epidemiological transition with traditional infec- that partner countries and donors need to take tions like malaria, tuberculosis and the emerging stock of their commitments and honour them. HIV/AIDS epidemics and an increasing preva- The major global development partners, like the lence of diabetes, heart disease and strokes. The United States and Japan, have not increased their populations of some Pacific Island States and levels of aid as quickly as some smaller countries Territories continue to grow at arguably unsus- within the European Union. Yesterday, I was glad tainable rates that are unmatched by natural to hear of the continuous commitment stated by resources or economic growth. There are serious the President of France, on behalf of the European challenges in education, gender issues and eco- Union, and I wish for a similar commitment from nomic development. other developed countries. In this context, let me bring to the attention Developing countries, especially the least of this Conference that Solomon Islands, like other developed countries (LDCs), landlocked develop- Pacific Island States, is vulnerable to all forms of ing countries and small island developing States, external shocks, whether climatic or economic. The seek reaffirmation of this commitment from devel- current global crisis and climate changes impinge oped countries at this Doha meeting. The commit- on a very fragile ecosystem, and economically vul- ment by the European Union, as expressed by the nerable markets are determined very much by out- opening remarks of President of France, His Excel- side forces and the global economy. lency Mr. Nicolas Sarkozy, is both enlightening I would be failing in my duty if I did not also and heartening, not just to Africa but to the world bring to the attention of this auspicious Confer- at large, including the Pacific region. ence the special needs of the peoples of the Pacific At this juncture, I would like to thank Dr. Island States, who must now be considered and A.B Mirza Azizul Islam, the Honourable Finance assisted at a magnitude and urgency equivalent Minister of Bangladesh, who will be highlighting to that of other regions of our globe. The impor- the key issues and the plight and responsibilities tance of the growing geopolitical and the climatic of the LDCs at this auspicious Doha Conference. and environmental changes in the Pacific cannot Solomon Islands reaffirms the concerns and reali- be overemphasized or ignored any longer. We are ties being raised and wishes to echo the sentiments part of the globe; and what happens to the United that continue to be expressed by others throughout States of America will affect the rest of the globe, this Conference. and what happens to the globe will also affect the United States—for better or for worse, we are in Finally, Solomon Islands wishes to highlight at this together. this auspicious and timely Conference some important issues relating to financing development. In reviewing the 2002 Monterrey Consensus, the 2005 Paris Declaration, and the 2008 Accra Firstly, let me remind and appeal to all the Accords of the global partnership in development developed countries to honour their commitment with the main objective of achieving the Millenni- to provide 0.7 per cent of their gross national um Development Goals and its holistic approach to income as ODA to developing countries and 0.15- financing development, the Solomon Islands notes 0.2 per cent especially to the LDCs, including with disappointment the overall poor performance Solomon Islands.

92 Statements by Heads of State or Government

Secondly, the international financial architec- multilateral grant-based partnerships and making ture needs to be reformed to provide duty- and concerted efforts to narrow the gap between the quota-free market access, extended durable solu- developed and least developed countries. tions to the debt problems of developing countries In conclusion, Solomon Islands, as a least devel- and continuing assistance for the provision of tech- oped country and one of the small island States in nologies and technical support. the Pacific, struggling with governance and devel- Thirdly, while Solomon Islands values and oping issues, sees both the Monterrey Consensus gratefully accepts the invaluable support received and Doha commitments as critical and important from our development partners, such as the World to guiding the financing of our own development. Bank, the Asian Development Bank and the Inter- Solomon Islands, therefore, anticipates an effective national Monetary Fund, in our economic reforms, and active compliance with the goals we have all multilateral development banks/companies and agreed to and a continuing review at these interna- aid agencies should improve the way they do busi- tional conferences, to guide sustainable and mean- ness with the country. They must take into consid- ingful development for the benefit of the peoples of eration the prevailing economic situation and put our respective countries. in place mechanisms, for example, providing guarantees, that would encourage investors to invest in activities and resources that are economically and Sudan sustainably beneficial, like renewable and green Statement by energy projects. His Excellency Mr. Omer Hassan Ahmed Al-Bashir Fourthly, financing for development should be President of the Republic of the Sudan devoid of conditions that force developing countries to take on further burdens before funds are 29 November 2008 released. Development partners providing finance for development should do more to improve mech- I am pleased at the outset to express my deep anisms in providing such assistance. In some of the appreciation and gratitude to my brother, His development partnerships in Solomon Islands, and Excellency Sheikh Hamad bin Khalifa Al Thani, I suspect in other countries as well, development Emir of Qatar, and to the State of Qatar, for taking partners tend to run parallel administrations. In the initiative in hosting this significant interna- some instances, this requires providing technical tional Conference. I also extend my gratitude and assistance through employing non-nationals with appreciation to Mr. d’Escoto, President of the cur- higher salaries and better working conditions, rent General Assembly, for his invitation to take totalling up to 60 per cent or more of the financ- part in this Conference. es earmarked for development. This creates an I wish to align myself with the statements of unhealthy relationship with local administrations those who spoke before me in expressing our deep and defeats the intended purposes of financing condolences and sympathy to the Republic of India development. The components of technical assist- and its people for their losses in the bombings that ance should be no more than 10 per cent, and this took place recently in Mumbai. should be concluded before any financial packages This Conference deals with a number of very for financing developments are entered into. important topics. As you know, it was preceded by Fifthly, the review process in financing devel- several meetings, some of which were linked directly opment must recognize the persisting global imbal- to issues we are now considering. However, I would ances and take the initiative of continuing to address like to address myself to those of particular signifi- it at the United Nations level with a view to ensur- cance, including the question of external debt relief, ing compliance with our commitments, taking up mobilization of internal resources for development the question of the write-off of debts, strengthening and enhanced usefulness of these resources.

93 The Doha Review Conference on Financing for Development

You may recall that the recommendations of Summit, held recently, especially those relating the Monterrey Consensus focused primarily on the to the restructuring of the World Bank and the question of external debt relief. This is undoubtedly International Monetary Fund, to reflect the recent a very important subject and it plays a fundamen- changes in the balance of power in the world. They tal role in mobilizing available resources to support will, thus, be responsive to the needs and new growth, development and investment, all of which challenges in the world and better representative would have a positive effect on efforts to eliminate of the requirements of developing countries. We poverty. Unfortunately, these efforts are moving also salute the initiative of that Summit towards slowly and are heavily burdened by conditionality the Doha Round of trade talks and the emphasis and selective criteria. Therefore, we see that it is very on free, fair and equitable trade for the remainder urgent to try to create an international mechanism— of this year. a fair and effective international mechanism—for the relief of external debts in favour of the heavily You are all well aware of the integral link indebted poor countries and post-conflict countries between the requirements of development and eco- without any pre-conditions. In fact, there is a signifi- nomic growth, on the one hand, and the realization cant amount of displeasure towards the lack of reali- of peace and stability, on the other. The experience zation by advanced States of their pledges contained of Sudan in this regard is excellent proof of this. in the Monterrey Consensus, as well as their placing Therefore, we believe it is necessary to mention too many conditions and procedures that delay the the efforts of Sudan to maintain this link between flow of development assistance. development and peace. There is also an urgent need to restore the bal- Sudan has been successful in reaching several ance in development assistance and its focus so peace agreements in the South of the country, in that development needs will get the same attention Eastern Sudan and in Darfur, with the participa- as purely social objectives. We must send a strong tion of the international community that we truly message that it would be impossible to realize the appreciate. However, these agreements have not had Millennium Development Goals separately from proper support from the entire international com- a strategy of economic growth and the creation of munity, especially the donor community and the productive labour and opportunities for employ- partners who have not realized their commitments ment, and a leap in agricultural growth in poor made in Oslo relating to the Comprehensive Peace countries. We must also emphasize the need for Agreement on Sudan. Consequently, the citizen recipient countries to uphold their own respon- who has long suffered because of the war in these sibilities through institutional reforms. However, areas still does not feel the benefits of peace because bypassing these institutions would make national of the absence of development and services. ownership meaningless and would entail extensive financial costs and effort. We would like to re-emphasize that the Gov- ernment of the Republic of Sudan remains com- After this crushing economic crisis, the econo- mitted to a peaceful settlement of the problem mies of developed countries are moving towards of Darfur and, on this occasion, we would like to recession, with repercussions rapidly affecting the reiterate our gratitude and appreciation to all our entire world. In addition, the rising prices of com- brothers and friends who have contributed—and modities and energy are wreaking havoc on the continue to contribute—to our efforts towards the economies of poor and developing countries, thus resolution of the problem of Darfur. In this con- hindering the deployment of internal and domes- nection, I seize this opportunity to re-emphasize tic resources for development. that we welcome, and have great confidence and In the shadow of this severe worldwide eco- trust in, the Arab League initiative, led by the State nomic crisis, we believe in the importance of the of Qatar, and the efforts of the joint envoy of the recommendations of the Group of Twenty (G20) African Union and the United Nations.

94 Statements by Heads of State or Government

In conclusion, I must mention the brutal and We welcome the opportunity to meet here at unfair closure enforced by the Israeli occupation the summit level to take stock and be apprised of against the Palestinian people in Gaza. This clo- the progress made since 2002, when commitments sure and this siege is unprecedented in history were made in Monterrey. A lot has happened since and has not been practiced even by the most racist then. The world economy has accommodated a lot and barbaric regimes. It is a sentence of slow death of dynamism in its structure and form. against the members of this people—the children, It is evident that globalization is more real than the women, the infirm and the elderly. It deprives it was a decade ago and that more strides have been them of the basic necessities of life: water, food, made to integrate the regional and mainstream shelter, clothing and medicine. All this takes place world economy. This only means that the world at a time when the world remains unmoved, doing has more shared goals and targets than ever before. nothing towards this continuous humanitarian We agree on some and disagree on others. Howev- tragedy which threatens the lives of an entire peo- er, the fact remains that we fall as much as we rise ple. From this forum, we are appealing to all honest as a unit. It is in this light that my delegation notes people in the world, to all those with a living con- with great concern the threats and dangers to the science to move to rescue the Palestinian people in stability of the present path of economic growth the Gaza Strip from this brutal, unfair and inhu- as a result of the current global food, energy and man siege enforced by the Zionist occupation on a financial crises. These come at a time when many daily basis against the Gaza Strip. African countries were beginning to turn the cor- ner. They, therefore, undermine the progress that has been achieved for the last decade in Africa and Swaziland in many developing nations. Statement by Developing nations continue to be confronted His Excellency by wide-ranging economic challenges. The dwin- Mr. Sibusiso Barnabas Dlamani dling private financial flows, foreign direct invest- Prime Minister of the Kingdom of ment, official development assistance (ODA), lim- Swaziland ited market access and non-competitive prices for 30 November 2008 exports, among others, have all contributed to the stagnation of growth in all sectors of the economy. The persistent problems, for example, poverty, It is my humble honour and privilege to address under-development, HIV/AIDS and climate change, this high-level Conference on behalf of his Maj- only exacerbate an obviously dire situation such as esty King Mswati III and her Majesty the Queen food insecurity. In an effort to address the issue of Mother, the Government and the people of the drought, the Kingdom of Swaziland has embarked Kingdom of Swaziland. on construction of dams for irrigation purposes Before I proceed with my statement, I wish to and household use, within our limited resources. To take this opportunity to express my deepest sympa- meet the requirement, there is a need for financial thy to the people of India following the recent terror support to increase investment in this area. attacks on innocent citizens. The Kingdom of Swa- We are conscious of the need for acceleration in ziland strongly condemns such behaviour because domestic and foreign resource mobilization in order it is an enemy of development and social justice. to stimulate investment in a spontaneous fashion. I should like to express my profound gratitude The importance of trade as an engine of develop- to His Highness the Emir, the Government and the ment can never be overemphasized. As developing people of the State of Qatar for the great hospitality nations, we look forward to the meaningful conclu- that they have accorded us since our arrival in this sion of the Doha Round of trade talks because they beautiful city of Doha. are the key to our sustainable development.

95 The Doha Review Conference on Financing for Development

The continued delay keeps the world in unnec- that a correct combination of appropriate policy essary suspense. For this reason, Swaziland under- measures be found to assist the developing nations scores the importance of more engagement and to achieve relief from external debt. This should be negotiation in good faith to move against unde- done in close collaboration with the World Bank sired trade-distorting practices that come with the and the International Monetary Fund, so that tai- world economic order. I would like to reaffirm the lor-made solutions to suit country-specific situa- Kingdom of Swaziland’s support for the Director- tions can be worked on. This would also augment General of the World Trade Organization. We national economic and development strategies and encourage him to carry the current agenda for- the reallocation of resources in an efficient and ward with the clear vision that he has displayed for effective manner, by creating more fiscal space. the benefit of developing countries. The Kingdom of Swaziland notes with concern We view with great concern the continued that the current debt relief initiatives only focus on decline of ODA to developing countries, especially low-income countries. In line with the Monterrey the least developed countries. We commend those Consensus, which emphasizes the importance of developed countries who have met the target of continued flexibility in the eligibility criteria for 0.7 per cent of gross national income committed debt relief, Swaziland proposes a review of the at Monterrey. We wish to urge those who have not criteria, taking into consideration that many of met it to do so urgently. Without ODA, it is diffi- the countries classified as middle-income, includ- cult for poor countries to make meaningful strides ing Swaziland, are facing social and economic in their endeavour to uplift the standards of living challenges similar to those of the poor countries. of the populace. We acknowledge the global finan- These include poverty, high disease prevalence, cial crisis, but hope, nevertheless, that this will not unemployment and a low economic growth rate. affect the earlier commitments made by the inter- The HIV/AIDS pandemic continues to undermine national community towards financial assistance development efforts. Serious consideration should to developing countries. be given to the use of the Human Development Index instead of per capita income for classifica- Like any other developing nation, the King- tion of countries. dom of Swaziland remains committed to attain the Millennium Development Goals. We acknowl- It is unfortunate that the middle-income sta- edge that they have reached their halfway evalua- tus also affects the flow of official development tion point and that a lot of challenges still remain. assistance, as more attention is paid to low-income We look forward to continued support from our countries. ODA to many of the developing coun- cooperating partners to finance our development tries continues to decline, yet they have financing programmes. We, as developing nations, are fully gaps that make it difficult to invest in pro-growth committed to ensuring that these resources are programmes. Therefore, reducing the external debt allocated appropriately towards achieving the burden and increasing ODA could liberate resourc- Millennium Development Goals, although the es, which could then be utilized for pro-growth humanitarian crisis, erratic rains caused by climate investment and to address the socio-economic chal- change and HIV/AIDS, among other things, con- lenges. Swaziland continues to appeal for a review tinue to undermine our efforts to attain them. of the country’s classification as a middle-income country, in view of the challenges just mentioned. The debt burden faced by developing- coun tries continues to be a cause of concern. We share It is only a few years since the international the view that indeed countries that are heavily in community convened in Monterrey to chart a way debt require the assistance of creditors to disen- forward on an acceptable world economic order. tangle themselves and to increase their prospects The commitment to continuous review of the of achieving the Millennium Development Goals. progress in implementation was a good move and In this regard, the Kingdom of Swaziland proposes this Conference is critical to our efforts to respond

96 Statements by Heads of State or Government jointly to newly emerging economic challenges. It services, the availability of opportunities, and the is important that we take trade as a very important realization of sustainable economic development and component of our economic development. the equitable distribution of its benefits. Achieving the above requires resources that are often beyond While many developing countries, especially the capabilities of many developing countries. in sub-Saharan Africa, have relatively escaped the first-round effect of the global financial crisis, it is Despite the fact that, first and foremost, devel- unfortunately clear that the second-round effect opment is a national responsibility, it is also a glo- of the present economic crisis will not spare any- bal one that can be achieved through genuine rela- body. In our view, the economic crisis will drasti- tionships and partnerships among all countries, cally reduce trade opportunities, access to finance developed and developing. We, in Syria, under- and foreign direct investment. It will also dimin- stand that development and the realization of the ish migrant remittances, lower commodity prices, Millennium Development Goals are costly. We increase unemployment and negatively affect the have assessed the development and financial gap tourism industry. by 2015, and it is estimated to be $23 billion. This is a challenge, something that we cannot address or In conclusion, we are deeply concerned and achieve. Let us, therefore, see it as an opportunity, a challenge the multilateral institutions, including very genuine development and investment oppor- the Bretton Woods institutions, to perform their tunity that will not only contribute to development regulatory function effectively. What heightens our in Syria and the realization of the Millennium concern is the uncertainty of how deep the finan- Development Goals, but will also provide develop- cial crisis is and how long it will be with us. Small ment to the Middle East region. In other words, we economies like Swaziland are the most vulnerable believe that whoever provides for development in in such situations. Syria will also be providing development to one of the most important regions of the world. The wide-scale measures in institutional and Syrian Arab Republic economic reforms that have been taken in many of Statement by the developing countries can now let us say, prob- His Excellency ably more than ever before, that transforming cur- Mr. Abdullah Dardari rent challenges into a development opportunity is Deputy Prime Minister for Economic something that is more attainable than in the past. Affairs of the Syrian Arab Republic It is more attainable, and is also necessary, because 30 November 2008 Governments and people are asking how long will the reform process continue, given that some of the structural reforms have been pretty painful, and the Allow me to begin by thanking, on behalf of the benefits to be reaped are not apparent? I call on the Government of the Syrian Arab Republic, the State Conference to send the message to those Govern- and people of Qatar for their generosity and for a ments and people that we shall be working togeth- very well-organized event. er to attain this objective. We shall not be coerced The individual remains the ultimate objective into accepting non-democratic practices, like the of development and its starting point, regardless of obstruction by the United States of America to region. He has the right to development; the right Syria joining the World Trade Organization. This to live in dignity, free from poverty; and the right obstruction is probably the highest level of politi- to expand his options and liberties in all fields and cal hypocrisy, some kind of contradiction, given walks of life. These rights are guaranteed by char- the lip service that is often paid to the principles ters, by covenants and by instruments. They require espoused. This probably obstructs our region and the development of the potential of the individual prevents—obstructs—our attempts to attain devel- through the provision of health and education opment in our country. The continued occupation

97 The Doha Review Conference on Financing for Development

by Israel of the Syrian Golan and Palestinian ter- improved from 0.72 to 0.732, between 2000 and ritories, as well as other occupied territories in 2007. This is the direct result of the improvement Lebanon, is probably the most important factor in health and education services and also in the in obstructing cooperation and development in improvement of indicators. The strategy relating to the Middle East region. The American invasion development in education has improved its qual- of Iraq, and the instability that has ensued, led to ity and will put an end to illiteracy. So far, the per millions of Iraqis being forced out to neighbour- capita gross domestic product (GDP) income has ing countries. It obstructed the development plans risen substantially in real terms. of those countries, particularly Syria that hosts During the past period, Syria was able to over 1.5 million Iraqis. This puts pressure on the achieve wide-scale economic reforms through process of development and on the development which it was able to maintain the social achieve- resources available to our country. It also strains ments that were recognized in past decades. We the infrastructure and major services, like health were able to benefit from the global changes so and education. The response by the international that Syria has now become an important centre community remains very weak in supporting the for investment and trade in the Arab region. At the daily needs of these Iraqis. One can only ask how same time, it was able to achieve a balance in mac- can we accept responsibility for managing the roeconomic indicators, for example, a decrease in international economic crisis, and the challenges internal and external debt, stability in exchange of global development, while direct responsibil- rates, the accumulation of foreign exchange, and ity for the disaster of forcing millions of Iraqis out strong growth in GDP as a result of investments of their homeland, and for the siege under which and exports, as well as growth in other areas like Gaza languishes, is not admitted? the tourism and social sectors. Syria recognized that providing financial Syria is committed to the Millennium Devel- resources is the basis for economic and social development Goals. Our indicators point to the fact opment, particularly for public services like health, that we are on the right track, and we have actually education and infrastructure. This was very evident achieved many of them. Consequently, we believe in the tenth development plan where planning was that Syria must achieve the position it deserves in applied to all economic and social sectors through managing the global economic system currently strategies and policies that cover each sector. There underway. Syria is ready to participate strongly were time-bound schedules for each of the above. and positively in the constructive dialogue for the We also adopted the concept of the economic- preparation of such a system. We believe that one social market principle—that is to say, the country of the most important means of dealing with the is still entitled to undertake its social role in guaran- expected economic recession is by increasing inter- teeing equity in the distribution and sustainability nal demand through greater public and private of incomes. To enable it to do so, Syria worked on investment, and by partnership between them, with liberating and rehabilitating the national economy a concentration on infrastructure and social capi- for integration into the global economy. We would tal. This investment is sustainable and long range; like such development to be just and not aligned to moreover, it may even be able to address the weak- one party rather than another. nesses in the equity of development that we have We created a legislative environment that is seen in the past two decades. Investment to pro- favourable to foreign direct investments. While mote internal demand will revive world demand reforming the public sector in the process of eco- and will lead us away from recession. However, nomic and social development, we gave additional we also believe that this situation should become roles to the private sector and to the civil society. a new global opportunity to achieve sustainable We also developed social capital by guarantee- development. We have to insist on the developing access to economic resources for all citizens. ment of the rural sector, food security, and water As such, the Human Development Index in Syria and energy security. In addition, efforts should be

98 Statements by Heads of State or Government made to ensure that economic and social develop- how small, have the same power in forming global ment would entail recognition that democracy in development. And unless this becomes very clear the current system has to be restructured. to the participants here today, and to those who did not participate, we shall not be able to arrive at the The international and regional financing solutions we all seek. institutions play an important role in the State. However, banks must also play an important role through genuine financing of real opportunities to find solutions to actual crises. Also, the institu- Tajikistan tions of export guarantees and investments have a Statement by very vital role to reconsider the credit assessment His Excellency systems that have recently proven their failure. Mr. Emomali Rahmon It is certain that any economic or development President of the Republic of Tajikistan project in a developing country has more security and confidence than financial instruments that are 29 November 2008 promoted by speculators in investment banking without any real oversight. The recent financial First of all, I would like to thank the Government crisis has confirmed, beyond any doubt, the need of Qatar, the Emir of the State of Qatar, and the to adjust the financial system and of finding a new distinguished Secretary-General of the United formula so that the surplus of financial liquidity Nations and heads of other leading international can be invested in the real economy and is not organizations, for organizing this Conference and used for speculative purposes. A real contribu- for the excellent conditions that have been created tion to the process of development for developing for our work. countries to achieve the Millennium Development The instability of the global financial system, Goals, and which should be one of our objectives, which impacts financial markets and is a major would be to give a larger role to the International factor affecting an economy, has made develop- Monetary Fund, the World Bank and the World ing countries significantly more vulnerable. They Trade Organization, despite the fact that some of are seeing a decrease in capital inflows and a sig- them are not represented in this meeting at the nificant slowdown in economic growth rates and appropriate level. income growth. The developing countries, I believe, must play a Another aspect of the financial crisis which has much bigger role in managing this economic system had a negative impact, particularly on the Republic and introducing the necessary amendments thereof Tajikistan and other countries of Central Asia, to. Growth in developing countries is no longer a has been a decrease in export revenues as a result moral issue imposed by our brotherhood. However, of the reduced need for raw materials, such as alu- I can say that growth in these countries is the only minium and cotton. These are the main export hope for the world to be freed from its current cri- products of Tajikistan and revenues have fallen by sis. The developed world should view this renewed roughly 50 per cent. In this connection, we hope reality and not deny it in any way or form. The bitter that developed States, international organizations experience of the developed and developing world and financial institutions will take the necessary as a result of the crisis inflicted upon it indicates political, financial and economic steps to prevent a that we are going—that we are moving—towards a worsening of the crisis, which could lead to a fur- stage in which we should have a balance of interests ther increase in poverty levels and would deeply and not a balance of power. This new balance is no complicate the achievement of the goals set in the longer geographic in size or in economic or military Monterrey Consensus. might. We probably have to go back to the logic of the force of economy of right, culture and history; Given the high level of debt in developing coun- the creation and the creativity of peoples, no matter tries, assistance must also be provided in the form

99 The Doha Review Conference on Financing for Development

of grants or concessional loans. Thanks to support of agriculture in developing countries, it is nec- from the United Nations, in the period from now essary either to eliminate the system of subsidies until 2015, Tajikistan has set itself the task of having or to spend part of these resources on supporting poverty level indicators bringing yearly economic the agricultural sector in developing countries. growth rates to an acceptable level, updating and The growth in global prices and consumer goods, streamlining productive infrastructure, making together with the unprecedented cold weather in the transfer to contemporary agricultural technol- 2007 and 2008, and the low rainfall in recent years ogy and providing for food security. However, we and subsequent drought, has led to the energy and have realized that without the help and assistance food crises, thus having a negative effect on the of the international community, without bringing social and economic situation of the population of additional financial resources into the economy, the country. and without further integration and involvement in In response to the negative impact of the ener- the activity of the main international institutions, it gy crisis, we are currently building and introduc- will be very difficult for Tajikistan to achieve these ing small- and medium-sized hydroelectric power goals. In this connection, we hope that in spite of stations. In the middle-term, the main areas of the negative impact of the global financial crisis, activity will be completing work on building the leading countries will be committed to the priori- Roghun hydroelectric power station and building ties of the Monterrey Consensus and will continue a number of others, including electricity stations. their efforts to reduce the imbalance among coun- As a result, we will be able to export more than 30 tries and the unequal economic development of billion kilowatt hours of electricity to countries individual developing States in the world. such as Pakistan, Afghanistan, Iran and India, and Today’s world financial crisis is closely related elsewhere in the region of Central Asia, thereby to the food and energy crises, the impact of which making a significant contribution to the so-called is particularly noticeable in developing countries green development of these countries. At the same whose economies are in transition. time, the export of electric energy to neighbouring Afghanistan will be an important contribution I would like to draw your attention to these to international efforts to establish peace, political problems in the case of the Republic of Tajikistan, and economic stabilization in that country. which is one of these countries. Tajikistan, 93 per cent of whose territory is made up of mountains Tajikistan will find it extremely difficult to deal and has only 7 per cent in flat lands, has signifi- with these tasks on its own. In this connection, cantly felt the changing global prices on main food we appeal to the international community and all products and the major impact on the level of con- interested parties for cooperation and partnership sumption of different food products by the popula- on these issues, which are very important not only tion. In 2007, the amount of food imports was more for development in Tajikistan but also in the entire than three times that of exports. We would like to Asian and Central Asia regions. The provision of note once more that this increase in the importa- special funds to minimize the impact of the energy tion of food was mainly because of the changes in and food crises could help to achieve this goal to a global prices. We would further like to draw your large extent. attention to another important problem which is An important element in mitigating the impact having a negative impact on the agricultural sec- of the crisis on the development of the economy tor of developing countries. I am talking about the in countries in Tajikistan’s region is developing existing system of subsidies for agricultural pro- trade, transport infrastructure and communica- ducers in economically developed countries, which tions in Central Asia. It is in our common interest is an obstacle for access to their markets. to consider building roads which would link coun- In order to redress the imbalance in these tries of the region and also provide access to ports conditions and enhance the competitive ability in the Persian Gulf and the Indian Ocean. This is

100 Statements by Heads of State or Government not only a matter of creating modern communi- renewable energy and hydropower, in particular, cations, but also of enabling the free movement of are becoming important factors in sustainable goods, labour and capital which sometimes come development given global environmental prob- up against artificial barriers. lems, including global warming. The accession of the Republic of Tajikistan to the Kyoto Protocol in The world in the twenty-first century is fac- our view will help to contribute to the economic ing new threats and challenges. From the rostrum development of the country. of the United Nations, Tajikistan appealed to all countries to pool their efforts to overcome the One of the most important factors in the problems of a lack of drinking water. Together progress of Tajikistan’s economy is the cooperation with the food and energy crises, this problem is and assistance that has been provided by the inter- a serious threat to the well-being of a number of national community. A new page in the develop- States, including Tajikistan and other countries in ment of cooperation between the Government of the Central Asia region. the Republic of Tajikistan and its development partners is to be the Joint Country Partnership Strategy, Upon a decision of the General Assembly of the which was recently drawn up. It is a programme United Nations, 2005 marked the beginning of the that aims by the middle-term period to organize International Decade for Action, “Water for Life”. effective cooperation between the Government of More than 40 per cent of the earth’s population the Republic Tajikistan and its development part- today is experiencing moderate or serious water ners in order to achieve the goals of national devel- shortages and United Nations experts believe that opment and to decrease poverty levels. by 2025 approximately two-thirds of the world’s population will be living in regions that are facing During this Conference, the issue of resolving water shortages. the problems of financing for development in a spirit of global partnership and cooperation will be at the An extremely important problem for the centre of our attention. In this connection, I believe Republic of Tajikistan and the entire Central Asia that all countries should make the utmost effort to region is the effective and rational use of water. fully achieve the agreements that were made as part Given repeated droughts, this problem is of par- of the Monterrey Consensus. Developing countries ticular seriousness because it does enormous dam- should have the opportunity to influence the deci- age to the economies of the countries in the region. sions taken by international organizations which Global warming has led to a situation where in are related to international cooperation and to the recent years the water levels in major rivers in Cen- development of their economies. tral Asia, the Syr Darya and the Amu Darya, and the area fed by the Panmah Glaciers—which make The time has come to review the existing struc- up 60 per cent of the water in these rivers—have ture of the financial institutions as it was created decreased significantly. many years ago. You may recall that many of the international financial institutions were created One of the reasons for global warming is the in the 1940s of the previous century; we are now industrial activity of developed countries. If, as living in the twenty-first century and the world forecasters predict, such a trend continues, our has changed. We need to change and reform the region could face enormous ecological and related structure of these international institutions. There economic and social disasters in the near future. also needs to be a change in the makeup of these The Republic of Tajikistan possesses enormous organizations as this would help to increase the reserves of hydrocarbons, which make up more representation of developing countries. than 500 billion kilowatt hours, and it is third in The Director-General of the World Trade the world in terms of their overall volume. In con- Organization, Mr. Pascal Lamy, spoke about this ditions where the prices of hydrocarbons in the very well. He said that the principles of the work of world are volatile and reserves are being exhausted, WTO should be reviewed and that many developing

101 The Doha Review Conference on Financing for Development

countries today are on the path towards joining the to conduct our deliberations. We are assured that organization. It is therefore necessary to eliminate with your experience this Follow-up Conference the obstacles to their entry, as this could signifi- will provide positive results that will allow us to lay cantly help their development. Today, I am full of a new foundation to speed up implementation of optimism that we can make the world better and the Millennium Development Goals in the world meet the aspirations and hopes of our peoples. in general and in Africa, in particular. We would The Central Asia region has suffered to a large also like to congratulate the Secretary-General extent because of climate change, which threatens of the United Nations, Mr. Ban Ki-moon, for the the lives of more than 50 million people. In recent efforts that he continues to make to breathe new years, drought has also had a negative impact and life into the implementation of the Millenniuum thus the region itself is facing problems which are Development Goals and in combating poverty. greater than those of developed countries because Our meeting here in Doha is due to our com- of climate change and global warming. In this con- mon desire to find efficient solutions to problems nection, may I express our appreciation for the sup- regarding financing development in order to port of all the international organizations which implement the Millennium Development Goals have provided assistance, although here we need to and to reduce poverty. We certainly do remember think about whether it is equal to the threats and that this has been going on for more than six years. the challenges that are posed by global warming When the United Nations International Confer- and climate change. ence on Financing for Development was held in Thank you very much, and I wish for the suc- Monterrey, Mexico, in March 2002, it resulted in cess of the work of this Conference. the Monterrey Consensus in which responsibilities were split in terms of mobilizing internal and external resources for the purposes of development. This important act, which was designed to speed Togo up implementation of the Millennium Develop- Statement by ment Goals in order to create a better world for His Excellency all by 2015, caused developing countries to have Mr. Faure Essozimna Gnassingbé great hope. In fact, the partnership defined in the President of the Togolese Republic Monterrey Consensus requires developing coun- 30 November 2008 tries to take on a larger share of their development by doing their utmost to apply rational economic policies, good governance and rule of law, and by First of all, I would once again like to convey my sin- using their own resources in a way that is more cere condolences, and those of my Government and effective and more rational. It also indicates the the people of Togo, to the people and Government of main areas in which their partners from developed India after the tragedy that has taken place in the last countries could provide further financial assist- few days in that country. We hope that all of those ance to supplement their own efforts, for example, responsible for this wanton act will be arrested and by increasing private resources for development will be brought to justice and punished. and highlighting the effect; offering these coun- We must sincerely thank the authorities of tries more possibilities for market access in order Qatar, and especially His Highness Sheikh Hamad to create a fair international trading system, one bin Khalifa Al-Thani, the Emir of Qatar, for the that is based on rules and is favourable to devel- warm welcome and cordial hospitality that they opment; increasing the amount and effectiveness have been kind enough to provide to all delegations. of official development assistance, which remain Also, Mr. President, we would like to associate our crucial for many countries to implement the inter- voice with those delegates who have preceded us nationally agreed Millennium Development Goals, in congratulating you warmly on your designation and that this should be done in line with national

102 Statements by Heads of State or Government priorities; eliminating hyper debts, which decrease At the same time, despite all of this, much the amounts of assistance and internal resources remains to be done to create conditions conducive available to reduce poverty and stimulate long- to veritable socio-economic development in Togo term development; and, finally, by ensuring that and the well-being of its people. In fact, the efforts the international environment facilitates the efforts of our countries will be insufficient to propel our of developing countries to mobilize their resources States to meet the Millennium Development Goal so that they can benefit fully from the global trad- indicators, especially those having to do with the ing and financial system. elimination of extreme poverty and hunger. One can easily understand, therefore, that the weak per- In spite of the efforts made by many, the justi- formance seen is due in part to problems of financ- fied hopes raised by the Monterrey Consensus are ing for development, to the thorny question of debts still far from being realized today. This Conference and to the difficulties that Togo has encountered in is an apt opportunity for us to evaluate together using opportunities to the best of its ability. the implementation of the Monterrey Consensus and to take stock, without complacency; also, to With respect to financing for development, we discuss and adopt vigorous measures which are should now recall that for Togo to implement its required in order to reaffirm the commitments we development strategy based on the Millennium made previously. Development Goals requires investments estimated to be about $7.2 billion for the period 2006- Togo went through a long socio-political crisis 2015, for all sectors, As can be seen, these needs which very much slowed down the developmen- require significant mobilization of resources, both tal process in our country and entailed a massive internal and external, and our partners will need reduction in external assistance due to the suspen- to play an important role in this area. It will be up sion of cooperation with major partners. In 2006, to our development partners to do more to sup- however, it made a commitment to a wide-rang- port our efforts by providing substantial increases ing programme of political, economic and finan- in public assistance and more access to their mar- cial reforms to set up the structures and mecha- kets for our exports, which are our main source of nisms that are necessary to mobilize our internal income for financing development options and for resources and financial assistance from our devel- combating poverty. opmental partners. Through developing a climate The question of financing for development of calm and peace, it has been possible to engage is also tightly linked to that of debt. In fact, the major economic and financial reforms in order to majority of our countries, given expenditures improve public finances, to strengthen transpar- that they need to make to pay off the debt, are no ency in public management, to combat corrup- longer able to make the necessary investments for tion and to stimulate growth areas. At the same sustained growth, which would make a significant time, we have developed and adopted a long-term contribution to poverty reduction. Consequently, national development strategy, based on Millen- our country is working to prepare a full PRSP, nium Development Goals and the interim Poverty which would open the door to initiatives to lighten Reduction Strategy Paper (PRSP). As these reforms the debt, especially the one that is referred to as were implemented satisfactorily, we were able to the Heavily Indebted Poor Countries (HIPC) Ini- organize a conference with development partners tiative, where decision points have already been in Brussels in September 2008 to inform them made. At the same time, we should note that the about recent developments: political, economic healthy efforts made in these initiatives for poor and social, and of the visions, strategic orientations countries have shown their limitations because and priority options contained in the emergency some countries have reached the end of HIPC but programme in our country for the recovery and still have unsustainable debt rates. Our delegation reconstruction of the economy. does not doubt the determination of industrialized

103 The Doha Review Conference on Financing for Development

countries to do more to deal with the substance of We do appreciate the measures taken by the the external debt of African countries. developed countries to tackle the economic and I would not wish to conclude without allud- the financial crisis, especially within the frame- ing to the third United Nations Programme of work of the Group of 20 which met a few weeks ago Action for the Least Developed Countries for the in Washington, D.C. However, we think that these Decade 2001-2010, normally called the Brussels measures will be limited unless the problems and Programme of Action. In fact, the Togolese del- aspirations of the developing countries are taken egation is concerned with how little progress has into account. That would require practical steps been made in the least developed countries in the to secure support for the middle-income and low- implementation of this Programme, particularly income countries in order to enable them to cope in terms of eliminating extreme poverty, and of with the repercussions of the financial crisis. implementing sustained growth and sustainable This crisis cannot be a pretext for the industri- development. In this regard, my delegation would alized countries to confine themselves to domes- like to draw your attention to the need to take con- tic affairs. On the contrary, it requires a wider crete and bold measures in order to mobilize the approach in order to take into account the interlink- necessary resources two years before the end of age between the issues in the globalized economic this Programme so that it will not suffer the same fate as its two predecessors. world in which interests are also interlinked. There is no space for unilateral or domestic solutions. It is in the interest of the industrialized countries Tunisia to build bridges to the developing countries and to give momentum to investment efforts in them. Statement by Developing countries have the raw material and His Excellency Mr. Mohamed Ghannouchi potential to carry out very important projects that Prime Minister of the Republic of Tunisia will have a positive impact on industrialized countries through the enhancement of the exchange of 29 November 2008 trade and the measures taken to overcome the current crisis. At the outset, I would like to convey the greetings We need to come together, to pool our efforts, of the President of the Republic of Tunisia to his and take the requirements of both the present situ- brother, his Highness Sheikh Al Hamad Al-Thani, ation and the future into account. This has been the Emir of Qatar; we wish this Conference every our attitude in Tunisia, as called for by His Excel- success. It is also my pleasure to express my deep lency President Ben Ali, because he is convinced thanks to fraternal Qatar, the Government and that there is no permanent and renewable develop- the people, for the hospitality and warm reception accorded to us, and for the excellent arrangements ment without considering the social and economic made for this Conference. factors together. The convening of this Conference at this junc- That kind of development should eliminate ture is very important in view of the escalating the imbalances and eradicate poverty, as well as economic and financial crisis, which calls for the involve and integrate those who feel marginalized. concerted efforts of the United Nations in order Tunisia has always been trying to achieve this kind to lessen its effects. This presents challenges to of approach through liberalization of trade in the all countries, especially developing ones. These economy as well as sharing the results of develop- developments require more than ever before that ment with all strata of society. This has had a very the commitments made at the Global Summit on positive impact, enlarging the middle class to 80 Development are reiterated and that the objectives per cent of the Tunisian people and achieving high of official development assistance be achieved. rates of development.

104 Statements by Heads of State or Government

This is an opportunity to reach the means of deepest appreciation and gratitude for his gracious achieving the Millennium Development Goals, to hospitality and for the warmth of the reception. give concrete effect and produce concrete results Before I proceed, I wish to express my deepest regarding them. We can also reach economic inte- sympathies to the people of India for the terror- gration and the exchange of interests. We can also ist acts which happened in Mumbai two days ago, give effect to the International Solidarity Fund, and claimed the lives of many people from India which has become one of the basic and effective and other nations. Our thoughts are with you as mechanisms of the United Nations. we come to terms with this sad event, and also dur- Member States of the United Nations, in partic- ing these difficult times. What happened in India ular, initiated the Doha Round of talks with a view should serve as a reminder to all of us to be vigi- to giving developing countries the opportunity to lant, as it could happen anywhere. enhance their efforts and have access to world mar- This is a follow-up meeting to the one held six kets. We hope that the efforts here will be pulled years ago at Monterrey, Mexico. As we all know, at together in order to have a better, more equitable Monterrey we solemnly entered into a partnership and more transparent order that would, in the final to address the challenges of financing for develop- analysis, enable developing countries to develop ment in developing countries. We called our part- and diversify their economies in terms of industry nership the Monterrey Consensus, which covered and other fields, and would have a positive effect on six core areas: development at the global level, in general. 1. Mobilizing domestic financial resources for We also look forward to the Conference pro- development; ducing concrete results that would meet the aspirations of developing countries and serve the interests 2. Mobilizing international resources for develop- of the entire international community in response ment: foreign direct investment and other private to the aspirations of all peoples. flows; 3. International trade as an engine for development; United Republic of 4. Increasing international financial and technical Tanzania cooperation for development; Statement by 5. External debt; and His Excellency Mr. Jakaya Mrisho Kikwete 6. Addressing systemic issues: enhancing the President of the United Republic of Tan- coherence and consistency of the international zania and Chairman of the African Union monetary, financial and trading systems in support of development. 29 November 2008 Under this unique partnership, countries in the South (Africa included) committed themselves Allow me to take this opportunity to commend the to implement sound economic policies, ensure Secretary-General, His Excellency Ban Ki-moon, for good governance, invest in the development of his wise decision to convene this review Conference, their people and establish an investment climate which is as important as it is timely. Indeed, it could conducive to attracting private capital. On the not have taken place at a more opportune time. other hand, developed nations agreed to scale up I also wish to thank His Highness, the Emir their financial and technical assistance to develop- of Qatar, Sheikh Hamad bin Khalifa Al-Thani, for ing countries to help them meet the internationally agreeing to host the meeting here in Doha. On behalf agreed development goals, including the Millen- of my colleagues from Africa, I extend to him our nium Development Goals.

105 The Doha Review Conference on Financing for Development

This review meeting, therefore, provides an most of these flows continued to be concentrated excellent opportunity for us to make an assess- in the extractive sector and in a few oil-producing ment of the progress made so far and to identify countries on the continent. Our challenge in Afri- the obstacles and constraints encountered which ca, therefore, is about how to attract more FDIs in are in the way of implementing the Monterrey more sectors other than the extractive sectors, par- Consensus. It also offers us a propitious chance to ticularly in those which have high value-added as come up with practical and actionable measures well as high potential for job creation. At the same to reinvigorate our collective commitment to the time, they should be environmentally friendly. development agenda. The meeting taking place at this particular moment in time will also afford us Africa can also benefit from harnessing remit- an opportunity to discuss and put into proper per- tances from abroad. A number of African countries spective the current global financial crisis. are doing that by making it easier for people to use the banking systems and other formal channels I would like to assure this august assembly that to receive remittances from abroad. We call upon Africa, my country Tanzania included, has always developed countries to take action to reduce the attached great importance to the Monterrey Con- transaction costs of remitting money to Africa. sensus. Since its adoption, African nations have endeavoured to fulfill their part of the bargain. The While Africa has done all it can to implement continent has so far made significant progress on the Monterrey Consensus, the performance of its commitment to good governance. The majority developed countries in meeting their commitments of African countries have adopted and entrenched remains wanting. Apart from debt relief, where democratic governance, the rule of law as well as the there has been substantial progress, in the areas of protection of human rights. They have also created trade, official development assistance (ODA) and an investment environment conducive to attract- systemic issues, developed countries continue to ing private capital to their respective countries. under-perform. In the area of international trade, it is important to note that the volume of African Overall, African countries have made nota- exports has increased. However, Africa continues ble progress in the area of mobilizing domestic to experience poor market access and supply-side financial resources. The ratio of domestic savings to gross domestic product has increased from an constraints. The longer the Doha Development average of 18 per cent between 1997-2002 to an Round negotiations remain stalled, the more of a average of 23.8 per cent over the period 2005-2007. disadvantage it is to the developing countries on However, domestic resources are still inadequate to the continent. It is in the interest of all of us that finance development expenditures and significant- they resume at the earliest possible time. It is also ly tackle accelerated growth for poverty reduction. in all our best interests to ensure that the develop- More efforts, therefore, are still needed in order ment concerns and needs of developing countries, to develop sustainable capital markets, strengthen including those of Africa, are properly taken care micro-finance institutions, reduce capital flight of in the final agreement. and mitigate the impact of trade liberalization on In this regard, we welcome the recent Aid-for- government revenues. Trade initiative of the World Trade Organization. It Africa has made encouraging progress in mobi- is quite a step in the right direction, although it is lizing international capital flows to the continent. taking too long to operationalize. We call for it to Because economic reforms and policies favour- be expedited. There is, thus, an urgent need for all able to private investments were implemented, the parties involved in the initiative to fast-track its foreign direct investment (FDI) inflows to Africa implementation so that valuable time is not lost in increased from $13 billion in 2002 to $45 billion in increasing the capacity of African countries to take 2007. However, this is too little a share of FDI flows advantage of existing opportunities in the multilat- worldwide; it is only about 2 per cent. Moreover, eral trading system.

106 Statements by Heads of State or Government

While, I express sincere appreciation for the hard-won socio-economic gains made by African increase in ODA, from $21 billion in 2002 to $38.7 countries over the past few decades. The global billion in 2007, let me hasten to say that donors are economic slowdown will lead to the contraction of not on track to meet their commitments to double international demand for commodities. This may aid to Africa by 2010 relative to 2004 levels. In fact, also exert downward pressure on lowering com- there is a wide gap between donor commitments modity prices. Africa is predominantly dependent and actual aid flows to Africa. Moreover, the quality on commodities and tourism, which now seem to of aid is still below what is needed to ensure accel- be vulnerable. The tightening of credit will lower erated and sustained growth on the continent. FDI flows to Africa, may reduce access to credit and make it more expensive, and may also curtail Let me take this opportunity to implore our the flow of remittances. development partners to scale up their efforts to meet their aid pledges to Africa. I urge them to Against this background, allow me to propose “walk the talk”. They should also implement the the following as a way forward: Paris Declaration on Aid Effectiveness and the First, as the global financial crisis concerns Accra Agenda for Action by reducing the transac- and affects all nations and peoples, efforts to find tion costs of aid delivery and untying aid flows to solutions should involve all of us. The current make them more predictable. arrangement where the least developed countries Progress on the systemic issues has been lim- are not involved is an omission which needs to be ited. To date, African countries still do not have corrected in the future. It has to be all inclusive fair representation in the decision-making organs and Africa should be involved in the discussions of international institutions. It is unacceptable for and processes. this democracy- and governance-deficit to contin- Second, reform of the international financial ue in these important institutions, whose decisions architecture and international financial institutions directly affect African countries and the lives of is a matter of the utmost urgency. Something is seri- their peoples. Efforts should therefore be made by ously amiss. How could the world, or how could the the international community to increase the par- developed world, land in a crisis of such magnitude ticipation and voting power of African countries in without prior warning? It appears that there is no the World Bank, the International Monetary Fund global mechanism for overseeing the functioning of and the World Trade Organization. Africa’s appeal the global financial system. This is dangerous. We is not only related to these institutions of inter- need to correct this anomaly very urgently. In the national economic and financial governance, but same vein, I believe that the time has come to look also to those of political governance as well, par- into the pricing mechanism or system of vital com- ticularly the United Nations Security Council. We modities, such as oil, which have a pivotal role in believe that Africa’s effective participation or rep- the functioning of the global economy. resentation will ensure that these institutions are more responsive to the needs and concerns of Afri- Third, African countries should also be given a can countries. They will become more accountable greater voice in the decision-making organs of the to all of us, whom they are meant to serve. In this World Bank, the International Monetary Fund and regard, we welcome the recent decision to create the World Trade Organization, without forgetting, an additional seat for sub-Saharan Africa on the of course, a permanent voice in the United Nations Board of the World Bank. Security Council. It would be remiss of me if I did not say some- Fourth, we propose that we must do everything thing about the ongoing global financial crisis. Let possible to ensure that the Doha Development me hasten to add that the crisis poses great dan- Round negotiations are resumed and concluded at ger to Africa’s development. It is a matter of great the earliest possible time. The Aid-for-Trade initia- concern to us in Africa. It threatens to reverse the tive should also be operationalized.

107 The Doha Review Conference on Financing for Development

Fifth, with regard to the Monterrey Consensus, poverty eradication and human well-being at the all nations should keep and deliver on their com- center of our development efforts. mitments and obligations. However, rising poverty levels remain a chal- Sixth, developed countries should make good lenge for Zimbabwe, undermining the attainment on their promise to double ODA to Africa by 2010. of the internationally agreed development goals, The current financial crisis should not be used as an including the Millennium Development Goals. excuse to reduce aid flows to developing countries. The recurrent droughts, compounded by the sanc- After all, a prosperous Africa may assist the world in tions imposed on the country by the European its endeavours to overcome the current problems. Union and the United States of America, the HIV and AIDS pandemic, and—added to these—the Let me conclude by once again restating Afri- current food and energy crises, all continue to slow ca’s commitment to the Monterrey Consensus. down economic development in the country. We, in Africa, will continue to play our part in the realization of its core objectives. We call upon our Nevertheless, despite these challenges, the Gov- development partners to do the same. ernment has continued to implement turnaround strategies aimed at steering the economy towards I believe that together we can marshal suf- sustained economic growth and development. It is ficient resources which are urgently needed to now widely accepted that without a complemen- finance development in Africa. It can be done—let tary conducive international environment and all of us play our part. political will to finance development in developing countries, the objective of achieving internation- Zimbabwe ally agreed development goals, including the Mil- lennium Development Goals, will remain elusive. Statement by It is this realization that led Governments and mul- His Excellency tilateral trade and financial institutions, under the Mr. Robert Mugabe aegis of the United Nations, to commit themselves President of the Republic of Zimbabwe to providing more resources to finance develop- 29 November 2008 ment in Monterrey in 2002. At Monterrey, we were able to make the cor- At Monterrey in 2002, we launched a new part- rect diagnosis and to identify the constraints that nership for financing development, especially the face developing countries in their efforts to eradi- internationally agreed goals, including the Millen- cate poverty through economic and social devel- nium Development Goals. The discourse we are opment. The immediate objective of the com- having here today provides an opportunity for us to mitments made thereat was to reduce poverty, assess the progress made, recognize obstacles and particularly extreme poverty. In addition, the 2005 constraints and identify new challenges, opportu- World Summit reiterated the need to take concrete nities and emerging issues of concern, particularly action to accelerate development. those that affect developing countries. Zimbabwe has been, and continues to be, a We recognize that primary responsibility for victim of unilateral and illegal economic cohesive national development is vested in national gov- measures which, by and large, were instituted to ernments. Zimbabwe, like other developing coun- control the manner in which the country utilizes its tries, is, in spite of its present challenges, making own resources. They were also aimed at undermin- all efforts to achieve the Millennium Development ing the Government through regime change, which Goals by 2015, and to invest in the crucial areas is illegal. My Government reiterates that these of agriculture, infrastructure development, health measures are completely at cross-purposes with the and education. The Millennium Development principles that guide international cooperation as Goals have provided us with a framework to put enshrined in the Charter of the United Nations.

108 Statements by Heads of State or Government

The sanctions imposed on the country have Concerted efforts must also be directed towards had social and economic effects on Zimbabwe’s addressing the problem of the unsustainable exter- key economic sectors and have adversely affected nal debts faced by a number of developing coun- the vulnerable groups in our society. The signifi- tries. While we recognize the various initiatives cant progress the country had made in the devel- that have been undertaken to reduce the debt bur- opment of infrastructure, education, health and den of a number of developing countries, includ- social welfare delivery systems has been lost due ing the Multilateral Debt Relief Initiative, we are, to the loss of the financial and technical support however, of the view that the process is too slow they were given. and does not cover all countries that are indebted. We are also of the view that the real solution to the Even though the country is well endowed with developing countries’ debt problem would be full natural resources, Zimbabweans have suffered, and debt cancellations. Additionally, the inclusion of are continuing to suffer, because of these sanctions debt relief in aid statistics can be very misleading. which have now negatively affected every facet of The simple fact is that debt relief does not make their lives. I take this opportunity to appeal to those available new resources for development. members of the international community who have Since development is a process and not an imposed illegal sanctions against Zimbabwe to lift event, we believe that more attention should be them so that the Government can alleviate the suf- paid to addressing the disparities in the global fering of its people through focusing on the attain- trade regime by removing trade barriers. If we ment of internationally agreed goals, including the act now to remove trade barriers, agricultural Millennium Development Goals, and turning the subsidies and restrictive rules on intellectual economy around. property rights, we will be laying a solid founda- Seven years after Monterrey, the remedies that tion for sustainable development that can lead to the international community agreed to under- the eradication of poverty, particularly extreme take have not been fully implemented to allow poverty, that engulfs millions of people. Zimba- the achievement of targets that were set. It is now bwe is therefore concerned about the breakdown very apparent that the current official development of the Doha Round of trade negotiations, as we assistance (ODA) levels fall short of requirements believe that the successful conclusion of this cru- to meet the targets associated with internationally cial Round will go a long way in providing market access to developing countries. agreed development goals, including the Millen- nium Development Goals. The voice and participation of countries in the decision-making process in international financial In this regard, developed countries need institutions to make them more democratic is an to fulfill their promises to meet the target of 0.7 issue that remains unresolved. The level of partici- per cent of their gross national incomes in ODA pation of developing countries in decision mak- to developing countries in the short term. Such ing within these institutions does not reflect their assistance needs to be adequate, predictable and numerical strength and influence in the global continuous in order to have a meaningful impact. system. It is regrettable that the repeated calls to In the long-term, new and additional resources reform these institutions, including addressing the are required to enable developing countries to issue of distribution of voting rights at the Inter- continue to fight poverty beyond the target date national Monetary Fund, continue to fall on deaf of 2015 for the Millennium Development Goals. ears. The policy orientation agenda and organiza- Whilst we commend those countries that have tional bias of the Bretton Woods institutions have met and even surpassed the target of 0.7 per cent tended to favour the interests of the more powerful of the gross national income, we urge those that members against the weak. For instance, even after have not yet done so to continue scaling up aid in Zimbabwe had cleared their arrears with the Inter- order to reach the required level. national Monetary Fund, that institution could still

109 The Doha Review Conference on Financing for Development

not rise above the bidding of its masters to renew In conclusion, let me reiterate that, together, lending to my country. when we agree that mobilizing financial resources for development is central to a successful global Furthermore, it is indeed ironic that interna- partnership for development, this current review tional financial assistance from these same insti- of Monterrey Consensus could be of great value if tutions to developing countries is often tied to it were to infuse some sense of urgency into the ful- democratic governance at a country level while fillment of commitments made at Monterrey and it is rejected at a global level. We share the view also at the 2005 World Summit on financing for that only the United Nations, with its universal development, including the establishment of effec- membership, has the credibility to ensure that a tive mechanisms to measure aid flows. Indeed, at reformed global financial architecture will have the High-Level Meeting on Africa’s Developments the legitimacy and confidence of the global com- Needs held in New York last September, we called munity to make it viable. for the establishment of a monitoring mechanism Is it not surprising that the hallmarks of good to follow up on all commitments related to devel- governance, accountability, transparency and pru- opments in Africa. dence in the financial systems of the developed Finally, I associate my country with the pre- countries were missing in action and have resulted vious expressions of condolences and sympathies in a grave global financial crisis? We are concerned offered to India over the tragedies facing the coun- that the current international financial crisis, if not try today because of the terrorist bombings and handled properly, could spell doom for develop- loss of life. ing countries, which might be hardest hit in the long run. We hope that the tightening of regulatory instruments will not result in tighter lending policies that make it difficult for developing countries to access financing for development and, thus, result in the derailing of progress towards the achievement of sustainable development. We also wish to point out that had the developed countries reacted to the plight of developing countries with the same resolve and sense of urgency that we see today in their attempts to rescue their floundering companies from the international financial crisis, the world would certainly now be in a better place. Zimbabwe is of the view that all aid to developing countries should come with no strings attached and should be driven by development priorities and the needs of the recipient country. Further- more, developing countries should be given policy space to enable them to set their development priorities, particularly in the area of agriculture. We believe that carefully targeted investments in the agricultural sectors of developing countries, particularly in Africa, can overcome the current food crisis. In addition, developing countries should, in the interim, be given leeway to have subsidies in the agricultural sector to increase production and achieve food security.

110 Chapter 4 Statements by Ministers

Andorra However, we should not sink into pessimism and forget the success that some countries in Asia Statement by and Latin America have been able to achieve. Her Excellency Indeed, there are countries that have known eco- Ms. Meritxell Mateu-Pi nomic growth because of the development of their Minister for Foreign Affairs of the Prin- capital, creativity and innovation. They have made cipality of Andorra great investments in access to knowledge through 30 November 2008 education, that is to say, they have given an absolute priority to human development and have staked on the capacity to grow and develop through the First of all, on behalf of my country, Andorra, let richness, the wealth of human intelligence. This me express condolences to the victims of the acts translates itself in a State budget oriented towards of terrorism that struck Mumbai, India. We totally education, particularly higher education, research reject this type of action. and innovation; and these countries are now I would like to thank Qatar for the high qual- exporters of knowledge. ity of the hospitality we have received here and The global crisis that we are living through for the excellent organization of this Conference. today in the financial world—the monetary I would also like to thank the Secretary-General world—and also the economic and social crises, for having successfully led to the implementa- is without precedent. We are here as witnesses to tion of this commitment at a very high level. All the fact that each country is, first and foremost, Member States agree that the Follow-up Interna- responsible for its own economic and social devel- tional Conference on Financing for Development opment. The excesses, the lack of regulation of the is of essential importance. We must face up to the global financial system due to different legal tradi- most daunting challenge that the United Nations tions, are some of the causes of this crisis. But we confronts today, that is to say, the eradication of should note that the small economic and financial extreme poverty. However, we recognize that the centres are passive actors on this stage that suffer international context has changed enormously from these processes. It would be false to think since 2002. There has been some progress on a that the small-scale economies bear responsibility number of issues, but the implementation of the for the financial crisis. Moreover, they have partici- Millennium Development Goals is, today, partic- pated very little in the global finances; mistakes lie ularly threatened by the multiple global crises that elsewhere and we should recognize that, without are spreading like an infection. false excuses. The Doha Review Conference on Financing for Development

Monterrey was based on a global partnership States, exchanging workers, volunteers, financing and solidarity for development. The current crisis microcredit projects or investing by way of direct shows that the world is totally integrated and inter- economic assistance. Our choice is to support dependent. The solution to that situation, there- small-scale projects in specific communities, which fore, lies in a return to multilateralism—an active can progressively grow and spread like a drop of oil multilateralism—where everyone has a word to say spreads on water and a role to play. In conclusion, from our perspective as a small Let us go back to the founding principle of country, we firmly believe in the need to reform the United Nations, which turned inclusion into the global financial institutions which, after all, a model for growth. The central idea coming out were founded in the context of the end of the Sec- of the Monterrey Consensus was a commitment ond World War. That context no longer exists. The toward the liberalization of trade, which has a role world of the twenty-first century needs this change to play in promoting economic growth, employ- to regain confidence, to strengthen legitimacy, with ment and development for all. Today, this criterion a view to achieving economic efficiency, as well as has been slightly modified. We need to take into financial and social effectiveness based on justice, account the different characteristics and specifici- in our globalized world. ties of each country, and we must adopt appropri- We owe this to our children. Thank you very much. ate measures at the national level with a view to attracting capital and foreign investment, in a climate of legal safeguards and mutual respect. Angola We support the Swiss initiative, which has made social responsibility mandatory for enter- Statement by Her Excellency prises. We are convinced that these factors favour Ms. Ana Afonso Dias Lourenço the strengthening of the national private sector, Minister of Planning of the Republic of making it more socially oriented and responsible, Angola thus promoting stability and giving confidence and energy to those who are fighting crises and towards 30 November 2008 an effective world economy. We reaffirm the essential role played today by official development assist- Madam President of the United Nations General ance (ODA) in moving towards the implementa- Assembly, Secretary-General of the United Nations, tion of the Millennium Development Goals. For Excellencies, Heads of State and Government, Dis- many countries, this assistance is a major source tinguished Delegates, Ladies and Gentlemen, we of their external financing. The financial crisis are greatly honored to take the floor at this Interna- must not put in question the compact of solidarity tional Conference to review the implementation of between developed and developing countries. the Monterrey Consensus, occurring at a particularly difficult political and economic juncture. The Government of the Principality of Andorra continues to work to make sure that its ODA should The main issue under discussion at this confer- reach 0.7 per cent of its gross national income. In ence is the reaffirmation of integrity and a holistic this spirit, with a view to giving greater visibility to approach of the Monterrey Consensus. these objectives, the Government focuses on spe- Mr. President, in Africa, problems related to cific projects, for example, those related towards financing for development are well known and knowledge in all its aspects, and the protection of have existed for a long time. In this context, we the most vulnerable social groups, such as women, avail ourselves of this opportunity to reaffirm the children and the aged. importance of the Political Declaration on Africa’s We concentrate our efforts on establishing special Development Needs, adopted in New York effective partnerships between donor and recipient on September 22, 2008.

112 Statements by Ministers

We would also like to reaffirm the role of What implications will there be for the Afri- NEPAD as a mechanism for the coordination of can continent from the climate of global economic economic cooperation in the continent. recession that has already settled, for example, over Mr. President, in Monterrey, Mexico, the the United States—still the largest economy of the International Community made commitments to world—starting from the third quarter of the cur- finance development commitments, which were rent year? later reiterated in the context of the Summit on Sus- In this context, we welcome the decisions tainable Development and in the 2005 Summit. made at the recent G20 Summit held in Washing- However, before that, at the G8 Summit held ton and we reiterate the importance of the reform in Kananaskis, development partners adopted a of the regulating institutions of the international Plan of Action for Africa based on the continent’s financial system. priorities, having also created a Partnership Forum Mr. President, the African continent remains for Africa, an organ that in principle would be in marginalized from the global economy, repre- charge of following-up and implementing the com- senting only 2% of the global trade, which makes mitments made by the international community. it more imperative to reach a conclusion for the Although we believe that the primary respon- Doha round on international trade, with the full sibility for development rests with states them- realization of its development mandate, with par- selves, Angola is of the opinion that the mobiliza- ticular emphasis on the elimination of agricultural tion of resources and the promotion of trade and subsidies in developed countries and tariff and the initiatives that have been taken in the domain non tariff barriers, which in many cases restrict the of external debt are fundamental for the growth access to the markets of developed countries. and development of our economies. However, looking at the current situation, we Mr. President, the world economy has sud- can easily infer that the international community denly been affected by a dramatic and profound is far from assuming the Monterrey commitments, financial crisis, whose proportion and scope have and in general, from implementing the commit- not yet been fully assessed. ments assumed at the main international confer- Economic history teaches us that Africa always ences in the economic and social field. suffers the heaviest loss in such situations of disrup- Mr. President, finally, allow me to refer to the tion in the international systems due to its bluntly situation in my country. Our model of financing peripheral position in the world economic system, for development is still anchored in three external and always absorbs advantages to a lesser degree components, namely, tax revenues from oil, inter- when the world economic growth is relatively con- national loans and foreign private investment. sistent and sustainable. Between 2004 and 2007, the Angolan economy Moreover, allow me to underline that the econ- accumulated growth of 92.4% in real terms. That omies of developing countries unfortunately con- is, in only 4 years, our GDP was almost duplicated, fronted with other adverse factors linked to the flow which is truly remarkable. of financial resources, foreign investment and the flow of private capital, trade, external debt and the Thus, although our social indicators are some- architecture of the international financial system. what distant from the targets of the Millennium Development Goals, Angola registered significant In this international context, how must we progress in the Human Development Index and address the problem of financing for development encouraging levels of economic growth. in Africa when on developed economies hovers a climate of great mistrust among the agents of the Mr. President, Angola has developed consist- financial system and GDP growth provisions for ent macroeconomic policies. It is consolidating 2009 are deeply low. its democracy, and several measures have been

113 The Doha Review Conference on Financing for Development

adopted in order to increase transparency in pub- as the paradigm of the path to development, along lic administration, fight corruption, and improve with the deepening of the deregulation of financial governance efficiency. markets, enabled the growth of enormous speculative bubbles outside any reasonable link to the Angola will continue to apply the same energy real economy. in order to achieve the Millennium Development Goals and to fulfill the aspirations of the Angolan Recently, many have become aware of what has people, which are sustainable growth and develop- been going on, of its scope and of its consequences ment, as well as the guarantee of a better life, with for the growth of the global economy. This crisis progress and well-being for all. began in developed countries and will affect countries that were not responsible for it. On the con- Finally, Mr. President, in the context of the trary, they have been the engine of economic world present financial crisis, we deem it important and growth in recent years. It is estimated that devel- timely to engage in a profound discussion of alter- oping economies will be affected in their domestic native sources of financing for development which financial capacity as a result of a drop in external guarantee the effective achievement of the objec- revenue and in flows of foreign direct investment, tives of the Millennium. as well as by a toughening of access to credit. Thank you very much. Within this context, it is crucial that developed countries comply with their commitment in relation to official development assistance (ODA) Argentina which they formally took on in 2002. The very Statement by developed countries acknowledge having provid- His Excellency ed ODA in other forms and cooperation, the vol- Mr. Jorge Taiana ume of which is not greater than 0.27 per cent of Minister for Foreign Affairs, Trade and their annual gross domestic product (GDP). From Religious Relations of the Argentine every point of view, this is insufficient and is very Republic far from the 0.7 per cent of gross national income which was taken on as a commitment. 30 November 2008 The Monterrey Consensus and its targets with respect to financing for development did not work, I would like to begin by thanking the Emir of the or perhaps simply worked minimally, contrary State of Qatar and his people for hosting this meet- to what was hoped. The flows from funds were ing and also for the hospitality which the delegation invested and it is the emerging countries and other of my country has enjoyed. I would also like to reit- developing countries that are financed with our erate in this forum, on the part of the Government trade and fiscal surpluses. We have financed the of Argentina, our condemnation of the atrocious excessive tax deficit and trade balance of the largest terrorist attacks in Mumbai. We wish to express, as power in the world. In this new scenario, it is cru- well, to the families of the victims and the Indian cial first of all to emphasize that we are not ready to authorities our condolences and our most heartfelt give up any of the progress that all of us, developed solidarity at this moment. and developing, countries have agreed upon in the We all acknowledge the efforts that have been Monterrey Consensus. made in the beginning of the new millennium to Secondly, nor is it acceptable that some devel- tackle with solidarity and multilateralism the chal- oped countries attempt to delay their compliance lenge of reversing the growing poverty, as well as with the goals with respect to financing for devel- the pockets of hunger, in the world. However, the opment, as well as the Millennium Development implementation of policies that were advocated Goals. It would be a serious error on our part not and led by international financial institutions, such to acknowledge that both things are part of the

114 Statements by Ministers same problem and that, as a result, they have to be the already deteriorating flows of cooperation in integrated in the upcoming steps that the interna- financing for development. tional community will have to take without further Recalling the links between trade and finance, delay in the multilateral sphere. It is only possible we must emphasize, within the context of the cur- through a revamping of financial systems, includ- rent financial crisis, the need for multilateral trade ing the crucial reform of the Bretton Woods insti- negotiations to fully take into account the interest tutions, with the broad participation and represen- of developing countries, eliminating the practices tation of emerging and developing countries in the of developed countries which distort agricultur- design of its architecture and policies. Only in this al trade, and to also make it possible for smaller way can the world be in a position to find solutions countries to maintain appropriate tariff levels to to the causes that led to this crisis, as well as the expand their industrial policies, which are essen- needs in terms of financing for development. This tial to their development. reform must consider official assistance and cooperation for development with a view to improving We should not accept in any situation that there the structure and mechanisms of international will not be financing to fulfil the annual goal which financial cooperation so that this can finance the was set in the Monterrey Consensus, which is just growth of poor countries effectively. a tiny fraction of the abundant funds of the developed countries that are being designed to support In order for growth to be sustainable, it has their financial entities and to maintain the current to improve the standard of living as well as the level of internal employment. At the same time, well-being of the entire population. To achieve developed countries must commit themselves to this objective, it is crucial that wealth be generated increasing the amounts of ODA, as of 2011-2015, from, and for, the real economy. The financial sec- to comply with the percentage of the GNI that was tor, which was globalized before any other sector previously agreed upon. in our economies, stopped fully carrying out its function as a provider of resources for the genu- We would also want to insist on the need to ine growth of companies that produced goods and eliminate the anachronistic system of conditions, services, having entered a spiral of speculation. It both for the use of financial instruments to resolve is, therefore, clear that we are experiencing the end and to prevent crisis, and also with respect to of an era today and, hence, it is very important to ODA, and favour a system which is more flexible, find the necessary consensus in order not to lose without technical or sectoral impositions or trade this historic opportunity. policies which are incompatible with our development strategies. In this Conference, we must be able to introduce all the changes that we feel are appropriate We are convinced of the enormous need and regarding cooperation and financing for develop- utility of having a follow-up mechanism for assist- ment, with a view to redesigning the new interna- ance and cooperation for development which would tional financial system. In the light of this crisis, be part of a new international financial architecture. we believe that we require coordination among This follow-up mechanism should garner the broad developing countries, first of all at the level of participation of emerging and developing countries our respective regions, with respect to the most with a view to decision-making power, in accord- urgent measures that need to be taken to pro- ance with the increasingly large participation of tect our real economies and to maintain a flu- these countries in the global GDP and in trade ent exchange of information on the evolution of flows. We must come up with a model which would the financial crisis. This coordination could be operate on the basis of a consensus, with objective extended to the exchange of information on the clear and valid rules of the game which are the same development of ODA in our respective countries, for everyone, donor countries and recipient coun- as well as experiences in relation to the obstacles tries, and with technically agreed-on criteria which or conduct of donors, which even further affect would make it possible to determine diversions

115 The Doha Review Conference on Financing for Development

from commitments that were made as well as swift Austria compensation for breach of compliance. Statement by Furthermore, Argentina takes this opportunity His Excellency to reassert the importance of South-South coop- Mr. Hans Winkler eration among developing countries, which have Deputy Minister for Foreign Affairs of become net exporters of capital towards devel- the Republic of Austria oped countries in recent years, thanks to having 30 November 2008 obtained with their own efforts surpluses in their current accounts and, in many cases, in their fiscal accounts, as well. We must find ways to channel the Madam President, Excellencies, Distinguished Del- savings towards other developing countries, con- egates, Ladies and Gentlemen, at the outset, let me sidering the fact that the emerging countries will express our deeply felt sympathy for the heinous continue being the main driver of global growth attacks on Mumbai to the Government and People in the coming years. South-South cooperation of India. Let me express on behalf of the Austrian must be put into practice through appropriate Government and people our full solidarity. At the political decisions, support for the most important outset, allow me to stress that Austria fully shares emerging economies, as well as coordinated work the declaration of the European Union. among all developing countries to come up with a Let me also express now my sincere gratitude more practical instrument which would facilitate for having the opportunity to address the Assem- the implementation of projects which, today, are bly on this most important debate on Financing urgent to maintain growth. for Development and let me thank the Govern- In summary, we must acknowledge that over- ment and His Royal Highness, the Amir for the coming the serious problems that we face today generous support and organizing this conference. requires a solution based on the responsibility of Particularly, in the light of the current global challenges, a conference on financing for development every State and the central role of national States, not only comes at the right time, but it is even more both with respect to internal challenges and sus- important than ever. tainable development and also to the processes of coordination and regulation of the global econo- The year 2008 has seen a number of major my. For its part, the United Nations must play an events on development cooperation with partici- active role and contribute to resolving the crisis pation at the highest level of many Heads of States and reformulating the system—which was inher- and Governments, all determined to give new ited from the Second World War—by providing impetus to reach the Millennium Development solutions to a different world, which is now more Goals by 2015. complex and has a larger number of protagonists. Let me just remind you of UNCTAD XII and It is time to implement mechanisms that guar- the High-Level Meeting on Aid Effectiveness, both antee that financial capital is at the service of pro- held in Accra earlier this year, as well as the Afri- duction and development and not the opposite. It ca and MDG-Summits of the General Assembly, is time to tackle the structural causes which pre- further the High-Level Dialogue on the Midterm vent the growth of the global society and harmony, Review On the Almaty Programme of Action with and to ensure that the economy will be focused on focus on Landlocked Developing Countries, and the objectives of an international society which is last but not least, the G20 Meeting in Washington more fair and equitable, which strengthens democ- about two weeks ago to discuss possible solutions racy and contributes to enhancing cooperation for the global Financial Crisis, resulting in a decla- among nations. ration by which the G20 leaders committed themselves, among others, to continued cooperation and multilateralism, as much as they reaffirmed

116 Statements by Ministers their commitments regarding the MDGs, the In the Monterrey Consensus, from our point of Monterrey Consensus and other critical challenges view, the gender dimension was underrepresented. like the food crisis, high energy prices and the con- As the role of women in the development process is sequences of climate change. decisive, it is vitally important in our view to inte- Madam President, our gathering here in Doha, grate gender equality and empowerment of women in all development plans, policies and budgets. For against the backdrop of all mentioned events in the example, we support a UNIFEM project on gender spirit of development cooperation, will hopefully responsive budgeting in South Eastern Europe. profit from the momentum generated by these recent conferences. Therefore, Austria was very active in including The current global challenges, in particular the the gender aspect and empowerment of women, financial crisis and the question of food security, particularly gender budgeting, in the outcome negatively affect the poorest and most vulnerable document of the Doha Conference as well as in the council conclusions at EU-level on Guidelines for people in the world. In this extremely difficult situ- EU participation in the international Conference ation, it is even more important for the donor com- on Financing for Development. munity to honor their commitments and support their developing partners. Although we are aware of the importance of The first Conference on Financing for Devel- Official Development Assistance for our develop- opment six years ago in Monterrey, Mexico, and ing partners, from the Austrian perspective, ODA the resulting Monterrey Consensus, set a funda- is only one means to support development. mental basis for our common efforts to find new The improvement of the basic conditions for approaches in financing for development and is economically and socially sustainable development also of paramount importance in the light of the in our partner countries, an adequate infrastruc- internationally agreed development goals, in par- ture, support for economic growth and the crea- ticular the MDGs. tion of the basic requirements for secure private Although there has been significant progress investment, thereby increasing public revenues and in our partner countries since 2002, many of them, ensuring public investment, are equally important especially least developed ones in Sub Saharan Afri- for the development process. ca, still lag far behind in their development efforts Madam President, especially for fragile states, and increased efforts are urgently needed for them the security aspect is one of the parameters emi- to be able to reach the MDGs by 2015. Therefore, nently relevant for development. Therefore, invest- we have to find solutions for urgent problems of ment in respective regional structures can obtain development finance. some leverage for the development process. Madam President, Austria has actively taken Another important issue we should deal with part in the preparatory work for the Doha Con- is based on the high rates of unemployment among ference at UN and EU level. In this regard and in young people in our developing partner countries. consideration of MDG 8, I would like to reaffirm We have to put in greater efforts in supporting con- that Austria is committed to meet its internation- crete measures to create decent jobs and working al obligations and fully supports the EU goals of conditions for them. 0.51% of gross national income for development At this point, I would also like to appeal to our cooperation purposes until 2010, as well as 0.7 % developing partner countries to recognize in the of GNI by 2015. sense of country leadership and ownership, their The Austrian Development Cooperation responsibility for their own development process. focuses its work on poverty eradication with spe- This understanding I regard as crucial for an effec- cial regard to the situation of women in our part- tive partnership for development based on the Par- ner countries. is Declaration and the Accra Agenda for Action.

117 The Doha Review Conference on Financing for Development

Development requires an active Civil Society, Secretary-General and his staff for their hard work functioning national parliaments and a solid pub- in making this Conference a success. lic administration. Moreover, it is vitally important The central focus of the Monterrey Consen- to further investments in developing countries, sus relates to the means of implementation of the particularly in infrastructure and agriculture. An internationally agreed development goals, includ- enabling economic environment and economic ing the Millennium Development Goals. The growth based on and with the aim of sustainable Monterrey Conference engendered some immedi- development, form, among others, essential cor- ate response, most notably in regard to the present nerstones of a successful development process. development assistance. The developed countries With this in mind, let me conclude, Madam made commitments to provide 0.7 per cent of their gross national income as official development President, by wishing you and all of us a successful assistance (ODA) to developing countries and Conference. 0.15 to 0.2 per cent to LDCs; provide duty- and I thank you very much for your attention! quota-free market access to LDCs; find a durable solution to the debt problems; provide technologies and technical support; and reform the inter- Bangladesh national financial architecture. Despite these commitments, the progress has been dismal. Statement by His Excellency The Review Conference in Doha is taking Dr. A.B. Mirza Md. Azizul Islam place at a critical juncture. Persistent global imbal- Minister of Finance of the People’s Repub- ances, sustained net capital export from develop- lic of Bangladesh ing countries to the capital-rich developed coun- (on behalf of the Least Developed tries, high volatility in the exchange rates of major Countries) currencies, unregulated expansion of speculative markets, failure of the World Trade Organization 30 November 2008 trade negotiations, rapid pace of climate change, devastating financial crisis in mature economies, I have the honour to speak on behalf of the least soaring oil- and non-commodity prices, particu- developed countries (LDCs). The group aligns itself larly the unprecedented rise in food prices: all with the statement of the Group of 77 and China. pose grave risks to achieving sustained economic growth and achievement of the Millennium Devel- Let me begin by expressing profound sympa- opment Goals in developing countries, particularly thy to the Government and people of India for the in the LDCs. traumatic experience they have suffered recent- The financial crisis has been highly contagious, ly as a result of a contemptible terrorist attack. I casting a pall of gloom over the economic land- also wish to express heartfelt condolences to the scape of the entire world. Its debilitating impact bereaved families. on the real economy is no longer a mere possibil- I am privileged to attend this Follow-up Inter- ity, but a stark reality. The LDCs are likely to suffer national Conference on Financing for Development seriously from potentially dangerous consequences in this beautiful city of Doha. Our warm gratitude for exports, remittances, foreign direct investment goes to His Highness Sheikh Hamad bin Khalifa (FDI) and ODA, which constitute the backbone of Al-Thani for his generous hospitality and for the their economies. Access to credit markets is also wonderful arrangements made for this Confer- under a big threat. ence. Our special thanks go to the Government of The complex and multifaceted global chal- Qatar for providing support for the participation lenges warrant a strengthened multidimensional of the LDCs in this Conference. We also thank the global action. The international community must

118 Statements by Ministers agree on an ambitious action plan for the full of investments in LDCs goes primarily to natural implementation of the Monterrey Consensus as resources extraction and resource-based manu- well as effectively address new and emerging chal- facturing industries. The international commu- lenges through additional resources. We firmly nity should undertake appropriate measures to believe that the fast-deteriorating global economic increase FDI in the LDCs and ensure its equitable scenario can only be remedied through inclusive distribution. multilateralism. In our view, the United Nations The failure of the completion of the Doha General Assembly has the legitimate authority and Round is no doubt a major setback for the mul- expertise to lead that process. tilateral trading system. We must marshal the We note that the Group of Twenty (G20) Sum- political will to achieve the successful completion mit on Financial Markets and the World Economy, of the Round and full realization of its develop- held in Washington, D.C., on 15 November 2008, ment goals. The key development deliverables, can complement the inclusive multilateral process. particularly duty- and quota-free market access In this regard, we express our concern that LDCs and support for production capacity building for remain totally unrepresented in this Group. We call LDCs, should be pursued expeditiously, vigor- upon the G20 countries to include the voice of the ously and comprehensively. Developed countries 49 LDCs in this process to make it more represent- and developing ones in a position to do so must ative and participatory. We also stress the need to provide duty- and quota-free market access to all convene a major international summit-level confer- products from LDCs, unilaterally and without ence, under United Nations auspices, to review the discrimination, even before the conclusion of the international financial and monetary architecture Doha Round. and the global economic governance structure. The ODA-GNI ratio has declined from 0.33 to Most LDCs have come a long way in establish- 0.28 per cent in 2007. For LDCs, the ratio is stag- ing an effective, fair and stable institutional, legal nant, only at 0.09 per cent. Conditionality, unpre- and regulatory framework for public, private and dictability and earmarking of ODA remain some civil society activities, as called for in Monterrey of the key challenges in ensuring aid effectiveness. Consensus. In many cases, we have made consid- Developed countries must fulfill their ODA com- erable progress in the promotion of democracy, mitment of 0.7 per cent of gross national income human rights and the rule of law. These achieve- to developing countries and 0.2 per cent of gross ments, however, have not made much headway national income to LDCs by 2010. in reducing the perennial savings-investment External debt is a big challenge for many LDCs. gaps in many least developed economies. Greater The Multilateral Debt Relief Initiative (MDRI) is a efforts are required to support the creation and welcome one. However, existing debt relief initia- strengthening of a congenial environment through tives should be deepened and broadened, in order appropriate national and international actions. to encompass all LDCs who have been facing obsta- International cooperation in tax matters needs to cles in addressing their external debt problems. be strengthened. The Committee of Experts on If a country fulfills the criteria of being a LDC, it International Cooperation in Tax Matters needs to should be eligible for debt write-off. It is therefore be upgraded to an intergovernmental body of the important that all outstanding debt, both multi- United Nations, with adequate financing. lateral and bilateral, of all LDCs should be written Despite significant improvements in the invest- off immediately. Future development assistance ment climate in LDCs, this group of countries should be grant-based to avert the recurrence of remains marginalized within the global produc- debt unsustainably. We stress the importance of tion networks. The group, with around 12 per cent continued flexibility with regard to the eligibility of total world population, receives less than 2 per criteria for debt relief under the Heavily Indebted cent of total world investment. The major share Poor Countries and MDRI Initiatives.

119 The Doha Review Conference on Financing for Development

Many LDCs are falling victim to the impact In conclusion, we feel that the review and of climate change, for which they bear little or no monitoring of the implementation of the com- responsibility. It is crucial that their adaptation as mitments of both Monterrey and Doha would be well as mitigation needs to deal with such impact critically important. A comprehensive and diverse are adequately met, without undermining the flow multi-stakeholder follow-up process is necessary. of normal development assistance. We look forward to a concrete decision on the follow-up of the Conference. Access to energy, including renewable sources of energy, and modern eco-friendly technologies at an affordable cost, is essential for LDCs to achieve the Millennium Development Goals and other Barbados internationally agreed development goals. Statement by The prospects of South-South cooperation, Her Excellency including triangular cooperation, have signifi- Ms. Maxine McClean Minister for Foreign Affairs and Foreign cantly increased. However, LDCs are yet to fully Trade, Barbados reap the benefits offered under it, and they must therefore be provided with special facilities to do 1 December 2008 so. We call upon the advanced developing countries to extend commercially meaningful duty- and Mr. President, I would like to thank the Govern- quota-free market access to exports of the LDCs. ment and people of the State of Qatar for the very We also call for the early conclusion of the third warm welcome that you have extended to us and round of negotiations under the Global System of for the excellent facilities that you have placed at Trade Preferences and request all developing coun- our disposal. tries to join the initiative. I would also like to align the Barbados delega- The governance regime of Bretton Woods tion with the statement made by Antigua and Bar- institutions needs to be changed. To redress their buda, on behalf of the Group of 77 and China. Let democratic deficit, the fundamental reform of their me also join other delegations in condemning the voting system and accountability structures must wanton destruction of life and property in the city occur. The doubling of basic votes, as called for by of Mumbai and offer the sincere sympathy of the the Board of the International Monetary Fund last Government of Barbados to the Government and year, would not affect the distribution of power or people of India, particularly those who have lost change the decision-making procedures. Special loved ones. weightage should be accorded particularly to LDCs in setting the new quota formula as their voice is Six years ago in Monterrey, financing for devel- critical in the Bretton Woods institutions. If such opment was placed firmly on the global agenda. At a new architecture is to work, it must involve the that time, the Monterrey Consensus represented a Governments of developing countries in its design building block in the creation of a global alliance and implementation. for development. World leaders then pledged to translate the commitments made at Monterrey LDCs are inherently the most vulnerable group into a particular programme of implementation. of countries due to their structural weaknesses. The issues covered by the Consensus document Many of them will not be able to achieve the Mil- were vast, and expectations were high. lennium Development Goals and other development goals if the required level of financial and Today, the world is a different place. The global technical resources is not ensured. Financing for financial system is in crisis. Energy prices remain development is critically important to them. The volatile. The global food crisis and the challenges of Doha outcome must place at its centre the special climate change persist, and the development aspi- concerns and priorities of the LDCs. rations of countries, including the achievement of

120 Statements by Ministers the Millennium Development Goals, are in jeop- The need for improvements of the multilateral ardy. This Follow-up International Conference on trading rules to enhance fairness and bring equity Financing for Development to renew the Monter- to the system through the reduction and removal rey Consensus is therefore taking place at a critical of trade-distorting agricultural subsidies and insti- juncture in history. tutional and regulatory reform, particularly in the Although the level of progress made towards field of services, remains necessary. implementing the Monterrey Consensus has been The prospect of a global economic slowdown far from satisfactory, the Government of Barbados in 2008, which may trigger a concurrent decline remains hopeful and committed to the process, as in commodity exports from developing countries, this Conference presents us all with the opportu- is also likely to have particularly adverse implica- nity to address current global challenges and, more tions for the economic growth of small economies. importantly, the opportunity to take major deci- Within the Caribbean region, many States have sions that emphasize the need to reform the global already registered increasing trade deficits against economic and financial system. the backdrop of a fall in exports. Given that, for The creation of an effective international the most part, countries in the Caribbean are net financial governance system that is inclusive and importers of goods, we stand to exacerbate our bal- that supports the development aspirations of all ance of payments problems. States, by ensuring the availability of the necessary In addition, the expected slowdown in foreign resources to aid development, continues to be criti- direct investment (FDI) in the Caribbean region cal if we are to play our part in creating a more just will not only affect our ability to trade as individual and equitable world. countries, but it will, in essence, compromise our There is no doubt that trade remains the driving efforts at creating wealth, of alleviating poverty and force behind economic growth and development of achieving the Millennium Development Goals of the global economy. Globalization and trade lib- and other developmental goals. eralization have not only changed the structure of There is an urgent need for the international the global economy; they have led to rapid expan- community to deepen its understanding and dis- sion in the volume of global trade in the last few decades. Despite this, developing countries, and, in play greater sensitivity to the development needs particular, small island developing States like Bar- and concerns of small developing countries. In bados, have not received the expected economic order to attain sustainable levels of growth, coun- dividends emanating from trade liberalization—to tries like Barbados require greater access to sta- take full advantage of the opportunities that glo- ble, predictable sources of financing. Regrettably, balization does present. The maintenance of sub- the level of official development assistance (ODA) sidies and other trade-distorting measures, non- flows in real terms has declined, and continues to tariff and technical barriers, and scant regard for do so, in developing countries. special and differential treatment for developing It is important to note that middle-income countries have, in simple terms, heightened the countries, such as Barbados, oftentimes borrow risk of marginalization of countries like Barbados. commercially to meet critical infrastructure and As a small, vulnerable economy, we therefore other development needs. However, in light of the accord great importance to the creation of a viable, global economic instability, accompanied by rising equitable, open, rules-based trade regime which interest rates and volatile commodity prices, it is the recognizes the diversity in the levels of develop- intent of the Government of Barbados to remain ment and size of countries and their economies, prudent in its financial undertakings so as not to and underscores the principle of special and dif- increase our debt burden and to prevent dramatic ferential treatment. negative effects on our economic growth prospects.

121 The Doha Review Conference on Financing for Development

The graduation of Barbados from the World to improve the ability of these countries to attract Bank has prevented us from accessing much need- private finance. ed development financing, and we find it increas- Furthermore, the Multilateral Debt Relief ingly difficult to access the concessionary financing Institutions should not be administered solely by necessary to assure future sustainable growth and the principal international financial institutions, development. The graduation of middle-income which have a vested interest as creditor in the out- countries like Barbados needs to be reassessed in come of their own actions. Barbados calls for fur- light of inherent vulnerabilities caused by their ther reconsideration of the proposal for establish- small size and exposure to natural and environ- ing an independent debt arbitration mechanism mental disasters and, indeed, the vagaries of the to be developed, including creditors and debtors, international financial system. In these circum- as well as impartial expert interlocutors, in assess- stances, and despite our graduation, there remains ing, adjudicating and passing judgement on debt a need for other forms of assistance, in the form reduction options. of technology transfer and technical assistance initiatives. In this connection, an International Conven- tion on Sovereign Debt Restructuring in Financial Barbados wishes to reiterate the important Emergencies may need to be considered to incor- role that innovative sources of financing can play porate the lesson that has been learnt over the last in mobilizing additional resources for develop- twenty years, and from the present financial crisis, ment. However, such sources should be comple- and to remove inconsistencies and avoid ad hoc mentary to, and not substitutes for, ODA and must approaches that have been the hallmark of attempts not impose any burden on developing countries. to restructure debt burdens. Furthermore, we also believe that in studying such innovative sources we should not divert our focus The Monterrey Consensus emphasizes that and attention away from traditional sources of future reviews of debt sustainability should bear in financing, or send a signal that the international mind the impact of debt relief on progress toward community has given up hope that developed the achievement of the development goals con- countries will meet their 0.7 per cent aid commit- tained in the Millennium Declaration. It is there- ment or their other commitments on trade, debt fore imperative that the international community relief, FDI and governance. places greater focus on addressing the lingering debt problems of many small vulnerable States and As it relates to the matter of external debt, middle-income developing countries. there is an urgent need for a comprehensive and vigorous approach to addressing the debt burden The Government of Barbados believes that the of middle-income developing countries like Barba- current governance structure of the international dos, given that economic indicators and traditional financial system is simply too exclusive, limited and modes of assessment, such as per capita income, not sufficiently equipped to meet the requirements often mask the true impact of the debt burden on of today’s complex and interdependent global our populations, the level of poverty and income economy. There is a marked asymmetry between inequality that exists, and prospects for achieving an increasingly sophisticated, yet unstable, world development goals. and the institutions that regulate and supervise it. Barbados is also of the view that the Heav- As the current and past financial crises illus- ily Indebted Poor Countries (HIPC) Initiative has trate, the present international financial system proven to be inadequate and insufficient in address- lacks appropriate institutions for financial glo- ing the debt burdens of the poorest countries. balization. The impact of financial volatility and Much greater effort is required to further reduce uncertainty is most severe in developing countries, debt in HIPCs to sustainable levels and thus help especially small, open economies.

122 Statements by Ministers

Enhancing the voice and participation of of all countries in the norm-setting process at the developing countries in international economic international level. Barbados strongly supports decision-making and norm setting remains a the mandate of an inclusive United Nations body fundamental prerequisite for improving global dedicated to facilitating international tax coop- economic governance. We all have a stake in the eration and, as such, examining the agenda of global economic system and its management, from emerging issues of importance to small develop- the biggest and wealthiest among us to the smallest ing countries that are not presently addressed in and poorest. In this connection, we believe that the other organizations. ongoing discussions on quota and voice reform in In conclusion, I wish to reiterate the commit- the Bretton Woods institutions should result in an ment of my country to working with all partners, increasing level of representation of, and a greater Governments, the private sector and civil society, voice for, small developing countries. in order to ensure that the challenges to our devel- The importance of the international business opment aspirations which we all face are dealt with and financial services sectors to the economies of in a coordinated, coherent and timely manner. most Member States of the Caribbean Community and Common Market (CARICOM) dictates our commitment to international tax cooperation. Bar- Belarus bados is of the view that international cooperation Statement by in tax matters is necessary to combat tax evasion Her Excellency and abuse. Barbados fully supported Economic Ms. Tatyana Starchenko and social Council resolution 2004/69, which con- Deputy Minister for the Economy of the verted the Ad Hoc Group of Experts on Tax Matters Republic of Belarus into a Committee of the Council, with a new and expanded mandate. We were particularly support- 30 November 2008 ive of the conversion as we felt that previous institutional arrangements addressing cross-border tax First of all, on behalf of the Government of the matters were not inclusive and did not address the Republic of Belarus, I would like to extend our grat- concerns of small, vulnerable developing counties. itude to the United Nations, to the Emir of Qatar and the Government and people of Qatar for the In addition, the agenda of existing institutions, excellent organization of this highly representative such as the Organization for Economic coopera- forum, which is to give new impetus to the internation and Development, which address internation- tional community’s efforts to finance development. al tax matters, was, and still is, considered devoid of a development dimension and clearly skewed The Republic of Belarus advocates a balanced in favour of its members. We remain committed approach in terms of applying instruments of to cooperating with the international community development in accordance with the level of the on tax matters and other related issues. We believe, economies of developing countries, and consist- however, that such cooperation must be even- ently implements it. handed and not arbitrary, must operate on a level In the early 1990s, Belarus started moving from playing field, and must take into consideration the a planned economy to a market economy. It has special and unique situation of small, vulnerable largely learned to use market mechanisms and reg- developing economies. ulatory tools effectively and has achieved impres- In this connection, Barbados is of the view sive economic growth. After the Monterrey Con- that the United Nations Committee of Experts on ference, the economic growth of Belarus has been International Cooperation in Tax Matters must be 9.75 per cent a year, on average. The experience of transformed into an intergovernmental body that Belarus shows that to ensure sustainable develop- facilitates the equal and democratic participation ment and economic growth, one must abandon

123 The Doha Review Conference on Financing for Development

cookie-cutter, “one-size fits all” approaches in eco- Urgent measures are necessary to conclude the nomic policy. Doha Round of the World Trade Organization’s negotiations, and democratization of the proc- Belarus bases its social and economic policy on ess of introducing new members into the process. a custom-made approach, with a focus on an ade- Economic and political pressure remains a reality quate level of liberalization, openness of the econ- of our time. In our view, it is important not only omy, and developing market institutions and the to maintain but to enhance the role of the Unit- private sector. At present, the Belarusian economy has reached a stage where we can reasonably and ed Nations in creating effective mechanisms for effectively benefit from economic liberalization. broadening the financing of development, both globally and nationally, with the focus on specifi- Belarus took a number of decisions which have city and the needs of specific countries. improved the investment attractiveness of our country for international business. At the moment, our It is necessary to give a new emphasis to the economy is open to foreign investments, but today implementation of the United Nations General their level is defined by the international environ- Assembly resolution on the integration of States ment. We advocate sustainable development for the whose economies are in transition into the world’s entire international community. The decisions of economy. Broadening trade and investment and this Conference are regarded by us as an important direction between developing countries and stage in the global process to improve international countries whose economies are in transition will economic cooperation for development. strengthen the potential of countries in financing development. The draft outcome document of this Confer- ence is fairly balanced. But we would like to see a We note with satisfaction the fact that the out- more specific appraisal of the status of implementa- come document pays great attention to the need tion of the Monterrey Consensus, and of the issues to improve the system of international coopera- which in recent years have had a considerable tion. The time has come to improve it in a coor- impact on slowing down the process of financing dinated and consistent fashion. The institutional development. In recent years in the world’s devel- architecture of the international financial system, opment, opportunities have increased for benefit- new world economic realities and the increased ing from globalization, but the so-called pools of pressures of the financial crisis confirm the need poverty have become more pronounced. Experi- to look for adequate tools and levers to manage the ence shows that not all countries can benefit from international financial system, to reduce its vulner- globalization. The hope for a radical liberalization ability, to make it more predictable and to prevent of trade regimes, or the exclusive strength of the financial crises in the future. market, has been dashed. In conclusion, I would like to emphasize the Without adequate and effective regulatory fact that the Republic of Belarus has committed mechanisms at the national level—without a to the international development goals. That com- favourable international environment—these reci- mitment remains. We are interested in the further pes would not work. One wonders at the broaden- integration of our country into the international ing practice of the use of unilateral trade and eco- community. We hope that all participants will con- nomic measures of coercion. Such actions threaten tinue to work fruitfully. the integrity of the trade and economic system and cannot help the implementation of the Monterrey Consensus. We must take more and more active and resolute steps to eliminate unjust unilateral sanctions, and other measures which prevent us from reaching well-coordinated parameters for sustainable development.

124 Statements by Ministers

Bhutan We are all aware of the economic downturn and the financial crunch in the developed coun- Statement by tries. We must, however, be mindful of the greater His Excellency pains that the poor in the developing countries Mr. Lyonpo Yeshey Zimba would suffer as a result of the global economic Minister for Works and Human Settle- downturn. The need for aid is more urgent -dur ment of the Kingdom of Bhutan ing such times as the poor have no option than to 1 December 2008 endure more pain and degradation of human dignity. The time has come for the global community to realize that we have one common future on this Honorable President, Mr. Secretary-General, Hon- planet and that we need to share our resources for orable Head of States andGovernments, Excellencies, mutual benefit and for sustainable peace and pros- Ladies and Gentlemen, my delegation would like to perity in the long run. No nation is insulated and thank the Government of the State of Qatar for the problems in any country or region could be the excellent arrangements made for the conference, the source of problems in other regions or countries. warm hospitality and for financing the participation All problems in the world now need to be resolved of the Least Developed Countries delegations. through global efforts where the rich and the poor Mr. President, eight years ago, when the new must work together as a team. millennium dawned, it ushered in renewed hope Mr. President, almost every speaker in this and aspiration for all the people of the world, par- meeting condemned the dastardly act of terror- ticularly the poor and the disadvantaged. The Mil- ism which claimed innocent lives in the Indian lennium Summit of 2000, which saw the largest city of Mumbai. The Indian government had the ever gathering of world leaders, adopted the noble capacity to deal with the problem and must be Millennium Development Goals with timebound commended for having ended the siege with the concrete internationally agreed development goals. minimal loss of lives. These efforts were further strengthened with Terrorism, however, is today a threat to the peace the adoption of the Monterrey Consensus for and prosperity of every country. No nation rich or Financing for Development in 2002. A beacon of poor, big or small is spared from its threat. Terror- hope for the world’s poor emerged on the hori- ism is a problem that must be addressed through zon—or so it seemed. common and concerted efforts of all countries. The Monterrey Consensus has not been real- Mr. President, yesterday several distinguished ized and the Millennium Development Goals speakers reminded us that peace was a precondi- remain a distant dream for most developing coun- tion for development and that the basis for peace tries. The rich nations have become richer but the was justice. I agree with this. There cannot, howev- resource flows to the poor have not increased. The er, be justice when large numbers of people suffer plight of the poor has been further aggravated by and struggle everyday just to survive. Every day is the rising cost of food and fuel, amongst others. a day of uncertainty and great pain. Poverty is the greatest injustice and the greatest threat to peace Eight years after the Millennium Summit and anywhere. Unless poverty is reduced peace cannot six years after the Monterrey Consensus, we meet be assured—the poor have no stake in the society here in Doha to discuss the same problems and and have nothing to lose. Poverty is the breeding issues and sadly discover that nothing much has ground for social unrest and terrorism. If we want changed. Unless the global community particu- peace then we must reduce poverty. To reduce larly the rich nations honor their commitments to poverty the poor countries have no choice but to enhance resource flows to the poorer countries, the seek the support of richer nations. Global peace plight of the poor will continue to remain grim. needs global efforts and cooperation. The present

125 The Doha Review Conference on Financing for Development

economic crisis should not be an excuse for not Bolivia giving but greater reason for increasing ODA to alleviate the suffering of the poor. The commit- Statement by ments made under the Monterrey Consensus must His Excellency Mr. David Choquehuanca be honoured. Minister for Foreign Affairs and Worship Mr. President, may I now briefly highlight of the Republic of Bolivia recent developments that have taken place in 30 November 2008 my country, Bhutan, including progress towards achieving MDGs. Bhutan is on track to achieve most of the MDGs. Given the highly mountain- On behalf of the Government of Bolivia, I would ous terrain, we will however require enhanced like to take this opportunity to express our most financial support from our development partners, sincere thanks to His Highness, the Emir, and to particularly for infrastructure building (roads, the people of Qatar for the very warm welcome and schools, hospital, electricity, etc) which is the key fraternal hospitality which have been extended to to poverty reduction. us in order to participate in the Follow-up Interna- tional Conference to Review the Implementation On the political front, the most important devel- of the Monterrey Consensus. opment in the recent history of my country was the transition from Monarchy to Democracy. A free and We would also like to express our condemna- fair election was held, under the watchful eyes of EU tion of the acts of terrorism which took place in the Commissioners, and a new democratic government city of Mumbai, India, which has led to the loss of was elected on 24 March 2008. Democracy in Bhu- many lives. We wish to convey our solidarity and tan was thrust upon a reluctant people by a great condolences to the families of the victims. and visionary King, who surrendered his powers to I would like to refer to three aspects of Monter- the people at the peak of his popularity. rey Consensus. The first is official development Bhutan’s development philosophy of Gross assistance (ODA). In Monterrey, it was great that National Happiness, initiated by the King, has developed countries would devote 0.7 per cent of given the world a new paradigm for development their gross national income to ODA for develop- which places the well-being and happiness of the ing countries. Only some countries have fulfilled people at the centre. It aims to bring about greater this commitment and, on average, ODA has not human happiness through a balanced development gone beyond 0.3 per cent at the present time. And, framework where economic growth, conservation now, the bankers who provoked the current finan- of natural environment, promotion of culture and cial crisis have done much better than developing traditions are well integrated under a system of countries and the Monterrey Consensus. In simply a few months, the banks have received in the Unit- good governance. Good Governance is now to be ed States and Europe $4.1 trillion. That is 45 times assured by the people through democracy. more than the entire ODA granted by the United People’s faith in the King has stood the test States and Europe, which amounts to $90 billion. of time. People’s faith in democracy will depend What does this show us? That development largely upon the ability of the newly-elected gov- and poverty are 45 times less important than the ernment to meet the aspirations of the people, that Exchanges of all streets in the world. It also teaches is to build infrastructure to reduce poverty. Hence, us that there are enough public resources avail- the financial support of the donor community is able when it is a matter of saving the banks that needed to improve the well-being of the poor and caused the crisis, but when it comes to providing to build the people’s confidence in the institution funds for development all of a sudden these public of democracy. funds shrink. We cannot continue with this double Thank you and Tashi Delek! standard; thus, in order for this Conference to be

126 Statements by Ministers useful, we have to put an end to it. Development model, once and for all, which has brought us to and the fight against poverty cannot continue to this situation? Within this framework, it is impor- receive leftovers from the table. tant to make progress towards new supranatural organizations for financial regulation. The second aspect I would like to refer to is international trade. The paradigm of the Monter- rey Consensus that free trade was going to bring development to our countries has not been ful- Brazil filled. On the contrary, through free trade treaties, Statement by developing countries are being pushed to open up His Excellency our basic services to privatization, that we patent Mr. Celso Amorin animal and plant life, that we liberalize our finan- Foreign Minister of the Federative cial services and that we put an end to the few pref- Republic of Brazil erences that our national producers have when it 30 November 2008 comes to Government procurement. These free trade agreements have caused division and crises within the processes of regional integration that First of all, I want to express on my own behalf, have taken decades to build for our peoples. and on behalf of the Brazilian Government, our deep condolences to the people and Government I would also like to condemn that fact that Gov- of India for the barbaric acts of terrorism that took ernments, such as that of President Bush, use trade place in Mumbai. I commend the Government of in tariff preferences as pressure mechanisms and as Qatar for hosting this important Conference. I also political vengeance against developing countries, express my deep appreciation for the hospitality such as Bolivia, to try to discipline us. Trade as a extended to me and to my delegation. political pressure tool is something that is harmful and should be condemned by this Conference. At When the Group of Twenty (G20) leaders met the level of the World Trade Organization (WTO), in Washington, D.C., on 15 November 2008 on the we cannot say that we simply conclude that the financial crisis, they expressed their determina- Doha Round of the WTO has forgotten develop- tion to enhance cooperation and to work together ment and has not taken into account the crises, the to restore global growth and to reform the world’s three crises that affect mankind today, that is to financial system. They also had the impact of the say, the food crisis, the financial crisis and the cli- crisis on developing countries very much in mind. mate change crisis. The WTO must acknowledge I would like to highlight four points: the increas- its error of having promoted the liberalization of ing importance of official development assistance financial services and freeing countries from the (ODA) in the present context; the urgent need to commitment that they made. conclude the Doha Round; South-South coopera- The last aspect that I would like to refer to tion and the role of the international community; is the international financial system. Everyone and fourth, the reform of international institutions. agrees that we have to reform it. But who is going Since the crisis originated in the developed to reform the World Bank and the International countries, the responsibility should be theirs to Monetary Fund? Are the World Bank and the restore global economic growth and to mitigate its IMF going to reform themselves? Is the Group of impact on developing nations. It is true, as many Twenty (G20) going to reform them, or is it the have said, that we are all in the same boat and 192 Member States of the United Nations who will the boat still risks sinking, but this time the hole have to do so in equal conditions? The other aspect appeared in the first class. Measures should be bold relates to what type of reform is required, that is to and urgent. The role of public investment is crucial. say, a reform that continues on the path towards This logic of State-led economic recovery requires neoliberalism, or reform to put an end to this coordinated action on the international level. The

127 The Doha Review Conference on Financing for Development

discussion on ODA should also be seen in this con- hunger and achieve the Millennium Development text, not only as a moral obligation but also as the Goals. Innovative financial mechanisms are now a right answer to keep the world economy afloat, not positive reality and may contribute with important as generosity but as self-interest. additional sources of financing. Of course, they should not be counted as part of ODA. In the retreat organized by the Secretary-Gen- eral and the Emir of Qatar, many countries, devel- International institutions must be deeply oped and developing alike, emphasized the need to reformed. This applies to the United Nations, espe- conclude the World Trade Organization negotia- cially to its Security Council, as well as to the Bret- tions immediately. Some leaders of the least devel- ton Woods institutions. There is a growing consen- oped countries stressed that the gains accruing sus on the need for a new international financial from the elimination of trade-distorting subsidies architecture, one in which the participation of and other barriers would be far greater than those developing countries in the decision-making proc- deriving from financial assistance. They will also ess reflects their increasing weight. The G20 Sum- gain from duty- and quota-free market access. mit was a first positive step in this direction. How- ever, it will not meet the expectations and interests We came very close to concluding the negotia- of all. The United Nations can, and should, contrib- tions in July. And everybody seems to agree with ute to this debate. It remains the most democratic the concept of a safeguard available to developing and representative forum, the only one that can countries that avoids import surges and, at the same add legitimacy to the reform process. With this in time, does not affect normal trade in agricultural mind, President Lula proposed to convene a high- goods. It is a question of putting right numbers to level meeting of the Economic and Social Council this concept, yet, we were not able to overcome this to discuss the crisis in all its aspects. I reiterate this hurdle then. Given the political will now, this task proposal before this Conference. is well within our reach. At this stage, developing countries have already made all the concessions they could afford. This is not a time for excessive Brunei Darussalam demands that would tip the balance against devel- Statement by oping countries, unravelling the whole agreement. His Excellency Of course, there are many things developing coun- Mr. Pehin Dato Abd Rahman Ibrahim tries can do for themselves, in areas like South- Minister for Finance II of Brunei South trade, cooperation and investment. In the Darussalam case of Brazil, exports to developing countries, which increased from 42 per cent to more than 54 30 November 2008 per cent in six years, helped mitigate the impact of the crisis. But the international community can Madam President, Excellencies and Distinguished also help. Trade financing is an area in which the Delegates, on behalf of the Government of His impact of the crisis has been most severe for devel- Majesty the Sultan and Yang Di-Pertuan of Bru- oping countries. The World Bank, for one, should nei Darussalam, allow me to express our heartiest create new facilities to provide financing for trade, appreciation to His Highness the Emir of Qatar thus easing the credit crunch. Sheikh Hamad bin Khalifa Al Thani and also to Another way to assist South-South trade the Government and People of Qatar for the warm would be to develop new instruments that would hospitality that has been accorded to me and mem- facilitate the access of poorer countries to export bers of my Delegation as well as for the excellent credits from other developing countries. The glo- arrangements of this very important Conference. bal Action against Hunger and Poverty, launched At the outset, I also wish to offer our condo- in 2004 by President Lula and other leaders, called lences to the Government and People of India on for the mobilization of additional resources to end the recent tragedy that had happened in Mumbai.

128 Statements by Ministers

Madam President, I wish to join all distin- challenges that still hinder our progress particu- guished speakers before me in endorsing the criti- larly in the areas of trade, investment and reforms cal importance of this Conference. The reasons are of the international financial and economic archi- three-fold. tecture. It is imperative that efforts are pursued towards creating an enabling environment that Firstly, this conference allows us to take stock encourages closer cooperation in trade between of our achievements thus far. It provides us with developing and developed countries, as well as the opportunity to review our progress in realizing among developing countries. the goals and objectives of the Monterrey Consen- sus that we set out in 2002, particularly the Millen- We therefore share the view that the conclu- nium Development Goals (MDGs). sion of the Doha Round would contribute to a more rapid expansion in global trade that would Secondly, this Conference gives us the chance benefit all countries. to assess and address the challenges and obstacles that confront us today. Until end of August this year, Moreover, we recognize the catalytic role of private capital flows, particularly, the Foreign international communities were very preoccupied Direct Investment (FDI) in stimulating growth and with intensified problems of very volatile commod- development in developing countries. FDI brings ity prices as well as climate change that had impact- with it the transfer of technology, knowledge and ed on global food supplies, hence, prices that has expertise that is needed by developing countries. raised serious concern on global food security. For the developing countries, besides the need to Today Madam President, we are facing possi- enhance their investment climate and legal frame- bly the worst global economic slowdown since the work to attract investments (foreign and domes- Great Depression due to global financial crisis. The tic), it is also essential that human resource devel- global economic activity is slowing quickly. The opment, especially education, be given greater negative feedback loops between the financial sector emphasis. We believe that education and human and the real economy and the deleveraging process resource development will always be a vital ele- have continued to intensify. The economic outlook ment in our pursuit to achieve long-term sustain- is exceptionally uncertain. Worldwide, producer ability and thus our effort in alleviating poverty. and consumer confidence have fallen dramatically. In Brunei Darussalam, Madam President, these More jobs losses are predicted, thus affecting daily elements have been placed high on our long-term life of many families. There is no doubt that these national development agenda. negative trends would threaten whatever gains that Madam President, it is also essential that par- many countries have achieved on the macroeco- ticipation of developing countries in multilateral nomic front. It could easily jeopardize the long- forums be effectively enhanced. We note that some term prospects for meaningful economic growth progress has been made in improving the govern- and development, particularly of developing coun- ance structure of these international fora, includ- tries as well as countries in transition. ing the IMF that would go a long way towards Thirdly, this Conference provides us with the ensuring that international policies being initi- avenue to discuss and formulate new strategies and ated would also take into account the concerns of possibly a new plan of action, as a way forward, to developing countries. achieve the goals and objectives of the Monterrey In conclusion, Brunei Darussalam remains Consensus. It is an opportune time for us to iden- supportive of various efforts undertaken at the tify more realistic and pragmatic approaches that regional and international levels to strengthen can be implemented to accelerate progress of the international partnership needed for realizing Monterrey Consensus. internationally agreed development goals including the Millennium Development Goals (MDGS). In this regard, we believe that we will benefit from focusing our efforts at addressing the various Thank you Madam President.

129 The Doha Review Conference on Financing for Development

at global partnership in order to assess the agree- Cameroon ments and commitments entered into with regard Statement by to international financing. The follow-up, then, to His Excellency the Monterrey Consensus and the implementa- Mr. Henri Eyebe Ayissi tion thereof requires a thorough examination of Minister of External Relations of the the realization of the commitments of 2002; how- Republic of Cameroon ever, these have to be boosted in order to make up 1 December 2008 for lost time, and we must identify, and react once more, to the challenges which we face. On behalf of the President of the Republic of Cam- Cameroon welcomes what has been done by eroon, His Excellency Mr. Paul Biya, who is unable various Governments and donors with regard to to be present himself at this important Conference official development assistance (ODA), and also in Doha, and whom it is my privilege to represent, debt alleviation of the poorest, most highly indebt- I wish to commend the Government of Qatar and ed countries. These are praiseworthy efforts, albeit His Highness Sheikh Hamad bin Khalifa Al-Thani, inadequate ones. Other speakers have provided the Emir of Qatar, for the welcome bestowed on statistics to show that there has been a clear drop in our delegation. the reference percentages established for this aid. I would also like to commend Qatar for hav- We believe that it is only fair to acknowledge ing prepared this Conference in such an excellent clearly—and welcome—the considerable progress fashion. It is being held at a critical time for the that has been achieved with regard to the level of entire world. I refer here to the recent financial cri- commitments expected from developing coun- sis and its real and potential detrimental effects. It tries to carry out the necessary reforms in their is likely to have drastic repercussions with regard economies and Governments. These countries to development efforts employed by our countries have indeed introduced such reforms in their mac- in recent years, as well as on the aid granted by the roeconomic policies, while endeavouring to set up international community for our various develop- a framework to support investment despite doing ment programmes and plans. so in an unfavourable international environment. I wish to thank the United Nations for hav- From 2002 to 2008, and before the recent neg- ing taken the initiative to keep the focus of this ative impact of the international financial crisis, important Conference on the values and current the positive results and encouraging performance trends affecting the implementation of the 2002 of the world economy made it possible for there to Monterrey Consensus. be legitimate expectations of developing countries regarding developed countries. However, today, we I should like to add my voice to that of the pre- have to note that there is still a gap—a considerable vious speakers in expressing to the Government and gap—between the commitments made and what people of India our sincerest condolences for the ter- has actually been done when we look essentially rorist acts which have severely struck their country. at the promises made by developed countries to We, in Cameroon, resoundingly condemn them. devote 0.7 per cent of their gross national income As we speak today, the international com- (GNI) to ODA. munity is hit head on by a financial crisis which At the same time, developing countries, my reminds us of that of the 1930s, such a sad memo- country Cameroon amongst them, are facing many ry, and this follows a world energy crisis, coupled problems which curb their development momen- with a food crisis. These are still facing us. So, this tum: problems of indebtment, inadequate financial is the extremely worrying context for our Doha flows and the stalemate on trade negotiations. Cou- Conference, the main purpose of which is to fol- pled with this, we have the food and energy crises low-up the implementation of the Monterrey Con- and the financial crisis. All of these are constraints sensus by the international community, looking on our endeavours.

130 Statements by Ministers

Given a satisfactory economic recovery, with The sensitivity of our national economy to the the aid of the Bretton Woods institutions, my world economic climate does not make it easy to country, Cameroon, is resolutely committed to deal with the loss of earnings from customs due economic and institutional reforms in conjunc- to the opening up of markets. Furthermore, the tion with the Monterrey aims. Here, I refer to the post-war situation of some of our neighbouring ongoing review of the Poverty Reduction Strategy countries in Central Africa means that important Paper of 2002, the aim of which is to place more resources are absorbed to deal with the subsequent emphasis on production to achieve viable growth, migratory flows. and without which it is impossible to imagine the With regard to Cameroon’s position on the sustainable development of our country; also our Bakassi Peninsula, I now wish to welcome the long-term aims for 2030-2035; and our sectoral action of the international community in helping strategies regarding economic and social develop- Cameroon and Nigeria. Withdrawal here has led ment in our country. to irredentism, which, unfortunately, has led in turn to terrorism and piracy on the part of armed I would also indicate the implementation of a groups. Energetic action is therefore required in National Governance Programme for the period order to ensure security in the Gulf of Guinea. 2006-2011. This is intended to ensure that State Moreover, with regard to Central Africa and action will become more efficient and will make regionalization, this is an important axis for our the management of public resources more trans- development. We are playing a leading role by parent as we combat corruption with the greater implementing transport, communications and participation of people in governance. Thanks to energy infrastructure. In this regard, the support decentralization, a new State financial system has of the international community is essential. The been established to make it possible to better man- same applies to combating climate change. Cam- age public resources. eroon is naturally involved because of its geo- In addition, tax incentives have been passed graphical situation on the forest plateau of Central to improve the business climate, hoping as well to Africa, the second ecological lung of the planet. achieve greater mobilization of domestic savings It is obviously the observatory of climate change, and our head of State, His Excellency Mr. Biya, has and to attract direct private foreign investment to committed himself to this. This requires the aid of a greater degree. our development partners. In 2007 November, a partnership agreement Last, but not least, as well as international aid with the European Union was signed, marking of a traditional order, we would like to say that we Cameroon’s commitment to continue to play by wish this could be more predictable and better the rules of the World Trade Organization with coordinated and harmonized. There is a need for regard to the internal and external State debt, in direct investment and aid for trade. This seems to accordance with the mechanisms agreed upon for us to be extremely important. It should be promot- debt alleviation, at the initiative of bilateral and ed, in that it can flank our endeavours to achieve multilateral donors. development in an effective manner. Despite all the endeavours of Cameroon to The current financial crisis is casting long and reduce poverty and to boost economic growth, gloomy shadows. This means that all of us have to there is still much to be done and many ques- examine our consciences and ensure that, more than tions to be resolved. There are challenges where ever, international solidarity will prevail in this world increased development funding is one of the main facing urgent humanitarian challenges. There has to national concerns. The cost of implementing our be continued promotion of action for development. development strategies demands high financial As in the majority of African countries, Cam- resources, which are well beyond our domestic eroon is moving towards the development goals of ability to provide. 2015. This is looming near. The picture is patchy.We

131 The Doha Review Conference on Financing for Development

have undertaken measures to enhance democracy follow it. We need political resolve and lucidity and the rule of law for the liberalization of our econ- when action is taken by the Governments of the omy and the establishment of good governance. The richest countries in the world. results which have been achieved mean that devel- We also believe that there are issues of solidar- opment is still limited, notwithstanding both the ity and collective responsibility falling on the interactions that we have taken and international actions. Some of the actions agreed upon to benefit Cam- national community in its entirety in the interest eroon and Monterrey still have to be implemented. of all countries. Cameroon is certainly committed to bearing its responsibility with regard to the out- Given the uncertainty with regard to the effec- come of this Doha Conference. We shall ensure tive implementation of many of these commitments, that it has the place it deserves when it comes to the current financial crisis means that there is still implementing partnerships of an international greater uncertainty over the future, at a time when order and also in our national development strate- we need to redouble and speed up our efforts. gies, so that there can be a real improvement in the Cameroon agrees with many of the speak- living conditions of our peoples. ers here in Doha, to the effect that reinforcing the The recent United Nations High-level meet- Monterrey process is the only real way forward, ing on Africa’s development needs, held in New the only option. There is no alternative when it York in September 2008, has meant that we need comes to achieving development, which involves to act and to take decisions, not just make prom- all countries in the world. Thus, let us all commit ises, which too often come to nothing. For our own to continuing to develop and to ensure substantial credibility as the international community, we have growth in ODA to reach the target of 0.7 per cent of to be aware of the judgement of history. We have to GNI, agreed upon by developed countries, so that they can lend their support to innovative sources of be aware of the legacy we are giving to future gen- funding for development and the diversification of erations. We need to bestow upon them a renewed such sources. Tied aid for development could then and viable international system that is attuned to be done away with and the Doha cycle could be the new challenges and also to the needs of tomor- resumed and completed. There will also be a greater row’s world, which is built from today. degree of aid efficiency, in accordance with the Paris Declaration and the Accra Agenda for Action. Canada We want to see Africa’s voice become stronger Statement by and to be heard to a greater degree when interna- Her Excellency tional decisions are taken, starting with the reform Ms. Beverley J. G. Oda of the United Nations. We also want to move Minister for International Cooperation towards the reform of the world economic system of Canada inherited from Bretton Woods, taking into account (on behalf of Canada, Australia and New the opinions and concerns of emerging and devel- Zealand) oping countries, whose future is at stake. 30 November 2008 Cameroon welcomes and appreciates, then, the announcements that have been made and the commitments that have been renewed here, in Doha, It is a privilege for me to address you today on behalf to ensure that the Millennium Development Goals of the Governments of Canada, Australia and New in developing countries do not become the hapless Zealand. I would like to congratulate and thank the victims of the international financial crisis. Government of Qatar for hosting this Conference. Let us ensure that the Monterrey Consensus I wish to express our deepest sympathies and of 2002 still points the way forward and that we condolences to the people of India, those injured in

132 Statements by Ministers the attacks in Mumbai and the families of the victims. will pay what we have pledged. Together, we call on We condemn these cowardly acts of terrorism. others to reaffirm and, more importantly, to realize their existing commitments. To begin my presentation, let me say that Can- ada, Australia and New Zealand support the prin- Our third key area is trade. Trade is an impor- ciples outlined in the Monterrey Consensus. Today, tant tool in generating economic activity, building we gather together during some of the greatest chal- healthy economies and helping to reduce poverty. lenges ever faced by the international community. We remain strongly committed to the World Trade These challenges include the food crisis, energy price Organization (WTO) and to the multilateral trad- volatility and the global financial crisis. At this Con- ing system. We call on all WTO members to help us ference, we have an excellent opportunity to discuss achieve an ambitious outcome to the Doha Round. the relationships between these crises and financing In support of the Doha Development Agenda, we for development. have devoted significant resources to trade-related technical assistance and capacity building. We The turmoil from the financial crisis that began also remain committed to advancing the Aid for last year has intensified and spread. Now, virtu- Trade agenda, in line with the development needs ally no country is immune—whether developed or expressed by our partners. developing. We know that it is the world’s most vulnerable communities, including small-island devel- Next, we know that debt relief is vital to financ- oping States, that experience shocks to the interna- ing for development. We have a strong record in tional system most severely. support of debt relief. Our Governments have gone beyond the obligations for bilateral credi- Now, more than ever, urgent, coordinated and tors within the framework of the Heavily Indebted decisive action is required to harness all available Poor Countries (HIPC) Initiative. Through the global resources to finance long-term, sustainable Canadian Debt Relief Initiative, we have provid- development. To this end, let me highlight five ed substantial resources to the Highly Indebted key areas: the Group of Twenty (G20) action plan; Poor Countries Trust Fund that is managed by the honouring our aid commitments; doing more on World Bank. Our countries are also meeting all of trade; moving forward on debt relief; and making our obligations to the Multilateral Debt Relief Ini- our aid more effective. tiative. Like some of our European colleagues, we First, our Governments support the G20 recognize that debt relief is not enough and so we action plan, which includes reforming internation- call on all partners to work with us to build capac- al financial institutions to make them more glo- ity in heavily-indebted poor countries to better bally representative and responsive. In addressing manage their debts. the financial crisis, the respective roles of interna- Fifth and finally, we have made and will con- tional organizations must be recognized and each tinue to make our international assistance more should focus on their comparative advantage. We effective; this means more focused, efficient and must avoid redundant and unhelpful duplication. accountable. Early this year, Canada opened 100 We call on other countries to join us in supporting per cent of our food aid to international procure- the G20 action plan. ment, in part to stem the impacts of the global food Secondly, we are honouring our past commit- crisis, but mostly because it is good development ments on aid, including the significant steps that policy. Canada, Australia and New Zealand are Canada, Australia and New Zealand have taken committed to untying aid, in line with the policies to increase the volume of our aid. This fiscal year, of the Organization for Economic Cooperation and Canada will live up to its commitment to dou- Development, the Paris Declaration and the Accra ble our aid to Africa. And each of our countries Agenda for Action. Australia and New Zealand remains committed to our respective targets to have both untied their aid and Canada will untie grow our international assistance. Moreover, we all of its aid, its official development assistance, by

133 The Doha Review Conference on Financing for Development

2012-2013. We believe that untying is one of the Chile best ways to make aid more effective and to ensure responsiveness to the needs of developing coun- Statement by tries. By pursuing these five areas, we will better Her Excellency Ms. Paula Quintana Meléndez harness our resources to achieve sustainable devel- Minister for National Planning of the opment. But we must always work to continue to Republic of Chile strengthen our overall efforts. 1 December 2008 Let me share with you some lessons learned, including those drawn directly from our countries’ experiences in fragile States, including Haiti and First and foremost, I would like to express the Afghanistan, Timor Leste and the Solomon Islands. solidarity of the people of Chile with the people of India for the tragic effects of the terrorist attacks, First, security, governance and development which have moved the world. In particular, we are interdependent in such environments. Good would like to convey our feelings and sympathy to governance and the rule of law provide the only the families of the victims. sound basis for achieving tangible development results. We also know that equality between women I would like to start my statement by recogniz- and men is essential to the sustainability of results. ing the kind hospitality and authority of the people of Qatar, and commend them for the excellent Another lesson learned is that coordination arrangements made for this Conference. It is an and partnership amongst all actors—development, honour for Chile to be able to address the plenary security and political—is essential to any long- on this occasion. Six years have passed since we term, sustainable response, and ownership by local convened in Monterrey, where we took the oppor- government and people is more effective. Increased tunity to attain significant achievements, namely, effectiveness means we need to be prepared to con- by reaching consensus on how to achieve the Mil- tinually seek new approaches. Operating in chal- lennium Development Goals. Once again, we have lenging environments means looking beyond aid to convened in order to take stock of the achievements tools like micro-credit for women, debt relief and made, and to reaffirm our commitment to ensure support for the foundations of freedom, democ- that through international cooperation dialogue racy, human rights and the rule of law. we will be able to overcome poverty and improve Finally, I would like to note that we also support the living conditions of millions of human beings. the innovative policy developments that have tran- Chile participated in the Initiative Against spired since Monterrey. For example, Canada is one Hunger and Poverty, which comprises Algeria, of the key supporters of the Advanced Market Com- Brazil, France, Germany, South Africa and Spain— mitment initiative. Innovative financing mecha- countries which have identified new innovative nisms, particularly those that harness private sector sources of financing in order to create additional resources, have a key role to play in development. and complementary flows of financing to supple- In conclusion, given the magnitude of the ment official development assistance (ODA). As challenges we face, it is critical that we take urgent, we all know full well, these mechanisms do not coordinative and decisive action. Canada, Australia seek to create new institutions. Rather they serve and New Zealand are committed to working with to strengthen and enhance the full array of instru- all partners—government, private sector and civil ments already available to the United Nations sys- society. We call on others to do the same. tem. Chile is proud to state that we have already implemented innovative mechanisms through a solidarity levy on international airline passen- gers in the service of the fight against HIV/AIDS, malaria and tuberculosis.

134 Statements by Ministers

In this context, on 24 September 2008, at the international trade should be one of the engines for General Assembly of the United Nations, Her development. To enable this, we call upon all coun- Excellency President Michelle Bachele, along with tries, all the members of the World Trade Organi- the presidents of Brazil and Spain, and the Minister zation, to redouble their efforts in order to reach of Foreign Affairs of France, subscribed to a dec- trade liberalization agreements, thereby facilitat- laration which seeks to issue an invitation for the ing access to their markets of both agricultural and identification of new innovative sources of financ- non-agricultural products. ing in the context of the follow-up to the Monter- To that end, there is a need for a renewed rey Consensus and the International Conference spirit of cooperation and a resolve to arrive at a on Financing for Development, for which we are consensus. We may not meet all the objectives that currently convened. we have set ourselves at the outset of the Round While it may sound repetitive to reaffirm, we and, individually, each and every country may must indeed acknowledge, once again, that these not reach its negotiating objectives. However, we are difficult times for the global economy. The cri- are under an obligation to send a signal that we sis has already had an impact on both developing remain committed to progressive trade liberaliza- and less developed countries, affecting those seg- tion, particularly at a time when, more than ever ments that are most vulnerable to the impact of before, international trade can help to reduce the the crisis on the global economy—the poorest of effects of the contraction of the global economy. all. We must see this as a challenge and not as a In the same vein, we must recall that an increased pretext. This crisis is no excuse to postpone in any level of protectionism would further weaken the way initiatives to combat poverty, combat hunger global economy, and would result in greater dif- and reduce inequalities—quite the contrary. Now, ficulties for the poorest nations and the most vul- more than ever before, we need to rise to the chal- nerable citizens of our planet. lenge and find a new formula to enter into commit- Thirdly, we must ensure that the multilateral ments and adopt compromises that will allow us to and regional development banks have adequate meet the Millennium Development Goals. resources to increase their support for social protec- We now face the challenge of ensuring that tion programmes, poverty reduction programmes, the impact of the crisis is mitigated and kept to a employment fostering, the improvement of educa- minimum and, at the same time, maintain the pro- tion, health programmes, dealing with environ- grammes and policies that serve to eradicate pov- mental problems and financing of investment. All erty and hunger. of these are basic elements needed to minimize the negative impact of the current economic turbu- For these reasons, we would like to suggest the lences caused by the developed countries. following initiatives. First of all, the legitimate aim of reactivating economies and restoring confidence In turn, we reaffirm our support for the propos- in the financial systems in developed countries al that institutions, such as the International Mon- should not lead in any way to a reduction in the lev- etary Fund, review their compensatory financing els of ODA. The increase in internal public expend- so as to ensure that countries will be able to make iture in developed countries should not be on the use of their productive capacity to the maximum backs of the developing countries. That would run when dealing with situations of adverse shocks. We contrary to the spirit of the commitments made in recognize that other than the objectives reached in Monterrey to increase international technical and Monterrey, this is a time for coherence and consist- financial assistance for development. ency within the international financial and monetary systems in the service of development. Secondly, we must launch new efforts to reach agreements in the multilateral trade round nego- Without a doubt, the financial crisis has tiations, the Doha Round. This is in keeping with made the need for new formulae clearer than ever the Monterrey Consensus, where it was agreed that before in order to attain these ends. Unbridled

135 The Doha Review Conference on Financing for Development

deregulation of capital markets is also a central for the efforts of Qatar in organizing this confer- component that we must address. Given the capac- ence and for the hospitality we have received. ity for employment generation in this sector, Her Mr. President, Your Excellencies, Ladies and Excellency President Michelle Bachelet has stated Gentlemen, the major industrialized economies are repeatedly in significant international fora that plunged into a deep and complex economic crisis good governance has a role to play in the multi- with global repercussions of untold consequences. lateral financial system. Countries that were minor players sixty years ago now have become protago- We are living in a crucial moment in history. nists and, accordingly, they must be given greater The free market model has not worked. Thus, the decision power in these organizations. They can neoliberal myth about the kindness of market contribute to global well-being if they are given deregulation and alleged soundness and reliabil- their share of responsibility. ity of the current financial institutions are denied. The current crisis has led the bitterest detractors of President Bachelet has also reaffirmed that state intervention to cry out for and finally adopt we need to reform global financial regulation multi-million dollar bailouts out of their financial in order to prevent recurrences of the turbulent systems, through ambitious measures of public events that we have witnessed over the past year intervention. The speech on the out-and-out liber- and a half. It is also important to ensure that these alization and the weakening of the role of the State reforms are not the brainchild of exclusive fora, in society is unsustainable today. It is confirmed being the case to date. that the very essence of the capitalist system is Attaining consensus in these two spheres of the pursuit of profit. It is a selfish system, which action will be difficult and time-consuming. The promotes unrestrained consumerism disregard- economic crisis, as we know, has affected the poor- ing peoples’ real needs. It is a system that destroys est of all and we are more distant than ever from the environment and denies equal and just devel- the Millennium Development Goals. Let us not opment, and even more regrettable, this system is waste the opportunity of this Conference to find unable to ensure the survival of human species. proposals to improve the international financial For the South nations, today it is clearer than system, that is to say, to attain an agreement now ever before that this model is not the path to devel- which will enshrine our commitments to protect opment. Neoliberal globalization has continued to the poorest and the most vulnerable in this time of widen the gap between the rich and the poor in the worst economic global crisis that we have wit- the world. The food crisis we face today, the basis nessed for many generations. for which are the injustices and inequalities of the current international economic order, has plunged Cuba another 75 million people into hunger. Statement by Developing countries are the ones carrying the Her Excellency financial burden on their shoulders. Should the Ms. Georgina Barreiro Fajardo current trend continue, the Millennium Develop- Minister of Finance and Prices of the ment Goals will not be fulfilled. Republic of Cuba We set ourselves the task of halving by 2015, the 30 November 2008 1276 million of human beings leaving in extreme poverty in 1990. However, there are still two thousand 600 million people, the 40% of the world pop- Before beginning my statement, allow me to echo ulation, leaving with less than two dollars a day. those delegations who conveyed their deepest condolences to the people and government of India for We agreed to halve by 2015, the 842 million of the terrible act which led to the deaths of more than hungry people leaving in the world in 2000. How- a hundred individuals. My delegation is grateful ever, the figure of undernourished people in the

136 Statements by Ministers world has increased to 900 million, out of which international, financial architecture. Cuba sup- 96% come our countries. ports the holding of a Summit in the framework of this Organization where all voices are present and We proclaim the aspiration to achieve the uni- equally heard. versal elementary education by 2015. This noble and vital goal will not be fulfilled either. In 2015, In today’s world, the UN should become the there will be still 47 million children without going main champion and promoter of the realization of to elementary schools, while only one in every 5 peoples’ right to development, and of the struggle children in secondary school age will be enrolled. against inequality and disproportionate squander- We set ourselves the task of reducing by two ing promoted and practiced by a few countries, in thirds the mortality rate in childres less than five contempt for and in detriment to the welfare of the years of age by 2015. However, according to the vast majority of the world population. current tendencies, this goal will only be achieved In the middle of this global chaos, and despite after 2045. the huge limitations imposed on our country by Realistic and sustainable solutions for the the unjust and criminal, economic, commercial issues discussed in the Monterrey Consensus keep and financial blockade of the US government, in being postponed. Financing for development con- force for almost half a century now, Cuba contin- tinues to be an illusion. After almost seven years, ues to offer the world a viable development alterna- the main reason why rather than moving forward, tive, based on the experience of the exercise of our there is a backward movement is that developed full sovereignty and on the legitimate participation countries have no political will to honor their com- of the people in the decision-making and on the mitments and contribute new financial and uncon- enjoyment of the wealth produced. ditioned resources to implement the programs that Our country, which is presently recovering would allow for the fulfillment of the above-men- from the lashing of three devastating hurricanes in tioned commitments. a less than three month period, continues to offer This is an ever increasing inhumane world its modest and selfless cooperation in various areas which has promoted the so-called Washington to tens of peoples of the Third World. Consensus, imposed by the United States of Amer- Your Excellencies, Distinguished Representa- ica in complicity with a few industrialized pow- tives, the future of humanity demands our most ers and so carefully applied by the Bretton Woods resolute determination. Silence and inaction will Institutions, which have acted as real agents for the make us accomplices to a fatal outcome, which interest of the great capital. could put human existence in jeopardy resulting in Your Excellencies, it is imperative to establish all of us losing. a new democratic, just, equitable, sustainable and Nothing will be given to us for free. We will friendly world economic order. The international have what will be able to conquer together. Almost community has the responsibility and the histori- 30 years ago, the leader of the Cuban Revolution, cal opportunity now to refund the international Comrade Fidel Castro made some remarks at the financial system on a really democratic basis, thus opening ceremony of the VI Summit of the Non- ensuring transparency in its working methods as Aligned Movement held in the Cuban capital city well as the just, universal and equitable participa- and such remarks are still valid today. He said, tion of all the United Nations Member States in its “Let us unite to demand our right to development, decision-making system. That reform should not our right to life, our right to the future! Let there and cannot be carried out by a selective club of rich cease the building of a world economy based on countries in a restrictive and exclusive format. the opulence of those who exploited and impov- It is imperative that the United Nations take erished us yesterday· and continue to exploit and a leadership role in the negotiations on the new impoverish us today, and one based on the misery

137 The Doha Review Conference on Financing for Development

and economic and social underdevelopment of The meetings in New York, in September this the vast majority of humankind!” year, dedicated to Africa’s Development Needs and to the Millennium Development Goals showed It is time to demand justice and to put an end very clearly that a lot has been achieved and even to hypocrisy and selfishness. The South peoples more needs to be done in the remaining seven years demand the response required by their needs and in order to achieve MDGs, (the respected symbol by the challenges imposed on them. We are worthy of development). Our meeting in Doha takes place of this right and we shall fight until we achieve it. in a difficult time. Thank you very much. The global crises and challenges have already influenced in varying extent the basic needs, such as food and energy, and they are going to worsen Czech Republic the effects of already challenging phenomenon, Statement by the climate change. To tackle all these global prob- His Excellency lems it is necessary to approach them in a multi- Mr. Jan Kohout lateral way. At the same time we need to be sure Deputy-Minister for Foreign Affairs of that development remains one of our top priorities the Czech Republic on the international agenda and that the most vulnerable are not forgotten. We must not fail in this 1 December 2008 crucial endeavor. Mr. Chairman, all of us expect states-partici- Mr. Chairman, let me first of all warmly thank His pants of this conference as well as various interna- Royal Highness Hamad bin Khalifa Al-Thani, the tional institutions to act in a coordinated manner Emir of the State of Qatar, the people and the Gov- in order to achieve the synergies in the common ernment of the State of Qatar for organizing this effort to give a helping hand to those who are affect- very important conference. ed the most. We believe that it is indeed a neces- I would also like to extend my condolences to all sary precondition to involve in the discussion of those families who lost their loved ones in the recent all stakeholders, all different views and angles, in terrorist attacks on Mumbai. As we all see, extrem- order to achieve progress in development. Mobi- ism and terrorism represent the most dangerous lization of domestic resources, international trade, enemies of development and impact most heavily foreign investment and other financial instrument those in need. The fight against terrorism remains should ensure sustainability in continuing effort to an important part of our development effort. strengthen the global partnership for development. Mr. Chairman, the development agenda has Mr. Chairman, the Czech Republic is a medi- undergone many important changes since the Con- um-sized European country and a relatively new ference on Financing for Development in Monter- player in the international development arena. rey in 2002. In shorthand these changes could be Nevertheless, we are deeply convinced that we expressed as “from aid to assistance, from assist- have a lot to offer, especially our transformation experience that we share with several countries ance to partnership”. It has been a long and com- of our region. We are aware of the importance of plicated way from Monterrey, through New York, good governance and democratic institutions, Paris and Accra, to Doha, which should become and we also strongly support one of the basic con- the milestone to reach the development goals. cepts of the Monterrey Consensus, namely that The Czech Republic aligns itself with the each country has the primary responsibility for its statement of France on behalf of the European development. Our historical experience suggests Union. I would like to add several points from that sound policies, effective institutions, entre- our national perspective. preneurship and openness to trade have the same

138 Statements by Ministers importance and value as the external assistance. It struggling to deal with sharp fluctuations in ener- should be used as an incentive for domestic reform gy and food prices and at a time when it is getting in partner countries. ready to address global warming. Mr. Chairman, since the Monterrey Confer- Denmark thinks that there are three impor- ence, development cooperation has become one of tant messages which should come out from this the key priorities of the foreign policy of the Czech Conference. Firstly, the world needs global solu- Republic. We are aware of the vital importance of tions based on global solidarity. The crises which development for a number of countries and we are we face today, whether it be the financial crisis, determined to steadily increase our development the economic recession or global warming, can assistance. In this respect, I would like to point out only be addressed through concerted actions, tak- that the ODA of the Czech Republic has grown ing into account each country’s capacity to con- substantially within the last six years. tribute. Secondly, the developed countries should stand by their commitments to deliver 0.7 per cent Mr. Chairman, I have mentioned many new of gross national income to developing countries. challenges we are facing today. They do have one The actual financial crisis, or an economic reces- common feature. All of them require mobiliza- sion, should not be an excuse for not fulfilling the tion of considerable amount of financial and other promises already given on official development resources. We believe it is therefore necessary to assistance (ODA). ODA can be an important part search for new ways of financing for development. of the solution to the current crisis by helping to We believe it might be helpful to discuss creative maintain growth in poor countries. We cannot approach to remittances, broader involvement of afford to throw away the important gains the world private sector, philanthropy or general public. has seen in recent years in areas such as health and Mr. Chairman, I have outlined just a few points education. We must ensure that the Millennium of the complex agenda of financing for develop- Development Goals are fulfilled by 2015. It will ment. It requires our common effort, a thorough clearly take an extra effort to ensure the necessary discussion and a necessary action as time is run- progress, especially in Africa. We have to stand by ning out. The Czech Republic is committed to do our common responsibility. Thirdly, trade is an its part, also as the next Presidency of the Euro- important engine for growth and development. The economic crisis calls for the urgent completion of pean Union. the World Trade Organization Doha Development Thank you, Mr. Chairman. Round, with a strong focus on integrating the poor countries into the globalized trading system. The Danish Government has launched a Denmark MDG3 Global Call to Action to generate stronger Statement by political and financial support for the third Millen- Her Excellency nium Development Goal, on gender equality and Ms. Ulla TørnÆs empowerment of women. Empowering women is Minister for Development Cooperation a key driving force behind economic growth and of the Kingdom of Denmark combating poverty and, by this, reaching the Mil- lennium Development Goals as such. One hundred 30 November 2008 MDG3 torches have been handed over to representatives of Governments, international organiza- We meet here in Doha to discuss financing for tions, the private sector and civil society. I am very development against the backdrop of a financial pleased that the United Nations Secretary-General crisis and a looming global economic recession. has accepted torch number 100. All torchbearers This comes at a time when the world, and- par have committed to do something extra, to walk ticularly the developing countries, was already an extra mile so to say, for gender equality and

139 The Doha Review Conference on Financing for Development

women’s empowerment around the world. Togeth- most vulnerable to the effects of climate change, er, all the torchbearers form a global MDG3 coa- the poorest developing countries. It is important lition in the run-up to the High-level Meeting in that this Financing Conference sends a positive 2015. I sincerely hope that the coalition will ensure signal to the climate negotiations and points to the much needed political priority and political lead- future in a constructive manner—that the inter- ership, as well as increased resources for women’s national development community will augment empowerment. For its part, Denmark has decided its share of responsibility in a new global climate to double the resources to MDG3 activities. It is partnership with donors, developing countries and very important that the declaration coming out of the private sector. this Conference recognizes the potential of women, but it is even more important that the recommendations in the declaration on empowerment of Dominican Republic women are acted upon urgently. Statement by We know what to do, then let us do it. We can- His Excellency Mr. Juan Temístocles Montás not and will not eradicate poverty if half of the Minister for Economy, Planning and population around the world is deprived of equal Development of the Dominican Republic opportunities and access to resources. 30 November 2008 Five years after the landmark agreement in Monterrey, we are facing significant challenges that affect our common efforts to further development in First and foremost, I would like to convey the the poorest countries. One crucial challenge is cli- acknowledgment and gratitude of the Government mate change, which is a development challenge. All of the Dominican Republic to the United Nations countries will be affected by climate change, but in Organization and to the State of Qatar for host- some of the poorest and most vulnerable countries ing this Follow-up International Conference on it will be a matter of survival. Available estimates Financing for Development to Review the Imple- state that the need for financing for climate adap- mentation of the Monterrey Consensus. Our par- tation will be massive in the future. It will require ticular acknowledgment is to His Highness Sheikh large amounts of additional resources, especially Hamad bin Khalifa Al-Thani, the Emir of the State for the least developed countries. Official develop- of Qatar, for his kind hospitality and his desire to ment assistance, even if we all live up to the old 0.7 consolidate international efforts to promote devel- per cent target, will not be enough to cover all the opment at the global level. needs. We must engage the private sector and look The Dominican Republic would also like to for new innovative ways of financing. We must also condemn the terrorist attacks which were perpe- explore further how ODA can liberate more funds, trated on 26 and 27 November in Mumbai, India, and how they can be delivered in the most effective which have left more than one hundred dead and way to ensure results on the ground. injured. The Government of the Dominican Repub- Denmark looks forward to hosting the fifteenth lic rejects terrorism and all its manifestations, and United Nations Climate Conference in Copenha- expresses its solidarity and conveys its condolences gen in December next year and we are determined to the people and Government of India. to work for an ambitious, new international cli- The Consensus reached in Monterrey in 2002 mate agreement. Commitments must be made on established a timely framework, the aim of which the basis of common but differentiated responsi- was to resolve the obstacles that hinder the flows of bilities. I encourage all countries to actively engage financing for development. Since the agreement of in the negotiations in order to get a climate- and the Monterrey Conference, the world has witnessed development-friendly agreement in Copenhagen, an increase in the flow of private capital to emerging one that takes into account the concerns of those economies, an increase in international trade and

140 Statements by Ministers an increased pace of growth of the global economy, from multilateral organs is also important to as well as an increase in debt relief for low-income mitigate the effect of adverse shocks in the short countries. However, the recent events affecting term and to ensure the macroeconomic stability international capital markets force a reconsid- of our countries. eration of this framework, and the urgent need to The growth of the global economy and rising design a new financial plan which will ensure eco- commodity prices, in turn, contribute to the expan- nomic development for developing countries and sion of exports, above all from emerging econo- reduce the vulnerability of the international finan- mies with a competitive production structure and cial system through more effective regulation. with a wealth of basic commodities. This has led to The mobilization of financial resources for an accumulation of reserves and has turned these development, both internal and external, is best nations into net capital exporters, thus reversing facilitated when certain internal conditions are the capital flow towards developed countries. This present in countries, such as macroeconomic sta- scenario stands in clear contrast to the situation of bility, the rule of law, a high level of institutionali- those economies in the least developed countries zation of public management, liberty and the com- which do not have basic goods or commodities to mitment to forge just, equitable and democratic export, lack competitive production structures and, societies. Efforts to attain these conditions must be moreover, are affected by the deterioration of the sustained and enhanced in the new financing strat- terms of trade exchanged caused by the increase in egy for development. We should note that promot- food prices and in raw materials. ing these conditions does not downplay the func- This latter point severely threatens the devel- tions of the State. Rather, the aim is to promote opment of these nations and also the promotion of efficient public organs that practice an agenda of equality, the reduction of global poverty and, finally, good governance. stands in the way of the attainment of the Millen- The current crisis poses a major challenge nium Development Goals. The current economic for the financing of productive investment as it crisis has led to a reduction in income from exports restricts external financing and makes it more and remittances, which, along with the reduction expensive, thus limiting investment in the flows of of credit and costly credit terms, will irrevocably domestic savings in our countries. Moreover, the lead to a fall in economic growth rates and a dete- process of financial reform imposed on developing rioration of the external and physical balance. In countries, in order to have access to markets and to this regard, we are of the view that special lines of meet the internal conditions I mentioned before, liquidity must be made available by the multilateral reduces the financing options for projects that are organizations in order to address the situation. aimed at increasing their national output as they The appeal to developed countries to allocate require more flexible terms than are provided by 0.7 per cent of their gross national income (GNI) commercial loans and a broader time schedule in to official development assistance (ODA) to less order to yield profit. developed countries, and between 0.15 and 0.20 These are obstacles that must be overcome to per cent of their GNI to the least developed coun- facilitate economic development. This will require tries, is an essential element in order to mobilize an appraisal of countries’ current financial and financing flows towards those countries which monetary structures in order to ensure that a have limited access to private financial resources. degree of flexibility is introduced to allow for the By financing programmes that foster educa- establishment of loans and credits and to broaden tion, health and the development of critical infra- the range of financing options for long-term pro- structure, ODA can help contribute to the improve- ductive activities. ment and enhancement of indispensable elements The role of international financial institutions for economic development, such as increasing is crucial at this time. Countercyclical financing the marginal productivity of the labour force and

141 The Doha Review Conference on Financing for Development

capital. Because of this, ODA represents a key fac- Because of this, we are of the view that multilateral tor in creating favourable conditions to ensure that organisms must introduce a degree of flexibility in resources from private investment flow to develop- their conditions for financing as a palliative meas- ing countries. ure and should establish a one-stop shop of loan While ODA levels have risen considerably, the facilities to provide budgetary support. largest share of this increase corresponds to the Recent developments in capital markets imply debt relief granted to the least developed coun- the need for more effective international finan- tries, thereby reducing the proportion that was cial regulations, with norms and standards that devoted to improving economic infrastructure in will address the risks posed by new and creative general among these countries. If the production international financing instruments. There should structure of developing countries does not expand be more efficient financial institutions which will and strengthen, then their capacity to increase monitor the implementation of these regulations. their income and create wealth through economic Emerging economies are far more vulnerable than growth will be undermined. This is a setback in developed economies to the elements of interna- the ongoing struggle to reduce poverty Therefore, tional financial instability and the risk of contagion ODA must continue to increase in the form of and, therefore, we believe that a new international additional liquid resources. financial architecture must seek to minimize the Now, more than ever before, in view of the occurrence of such events. current global financial crisis, we need the uncon- The approach of international financial organi- ditional support of ODA. Many of the developing zations, as well as the approach of the credit rating countries already face serious problems in seeking agencies, is chiefly based on their demand for eco- to finance their budget programmes because of nomic reforms which turn developing countries the impossibility of restructuring and refinancing into loan recipients. However, when it comes to the their debts in capital markets and the difficulties creditors, they have failed to oversee the financial they face in raising taxes during a time of econom- markets or to promote transparency in them which, ic recession. This has been caused by a problem in turn, has resulted in the current global crisis. which has nothing to do with the less economically developed countries but it is a problem, neverthe- In the Dominican Republic, we are of the view less, which is affecting them greatly. that in order to meet our aims of reducing poverty and of creating a more inclusive world and, as well, The current crisis creates serious hindrances to prevent the current crisis from worsening, the for the less developed countries, in particular for new international financial order must introduce a those which have based their development plans degree of flexibility in the conditions for mobilizing on sources of financing from the international financial resources for development for less devel- capital markets, as the access of their economies to oped countries and developing countries. Efforts these markets has been greatly reduced and now must be made to strengthen regulation and over- only represents a very small fraction of what it was sight of capital markets so as to ensure their stabili- before the crisis. The exaggerated risk aversion ty and continuity. There is also a need for concerted which is flooding today’s financial markets also poses a serious threat to debt sustainability and actions by the international financial community. debt refinancing. The inability of emerging economies to reschedule their debts before debt maturities, and at a reasonable price, places a heavy burden on the public finances of these nations, resulting in a setback which undermines the achievements made to date in reducing poverty in the past decade.

142 Statements by Ministers

Cooperation for non-reimbursable develop- Ecuador ment fell from 1.4 per cent of gross national prod- Statement by uct (GNP) in 2000 and 2.05 per cent of GNP by His Excellency 2005. During the same period, remittances in con- Mr. Fander Falconi trast increased from 8.4-11.8 per cent of GNP. For Minister for National Planning and Development of the Republic of Ecuador Ecuador, as for other countries of Latin America, remittances should not be considered as a form of 30 November 2008 ODA. They have had a significant macroeconomic impact and have generated significant economic We, too, should like to express our solidarity with regional and micro-regional dynamics. Moreo- the Government and people of India. Nothing jus- ver, since the last decade of the past century, we tifies such an act of aggression. have witnessed a replacement of non-reimbursable cooperation by debt with multilateral banks. This is Following the adoption of the Monterrey Con- tantamount to placing a mortgage upon the social sensus in Mexico, one question arises: what has development of multilateral entities which, to date, been the level of complaints among the countries have proven their inability to address the real dif- of the South and the countries of the North with ficulties of societies in the South. regard to the joint commitments made in the field of cooperation and financing for development? To These facts lead to several conclusions. Firstly, answer this question, we must take stock of both the integration of the labour force of countries of the efforts made in the South, in terms of imple- the South and the labour markets of countries of menting public policies that are beneficial for their the North is the leading source of currency. They peoples, as well as the steps taken in the North to should not be considered as a form of ODA. improve access to markets in the North, to provide Secondly, available studies prove that Latin external debt relief, to increase technology trans- American immigrants who are working in sectors fer and to attain the level of 0.7 per cent of gross of the labour market do not have an impact on the national income (GNI) as official development employment of either European or North Ameri- assistance (ODA), a target to be met by 2015. can workers but, rather, contribute to revitalizing Since 2000 at least, issues such as security to social security systems and addressing problems of fight against terrorism, drug trafficking and illegal demographic ageing. immigration have been the dominant topics on the Thirdly, we must urgently review the budget- agenda of the principal donors. Of course, these ary restrictions that caused the external debt-serv- problems must be part of the agenda for coopera- icing measures placed on human development. We tion, but cooperation for development in connec- must write off the notion of debt conditionalities. tion with fighting poverty and inequality, as well as We must redefine the concept of sustainability and addressing climate change, receives hardly a frac- we must ensure that the current food and climate tion of what is allocated to security. crises are financed through such measures. Cooperation for development is currently fac- We must establish a platform to combat illegal ing a major dilemma when it comes to Ecuador. and illegitimate debt and we must promote debt Between 2000 and 2005, non-reimbursable coop- audits, such as those that were carried out in Ecua- eration for development constituted $1.1 million. dor, the results of which were published last week. During the same period, according to figures of the Andean Community of Nations, Ecuadorian We subscribe to the international appeal for immigrants sent home more than $10 billion in greater transparency in order to examine the form remittances. This means that for every dollar for and types of contract that lead to indebtedness non-reimbursable cooperation sent to Ecuador, which, in many cases, have not been used to pro- immigrants sent home the equivalent of $8.60. mote national human development strategies.

143 The Doha Review Conference on Financing for Development

The Government of Ecuador is of the view these activities are undertaken in more just condi- that North-South cooperation must be reconsid- tions and to put an end to the distortion caused by ered from scratch if it is to become a true tool to agricultural subsidies. An entirely new strategy of improve the living conditions of broad swathes of South-South cooperation is taking shape. We are humanity on this planet, currently threatened by of the view that cooperation for development can hunger and malnutrition because of a model of be re-thought, as can the relationships between the development that is unsustainable as a result of its North and the South in this regard. environmental effects. To start off with, the cooperating countries in the North must meet the commitment of allocat- Egypt ing 0.7 per cent of their GNI by 2015 for develop- Statement by ment assistance. The current crisis of capitalism is His Excellency also the final crisis of the dominant development Mr. Mohamed Hosni Mubarak model of the last three decades. Resolving this cri- President of the Arab Republic of Egypt sis will require renewed international cooperation Delivered by under more specific terms, rather than just aver- His Excellency age income in defining a new international finan- Dr. Osman Mohamed Osman cial and monetary order. Various Heads of State Minister of State for Economic and Government have expressed their interest in Development renewing the international financial system, given that the entities which formed this system have not 30 November 2008 contributed to resolving the main problems of the countries of the South. Quite the contrary, they In the name of God the merciful the compassion- have exacerbated these problems, without mitigat- ate, Madam Chairperson, Ladies and Gentlemen, ing or reducing the severe asymmetries and pre- allow me at the outset to convey our condolences vailing inequities. to the victims of the terrorist attack in Mumbai. I would like to express our support to the people and The Government of Ecuador has established government of India in their efforts to eradicate a National Development Plan, with development and combat terrorism in all its manifestations. objectives and human development goals, placing clear emphasis on achieving equality, social inclu- Ladies and Gentlemen, allow me at the out- sion, productivity and the collective well-being. set to convey to your Excellencies the greetings of President Mohamed Hosny Mubarak, who was At the Iberoamerican Summit held in San Sal- unable to attend our important conference today vador in October this year, the President of Ecua- due to pre-scheduled engagements. dor, Dr. Rafael Correa, presented a proposal for a new financial architecture, with three basic pillars. It is now my honor to relay to your Excellencies First of all, the establishment of a development President Mubarak’s statement to the Conference, bank for the South; secondly, the establishment of which is as follows. Your Highness, Prince Hamad a fund of common reserves at the Latin American Bin Khalifa Al-Thani, Prince of the sisterly State level; and, thirdly, adopting a regional monetary of Qatar, your Highnesses, Kings and esteemed system which, during a first phase, would operate Heads of State and Prime Ministers, His Excellency using an electronic currency for a system of finan- the President of the General Assembly, His Excel- cial compensation between countries of the region. lency the Secretary-General of the United Nations, It is high time that Latin America and the rest of Excellencies Ministers and Head of Delegations, the developing world closes ranks and responds Ladies and Gentlemen, I wish at the outset express to the vagaries and impositions imposed by the my appreciation to my brother His Highness the North in the trading sphere, in order to ensure that Prince of the State of Qatar for his initiative to

144 Statements by Ministers host this important international conference, and We are today in need more than any time before my hope it reaches useful and constructive results to agree on a timeframe for our development part- to support the efforts of developing countries to ners to fulfill their commitments towards develop- achieve development and growth, and in confronting countries. In this regard, we must admit that ing the challenges and difficulties they face. any honest and objective assessment will prove that many of these commitments remain unful- Ladies and Gentlemen, our meeting in Monter- filled promises, and unmet obligations. The devel- rey six years ago was a milestone in dealing inter- opment aspirations of developing countries cannot nationally with the major issues and challenges afford delay particularly that the current global cri- facing our modern world today. By all standards, sis necessitates invigorating international coopera- the “Monterrey Consensus” emerged as a historic tion to assist developing countries in the foresee- document, reflecting the strong determination of able future, for we all are facing this crisis together, world leaders to confront the crisis prevailing then, albeit with varying degrees. with an acute sense of responsibility. Egypt calls for the reform of the current eco- Our meeting today convenes amid highly com- nomic and trade system and its financial institu- plicated international circumstances and a grave tion in a manner that upholds the interests and financial and economic global crisis that threatens addresses the concerns of developing countries, the foundations of the international financial sys- and to improve the terms of international trade in tem, and drives the global economy into a period favor of developing countries and ensuring mar- of recession. Such trends present great multifac- ket access to the markets of the developed world. eted challenges to the ongoing efforts to achieve Developing countries seek not aid but more trade, sustainable development. and even more foreign direct investment flows. This debilitating crisis portends difficult times Nonetheless, official development assistance ahead, and insurmountable challenges for the continues to constitute a basic requirement for developing World.. This is a crisis that necessitates many developing countries in Africa, Asia and immediate and serious international action to con- Latin America.. I hereby commend those countries front its repercussions, and to assist developing that implemented their commitments agreed upon countries in containing its negative ramifications in the ‘70s and reaffirmed in Monterrey to allocate that impede the achievement of the internationally 0.7% of their GNP as official development assist- agreed UN Millennium Goals that were adopted ance to developing countries. I also express our eight years ago. appreciation to those countries which have exceed- We convene this conference to affirm our ed that level of assistance to developing countries. commitment to the Monterrey Consensus and to At the same time, we invite our development review the progress of implementing its stipula- partners to demonstrate at this conference the tions, including the successes achieved and the same level of responsibility to implement these failures incurred. This revision should be coupled commitments as soon as possible, as well as the with a sincere effort to agree on an international strict observance of the “Paris Declaration” and integrated approach to confront the current crisis the “Accra Agenda of Action” aiming at increas- and the new challenges it poses to us.. Here, I affirm ing the effectiveness of development assistance that this crisis should not be a pretext to reduce and coordination among the donors, including the official development assistance (ODA) to develop- establishment of an international nechanism to ing countries, or to weaken our commitment to the monitor the implementation of international com- Monterrey Consensus. On the contrary, this crisis mitments, implementing the provision of financing presents a new international reality and a greater for the United Nations’ developmental activities, incentive to reinforce this consensus and to imple- and promoting international reliance on innova- ment its commitments. tive resources to finance development.

145 The Doha Review Conference on Financing for Development

Ladies and Gentlemen, developing countries The developing countries have the irrevocable have taken long strides towards fulfilling their right to be fairly and widely represented in the ongo- pledges in accordance with the “Monterrey Con- ing debate on restructuring the international finan- sensus” in the fields of management, governance, cial and economic system. Furthermore, Egypt and and the application of sound economic and fis- the developing countries have the irrevocable right cal policies and the mobilization of the domestic to present their views on the causes of the current financial resources for development. crisis, and the means to contain its adverse effects, and to avert similar crises in the future. Therefore, In spite of these efforts, developing countries justice requires that we contribute to informing the are still looking forward to a greater political will current global system since we are sharing the bur- on the part of the developed countries to create an den of its causes, and deregulation. international atmosphere that supports the efforts of developing countries, fosters North-South coop- Egypt calls for a high-level extensive and inclu- eration, reinforces their capabilities, and guaran- sive dialogue within the United Nations on the tees greater investment flows, the transfer of tech- current crisis and the reform of the existing inter- nology, and opens more markets for their exports. national economic system and financial institutions, with the participation of all developed and On its part, Egypt has achieved notable results developing countries, the Bretton Woods Institu- through a series of political, economic and social tions, the WTO, UNCTAD and regional organi- reforms...reforms which emanate from a uniquely zations and other stakeholders. A comprehen- national perspective…and a belief that a conducive sive high-level dialogue that enables all parties to international environment would support nation- examine this crisis from within the United Nations al efforts within the framework of a new, vital and and allows developing countries to express and necessary partnership. articulate their view in a manner that reflects the This genuine partnership must be predicated majority that they represent and at the same time on the unity of vision and the balance of interests… recognizes the greater share of the repercussions of a serious partnership…that addresses the interests this crisis that they have shouldered. of all parties not some at the expense of others… a The food and energy crisis with all its inflation necessary partnership that institutes a new world and suffering did not signal the end, and even the order according to a comprehensive vision of current financial crisis with its graver danger for cooperation and interdependence, a partnership the international economy, financial markets, and that creates a framework for the developed and the credit institutions shall not be the last challeng- developing worlds to countenance the challenges es or crises especially in a world that no longer rec- of our world…a framework based on more justice ognizes barriers or borders, and in an era marked and greater inclusiveness. by globalization. The implementation of what the “Monterrey Egypt and the developing countries have called Consensus” included with regard to the structure in various UN and non-UN forum, for a more of the international monetary, financial and trad- humane globalization, in order for all members ing system should be at the top or our priorities of the international community to benefit from in the coming period. This is because the finan- its advantages and opportunities, and to avert its cial and economic crises we are facing confirm the crises and instabilities. The current crisis proves need to reform those institutions to cope with the that we are still far from attaining this objective. It nature of this era and challenges. Concomitantly, reflects that there is a dire need for a system that is the calls for greater democracy within countries more equitable for developing countries. There is should be paralleled with similar calls for democ- a strong need for a new vision that ensures collec- ratization of relations between states and within tive security for all nations and achieves a human international organizations. security for all mankind. A vision that’s fairly and

146 Statements by Ministers apolitically confronts existing conflicts and chal- the current Doha Round, and support the efforts lenges, combats terrorism as a global phenomenon of developing countries to integrate in the inter- which requires global action, not unilateral international trading system. This objective has been a vention, a vision that confronts the proliferation of main ingredient of the “Monterrey Consensus”. weapons of mass destruction without double stand- Finally, I wish this Conference all success and ards. A new vision that encompasses the social I look forward to fostering through our collective dimensions of globalization, addresses its negative endeavors a new momentum that would engender impacts on the poor and the marginalized, and sup- a more solid global partnership and a better world. ports the efforts exerted by developing countries to protect their nations against its repercussions, and Thank you. to harness its advantages and achievements. A new vision that addresses the environmental dimensions of the development process, confronts the Estonia challenges of climate change, the daunting prob- Statement by lems of drought, desertification and famine. His Excellency Indeed, there is a dire need to integrate those Mr. Urmas Paet social, environmental and security dimensions as Minister for Foreign Affairs of the vital components of globalization, with its con- Republic of Estonia cepts, mechanisms and practises. 30 November 2008 I am presenting this vision and request to this important conference. We are strongly convinced Most parts of the world, including my own coun- that all of our nations, developed and developing, try, have experienced strong economic growth since rich and poor, are partners in this endeavor, in Monterrey, and this has helped millions of people in which developing countries have a voice and and the world out of poverty. However, the current glo- opinion. Egypt will convey this message to other bal financial crisis, which affects developing as well for a within the UN and beyond. as developed countries, has made our joint goal to Ladies and Gentlemen, in confronting the cur- reduce poverty in the world even more challenging. rent crisis, developing countries are finding them- By reaffirming the Monterrey Consensus selves at the crossroads between new challenges today, we continue to keep our global partnership and the existing ones, including external debt also during these difficult times. burdens, declining commodity prices, increasing Estonia has relatively recent experience with trade barriers, cutbacks in official development overcoming development challenges. Our experi- assistance, food and energy security challenges, ence has shown that the primary way to achieve and impediments related to infrastructure devel- development is to generate sustainable economic opment and the delivery of essential services such growth. We do speak out of recent transition experi- as health and education. ence: free market principles, open trade competition, Therefore, I call on this conference to seriously an inclusive business sector and effectively regulat- address these challenges, and to confront the exter- ed financial markets are basic requirements for the nal debt problems facing many countries in Africa reduction of poverty and economic development. and the developing world. The key work in mobilizing domestic resources I also invite all stakeholders to reach a global as well as in attracting foreign investments is good consensus that ensures a successful result for the governance. States develop only if their people multilateral trade negotiations. Such a consensus, have the space to develop. When there is peace and which is essential and long awaited, should fully security, individual freedoms and human rights are address the desired developmental objectives of respected, and access to education and healthcare

147 The Doha Review Conference on Financing for Development

is provided. I am pleased to see that more and ensure coherence in our aid activities as well as in more attention is paid in the international agenda relation to other policies. to fostering sound tax policies and fighting corrup- As proven in countless development efforts tion. Neither developing countries nor aid donors all over the world, sustainable development in any should tolerate tax evasion, capital flight and pub- society or country can only be achieved if wom- lic or private sector corruption. All resources ille- en share the same rights and are given the same gally spent take a step back in our common aim opportunities as men. Empowering women, pro- to achieve the Millennium Development Goals. viding education for girls and making reproduc- In order to secure long-term development, the tive health services available to women, can also administrative infrastructure and capacity should make an irreplaceable contribution to long-term be strengthened, the fight against corruption fos- economic growth, in addition to making a differ- tered and the economic environment enhanced. ence in the lives of these girls and women. Gen- Domestic reforms and stable political, as well as der equality should be the guiding principle of any macroeconomic, conditions are equally impor- development effort, domestic or international. tant for a country to attract foreign direct investments, which are essential for growth and often Several new challenges have occurred since have an irreplaceable role in funding investments Monterrey, among others, the need to find resourc- in a country’s services and infrastructure. The for- es, how to tackle climate change or how to improve eign direct investments could also be beneficial for the international system to avoid the future global development by promoting the transfer of knowl- financial, food or energy crisis. These challenges edge and technology, increasing competition and are truly global and need the attention of, as well as creating employment opportunities. resources from, all our countries. We should reinvigorate the global partnership for development We acknowledge the important complemen- to effectively address these challenges. We must tary role official development assistance flows can all mobilize our resources for global development, play in the development efforts of many developing donors and aid recipients alike. In the face of the countries, especially in the least developed coun- current global financial crisis, we should be very tries and countries emerging from conflict. Since clear that poverty reduction remains our priority. 1998, the development cooperation sector has been an increasingly important foreign policy instrument for Estonia, and we have steadily increased our share among other international donors. Esto- Finland nia’s development rate has grown therefore since Statement by 2004. The European Union, of which Estonia is a His Excellency member, is as a whole on track towards increas- Mr. Paavo Väyrynen ing its development aid to 0.7 per cent of its gross Minister for Foreign Trade and Develop- national income. However, as stated in the Monter- ment of the Republic of Finland rey Consensus, the quality of aid matters as much 30 November 2008 as the quantity. The Paris Declaration on Aid Effec- tiveness has proven to be an important framework Mr. Chairman, Ladies and Gentlemen, let me first of for achieving higher standards on aid effectiveness. all thank the government of Qatar for arranging this It is a pleasure for me to announce that Estonia has follow-up conference on the Monterrey Consensus just recently joined the signatories of the Paris Dec- on Financing for Development. Your hospitality has laration. At a time of increased complexity in the been outstanding and the organization excellent. global aid architecture due to the significant rise in the number of donors and other actors in devel- My delegation fully aligns itself with the state- opment cooperation since Monterrey, we should ment made by France on behalf of the European all, including all emerging donors, make efforts to Union. Let me just make a few additional remarks

148 Statements by Ministers on the important topic that is on our agenda. In social development in their own country, in the this time of deep financial and economic uncer- conditions of a developing country. tainty it is of particular importance to continue the The northern donors should use more resourc- holistic dialogue on financing for development that es for infrastructure and development of the pro- we started in Monterrey. Let me first of all empha- ductive sectors. In the South-South cooperation, size that the priority should be to safeguard the more attention should be paid to social develop- commitments of the Monterrey Consensus which ment. Triangular cooperation is important in pro- should not be re-opened. moting aid effectiveness. All cooperation should The EU for its part has an ambitious agenda on be based on the commonly agreed principles of development aid with an EU-wide ODA target of sustainable development. Ecological and eco- 0.56% of the GNI by 2010 and 0.7% by 2015. Fin- nomic sustainability are widely understood, but land is committed to this agenda and our national still very often neglected. Social sustainability is share of reaching 0.51 in 2010 and 0.7 in 2015. The often misunderstood as if it would include only quantity of assistance is important but we have to the development of the social sectors such as basic underline the quality as well. Quality is crucial for education and health care. Still, it includes also the effectiveness of poverty reduction. In Accra, we and above all the foundation of social sustainabil- discussed and made decisions on aid effectiveness. ity, rule of law, good governance, democracy, and We reached a consensus, but in my opinion, our basic human rights. This foundation is crucial for approach was too narrow. We did not pay enough the well-being of people, but it is necessary also for attention to the principles of sustainable develop- both the immediate alleviation of poverty and for ment and the role of the private sector in poverty the effective indirect reduction of poverty through reduction. Still, experience shows that poverty sustainable economic growth. Here I have to ask, reduction has been most effective in countries if some of the Southern donors have been short- which have had strong and sustainable growth in sighted when emphasizing that they do not inter- their private sector and which have had effective fere in the internal affairs of the partner countries. national programmes for poverty reduction. Social sustainability is necessary condition for all development. If that is neglected, we are going to Growth has lifted people out of poverty and it risk losing the investments made in development has given the government resources for financing and ultimately we can even risk the security and poverty reduction programmes. In most cases, the lives of the people we send to the partner countries growth has been created by opening up the bor- as experts and workers. ders and by integrating to the world economy. In my opinion, we need convergence in our develop- Development cooperation is negotiated and ment policies in order to make them more effec- agreed on between partners. Social sustainability tive. We, the European Union and the other north- is not an issue to be negotiated since all countries, ern donors, are channeling most of our funding developed and developing, have committed them- through the public sector to direct poverty reduc- selves to the principles of sustainability in all of its tion. We have, to some extent, neglected infra- trade dimensions. structure and productive private sectors including Mr. Chairman, poverty reduction can be effec- agriculture, although we have excellent experience, tive. It can bring first and lasting results only if our results and resources for supporting their develop- policies are sustainable ecologically, economically ment. The emerging southern countries concen- and social. If any of these pillars of sustainability is trate in their development cooperation on infra- missing, we will pay and that we cannot afford. structure and productive sectors especially on the utilization of natural resources. They have been Thank you, Mr. Chairman. less active on education, health and social sectors even if they have invaluable experience in creating

149 The Doha Review Conference on Financing for Development

Germany have been doing, and I appeal to you: every three seconds a child dies, and every minute a woman dies Statement by as a result of complications during pregnancy. The Her Excellency financial crisis has pushed an additional 40 million Ms. Heidemarie Wieczorek-Zeul people into poverty. Year after year, an unbelievable Minister for Economic Cooperation and Development of the Federal Republic of 18 million people die because they are poor, 18 mil- Germany lion unique human beings! While these 18 million Speaking as the Special Adviser to the people are dying, more than $1.3 trillion is spent on Secretary-General on the Follow-up armaments. I would also add that if billions of dol- International Conference on Financing lars could be mobilized to save the banking sector, for Development to Review the Implemen- then the international community surely should be tation of the Monterrey Consensus able to mobilize the billions needed to save the world from hunger, poverty and climate change. Moreo- 29 November 2008 ver, the least developed oil-importing countries had to finance an additional $50 billion in 2008 to pay As the United Nations Secretary-General’s Special their oil bill. That is more than they get from official Adviser, I would like to thank His Royal Highness, development assistance (ODA). This is an example the Emir of Qatar, for the hospitality that he and of how oil-importing countries are specifically hit. his staff have shown in supporting this Conference There is no better reason for spending money. We so well. In Doha, we are taking on difficult work in now have to “walk the talk”. difficult times. I have now been the development minister for 10 years, and I participated in the I should like to describe six elements of a glo- Monterrey Conference. That is why I attach such bal New Deal, as I envisage it. importance to the fact that this Conference will 1. We need strong, reliable international govern- make the decisions that we all need. The Monterrey ance structures. Developing countries must have a Conference was one of the most important confer- real voice. Africa has to participate in every meet- ences since the Millennium Development Declara- ing and be a member of the G20 and other group- tion; this Conference must be another step. ings; as I said yesterday, the African Union must be It is good that this Conference is taking place represented at these meetings. now. As President Sarkozy outlined this morn- I recall that the Monterrey Conference had ing, the more than 170 countries that were not before it a background report of a panel appointed represented at the Group of Twenty (G20) Sum- by the Secretary-General, headed by Mr. Ernest mit in Washington, D.C., must also be heard. We Zedillo, in which the establishment of a so-called have been travelling this path for eight years now. global council was proposed, and I quote, “Because Monterrey became a financing for development I still think it is relevant and we have to work for milestone for us. Yet, we know that our progress so it.” The proposed council would be more broadly far has not been fast enough. Radical market ideol- based than the Group of Seven (G7) and the Bret- ogies have driven the world economy to the verge ton Woods institutions. It would not have legal of ruin and seriously harmed the people in devel- binding authority, but through its political lead- oping countries. Everyone is now confessing that ership would provide a long-term strategic policy markets without regulation are a fatal aberration. framework to secure consistency in the policy goals Now is the time to call for a global New Deal of the major international organizations and to for this twenty-first century. We must see the crisis promote consensus building among Governments as an opportunity and seize it to fight the economic on possible solutions regarding issues of global crisis—which is engulfing all the other crises—and economic and social governance. In my opinion, prevent it from becoming a humanitarian one in this is an aim we should try to reach because inco- the developing countries. We cannot carry on as we herence is unacceptable.

150 Statements by Ministers

2. Civil society must be involved in shaping the to the Secretary-General on Innovative Financing global New Deal. I salute their presence here, tak- for Development, who has spoken before me. ing part in this initiative. Only with their participa- It should also not be forgotten that each year tion could the global New Deal become a pact that developing and industrialized countries miss out people could actually support and subscribe to. some $500 billion in lost tax revenues because of 3. With a specific emphasis, we need to empower tax fraud. An International Tax Compact should women. This would have a major impact on fulfill- allow us to establish fair and effective tax systems ing the Millennium Development Goals. The fact and to take action against tax flight; this is finance that women and men can enjoy equal rights and that could be used for health, education and fight- inclusion in political and economic decisions is a ing HIV-AIDS and other illnesses and diseases. question of human rights, but it is also in the inter- Lastly, emissions trading is a reliable instru- est of the countries themselves, and I say that with ment. I can inform you that from our use of emis- quite some emphasis. sions trading in Germany we expect to deliver I would also to like make an appeal that we all revenues in the budget of 2009 of more than €225 ensure that women and girls will not suffer in this million for development policy, and that increas- financial crisis. This concern was just expressed in ing amounts will come in future years. one of the meetings here on women’s rights. We In our discussions, it has been acknowledged heard from the United Nations Children’s Fund that climate change requires major investment. Let that in the last crisis it was specifically girls and us jointly stand up for a new and ambitious climate women that were hit additionally by cuts in the regime. Together, let us achieve the two degrees basic social services, hence my plea to all of you goal and make adaptation to climate change pos- that this will not happen again. sible in vulnerable countries. 4. The combined crises of the new century are I conclude by quoting Albert Einstein, who not just turning into global financial crises. A seri- once said, “The word progress will have no mean- ous humanitarian crisis may also be looming for ing as long as there is one single unhappy child”. developing countries. It is crucial and necessary We know that there are millions of unhappy chil- that massive investments are made in agriculture, dren. We know that there are millions of children climate protection, adaptation to climate change, who are hungry and are starving. The Millennium renewable energies and infrastructure. Development Goals tell us what concrete actions 5. We must no longer tolerate casino capitalism. we have to take in order to truly reach progress— We have to establish reliable rules for global finan- in this sense, human progress—and also to assume cial markets. global responsibility, eradicate poverty and thus foster peace. 6. We must also explore new avenues in order to finance these huge investments. Financing for It depends on all of you, on all of us, that this development is more important than ever before. will be the message from the Doha Conference: let us go forward to peace; let us go forward with I would like to inform you, not only as the Spe- respect for the individual, for each human being, cial Adviser to the Secretary-General on this Con- be it man or woman; let us go forward with respect ference but also as the German Development Min- for religions; with respect for the different deci- ister, that we stand by our commitments to increase sions that people make; and with respect for every ODA; we are convincing people of the necessity to country. work together and to go ahead together. We have made commitments to achieve the Millennium Thank you very much for your attention, and Development Goals and we stand by them. We have let us go forward. We will have success. also developed innovative financing proposals, as described by Mr. Douste-Blazy, the Special Adviser

151 The Doha Review Conference on Financing for Development

Third, we cannot loose from sight how much Guatemala the international panorama has changed since we Statement by decided to convene this conference in December His Excellency 2007. It began with a food and energy crisis fol- Mr. Juan Alberto Fuentes lowed by a financial crisis, a crisis, and now is Minister for Finance of the Republic of Guatemala extending to other sectors. It is comforting to note the rapidity with which the main economies 30 November 2008 of the world have reacted in a more or less coordinated manner to this new panorama financial Madam President, first and foremost, Guatemala crisis and contraction of economic activity all of wishes to add its voice to the delegations that have which decidedly alters the content and scope of the intervened before us to thank you and through financing for development agenda. Having said the you, your Government, for the excellent organiza- above, the process that we initiated in Monterrey in tion of this conference and for the many courtesies 2002, attuned and adjusted with what we agree to extended to us since our arrival in Qatar. in this conference, will surely point in the direction of addressing the short-term emergency without Secondly, we would like to pay tribute to the sacrificing the medium and long-term objectives process that begun six years ago in the framework which will allow us to resume our path towards of the Monterrey Consensus, as one of the most meeting the Millennium Development Goals. successful conferences organized by the United Nations in the economic and social spheres. Fourth, from the vantage point of our delegation which represents a small economy that was not In Monterrey, we garnered various achieve- present in the G20 meeting held in Washington, ments. We placed financing for development on the Monterrey process offers us the possibility to humanity’s priority agenda. We arrived at some converge in concerted reactions on the part of the sort of compact between developing and developed international community to problems that affect countries on how, with each one fulfilling its own all of us. In that convergence, the United Nations obligations, we could generate an environment of has much to offer. On the one hand it contributes cooperation to promote development. We identified the legitimacy born out of its universal member- the most relevant topics in the matter in a holistic ship. On the other hand, it contributes through its and integrated approach, reflected in the different capacity to introduce coherence between the dif- chapters that make up the Monterrey Consensus, ferent agenda items on humanity which encom- chapters that once again organized the document pass financial, economic, social, environmental that we trust will emerge from this conference. and political matters. This is another way of saying We built bridges between the different inter- that given the magnitude of the problems we face, national actors involved in financing for devel- all of us should close ranks to address them in a opment including the Ministers of the Economic coherent and integrated manner. area, Central Banks, Ministers of Cooperation, Fifth, in the realm of my personal field of Ministries of Foreign Affairs. We were also able to action, fiscal policy plays an especially relevant build bridges between the United Nations and the role, be it as a source of internal resource mobiliza- multilateral financial institutions, and between the tion to finance investment as part of a development latter and regional institutions that in one way or strategy, or as one of the few effective counter- another deal with financing. We brought civil soci- cyclical policy instruments at our disposal in times ety in the business sector into our activities. It was of global economic recession. logical therefore, that we should comply with Para- graph 73 of the Monterrey Consensus to undertake Having said the above, small economies like an assessment of the achievements and setbacks mine very limited in their ability to act in this produced during the past six years. manner because the decreases in fiscal receipts that

152 Statements by Ministers tend to accompany recessive periods reduce their Hungary capacity. That is an additional reason to maintain and even increase the levels of international coop- Statement by eration during recessive periods. In this way, they His Excellency Mr. László Várkonyi mitigate the effects of an economic contraction State Secretary, Minister of Foreign in two ways, by contributing to combat the ongo- Affairs of the Republic of Hungary ing global deflation as a result of the international financial crisis and by allowing small developing 1 December 2008 economies to apply counter-cyclical policies. Coordinating these policies, learning from Allow me, first of all, to warmly congratulate the best practices and fiscal matters, and expanding host of this prestigious event. cooperation to other areas of fiscal policy such as I should also like to thank the organizers for double taxation, justify strengthening coopera- the initiatives and all the efforts to make this Con- tion in these matters. It is for this reason that we ference a cornerstone of our development coopera- enthusiastic about the idea of strengthening the tion. In fulfilling the challenging tasks of the Con- role of the United Nations Committee of Experts ference, I assure all participants of the support and on International Cooperation in Tax Matters. cooperation of the Hungarian delegation. Finally, I would like to vindicate the need to Let me also make a brief reference to the hor- promote a more participatory development, bring- rible terrorist act that Mumbai had to suffer, and ing civil society and the business sector into our express my deep condolences to the Government work. For the latter, it is appropriate to invoke not and the people of India. only its social and environmental responsibility, but also its responsibility as a taxpayer. And at the same Hungary welcomes the Doha Follow-up Inter- time both civil society and the business sector have national Conference on Financing for Develop- the right to hold the state fully accountable and to ment as an opportunity to debate and reinforce the insist on total transparency in its endeavors. Monterrey Consensus, while addressing new and emerging challenges. The timing of the Conference Mr. President, I end hoping that with this gath- is of crucial importance. We cannot but remind ering and in spite of the agonizing financial diffi- ourselves of the current financial and economic culties that the world faces in the short run, we will crisis, which is likely to have a serious impact on be able to maintain and even enhance the spirit both donor and partner countries, though in a dif- and the commitments spawned in Monterrey, and ferent way and strength. The need for solidarity that we will respond to the new challenges through is increasing, such as the responsibility of devel- a strengthened multilateralism. oped countries for enhancing development coop- Thank you. eration. Developing countries, especially the least developed and most vulnerable ones, cannot be the major victims of the current crisis. We have to place special emphasis on the enhancement of the situation of women and children. But our partner countries’ responsibility to avoid or to minimize negative impacts can also not be neglected. Hungary is firmly committed to support the achievement of the Millennium Development Goals. Without questioning the importance of respecting our commitments, we stress the necessity of increasing the effectiveness of financing

153 The Doha Review Conference on Financing for Development

activities, as well as of involving new resources for Development was aimed at facilitating their par- development cooperation, partly by introducing ticipation here in Doha. new forms of innovative financing or facilitating On behalf of Hungary, I would like to reiter- higher foreign direct investment flows. ate our commitment to be an active partner in fac- For the economies of the least developed and ing the core challenges and objectives of financing most vulnerable countries, the role of trade is the for development: to fight poverty and achieve the prerequisite for their sustainable growth, and it is Millennium Development Goals, foster economic the gateway to their global economic integration. growth and promote sustainable development. Market access in itself is not sufficient in this case; In conclusion, Mr. President, I would like we need to support the increase of their produc- to assure you that Hungary is strongly commit- tion capacities and trade infrastructure. We should ted to work with you on a positive outcome of actively support the Aid for Trade Initiative. this Conference. Effectiveness demands reliability and coherence. We consider it as one of our main future tasks and challenges to establish and improve the business- India enabling environment and solid legal background Statement by in developing countries. The developed countries His Excellency should provide the necessary technical assistance. Mr. Shri E. Ahamed Sustainable economic growth and social devel- Minister of State for Extenal Affairs of opment can be the result of only long-term cooper- the Republic of India ation and real partnership. We put special empha- 30 November 2008 sis on education and training as main priorities in our development policy. Madam President, Excellencies, Ladies and Gen- A solid business environment also requires tlemen, at the outset, I would like to thank His good governance. Hungary offers its experience Highness the Emir of Qatar and the Government and knowledge to build up and improve these of Qatar for the warm hospitality extended to us capacities. Last year, we doubled the amount of our and for the excellent arrangements made in host- assistance provided for these purposes and we are ing this very important Conference. determined to continue our work in the future. I would also like to express my appreciation Donor and partner countries’ capacities and for the UN Secretary-General, the President of the possibilities are different. This calls for a better General Assembly and their teams. division of labour in order to use capacities and knowledge in the most effective way. We encour- Madam President, we are grateful for the age complementary solutions. Hungary is ready to words of sympathy and solidarity that many of share its experience gained in Afghanistan and to you have expressed for my country in the wake of transmit the know-how in other countries as well. the dastardly terrorist attack on Mumbai. These We express our firm belief that effective develop- attacks were well-orchestrated and well-planned. ment cooperation is based on balanced dialogue This is not possible without a strong institutional and mutual responsibility between donors and and financial support from outside. I hope that this conference will send out a strong message that not partner countries, respecting and understand- only the perpetrators but also the organizers, fin- ing each other’s views and approaches. Hungary anciers and supporters of terrorism will be brought welcomes the large number of stakeholders from to justice urgently. developing countries. Our contribution to the United Nations Trust Fund for the Follow-up to We would also urge an urgent adoption of the International Conference on Financing for the Comprehensive Convention on International

154 Statements by Ministers

Terrorism that has been pending for long at the developing to developed countries with the figure United Nations. Stamping out terrorism is also having reached almost $800 billion in 2007. essential for social cohesion and safety and secu- Given today’s financial turmoil, more intensive rity in all our societies. These are, in fact, essential efforts have to be made to ensure that capital flows preconditions for development. to developing countries, including private flows, Madam President, in 2002 at Monterrey, we do not shrink. In these circumstances, ODA would made a renewed commitment of ensuring predicta- have a more important role in development financ- ble and additional financing to developing countries ing and there is an urgent need to scale up ODA. for their development efforts. Today at the half-way There is also an imperative to put in place mark to our target date of 2015, it is clear that many counter-cyclical policies by promoting infrastruc- developing countries, and the world as a whole, will ture investment and investing in green and clean not be able to achieve the Millennium Development technologies. “Investment in infrastructure is today and other Internationally Agreed Goals. perhaps the best signal for reviving private invest- The main reason is the lack of delivery on the ment, including FDI, tomorrow”, is what our Prime global partnership. There has been a drop from Minister, Dr. Manmohan Singh, recently noted. 0.31% of gross national income in 2006 to 0.28% in The World Bank, International Finance Cor- 2007, far less than the commitment of 0.7% of GNI poration and regional development banks have made over 30 years ago. a special role in this. Our focus must also be on OECD figures also show a disappointing drop ensuring that developing countries enjoy the in total development assistance by 8.4% in real terms proper economic and policy space to allow them in 2007, on top of a 5.1% drop in 2006. It is high to grow rapidly, unfettered by conditionalities. We time that we stop making commitments after com- must guard against protectionist tendencies and mitments and instead deliver on commitments. erection of trade and economic barriers. The global partnerships should assist in capacity and insti- Madam President, our Conference is extreme- tution building as well as transfer of technology. ly timely given the magnitude of the financial and economic crisis that we are facing today. Develop- Madam President, our efforts to use trade as ing countries were not the cause of the financial a catalyst for promoting development must yield crisis, but may become its worst victims. results that ensure that development is at the heart of the outcome. For India, the livelihood interest of The choking of normal credit will lead to millions of our vulnerable subsistence farmers is of lower capital flows and foreign direct investment critical importance. to developing countries. Their export abilities will also be hit. Much of the world’s growth in the past Madam President, as we meet here the UN several years has been due to growth in developing Framework Convention on Climate Change is convening in Poznan. It is important that the negotia- countries and any slowdown of this growth would tions under the UNFCCC respect the principle of have serious consequences for the world economy. common but differentiated responsibilities in let- If we are to prevent a slide back and ensure ter and spirit and move towards an ambitious and that Millennium Development Goals are achieved, equitable outcome. developed countries will have to see that FDI, trade The outcome should recognize an equal right and infrastructure development in developing for all to the global resource of the atmosphere. countries is not slowed down. Developing countries must be able to give their peo- Madam President, international private capital ple a better life and cope with their huge adaptation flows to developing countries have increased since needs. The developed countries must deliver on Monterrey though we should remember that there their green-house gases reduction commitments. continues to be a net outflow of resources from They must also commit support for developing

155 The Doha Review Conference on Financing for Development

countries with capacity building, technology and Indonesia new and additional finance for addressing climate changes without detracting from development Statement by finance commitments. His Excellency Mr. Paskah Suzetta Madam President, the current economic cri- Minister for National Development Plan- sis has brought about a clear recognition of the ning and Chairman of National Develop- mismatch between the realities of today and the ment Planning Agency of the Republic of existing global architecture of international gov- Indonesia ernance. The institutions created at Bretton Woods 30 November 2008 must have a greater voice, role and effective participation also of the developing countries reflecting current realities. We welcome the moves initiated Mr. President, Colleague, Delegation and Distin- in this direction. And, at the United Nations, too, guished Guests [foreign language], good after- the democracy deficit is no longer sustainable. noon. Mr. President, it is a pleasure for me to be here and first of all, I should like to express Indo- This requires genuine reform of the Security nesia’s appreciation to the Government and People Council, which must encompass expansion in of Qatar for the warm hospitality and the excellent both permanent and non-permanent categories of arrangements that has been made for this impor- membership reflecting contemporary realities. tant conference. Madam President, at this half-way stage to On this occasion, I would like to express our the target date for the Millennium Development deep sympathy and condolence to the Government Goals, we must ensure their attainment across the and especially people of India for the tragedy that globe. The response to the current economic and happened in Mumbai. financial crisis, which threatens to roll-back some This conference is taking place at a time of cri- of the hard-won development gains in develop- ses which have created several challenges for devel- ing countries, has shown that with the requisite opment financing. Over the next few days, we must political will, the world has tremendous capacity to resolve to chart a path to overcome these chal- mobilize large resources at short notice. lenges. This will ensure the wheel of development We hope that at this Conference we will wit- continues to rotate and support efforts to meet our ness the same zeal of galvanized action for the international development goals, securing a better good of all humankind. future for the people we serve. Thank you. Mr. President, Ladies and Gentlemen, the world has changed considerably since the Monter- rey Consensus. We are increasingly being shown that globalization does not only facilitate growth and development but it has also increased financial and economic instability tremendously at all levels. This instability has manifested itself in the various crises we have gone through recently. From the recent energy and food crises, to the financial crisis we are in today. Underlying all of these is the real and imminent threat of climate change. Mr. President, facing increasing global instability, the review of the Monterrey Consensus on financing for development must contribute to

156 Statements by Ministers strengthening our financial and economic system Against this background there must be a at the global and national levels. This will provide renewed global partnership to create an enabling a sound and strong foundation for us to mobilize international environment that can facilitate con- resources to finance development. tinued mobilization of domestic and international Indonesia’s view is that achieving a sound and resources, enhance international financial and technical cooperation, as well as address external strong global financial and economic system in debt and known systemic difficulties. Without conducive to financing for development. We believe these arrangements, the international environment this requires a three- pronged approach. First, we will not yield development resources. need to expedite reform of the global financial and economic architecture. Another integral part of an enabling international environment is trade. Indonesia is encour- What the global financial crisis has done is to aged to see that international trade, particularly expose the shortcomings of the current interna- among developing countries, has expanded con- tional financial architecture. The need for greater siderably. But the possibility of a global recession, stability and equity of the global financial and eco- resulting from the current crisis, threatens to put a nomic system has been made emphatically clear. brake on these developments. At this point, the only The key to the reform, in our view, is the enhance- conceivable antidote for this is the realization of a ment of global surveillance capacities, as recom- genuine Doha Development Round. The responsi- mended by the Monterrey Consensus. We must bility for delivering such an outcome rests with all make the global financial and economic system able Members, primarily the major economic players. to meet new challenges and demands. Our conviction is that a well-supervised system controlled by Thirdly, national level actions remain the cor- better regulations will prevent large-scale instabil- ner stone to successfully mobilizing resources for ity in the future. development. It is important for each country to continue to implement the necessary macroeco- But in carrying out the necessary comprehen- nomic, fiscal, and development policies that will sive reform, which must include the Bretton Woods inspire the confidence of the business sector and system, due emphasis should be given to develop- engender support for the continued growth of the ment as our common platform. In this context, we real economy. welcome the effort of the G20 to initiate the reform process, however, we wish to stress the need for the Because of the current global financial climate, United Nations with its universal membership to many may be tempted to resort to protectionist take a leadership role. policies. But it is important that we refrain from such an approach or from turning inwards during Second, we need to strengthen global partner- these times of financial uncertainty, even though ship on financing for development. In time of crisis, independent policy space for developing coun- we should not distract our focus from development tries remains an important necessity. Such space issues such as poverty, energy and food security, as is important because developing countries must well as climate change. It is important that we rein- address the particular circumstances affecting the vigorate global partnership for development as well needs of their poor. as creating conducive international environment. The notion of developing countries going Many developing countries have undergone it alone can be discounted based on the serious the necessary domestic reforms, often internation- financial constraints that affect their development ally prescribed, to enhance the mobilization of processes. Even with domestic mobilization of resources for development. However, despire their resources, many developing countries particularly efforts, developing countries have continued to LDCs have continued to suffer from insufficient suffed from development funding insufficiencies. resources for development. To this end, ODA and

157 The Doha Review Conference on Financing for Development

FDI must be treated as indispensable for economic Ireland growth in developing countries. Statement by In this vein, we are encouraged to see there has His Excellency been, in real terms, an overall increase in ODA since Mr. Peter Power T.D. the Monterrey Consensus. The current crisis must Minister for National Development Plan- not be allowed to hinder this steady flow. Donor ning of Ireland countries must keep their existing commitment to 30 November 2008 ensure that the crisis will not jeopardize the development achievement of developing countries. Mr. President, Heads of State, Excellencies, Dis- In this context, we strongly endorse the estab- tinguished Guests, Ladies and Gentlemen, it is an lishment of timetables by donor countries to fulfill honour to be in Doha. May I extend our sincere their commitment of 0.7% of their GNP as official thanks to His Highness the Emir and the Govern- development assistance. To achieve the effective- ment of Qatar for the warmth of their welcome.. ness of aid in support of development, we strongly endorse the implementation of the Paris Declara- We meet at a time of global economic crisis tion Agenda on Aid Effectiveness as well as the to review the implementation of the consensus Accra Agenda for Actions. forged at Monterrey six years ago. As representatives of developed and developing countries we In addition, we draw attention to the threat must all demonstrate clearly over the coming days posed by climate change, its likely effects on global that the partnership for development to which we development and the need for developing countries have committed ourselves will not be undermined to finance measures to counteract those effects. In by our response to the economic crisis. Put simply, keeping with the principle of global partnership, the poorest people on the planet, the almost one additional external financial resources and tech- billion who do not have enough food to eat, cannot nological support must be provided to developing be the chief victims of a financial crisis which owes countries to overcome climate-related develop- much to the greed of the already rich. ment challenges. This has to become an unwritten aspect of the Monterrey Consensus. We are now more than half way towards the target date of 2015 for the achievement of the Mil- Finally, let me state that Indonesia is fully com- lennium Development Goals. If we are to halve mitted to ensuring the successful implementation world hunger and poverty levels by that date, we of the Monterrey Consensus. We firmly believe that need to be act more effectively and with a greater the Monterrey Consensus remains a great vision for sense of determination, from now. economic and financial cooperation. It is just as relevant today as it was six years ago. Its full and effective In 2002, the Monterrey Consensus was a vital implementation is therefore imperative as we strive step in defining the need for global solidarity and to achieve the Millennium Development Goals. genuine partnership between nations. It articulated the reality that each State bears responsibility Thank you for its national development. That aid is not simply a matter of funding and spending. And that acts of commitment, reform and solidarity are demanded of all partners in development. All our Governments have made a series of pledges and commitments in the context of a series of international conferences on development. Between us, in Doha, we must now underscore the credibility of those pledges, and agree to act on

158 Statements by Ministers them. The solidarity we worked to build in a grow- experts to make recommendations on ending the ing global economy is being seriously tested by the hunger crisis through concerted international global crisis we face today. It is now that the prin- action. Its report has been received, and it is blunt ciples behind Monterrey Consensus demonstrate in its recommendations. It argues that many States their real value. have not lived up to their obligations, or to their promises and commitments in relation to hunger. Against this difficult background, we must not It calls for a renewed focus on agricultural pro- lose sight of the progress which has been made. ductivity in Africa, and especially on women who We must safeguard it. Growth rates in develop- are primarily responsible for food production in ing countries have reached historically high levels, the developing world. It calls for the targeting of supported by improvements in governance and the maternal and infant under nutrition and it sets out development of trade and investment. Aid volumes the need for changes in governance and leadership have substantially increased, and in implementing priorities to build a real global political commit- the Paris Declaration and agreeing to the Accra ment on hunger. Agenda for Action, we are increasingly focusing on the effectiveness of aid. I am determined that the long term hunger crisis and not just the emergency response to the rise Ireland is working hard to fulfill its part of in food prices must be at the centre of our develop- the bargain. Despite serious economic difficul- ment policy. We must respond effectively, together. ties at home, we remain on course to achieve the target of 0.7% of GNP on Overseas Development Mr. President, the commitments made at Assistance. The European Union will achieve the Monterrey on the development of sound macr- target by 2015. We in Ireland intend to achieve it oeconomic policies, on good governance and the by 2012. elimination of corruption are as important as the commitments on ODA flows. Overseas Develop- We expect that this year, Ireland’s Overseas ment Assistance will not be effective until it assists Development Assistance will represent 0.56% of our partners in their own development programs. GNP, the highest ever. By design, our development assistance is 100% untied and overwhelmingly If ODA is to be effective, if poverty eradication directed towards the poorest of the poor, the Least and sustainable development are to be achieved, the Developed Countries. Our absolute priority is the necessary conditions must be created at national lev- fight against global poverty and hunger. Our ambi- el to ensure economic stability. The global economic tion for Doha is that, despite our clear differences downturn requires a global response. But at national of emphasis. we reach agreement as an interna- level, it remains essential to encourage the develop- tional community to prioritize the weakest and the ment of the private sector and to create conditions most vulnerable, working in partnership with the conducive to investment and wealth creation. Least Developed Countries. The Monterrey Consensus contains a clear com- It is our firm conviction in Ireland that, as mitment to reform the International Financial Insti- we reaffirm our commitment to the Millennium tutions. Action can no longer be avoided. As the G20 Development Goals we must devote greater effort have recognized, this global reform is now an urgent and resources to fighting food insecurity in the priority. Ireland strongly believes that the govern- developing world. How can we not prioritize the ance of the Bretton Woods Institutions must reflect need for a sustainable food supply? The other Mil- the changing economic weights in the world econ- lennium Development Goals will be rendered aca- omy in order to increase their legitimacy and effec- demic if this, the most basic condition of human tiveness. In particular the Institutions must be more existence, is not met. representative of emerging market economies. The Government of Ireland last year estab- Equally, despite the international efforts to lished a task force of national and international which we have contributed strongly, we believe

159 The Doha Review Conference on Financing for Development

that further work needs to be done on relieving Mr. Chairman, this Conference takes place at a the debt burden on developing countries. We must time of crisis. It is our duty to rise to the challenge ensure that the successes of recent years in freeing and show the leadership needed to ensure that the up resources for the alleviation of poverty are not poorest and most vulnerable people will not be the undermined by irresponsible lending or borrow- main victims of the crisis. ing in the future. The pernicious debt trap for the We must not allow that all the progress in developing world must be conclusively eradicated development, made since Monterrey, is now lost. for future generations. Italy gets ready to take up the responsibility of the Mr. President, over the coming days we will G8 Presidency, at a time of great uncertainty. review in detail the full range of commitments We face serious challenges. We must need entered into in Monterrey. There will be points of to build new and sound foundations for the glo- difference and of disagreement between us. But we, bal economy. We need to turn this crisis into an as Government Representatives, have to recognize opportunity to launch a new pact for growth and the urgency of the moment. Our Conference must sustainable development. not become a divisive drafting session. We have an historic opportunity to recommit ourselves to As founding father of the European Union, we working in partnership to eradicate world pov- know how joint efforts can succeed in changing the erty. We must recommit ourselves with credibility course of events. Inclusiveness is part of our cul- to implementing the Millennium Development ture. Italy has always been a strong supporter of a Goals. Unless we succeed in maintaining our focus Europe that was able, from its origins, to conduct on this dimension of the series of interlocking glo- a dialogue with all its partners and especially with bal crises we now face, we will not find sustainable Africa. We have constantly promoted a wide-rang- solutions to any of them. ing partnership for development, where development assistance, trade and investment are mutually Thank you. reinforcing each other. This approach will be the cornerstone of the G8 Italy Presidency. Africa, the Millennium Development Goals and the fight against poverty will remain at Statement by the top of our priorities in the Italian G8 Summit. His Excellency Mr. Vincenzo Scotti We cannot accept that in the 21st Century peo- Secretary of State, Ministry for Foreign ple still lack access to food, water and health. We Affairs of the Republic of Italy are working to form a Global Partnership to promote food security and to strengthen the capacity 1 December 2008 of the UN agencies to act swiftly and effectively. We will work in partnership with the African Union to Mr. Chairman, Ladies and Gentlemen, allow me to implement a renewed strategy for water. express our feelings of deepest sorrow for the trag- The G8 was also instrumental in launching ic terrorist attacks against India. In this moment, the Global Fund and the other innovative initia- the Italian government is particularly close to the tives for global health. We will stay committed in government of India and to the families of the vic- all these areas, which are crucial for the well-being tims. Terrorism remains one of the biggest threats of present and future African generations. to the world. We must continue to fight it with all the necessary determination. Italy will continue to We must ensure that all financial resources and contribute to building a more peaceful and secure actors including civil society and the private sec- world, also within the framework of its incoming tor contribute to promote growth and the Millen- G8 Presidency. nium Development Goals. Improved governance,

160 Statements by Ministers trade, investment flows, debt relief and innova- direction and work together, in a constructive tive financing, as well as ODA, play a crucial role manner. We are ready to take up the challenges and in development. A more effective ODA, along the lead the way in building bridges between devel- principles of Accra, can become a catalyst for lev- oped and developing countries. eraging private resources in a spirit of public and Allow me to conclude, Mr. Chairman, by private partnership. expressing my sincere hope that this Conference We need to keep track on the real impact on will bring us closer together, as it happened at the development of both the quantity and quality of Accra Forum last September, in a renewed and aid. We must work together to strengthen financial inclusive effort for development. markets and local capacity for domestic resource Thank you. mobilization and step up efforts to discourage capital flights and the tax evasion. Migrants’ remittances can be a powerful development tool for developing countries. Japan We must ensure adequate access to credit for Statement by developing countries. At the same time, debt sus- His Excellency Mr. Nobuhide Minorikawa tainability principles should be adhered to in all Parliamentary Vice-Minister for Foreign new lending. Affairs of Japan Mr. Chairman, while we work together to design 30 November 2008 a new international financial architecture to prevent future crises, the G8 will provide political impulse and responsible leadership to find solutions to the Madam President, Distinguished Delegates, I am main global challenges and be the driving force for honored to speak on behalf of the Government of advancing the global agenda in other fora. Climate Japan, as we gather here to review the implemen- change, energy, international development, food tation of the Monterrey Consensus on financing security, peace and stability all require commitment for development at this critical juncture. Before I and vision. But we cannot do it alone. We must be begin, let me join others in expressing profound inclusive: everyone must play its part. gratitude to the Government and the people of Qatar for their gracious hospitality. I also congrat- All global challenges require a global ulate the facilitators, which are the delegations of response. Take climate change. We cannot reverse Egypt and Norway, for their tireless efforts in push- present trends without a joint effort end shared ing forward the negotiations to draft an outcome responsibilities. document, and the UN Secretariat for their sup- In the same spirit, Italy with the “Uniting for port to the Member States. Consensus” has been promoting d reform of the What has changed since the year 2002, when UN Security Council based on consensus and their the world agreed on the Monterrey Consensus? The representativeness. These should be the guiding recent financial crisis has become a focus of atten- principles. Appropriate formulas and the solution tion for everyone involved in financing for develop- will follow. ment, and with good reason. There are widespread The Monterrey Consensus based on a com- concerns that the impacts of financial turmoil and prehensive approach to development and mutual the plummeting stock market worldwide are seep- accountability is today more relevant than ever. ing through into our real economy. In all likeli- In 2002 the mood was different. We were then in hood our common efforts to achieve development a phase of global economic expansion. But those are going to face even harsher realities because of principles and commitments are still valid today, the current financial crunch. At the same time, as we face a crisis. We must provide a sense of issues like climate change and increases in food

161 The Doha Review Conference on Financing for Development

and energy prices have become serious concerns as well. At the same time, in an imperfect world in the international community today. These issues where financial resources for development are not are not necessarily new in themselves, but there is unlimited, donor countries should strive for get- a much greater sense of urgency today about the ting the maximum result out of the same limited need to address them timely and more effectively. amount of input, by coordinating with each other We now face a growing and diversifying demand to utilize resources in an even more effective and for financing sustainable development, with an ever efficient manner. growing number of factors that can jeopardize our In many ways, the development agenda adopt- efforts for ensuring human security and attaining ed in Monterrey in 2002 is just as, or even more, the Millennium Development Goals. relevant today. The Monterrey Consensus right- Having said that, I must emphasize that these ly shed light on a wide range of possible financ- recent developments have not fundamentally altered ing measures for development, devoting separate the significance of the principles agreed on 2002. chapters for domestic resources, ODA, external The Monterrey Consensus remains the cornerstone debt, international trade, and foreign direct invest- of our overall efforts to secure financing for devel- ment and other private flows. Even then, it was opment. We need to build on this and ensure that evident that the increasing development needs of the efforts of both industrialized and developing the world required much more than just ODA and countries to achieve MDGs will not falter, even in traditional donors. the midst of the recent financial setback. Today, the need to mobilize a wide variety of Earlier this year, through the process of the 4th resources is taken more seriously than ever, with a Tokyo International Conference on African Devel- diverse set of players asserting themselves as a major opment (TICAD IV) and the G8 Hokkaido Toyako stakeholders in development, from governments of Summit, Japan has led international efforts to lay developing countries and emerging economies to out strategies for development, and announced its international organizations, private foundations, development-related commitments such as dou- corporations, and academia. It is therefore, neces- bling its ODA and private investment for Africa sary to adopt a participatory approach in review- by year 2012. Just two weeks ago, the G20 leaders ing and following up the Monterrey Consensus, so gathered in Washington DC and agreed to work that we can draw strength from all these players. together to restore global growth and achieve Another point that was stressed in Monter- needed reforms in the world’s financial systems. rey, and still holds true today, is the importance To help emerging and developing economies of national policies and development strategies. It gain access to finance, we all agreed on the need to really goes without saying that each country should ensure sufficient resources for the IMF and other take on the primary responsibility for its own devel- international financial institutions, and in this con- opment with a strong sense of ownership. Good text, Japan expressed its readiness to finance up to governance, sound macroeconomic policies, solid US$100 billion to the IMF, as an interim measure democratic institutions, anti-corruption measures, before a capital increase in the IMF takes place, so an enabling environment for capacity building and that the IMF can extend the necessary assistance to investment, are essential ingredients for a govern- those in need. ment to ensure human security for its citizens and attain sustainable growth. These elements should be I assure you, Japan for one will not reverse its fully acknowledged in the outcome of this review course on the promises it has made through these conference, and should be pursued vigorously in meetings. In delivering on our commitments, we our shared endeavor to achieve development. believe in doing so steadfastly and promptly, rather than making extravagant new gestures without any Madam President, this review conference is credible follow-up. And we call on other donor being held in challenging times indeed, but chal- countries to carry out their existing commitments lenges can also be opportunities in disguise. It is

162 Statements by Ministers my sincere hope that this conference, building as well as the goal-oriented efforts for implemen- on the original consensus in Monterrey, will give tation of the Long-Term Development Strategy renewed impetus to, and provide a reference point Kazakhstan 2030 adopted in 1997. In accordance for, further global efforts on financing for develop- thereto and considering the Millennium Develop- ment in the years ahead. ment Goals, a whole range of state development Thank you. programs was elaborated. First of all, it was the Strategy of Industrial- Innovation Development of the country, which Kazakhstan launched the establisment of a number of the national development institutions, the Develop- Statement by ment Bank, Innovation and Investment Funds, His Excellency Mr. Nurlan Zh. Danenov the Fund for Entrepreneurship Development, and Deputy Minister for Foreign Affairs of many more. Infrastructure projects are implement- the Republic of Kazakhstan ed within the Strategy of the State Industry Devel- opment. Particular mention deserves development 1 December 2008 programmes in healthcare and education fields. Mr. President, this conference is being held Mr. President, Distinguished Participants of the during the times of unprecedented financial eco- Conference, first of all, I would like to express grat- nomic crisis which has threatened realization of itude on behalf of the Kazakhstan delegation to the development goals in many states. Kazakhstan’s leadership of Qatar for the warm welcome and the economy is also influenced by this crisis, which highest level of preparations for this conference. nevertheless demonstrates the dynamic growth This Follow-Up Conference gives us an opportu- rate of 4%. The timely measures of our government nity in the concerted manner to review the imple- have allowed reducing the negative influence of the mentation of the Monterrey Consensus, share external trends. lessons learnt in the field of financing for development and elaborate timely measures to deal with So, in order to ensure the sustainability of the the challenges. financial sector, stabilize the real estate market, support the agrarian sector and implement inno- Since the consensus was reached in Monter- vation-infrastructure projects, US$10 billion were rey Consensus, Kazakhstan, along with other allocated from the National Fund of the country, countries, has achieved considerable progress in which amount to 10% of the GDP. resolving problems of social-economic development of the country and promotion of its sustain- In the next year for the first time ever we will be able development. implementing the three-year state budget. The next Tax Code will come into force that considerably During the last eight years economic growth decreasing a burden on the non-raw sector, and the has been maintained at steady 9-10%. By 2004, corporate tax will decrease from 30% to 15% while Kazakhstan has fulfilled one of the primary tasks the vat rate will decrease to 12%. Based on the goals of the Millennium Development Goals, by halving of the Monterrey Consensus, we have adopted the a number of people with income below the subsist- National Plan of Actions to Fight Corruption. ence level. Kazakshtan has entered a group of middle-income countries and the top 20 list of coun- However, efforts at national level could more tries attractive for investors. All these changes have successful if the urgent measures on economy become possible due to measures undertaken by improvement on a global scale be taken. Sustain- the Government of Kazakhstan, in the context of able development is impossible when there is a realization of the national development goals and credibility crisis for the world financial system. recommendations of the Monterrey Consensus, Developing countries’ efforts to create sound

163 The Doha Review Conference on Financing for Development

national financial economic systems could be also important to make every effort to achieve real undermined by inadequate assessment of cor- global partnership, improve cooperation between porate and sovereign risks from the credit rating the governments, international organizations, pri- agencies. Therefore, we support strong supervi- vate sector and the NGOs. The UN system, and in sion oveir their activity and additional actions to particular the Economic and Social Council may strengthen financial market transparency. play an important role not only in monitoring, but also in coordinating the implementation process. Dear Conference Participants, Kazakhstan is ready to cooperate with all par- For Kazakhstan as a participant of the negotia- ties to the Monterrey Consensus. Only by duly tions process for entering the WTO clauses estab- expressing the political will and responsible atti- lishing support and maintenance of the “open, tude to the undertaken commitments, andthrough equitable, rule-based, predictable and non-dis- with active joint efforts we can create conditions criminatory multilateral trading system”. A qual- for sustainable long-term financing for develop- ity breakthrough is required in the Doha Round ment that will benefit the entire world. of Negotiations, in resolution of the issue of access produce, including agricultural, from the least I thank you for your attention developed and the developing countries. From this stand Kazakhstan would like to once again draw attention to the necessity of achieving progress in Liechtenstein realization of the special need of the land-locked Statement by countries. We call for all interested parties to firmly Her Excellency follow the recommendations of the Almaty Pro- Ms. Rita Kieber-Beck gramme of Action and commence implementing Minister for Foreign Affairs of the Prin- the measures adopted upon the Midterm Review, cipality of Liechtenstein results of which were approved by the UN General Assembly this October. 30 November 2008 To maximize the development impact of the foreign direct investment, it is very important to Let me first express the deep sympathy of the achieve the realization of the Monterrey Consen- Government of the Principality of Liechtenstein sus provisions regarding technology transfer and to all those who are victims of the terrorist attacks investments in non-raw sector of the economy. in India. Kazakhstan attracted more then $70 billion of for- Liechtenstein would like to thank the Govern- eign direct investments. An impressive figure but ment of the State of Qatar for its generous hos- also absolute majority of this amount concentrated pitality hosting this important Conference. This within the extracting sector of economy. We call event gives us a chance to reaffirm our commit- for measures to be taken in order to strengthen ments and to take stock of progress achieved since linkages between domestic production activities, we all adopted the Monterrey Consensus over six enhancing the transfer of technology and creating years ago. We very much hope and expect that this training opportunities for the local labourr force. Conference will allow us to make further progress and to continue building consensus on financing Mr. President, in the current conditions of the for development for the future. The Millennium world financial-economic crisis, the crucial role of Development Goals are among the most ambitious the conclusions, assessments and recommenda- and most important goals that the international tions incorporated in the Outcome document of community has ever set for itself. Transforming this Conference cannot be overstated. them from goals into achievements requires a mas- To ensure further realization of the long-term sive collective effort of which our work on develop- commitments under the Monterrey Consensus, it is ment financing is an indispensable part.

164 Statements by Ministers

We are gathering at a particularly challenging in an inclusive manner. The Microcredit Summit moment. This is a time of great uncertainty. We Campaign reported a few months ago an overall have witnessed, over the past weeks and months number of 64 million borrowers in 2006, up from in rapid succession the food, energy and financial just 9 million in 2000, with women often being the crises. The international response is an indicator of primary recipients. This tool has led, among other how serious a situation we find ourselves in, but things, to a growing participation in the domestic it is not quite clear yet how and when we will be economic process and has fostered the economic able to overcome this crisis. We may well be in the empowerment of women, in particular. In this midst of the greatest crisis of the era of globaliza- context, let me emphasize the importance that we tion so far and we seem to have underestimated attach to the inclusion of a strong gender perspec- how interconnected our world has become in spite tive in the Doha outcome document. Microfinance of all the rhetoric about globalization. There is, of deserves a particular place in the multitude of course, the risk that those who are most vulner- development activities. Liechtenstein has become able will pay a particularly high price in this situa- very active in this field and has set up the public- tion. We must not allow this to happen. This is an private partnership Microfinance Initiative Liech- extraordinary challenge to which this Conference tenstein in 2005. The partnership is supported by will not bring the final solution. But our gathering the Government, while the private sector is the is a unique opportunity for us to reaffirm that we main driving force. It promotes microfinance in stand by our commitments to finance development a wide variety of ways and makes an effective and worldwide, even—and especially—in this time of entrepreneurial contribution to fighting poverty in crisis, for our common and shared benefits. developing countries. The Monterrey Consensus outlines the respon- We support comprehensive measures to sibility of both developing and developed coun- address the problem of illicit financial flows and tries with regard to the financing for development related criminal activities and have taken effective and makes it clear that the common goals can only preventive measures at the national level to protect be met through a common effort. Liechtenstein our financial centre from such activities. attaches great importance to the targets set with At the international level, we have ratified the regard to official development assistance (ODA). relevant international conventions in this respect, After Monterrey, we have continuously scaled with the sole exception of the Convention against up our contributions to ODA and we will reach Corruption, that we expect to ratify very soon. approximately the level of 0.6 per cent in 2008. Liechtenstein has already been continuously work- Both the Government and Parliament are commit- ing on the proper implementation of the Conven- ted to reaching the 0.7 per cent target as soon as tion through a comprehensive set of measures and possible. I wish to emphasize in this regard that this has reached a high degree of compliance with its figure does not entail any debt cancellation, export provisions. We are actively engaged in efforts to promotion measures or loans. Liechtenstein’s ODA secure the recovery and return of stolen assets, consists, to a large extent, of support to small-scale in particular through our support of the Interna- projects carried out by non-governmental organi- tional Centre for Asset Recovery (ICAR) and the zations and local communities. Since Liechten- StAR Initiative of the World Bank. These efforts stein is a country with a rural character, the focus complement our financial and expert support to is placed on the promotion of rural development, the Global Programme against Money Laundering an issue that has gained international attention in and our longstanding commitment in the area of the context of the world food crisis. combating the financing of terrorism. We are open Microfinance has been recognized in Monter- to any constructive discussions that are carried out rey, as well as in the preparations for Doha, as an with full respect for the principles of a universal important tool for overcoming poverty by promot- level playing field and the sovereign equality of ing the availability of domestic financial resources Member States.

165 The Doha Review Conference on Financing for Development

Luxembourg of the South. The economic crisis has repercussions throughout the world and we are all feeling Statement by the effects of it, but the developing countries might His Excellency suffer much more than others in a disproportion- Mr. Jean-Louis Schiltz ate manner. Right now, the transfers of migrants Minister for Cooperation and Humani- are going down; foreign investments are stagnant; tarian Action of the Grand Duchy of Luxembourg and prospects for exports are very bad. There are many in the South who fear that the levels of offi- 1 December 2008 cial development assistance (ODA) will drop significantly following this crisis. It will be no surprise when I say that the world is To all of those who have this idea of wanting not going very well. We are now confronted by the to reduce their ODA levels, I want to tell them the real risk of deconstruction of international solidar- following. Forget those who have been sick for so ity, a risk of calling into question the very basis of long and you have not even been sick for a little the mechanisms of this international solidarity. In time? It is quite the contrary when we are deal- this world that is rather sick, that has caught a cold, ing with international solidarity, and that is why I let us say we need to rethink the relations between want to warn you, very clearly, about the price that the North and the South if we want to be sure that will need to be paid if you are going to abandon this cold that we have all caught does not become a the children of today: the price of abandonment is real flu, or even pneumonia. I could give you statis- going to be very high. My conviction is that if you tics. Between 2006 and 2007, things have really got have this very bad idea of reducing budgets for much worse. The poverty threshold has increased development, then we are going to be facing a very by 100 million. grim future. What we do not do today will have The important thing is not to forget that behind to be done, but to the power of ten, in the future each number there is a human being, and behind because if we have this bad idea to reduce devel- each human being there is a destiny. It is this des- opment budgets now, then there will be increased tiny that we need to advance when we are talking lack of prospects, the risk of new conflicts, huge about poverty eradication. We can no longer, today, migrations and other problems too. It is not up merely take note of things. We cannot say that it to the South to face this alone; it is not up to the is enough to improve the effectiveness of what we North to face this alone. It is both sides that have to work together. We need to have massive invest- are doing. We can no longer say, today, that it is ments in development in the coming years. enough to improve the parameters of governance. We cannot just say, today, that we need to reorgan- Luxembourg for several years now has spent ize the architecture and the rules of international much more than 0.7 per cent on ODA. We are, and trade. Of course, we have to improve the effective- will remain, ready in the future to do more than our ness of what we are doing—of course. Yes, there share. For 2008, it is going to be 0.8 per cent, and is progress to be made in terms of governance; of this number will not drop. For several years, Lux- course, progress needs to be made in the area of embourg, and I say this quite modestly, has been international trade. But all of this cannot be an one of those that continue to play a role in defining excuse not to redouble our efforts in terms of offi- the standards of the quality and quantity of aid. cial aid. This cannot be an excuse not to collectively In March 2005, I negotiated the Declaration increase our efforts in the area of development. on the Effectiveness of Aid, and we—together—in In this context, it is the North that has to shoul- the European Union (EU) worked out the new EU der its responsibilities. I would like to make it very commitments for ODA for 2015, at 0.7 per cent. I clear that the South also has possibilities and they was very happy to hear President Sarkozy, on the have responsibilities to shoulder too—the people part of the EU, reaffirm his commitments and,

166 Statements by Ministers of course, I associate myself with his statement. I Madagascar assure you that we will spare no effort in coming years to see to it that those commitments, which Statement by are more than mere promises, are really held as we His Excellency Mr. Haja Nirina Razafinjatovo approach 2010, but particularly as we approach Minister for Finance and Budget of the 2015. As was agreed in Monterrey, ODA alone Republic of Madagascar will not be the solution, but we need to mobilize (on behalf of His Excellency Marc Rav- national resources, there has to be more foreign alomanana, President of Madagascar) direct investment, the specific involvement of the southern economies in international aid, as well as 30 November 2008 an increase in ODA which is predictable and reliable for the long term. Of course, we have to show It is an honour for me to read to you the message some imagination here to come up with alternative that His Excellency Marc Ravalomanana, President sources, additional sources, of financing. of the Republic of Madagascar, wanted to address Allow me to stress, as an example, the enor- to you. Madagascar joins with the entire interna- mous potential of microfinance, as well as the inclu- tional community in extending its condolences to sive finance sectors. We can adapt this aid to vari- the Indian people, who have been hit very hard by ous needs so that we can effectively help to reduce recent events. poverty by opening access to financial services to The Monterrey Consensus of March 2002 all those who, so far, have been excluded from this sought “To mobilize and use financial resources developing, practicing philosophy in the southern more efficiently, to eliminate poverty, improve the countries. Microfinance is applicable to all sectors social situation and raise living conditions and in the North and the South and we have private protect the environment”. Since then, high-level investment funds in Luxembourg that are used. conferences and meetings have been held, all of Several billion euros are used in microfinancing them full of promise. We are meeting here in Doha sectors to provide investments of this type to sup- not only to take stock of implementation of these plement the efforts made by Governments. promises but, above all, to consider how to manage So, there is the food crisis, of course, there is the future. the climate crisis and the commodities crisis; and Today, we are all facing a situation that is there are other conflicts I could mention. I will not unprecedented. In this context of global crises, we repeat, however, points that have been made from must be active and not passive. Developed coun- this rostrum. We must not depart from interna- tries and developing countries must form a com- tional solidarity. We need to continue to deal with mon front to tackle these challenges together. We these obstacles, and overcome obstacles that face must shoulder our responsibilities with courage us on this path. International solidarity should and determination because the future stability and not become just a mere expression. It has to be the prosperity of the world depend on this. strengthened; its basis has to be expanded. We I can assure you that Madagascar, like many need to experience this on a daily basis. “What you countries in Africa, is stepping up its efforts to give to other people, you give to yourself.” That is achieve the Millennium Development Goals. In an African proverb, which we should implement. our Madagascar Action Plan, the MAP, which is I would like to join with you all to make sure our roadmap for five years, we have very ambitious that in the coming years we deal with this major goals because we want to keep the promises made challenge on the basis of a really well-designed to the people of Madagascar. Madagascar has reso- partnership. I am sure that if we do that we can lutely committed to establishing democracy and attain our goals. strengthening good governance. The fight against corruption is now standard practice and financial

167 The Doha Review Conference on Financing for Development

decentralization complements the new structures. we are convinced that an in-depth review of the With great efforts, we have reached economic notion of conditionality is essential. The partner- growth at 6-7 per cent; inflation has decreased; and ship should be more geared towards achieving we have tightened tax rules. We are proud that we results rather than sticking to preliminary judge- are recognized as being among the most effective ments. In this respect, we repeat the question that countries. We are on the right track, and we are many developing countries have asked, that is to making progress, but we must build on our success say, does a country have to endure an armed con- because our economy is still fragile. flict or major disaster in order to be able to benefit Like many African countries, Madagascar has from large-scale and rapid aid? for decades been facing a crisis which is clearly gal- I would like to reiterate the need for a new vanizing everyone but which is still fraught with Marshall Plan for Africa, a programme that would much uncertainty regarding the appropriate treat- double aid for Africa, with specific commitments ment and the timing. I am talking here about the to achieve the Millennium Development Goals. crisis of poverty. This crisis has been compounded Immediate measures should be taken to launch a by the food, energy, climate and financial crises, genuine large-scale green revolution in order to which hinder our efforts to achieve the Millen- avoid another food crisis later; begin large-scale nium Development Goals because they constitute projects that take full advantage of renewable additional challenges. These additional challenges energy so as to make economies less dependent require additional resources. This is especially the on oil; and, finally, launch large-scale reforestation case as developing countries might have to use projects to counter the effects of climate change. part of the resources earmarked for development to deal with the global food crisis and, especially, to I call on everyone here, in Doha, to demon- ease the plight of the most vulnerable groups. strate leadership, courage, creativity and solidarity. I ask you for the leadership and courage to Several years ago, we recognized the need take bold measures, which will revive the global for a green revolution, particularly for Africa. In economy and which involve developing countries, Madagascar, we launched our vision, which is a colony to show creativity and solidarity, and to called “Madagascar naturellement”, “Madagascar do your utmost to keep the promises of doubling Naturally”, in order to promote real development. aid for Africa. The global food crisis requires concerted action to increase production. The security of land tenure, The Fourth Tokyo International Conference access to fertilizer, improved seeds, agricultural on African Development (TICAD IV), which was tools and European markets, all of these will ensure held in Yokohama in May 2008, is an encourag- the success of this green revolution. However, these ing and promising example of the commitment by crises should not be excuses for not keeping the partners to support development of Africa in order promises made. to achieve the Millennium Development Goals. In the case of Madagascar, the Government I also encourage you to demonstrate solidar- confirms its political will to keep its commitments ity and to give up trade policies that increase pov- to its population, in particular the goals of pover- erty, and to promote Aid for Trade. But goodwill ty reduction as part of the Millennium Develop- and good intentions are not enough. We must act ment Goals. With respect to our partners, we have immediately, before it is too late. We need to act appealed to them to confirm their commitments and we need tangible results. and, in particular, to dedicate 0.7 per cent of their I hope that this Follow-up International Con- gross national income to official development aid ference on Financing for Development will go and to double aid for Africa. down in history by providing tangible and bal- As some speakers mentioned during the first anced solutions. I hope that the message of Doha day of our meeting, to make this aid more effective, will be a message of hope—the hope that this

168 Statements by Ministers

Conference will keep its promises to all, so that on the radar of the world. Smallness is often associ- rich and poor countries can together build a world ated with ease of delivering development, by those that is more just and more balanced, a world of who view it from outside. Small island countries shared responsibilities and opportunities, a world are mostly viewed as exotic destinations for holi- which is moving forward. day-makers from the rich countries. However, a closer scrutiny will reveal that smallness, indeed, poses several developmental Maldives challenges. The cost of delivering goods and serv- Statement by ices on an equitable manner to its people is the big- His Excellency gest challenge. Unlike countries where roads con- Mr. Ahmed Naseem nect people living on remote settlements, in small Minister of State for Foreign Affairs of island countries like Maldives, sea transport is the the Republic of Maldives only viable option. Cost of transportation absorbs a huge component of not only the national income 1 December 2008 but also of the incomes of people living in island countries. It adds disproportionately to the cost of Mr. President, Excellencies, Distinguished Del- goods, services and basic infrastructure. All these egates, Ladies and Gentlemen, let me begin by add up to one word—Vulnerability. extending our sincere thanks and appreciation to Mr. President, thanks to the assistance of our His Highness Sheikh Hamad bin Khalifa Al-Tha- development partners, Maldives is set to gradu- ni, the Emir of Qatar for the generous hospitality ate from the list of Least Developing Countries by accorded to me and to my delegation. Let me also 2011. This was a three-year delayed date set after join the previous distinguished speakers in offer- the Asian tsunami of 2004 that devastated the Mal- ing our sincere condolences to the victims of the dives and washed away 60 percent of its GDP in cowardly act of terrorism on Mumbai, the financial a matter of seconds. The tsunami of 2004 under- capital of India. The government and the people of scored the fragility and vulnerability of small island Maldives condemn in strongest terms such barbar- countries such as the Maldives, a factor which we ic acts and assure of our solidarity with the people vigorously tried, in vain, to get included in the cal- of India at this tragic moment. culation of the index which determines a country’s Mr. President, today, I stand here as a repre- threshold to graduate from LDC status. sentative of one of the newest democracies in the Once again, as the world economic crisis world. On the 28th of October this year, my fellow threatens to engulf all nations of the world, small countrymen and women voted overwhelmingly island nations stand extremely vulnerable and for change in the country’s first multi-party demo- helpless. Our helplessness is further aggravated by cratic elections. After three decades of absolute the negative effects of the rapidly changing climatic rule, the people of the Maldives are finally free. The conditions, global warming, sea level rise, particu- struggle for this new-found freedom of democracy larly on low-lying nations such as the Maldives. was not easy. This would not have been possible Mr. President, the devastation of the tsunami if not for the strong support of the international has cost us dearly. While the Maldives is thankful community. I take this opportunity to extend our to the international community for the assistance heartfelt gratitude to all those countries that sup- provided in the aftermath of the tsunami disaster, ported us to achieve democracy in the Maldives. the lack of appreciation of the specific problems Mr. President, the Maldives is a country of and conditions of the small island nature of the 300,000 people. Like other small island develop- Maldives by the international community was evi- ing nations of the world, my country is faced with dent in the mismatch between the kinds and levels several unique challenges that often go un-noticed of assistance we needed and that we received.

169 The Doha Review Conference on Financing for Development

To give one specific example, an island access as independent bodies under specific laws. Also, harbor which is, in a small island context, an essen- under the new administration a number of pro- tial infrastructure for gaining access to livelihoods posals are being considered to increase tax revenue and day to day survival by the island fisher folk, compared to other sources of revenue. was seen as a commercial infrastructure by most A Business Profits Tax bill has been drafted, donors and were reluctant to assist in the rehabilita- and is included in the budget proposed to Parlia- tion of such infrastructure. Such an island harbour ment for 2009. This would lead to a broadening is indeed, the small island equivalent of a village of the tax base, rationalized tax structure for the access road in a landmass country. Due to such country. Currently, there is a large reliance on misconceptions and lack of appreciation of local import duties and non-tax sources of income. This conditions by the international donor community, is a critical step taken by the Maldives in moving the government was obligated to borrow from the towards increasing the revenue capability of the international lenders for the rehabilitation of such public sector and diversification of the tax base for infrastructure. Such borrowings have contributed mobilizing resources for development and meeting to the burgeoning foreign debt of the country, for internationally agreed development goals. the first time in its history. Today, the new government is faced with the daunting task of having to The government has been working with inter- deal with huge fiscal and budgetary challenges, national assistance in the creation of trade policy while additional borrowing has to be constrained. coordinating structures within the country. As such, a complete diagnosis of the country’s trade Mr. President, as a country that is graduating needs has been conducted and a comprehensive from LDC status, the Maldives is already feeling draft trade policy framework is being considered neglected by the international donor community. by the National Trade Policy Coordinating Com- Some of the traditional development partners are mittee. In addition, pledges under Aid for Trade is already indicating that grant assistance, technical being worked out with donors. assistance and concessional credit would be suspended. Despite this, the newly elected democratic Mr. President, today, in terms of per capita government is faced with huge challenges in the GDP, Maldives is one of the richest countries in provision of sustainable and equitable development the region of South Asia. However, huge and grow- for its population scattered across 200 inhabited ing disparities remain between the urban and the islands along its entire length of 800 kilometers. rural populations and also between sections of the urban population. As we emerge from three dec- In order to keep up to its obligations to the peo- ades of gross mismanagement of our limited finan- ple the government is aspiring to mobilize Foreign cial resources under a heavily repressive regime, Direct Investment to engage in the development of the newly-elected government is faced with the critical infrastructure and services, such as trans- daunting task of establishing the institutions of portation, education, health, and commercial infra- democracy on a hugely deficit budget. While the structure in the country. The government firmly government is doing everything possible to limit believes that exploring alternative sources of devel- its spending, the various cost-cutting measures opment financing, in partnership with the interna- that has to be introduced are likely to threaten the tional community, is key to achieving sustainable stability of the new political environment and with development. We are keen to work with investors in it the budding democracy. developing innovative approaches to Foreign Direct While we continue to thank those in the inter- Investment projects in the Maldives. national community who have, patiently and reas- Mr. President, following the ratification of the suringly walked with us on the long and often new Constitution in August this year, a number bumpy road to democracy, we plead them to keep of institutions previously under the Executive supporting us in our work to ensure that democ- branch of the government have been reconstituted racy firmly takes root in our country. Failure to do

170 Statements by Ministers so at this critical juncture could undo all the hard If we look back at the road travelled, we have work of thousands of Maldivian individuals who to state that the upshot is mixed indeed. While have made huge sacrifices to bring democracy to considerable progress has been made in certain the Maldives. This should not be an option. areas of human development, the situation in most developing countries, particularly in sub-Saharan Mr. President, I thank you for your patience. Africa, remains very alarming. Indeed, in spite of the considerable efforts deployed by the Governments of developing coun- Mali tries, including African countries, to provide sus- Statement by tainable development for their nations, hundreds of His Excellency millions of people still live in extreme poverty. There Mr. Moctar Ouane is no need to go through the list here of the profound Minister for Foreign Affairs and Inter- causes of that situation as we are all aware of them. national Cooperation of the Republic of Mali The delegation of Mali has mounted a vigorous response to the challenges through establishing 30 November 2008 partnerships. If we failed to create such partnerships, the combined crises in the financial and mon- Let me first of all extend the regrets of the Presi- etary spheres and the food crisis would seriously dent of the Republic of Mali, His Excellency Mr. undermine our work to implement the Millennium Toumani Touré, for not having been able to take Development Goals by 2015. Likewise, significant part in this important Conference. He has given growth in official development assistance, to reach me the responsibility of extending his warmest 0.7 per cent of gross national income, is something greetings to His Highness, the Emir of Qatar, the that needs to be supported and expanded. Further- Government and people of Qatar, and his wishes more, the commitments of countries to reach this for every success for this Conference. figure of 0.7 per cent in providing assistance to the neediest countries of the world must be honoured. The choice of Qatar as the host country for These countries continue carrying the enormous this Follow-up Conference is definitely a gesture of burden of foreign debt, which undermines their gratitude for the ever-increasing role Qatar plays development. Debt relief is, therefore, something on the international stage. that needs to become reality. Our Conference is being held today after the Urgent solutions are needed to reform the tragic events in India and, in these painful circum- international financial system, the trade system stances, on behalf of the Government of Mali, I in the area of raw materials and the policy of sub- would like to present our most sincere condolences sidies provided by developed countries, to help to the Government and people of India and to the the economies of countries like ours. The subsi- families of the victims that fell to these acts of ter- dies of developed countries to their own farmers rorism, which we all resolutely condemn. undermine our economies and the production of Years have elapsed since the adoption of the our agriculture, accentuating poverty and further Monterrey Consensus and the International Con- removing the prospect of achieving the Millen- ference on Financing for Development. Through nium Development Goals. this important framework of cooperation, the inter- The adoption of the Millennium Declaration national community has worked to eliminate pov- and the Monterrey Consensus instils hope in the erty and to achieve sustainable economic growth hearts of people everywhere. But if the internation- and sustainable development through establishing al community does not give the necessary attention new partnerships between developed countries to the matter of development as well, it will remain and countries in the process of development. just that—a Declaration. Conditions need to be

171 The Doha Review Conference on Financing for Development

created to provide guarantees for equitable participation worldwide. Twelve per cent of the overall Mexico products of the world benefit only a small portion Statement by of the world’s population. Things must change, Her Excellency with the focus on the imperatives of development. Ms. Patricia Espinosa Cantellano We need to develop a new attitude, new initiatives Minister for Foreign Affairs of the and apply more imagination, more creativity. United Mexican States (on behalf of the Rio Group) Faced with this situation, the Governments of developing countries are redoubling their efforts to 30 November 2008 ensure the economic and social development and the growth and prosperity of their countries. For The members of the Rio Group would like to these countries, such as Mali, this is not a ques- condemn the terrorist acts that were perpetrated tion of just assuming responsibility for their own recently in Mumbai, India, leading to the loss of development but also of building their capacities, scores of lives and causing so many injuries. The promoting the principles of good governance and Rio Group repeats most energetically its rejection establishing a relationship of trust and confidence of terrorism and all its forms and manifestations as in their partners in development. it is criminal and unjustifiable. We express our soli- In Mali, we have developed a project of socio- darity with the people and Government of India economic development, expressing our country’s and also express our sincerest condolences to the strong will to continue fighting poverty, something family members of the victims of these acts. we have been doing over the years. This project On behalf of the countries making up the Rio creates a strategic framework for economic growth and reducing poverty and it is based, among oth- Group, I would like to begin by congratulating the er things, on the mobilization of national finan- Government of the State of Qatar for the excel- cial resources and the promotion of private and lent organization of this Follow-up International national initiative partnerships within the private Conference Financing for Development, which is and public sectors. responsible for examining the application of the Monterrey Consensus adopted in Mexico in 2002. There are a number of priorities on the domes- The members of the Group continue in a commit- tic and international levels included in this pro- ted manner to implement the principles agreed gramme. They have to do with stepping up agri- upon at that time. We see that tremendous efforts cultural production, infrastructure, basic social have been made, both by the United Nations sys- services, education, health and potable water. tem and by a large number of actors, including Obviously, these plans will depend for their imple- international entities and organized society, to mentation on a more equitable distribution of resources and the possibility of investing in good come together in Doha and consider the progress governance and growth for the future. that has been made in this process. We would also like to express our support and fullest recognition The Monterrey Consensus remains a frame of of the work of the General Assembly of the Unit- reference for our States in the struggle to ensure sus- ed Nations in the context of economic and social tainable growth and development, to move toward development, whereby considerable achievements a more equitable, more just international economic have allowed Member States to deal with the vari- system. Mali will spare no effort in providing its ous challenges of the twenty-first century, particu- own modest contribution to creating a world based larly in combating poverty. on solidarity and prosperity. I hope that this Con- ference in Doha meets with every success in imple- This Conference, that brings us together, is menting the Monterrey Consensus for the happi- being held at a particularly critical time in terms of ness and prosperity of the peoples of the world. the development of the international community.

172 Statements by Ministers

After a long period of economic expansion and banks to strengthen regional economies in the throughout the world, we are now experiencing a face of the crisis and promote funding for devel- period of great crisis and uncertainty in the world opment. As well, the crisis relating to the extreme economy that is having different effects on devel- volatility of prices of food and energy has not dis- oping countries, including in the Latin American appeared and this jeopardizes the ability of States and Caribbean region. The members of the Group to meet the needs of their populations and chal- consider that any solution to the crisis calls for a lenges them in consolidating advances in terms of concerted global response with the universal, dem- development, in combating poverty and in under- ocratic and equitable participation of all members mining their ability to plan their budgets. of the international community, including the Nonetheless, not all is dull and gloom. The developing countries. In this context, it is impor- countries in Latin America and the Caribbean are tant to draw attention to the fact that it is essential better prepared today than we were in the past that there is equality in the international debate in to deal with a frankly alarming world context, seeking structural solutions to the financial crisis. through disciplined and responsible handling of We also draw attention to the importance of deal- our respective national economic policies. The ing with the matter in an appropriate manner, that immediate impact has been mustered but we can- is to say, within the context of the United Nations not, and should not, underestimate the ensuing system. Likewise, we would like to repeat our com- effects. The countries of the Group acknowledge mitment to efficient multilateralism and our sup- that some progress has been made since 2002, both port for the United Nations as the legitimate forum in terms of combating poverty and in other sig- par excellence for promoting international coop- nificant indicators, including a reduction in infant eration for development and fine-tuning a global mortality, and we believe that, with appropriate and just system. action, it is still possible to achieve the minimum We also express our determination to participate goals contained in the Millennium Development and actively contribute to the design of a new inter- Goals for 2015. Simultaneously, we acknowledge national financial architecture which, with greater that the results achieved during recent years have transparency and regulatory control of administra- not been homogeneous throughout all regions and tion, would establish appropriate instruments for countries of the world. Many countries are outside the prevention of, and solution to, future crises, that the trend of achieving the Millennium Develop- would generate confidence and certainty and fully ment Goals, particularly many African countries, support the priorities of sustainable human devel- the least developed countries and also some mid- opment at the global level. In this context, we draw dle-income countries in Latin America. attention to the importance of pooling efforts and In terms of mobilizing international resources integrally tackling the national, international and for development, we are concerned that official systemic aspects of financing for development as development assistance (ODA) has been, or might proposed in the Monterrey Consensus. be, affected by the scant resources in the devel- Specifically, we draw attention to the impor- oped countries resulting from the need to bail out tance of urgently implementing the agreements and their national financial systems and of the fiscal commitments contained in the Monterrey Con- incentive policies that some have already intro- sensus and dealing in an integral manner with the duced to avoid further recession. Thus, we urge challenges relating to the food and energy crises, the traditional donors, most of whom are mem- climate change and global financial matters; rem- bers of the Organization for Economic Coopera- edying the regulatory gap in the system of inter- tion and Development, to meet their commitment national financial flows; assuring a satisfactory and to increase, or at least maintain, the level of ODA equitable conclusion to the multilateral, commer- and not further reduce it as a result of the financial and trade negotiations in the Doha Round; and cial crisis. In an extremely complex international also empowering regional development agreements context, additional efforts should be made in these

173 The Doha Review Conference on Financing for Development

countries to meet ODA and the Millennium Devel- sessions for the different chapters of the Monter- opment Goals. Also, we consider it important to rey Consensus that were carried out during the ensure that beneficiary countries will be free to first quarter this year, and also held meetings and define their own national priorities for develop- regional seminars on the subject. This exercise has ment; therefore, external cooperation should sup- enabled us to identify areas of common interest port these sovereign decisions without any consid- which we laid before members. Among the ele- erations coming into play other than the central ments we identified are the importance of review- objectives of those policies. ing procedures for following up implementation With regard to trade and development, the of the Consensus, and we guarantee to continue temptation of protectionism should be avoided as our commitment and participation by all relevant this would compound an already serious situation. actors. We are ready to continue to discuss such Under current circumstances, it is important to matters and we hope we can find a solution that successfully conclude the Doha Round in the con- achieves everybody’s support. We are facing an text of a severe international recession in a man- international crisis of a systemic nature, of a scope ner that takes into account the symmetries that and depth that we have not witnessed for several exist between regions and countries. Moreover, decades. At this time, we must act in a coordinat- we cannot further postpone increased participa- ed, decisive and realistic manner. It is not the time tion by the developing countries in the decision- to observe. We must act. making process at a global level. Likewise, to give The countries of the Group reiterate our com- effect to the commitment whereby we can ensure mitment and urge all to meet the needs of the cir- early detection of difficulties, an overhaul of the cumstances. We hope that this will be the mes- international financial architecture must incor- sage that emanates from this Conference to the porate an early warning system. It is also essential entire world. that financial markets and institutions and the rating agencies be regulated in an efficient manner by States and the principal international financial Myanmar entities in order to ensure that their actions are Statement by responsible and do not lead to instability. More- His Excellency over, the members of the Group come together Mr. Hla Tun to support recent efforts to emphasize the chal- Minister for Finance and Revenue of the lenges that are being faced by the middle-income Republic of the Union of Myanmar countries in terms of achieving development and eradicating poverty and inequality. Furthermore, 30 November 2008 we consider it important to acknowledge the need for the international community, including It is a great pleasure and honour for me to be here the United Nations system, to decisively support today and to have the opportunity to address this the efforts being made by such countries through auspicious Conference. I would first of all like to international cooperation for development. To express our deep appreciation to His Highness, that end, the countries of Latin America and the Sheikh Hamad bin Khalifa Al-Thani, and the Gov- Caribbean have actively participated in the con- ernment and people of Qatar, for the warm hospi- ferences of Madrid, El Salvador and Windhoek. tality extended to us and for the excellent arrangements made for this big event. I would also like to May I remind listeners that the countries thank the organizing committee for the efforts they belonging to the Group participated in a coor- have made for the success of this Conference. dinated and decisive manner in the preparatory process of this Conference through the working We meet here at a time when the global econ- group coordinated by Chile. We have prepared omy is very bleak. Most advanced industrialized substantive contributions to each of the review countries, and some emerging countries, are now

174 Statements by Ministers in recession, while other economies around the assistance (ODA) to developing countries in world are facing the prospects of a slowdown in recent years. As for Myanmar, we have not received growth due to the global credit crunch. In this con- ODA for nearly two decades. As ODA played an text, it should be emphasized that global collabora- important role in the development efforts of our tion and cooperation are essential for the benefit of country, we look forward to its resumption from all countries. developed countries. At this juncture, I would like to inform the The international financial organizations are meeting that Myanmar implemented and formu- also making efforts to expand their sources of lated the second year of the fourth Short-Term financing in order to mitigate the damaging efforts Five-Year Plan in fiscal year 2007-2008, and I am of any global turmoil on the economies of develop- glad to say that we have been able to achieve the ing countries. Therefore, we welcome the call of the target growth rate as a result of balanced growth in Group of Twenty (G20) for a more active role for all sectors of the economy. those international bodies. We also welcome the As this occasion is to review the progress on Group’s decision to have increased advice from, the economic Monterrey Consensus, I would now and the participation of, developing countries in like to inform this gathering of the progress that those institutions. Myanmar has made since its adoption. In order to finance the development of the country, we have We would like to call on the international com- made efforts to mobilize domestic savings. In munity to resume their relationship and assistance recent years, there has been a noticeable increase to Myanmar. If Myanmar’s efforts were implement- in savings and investment, as the main objectives ed together with international assistance, it would of the country are to reduce poverty and raise the help to maintain momentum in our growth. We living standards of the people. are making an effort not only to develop and modernize our nation, but also to ensure that the basic Expenditures and investments in the social needs of the people are met, at the same time eradi- and health sectors are also increasing. The number cating poverty, so that future generations will enjoy of schools has, therefore, been increasing yearly. In the benefit of our efforts. the health sector, both malnutrition among children and mortality rates have declined. The pov- I would like to once again thank His Highness erty gap is also minimal. Sheikh Hamad bin Khalifa Al-Thani, and the people of this famous and well-known city of Doha, Myanmar places great importance on the rules of foreign direct investment (FDI) for develop- for hosting and making all the necessary arrangement. It has been able to attract significant FDI for ments for the success of this Conference. the development of the country. However, due to the current global situation, we expect it to decline somewhat in the coming months. Myanmar has Namibia had a favourable trade situation for several years, Statement by which has contributed to our high level of growth Her Excellency in our gross domestic product. It is cooperating Ms. Saara Kuugongelwa-Amadhila with its neighbouring and regional countries to Minister for Finance of the Republic of promote and facilitate the smoother flow of trade. Namibia We intend to enhance Myanmar cooperation with other members of the Association of Southeast 30 November 2008 Asian Nations (ASEAN) in the future, in trade as well as in other areas, in order to successfully Madam President, your Excellencies, Ladies and finance the development of our economies. Gentlemen, Namibia regards the Monterrey Con- We know that we have seen a substan- sensus as an important milestone in the establish- tial increase in the level of official development ment of a new partnership between developing

175 The Doha Review Conference on Financing for Development

and developed nations. It is for that reason that Madam President, we understand that many His Excellency, Hifikepunye Pohamba, President Developed countries have to find resources to of Namibia, had hoped to address this Conference address the downturn in their economies as a result personally. He has, however, asked me to express of the financial crisis. But this should not result his regrets as other pressing commitments pre- in the further erosion or stagnation of ODA. We vented him from being here today. Allow me fur- need to weather this storm together and we expect, ther to extend my sincere gratitude to the Govern- therefore, a greater commitment to development ment of Qatar for the warm hospitality extended to assistance from our development partners. the Namibian delegation since our arrival in this For that aid to be effective, our relationships beautiful and historic city of Doha. with Development Partners must also change. Too Further, we join the previous speakers in many of our development partners (particularly expressing our sincere condolences to the good multi-lateral organizations) still fund low prior- people of India on the loss of lives as a result of the ity projects. And, too many still seek to impose tragic incidences in Mumbai in the past few days. unnecessary conditionalities. Madam President, the Review we are under- I am pleased to note that some development taking is timely in the light of recent developments partners are now recognizing the importance of in the global financial markets. We need to ensure country ownership and leadership, and in line that the Monterrey Consensus remains relevant with the Paris Declaration, a number of them have to the economic circumstances in which we find agreed to use Governments’ own financial and procurement systems through the provision of ourselves. And to ensure that the partnership it non-conditional budget support. This needs to be espouses evolves as relationships between devel- emulated by all development partners, including oped and developing countries move forward. multilateral institutions. The Consensus calls for action by all parties. Madam President, at Monterrey, we looked to Let me reflect briefly on how Namibia is meeting its the Bretton Woods Institutions to play a major role commitments. Our public sector interventions are in the effective financing of development. It is clear focused on our priorities of economic growth and now that major reforms are required. As small the alleviation of poverty, reduction of inequalities economies, our voice is insufficient to provide effec- and employment creation. That focus is maintained tive representation for Africa at these institutions. through a budget process that focuses on the meas- Moreover, 40% of the World’s poor live in middle urement of outcome and performance. income countries, Despite that, Middle Income But, public sector investment alone will not Countries, especially in Africa are constrained enable us to reach our development goals. Pri- in the investments they can make by the rules of vate sector investment is also needed. Namibia those institutions that do not allow Middle Income has made progress to mobilize domestic savings Countries to benefit from concessional loans. through the establishment of capital markets, but However, unless we can reach the poor in they are also faced with high capital outflows. For- these countries as well, our efforts to reduce global eign Direct Investment (FDI) is thus required to poverty are destined to fail. These issues need to fill the gap created by the failure of local financial be addressed urgently as part of the reforms of the institutions to invest in the country. Bretton Woods Institutions. Overseas Development Assistance (ODA) is Madam President, Excellencies, the Monter- critical to complement other sources of finance rey Consensus recognized that international trade to assist developing countries realize the interna- is the engine that would drive global economic tionally agreed development goals. That point was development. However, the ongoing impasse in underscored in the Monterrey Consensus. the trade negotiations has prevented international

176 Statements by Ministers trade to play its developmental role. Issues of interest to developing countries such as agriculture have Nepal become the main bone of contention in the nego- Statement by tiations. This has affected the ability of many devel- His Excellency oping countries to mobilize domestic resources for Dr. Baburam Bhattarai Minister for Finance of the Federal development despite the existence of sound macr- Democratic Republic of Nepal oeconomic policies and a conducive environment for investments that we have created at national 30 November 2008 level. The Aid for Trade initiative that was meant to support our capacity building efforts in trade relat- Mr. President, Heads of State and Government, ed fields continues to suffer from under funding. Fellow Ministers, Excellencies, Ladies and Gen- This Conference therefore needs to send a tlemen, First of all, I would like to express sincere strong message that development and financing for gratitude to His Highness Sheikh Hamad Bin Kha- development in particular can not be allowed to lifa Al-Thani, the Emir of the State of Qatar for suffer as a result of the failure to reach agreement. gracing, chairing and addressing inaugural session All parties need to demonstrate flexibility in order and for insightful remarks on the current issues of to facilitate an agreement without further delay. global financial crisis and its implications on the But as new trade relations between develop- developing countries. ing and developed countries emerge, that must not On behalf of my delegation, and on my own, be at the cost of the future potential of developing I would like to express my sincere appreciation countries to grow. Multilateral and bilateral trade to the people and the Government of the State of agreements should be mutually beneficial and Qatar for the warm hospitality extended to us dur- not be allowed to disadvantage developing coun- ing our stay here. tries. And, if there are to be asymmetries through subsidies or industry protection, those should We join other fellow delegates in expressing our clearly favor less advanced economies. Moreover, sympathy and condolences to the people and the those trade agreements must not adversely affect Government of India for losses of human lives and our ability to promote south-south trade, such as property in Mumbai, India due to acts of terror. through greater regional and sub-regional trade I am of the view that such international Con- integration. Indeed, we expect those trade agree- ferences provide unique opportunity to review the ments to foster those arrangements progress of past commitments, share experiences Madam President, Excellencies, in the years and set the resolutions for the future. We the under- since Monterrey, we have demonstrated our abil- developed countries highly appreciate Monterrey ity to develop based on greater investment and Consensus of 2002 which set the goals of poverty improved trade regimes. To move further forward, eradication, achievement of sustained economic Africa must receive a greater share of the world’s growth and promotion of sustainable development investment capital. In part, that will be achieved and make the global economic system fully inclu- by better financial markets that will raise Foreign sive and equitable. Direct Investment and reduce capital outflows. We However, we feel highly disappointed to see also need to increase Africa’s proportion of world such commitments not being fully translated into trade through the removal of distorting and unfair reality by the developed countries. For decades trading practices. Only if those things happen, we now, year in and year out the same commitments will be well on the way to achieving our interna- and consensuses are repeated and catchy devel- tional development goals, including those in the opment phrases and slogans are coined just to be Millennium Declaration. confined only in papers and documents. I hope the I Thank You. delegates of all underdeveloped countries attending

177 The Doha Review Conference on Financing for Development

this conference will agree with what I have said. Having said this, let me allow to briefly appraise An evidence of this is the expenditure of billions of the distinguished delegates about the recent politi- dollars on wars by the powerful countries causing cal and economic developments in Nepal. Nepal has unprecedented devastation of mankind and physi- been very recently declared as Republic of Nepal by cal infrastructure, while millions of people die of abolishing the feudal monarchical system that had hunger, malnutrition and natural disasters in dif- kept the country into a vicious circle of underde- ferent parts of Africa and Asia. This is very sad. velopment and poverty for two and a half century. This historic change was made possible by the Peo- Similarly, the desire of underdeveloped coun- ple’s War, you can say, revolution led by the Com- tries for a self-reliant and self-sustaining develop- munist Party of Nepal (Maoist) for 10 years and ment through the use of foreign aid has remained the sacrifices of more than ten thousands youths. a far cry even after several decades of such aid. Nepal’s peace process has been rather unique in When I say self-reliant development, I do not the world and is being taken as a miracle by the mean a position whereby we can stand alone with- developed and the underdeveloped countries. The out any economic interactions with others or with- Maoist Party is now heading the coalition govern- out any aid. What I mean is a situation where aid ment of Nepal after emerging as the largest party in promotes production, income and employment the Constituent Assembly elections held last April. eventually requiring less and less aid. But the expe- I am representing the government in this confer- rience shows that aid has reinforced the histori- ence in the capacity of Finance Minister from the cally structured dominance-dependence between Party heading the government. the so-called developed countries and the under- The Government’s immediate task is to make developed countries. smooth transition of the country into a stable Prolonged continuation of such situation will political system and faster economic development. certainly not be conducive towards fostering a har- For this, we have stressed on the accomplishment monious relation between the developed and the of following main tasks within the next two years. underdeveloped countries. Therefore, I urge the First, writing a new constitution of the country and developed countries to make soul-searching and lead the peace process to a logical conclusion. This restructure the flow of aid into an equal and inter- also involves restructuring of the state. This is the dependent relationship. In this context, I would political agenda and secondly, achieving higher also like to urge the donor community to imme- economic growth rate with social justice. This is diately resolve the issues that were identified as the economic agenda. Second, achieving higher impeding effective and fruitful utilization of aid in economic growth rate with social justice. This is the 3rd High Level Forum held in Accra, Ghana the economic agenda. last September. In consonance with these two important tasks, Madam President, I have the same feelings like the government has set the following strategic some of the fellow delegates that there would be and broader orientation spanning over the short a disaster, if the US and Europe do not undertake to long terms in this year’s budget, consolidating effective measures to insulate the underdeveloped peace process, relief, rehabilitation, reconstruction countries from the financial crisis that originated and reintegration, broad-based economic growth, from within the monopolistic and profit seek- social transformation, investing in infrastructure, ing financial system created by them. The current restructuring the state, and public-private partner- financial crisis also raises a big question mark on ship in mega projects. For this we have advanced the effectiveness of the regulatory and surveillance the slogan of “Peace for development and development for peace.” mechanism of the IMF and on its very structure which places emerging economies at a very low Nepal is financially a poor country, but it is profile in decision making. very rich in terms of human and natural resources,

178 Statements by Ministers particularly in hydro-power, precious herbs and Development Conference is taking place at a crucial other forest-based products, flora and fauna and time, in the process of reform of the international magnificent landscape. We are also in between financial system. This debate affects us all and must the two large and fast growing economies, China not remain limited to a select group of countries. and India. All these provide immense opportuni- It is good that a worldwide Organization like the ties for foreign investment in hydropower projects, United Nations is playing an active role in this dis- tourism, infrastructure and agro-forestry based cussion. We welcome the constructive outcomes of industries for the mutual benefit of both the for- the meeting chaired by the Secretary-General on eign investors and the Nepalese people. For this 28 November as a crucial bridge-building exercise, purpose, we have recently set up a high powered and the meeting of the Group of Twenty (G20) Investment Board under the Chairmanship of the countries, in which we participated in Washington, Prime Minister in order to quickly decide on the D.C., before that, on 15 November. large investment projects and provide the facilities Whatever it may cost, an inward-looking from one spot. response to the crisis should be averted, and can In the end, I expect that this International be averted. Development should be at the heart of Conference will come out with objective solutions the international response. This crisis did not start and bold decisions to restructure the historically in the developing world, but it can certainly be part built-up dominance dependence relationship of the solution—it should be part of the solution. between the few rich and many poor countries Using development financing as leverage for main- of the world so that we can have both peace and taining growth in the world economy is essential. prosperity for the entire mankind. Let us turn the When we met in Monterrey in 2002, we agreed current global financial crisis into an opportunity that it was time for a new approach to develop- for restructuring a new world economic order ment financing to achieve the Millennium Devel- based on equality and justice. opment Goals. We were aware that this was our With this, Madam President, I thank you, and common concern. The Monterrey Consensus was thank you all. a breakthrough in international cooperation as to the promises of the Millennium Development Goals and the international security situation after Netherlands 9/11. That was the impulse for Monterrey, and for Doha, and it is vital to confirm those commitments Statement by today, to improve on them and to monitor their His Excellency implementation, and to make new agreements in Mr. Bert Koenders response to new challenges because, if we look at Minister for Development Cooperation of the Kingdom of the Netherlands the depths of the international economic crisis, the situation now is equally as severe. 30 November 2008 In recent years, much has been achieved in developing countries, but the recent succession I would like to express my thanks to His Highness, of crises is threatening to destroy all the progress the Emir of Qatar, for his hospitality and for host- that has been made as a result of good policies and ing this important Conference so superbly. And I good development cooperation. It is now a risk thank the Secretary-General of the United Nations that the countries that are growing, and those that for his initiative in organizing this Follow-up to the have been torn out of poverty, are going to revert to Monterrey Conference. their deep poverty situation. The Netherlands fully supports the common Developing countries are vulnerable to the position of the European Union, as expressed in this impacts of the food crisis, the energy crisis, the forum by the French presidency. This Financing for climate crisis and now the credit crisis too. That

179 The Doha Review Conference on Financing for Development

is particularly true of the least developed coun- international climate policy and, particularly, sup- tries, as they see limits to their foreign lending, port for adaptation to climate change in the low- to investment, to remittances and many other income countries. At this Conference, we should aspects. And, of course, there are the fragile States agree that international climate policy should not that are affected by war. be funded from resources that have already been pledged for the Millennium Development Goals. It works out in different ways for different Here, I could quote the Mayor of Dar es Salaam, groups of countries, but reaching the Millennium with whom I spoke the other day, and he said, Development Goals is a greater challenge than ever “What can I do? Should I invest in the health of before. It is precisely in these circumstances that my citizens in my town or in building new roads, increased, and more effective, aid could play a deci- or do I need the money for additional dikes to sive role. So, it is crucial that we reaffirm commit- adjust to the rising levels of water?” These dilem- ments to step up aid and meet the international tar- mas require additional resources. gets of 0.7 per cent of gross national income (GNI). Failing to do so would undermine confidence in The Monterrey agenda is, fortunately, about international agreements on the subject and would much more then aid alone. With this Follow-up be disgraceful. The world’s weakest nations should Conference we should give international coop- not be the victims of the problems we are facing eration a new boost on a wide range of fronts. I in our financial system. Countries that still have am talking particularly about a speedy conclu- not met the 0.7 per cent GNI target would generate sion to the Doha Round trade talks, stepping up extra confidence if by 2010, at the very latest, they international debt policy, the focus on the role of were to set definite time frames for meeting that women in the economic and financial sectors of commitment. I also think that emerging donors developing countries, promoting private flows of could do much more to assist in the international capitals through the public-private partnerships I adjustment process to the present financial crisis. mentioned, and combating illegal financial flows As it has for many years, my country, the Nether- and tax evasion. lands, stands ready to spend 0.8 per cent of GNI on In the present circumstances, preserving the official development assistance. dynamism of global trade is an essential element Yet, we will achieve a lot more if we also make in the strategy of mitigating the effects of the eco- our aid more effective and coherent. Earlier this nomic crisis. All countries should show the vision year, we reached agreement in Accra on concrete to set aside short-term interests and cooperate to steps to improve the quality of aid. It is time for an open international markets in a sensible manner. ambitious implementation of this difficult agenda. In particular, opening agricultural markets could The Netherlands greatly appreciates the fact that contribute to stimulating agriculture production in this Conference is calling on all nations to build developing countries in reaction to the food crisis. on the positive outcomes of the Accra High-Level The present crises have led to a re-thinking Forum on Aid Effectiveness. It now requires effec- of the international economic architecture. The tive cooperation and also, sometimes, the giving up rapid response of the G20 to the financial cri- of our national sovereignty. More, and better, aid is sis has highlighted the new agenda for Bretton desperately needed if we are to achieve the Millen- Woods institutions. These new ideas should now nium Development Goals. But, at the same time, be linked to the broader agenda of sustainable we all know that there are a lot of new challenges, growth and climate investments. The participation which also require public-private partnerships and of developing countries in this reform process is an increased role for the private sector. essential. Effectiveness and legitimacy will have to But there are other challenges that require go together. My own country also stands ready to additional public and private funding. For continue to participate in these institutions and in instance, additional funding will be needed for the G20 exercise.

180 Statements by Ministers

The Monterrey agenda is all about partnership this beautiful country for the benefit of the world with mutual responsibilities. Collaboration within and making available this lovely city. Through his the field of development finance cannot be seen numerous gestures of kindness and affection he has as separate from efforts to promote good govern- ensured that this Conference is a welcome success. ance, democracy, combating corruption, fair taxa- In turn, we would like to express our deepest tion, a favourable investment climate and an equi- solidarity with the noble people and brother Gov- table distribution of wealth, and strengthening the ernment of India, in view of the heinous attacks position of women. perpetrated in Mumbai in recent days. It is acts For us, the main focus must be on the input such as these that further strengthen our resolve and ownership of developing countries themselves. on the path towards peace and tolerance. International agreements can help, and should help, In this time of follow-up to the agreements to implement tailor-made development and growth strategies. But individual countries must be allowed reached in Monterrey, it is increasingly clear that to use the policy space to make them work. globalization without global institutions which are able to match the changes that have been wrought Countries, to a large extent, will have to choose worldwide in the economic, political and social their own funding and ensure their own food spheres is plunging the world into chaos. Unbri- security, and they must be given the time to iden- dled and unregulated greed have reached their tify their own competitive advantages. That is, and logical and self-destructive culmination, placing should be, possible with full respect for interna- all nations and all peoples in circumstances even tional rules and regulations. more critical than they were before, particularly More than a billion people are still excluded in those developing countries where hunger, lack from the benefits of globalization. They are more of sanitation, ignorance and severe environmental vulnerable than anyone else to the crisis in the degradation dominate the planet. world economy. May this Conference in Doha The conditions are, therefore, in place for show that the multilateral system has an answer; deep-rooted structural change. However, what are maybe has the answer. May this Conference con- needed are a concerted vision and joint, coordi- vey the message that the international community nated and, above all, resolved, bold and respon- remains committed to development financing and sible actions. Nevertheless, we must acknowledge that it is prepared to give development pride of that on this important occasion we have not been place in the reform of the international economic joined by some of those actors who might have and financial system. contributed more—those actors who, during centuries of unjust exchange, have been able to hoard the necessary wealth in order to be able to bring Nicaragua about the necessary changes. Statement by We confirm that the neo-liberal capitalist sys- His Excellency tem is devoted to the gain of profit, which has led Mr. Samuel Santos López to the contamination and destruction of the envi- Minister for Foreign Affairs of the ronment and of natural resources, global warming, Republic of Nicaragua energy price speculation and the exorbitant profits 30 November 2008 that have been made, a concentration of wealth, as well as the continuation and perpetuation of poverty, along with its hideous consequences. I would like to begin by expressing our deepest gratitude to His Highness Sheikh Hamad bin Kha- We acknowledge that valuable time has been lifa Al-Thani, the Emir of the State of Qatar, for wasted in developing alternative sources of energy. his leadership and for his hospitality, opening up We cannot continue to invest in alternative energies

181 The Doha Review Conference on Financing for Development

only when oil prices are high and then decide to no futile wars. However, we must also ensure that longer invest in them when prices fall as they are ODA is effective. It must, therefore, be depoliti- no longer considered profitable. This would mean cized and predictable. that it is profitability and not mankind’s urgent We cannot plan and lead development in our needs that drive our energy policies. We found the countries if it is capable of being reduced, or with- need of financial regulation during the 1997-1999 drawn, on the basis of political perceptions from financial crisis. We learned the lesson regarding the North. It would seem that political perception the need for the regulation of international finan- has become the main indicator of ODA, beyond the cial transactions in order to reduce the risk of the effective fight against poverty or the improvement recurrence and international contagion. However, of the economic conditions of the poor, in particu- nothing was done in this regard and here we are, lar poor women; the inclusion of historically mar- today, just as we were then. Having established ginalized sectors of public activity; the increase these well-known facts, it is imperative—indeed of access to education and health, the reduction urgent—that we struggle now for the establishment of a new economy. of maternal deaths or greater access to water and food. It does not seem to be important that our First, and foremost, a new economy which is Government, which is led by Commander Daniel ethical and moral based, that is to say, based on the Ortega Saavedra, with a deep vocation towards the prevailing needs of humankind in order to close the poor and unquestionable public transparency, has widening gaps between the rich, the ever wealthier, reached the significant targets and indicators in the and the poor, the increasingly poor. elimination of poverty in only twenty-two months Secondly, a new economy which is socially of government, improving—drastically improv- and environmentally sustainable, a new economy ing—our possibilities of reaching the Millennium which is geared towards resolving the serious envi- Development Goals. ronmental problems, access to water, food security, I wonder, is it a fight against poverty or a polit- creation of alternative energy sources, nutrition ical alignment that we are trying to do with these and eradication of poverty. resources? Is it financial cooperation to suppress Thirdly, a new economy which is compatible the independent voices and ideas of the poorest with global governability, a new economy which is countries of our world? From here, at the highest in keeping with the new global circumstances and altar of the multilateral system, I wonder if this one which is based on our shared responsibility for financial cooperation is for economic development our shared future. and the well-being of our peoples or is it to continue recreating unsustainable neo-liberal para- Fourthly, a new economy which is democratic, digms. For example, it is morally unacceptable that one which, once and for all, sets aside the concen- $3 trillion—$3 trillion!—are dedicated to security tration of the decision-taking procedure, decisions networks for the richest banks of the world, those which affect millions of individuals, decisions same banks where State subsidies from the North which are taken in only a handful of nations, and are arriving, while the poor people of the world pay to ensure that these decisions will be the product the price of the crisis of hunger with even more of the broadest possible international agreement hunger, disease and death. in the future. Being able to take advantage of the transforma- As democratic global development is our tive potential of the current global crisis depends principal aspiration, the current target level for on three major challenges: official development assistance (ODA) must be raised, in particular in bilateral terms, taking into The first is related to radically expanding account as a comparator the amount that these financing for development in the transitional peri- very same countries use in expenditure on their od between the crisis and stable solutions.

182 Statements by Ministers

The second is ensuring that the United States Nigeria and Europe accept the fact that the period of absolute hegemony has been overtaken by global Statement by events, and that there is a need for new, and more His Excellency Mr. Elder Godsday Orubebe democratic, international institutions within the Minister of Special Duties, and National framework of the United Nations—I repeat within Planning Commission of the Federal the framework of the United Nations—and which Republic of Nigeria includes the restructuring of the World Bank and the International Monetary Fund. 30 November 2008 Thirdly, to ensure that the United States, as fundamental player in the global crisis, acknowl- Madam President, Your Excellencies, Ladies and edges that it is not above international law and Gentlemen, Madam President, on behalf of the global regulation for the benefit of the global pub- Government and People of Nigeria, we convey lic good. It would have been extremely positive if our condolences to the Government and People of their highest representation were here today, work- India on a tragedy of this magnitude. ing alongside the rest of us to develop and com- Madam President, I am pleased to address the mit to solutions that we propose. We are forced Follow-Up International Conference on Financing to build international peace, including its finan- for Development on behalf of the Government of cial system, without resorting to war, whatever its Nigeria. This Review Conference takes place at a nature. Overcoming the tragic experiences of the time of an ominous global economic and financial past, when we criminally used this resolution of crisis and therefore, demands an immediate prac- the crisis, this invented crisis, Nicaragua reiterates tical action from all of us. Indeed, this conference the undeniable need to establish a new model for which seems to overwhelm even the richest, devel- a global economy, something that we have been oped nations is like a doomsday scenario to most building originally through the Bolivarian Alter- developing countries, especially those in Africa. native for the Americas (ALBA), the alba of our peoples, alongside other regional projects which It is against this background that my delega- emerge as a need consistent with a new political tion would like to commend His Royal Highness economic and social global model. the Emir of Qatar, Sheikh Hamad bin Khalifa Al- Thani for the timely hosting of this Conference, To conclude, we would like to express our hope as well as the President of the General Assembly, in the possibility of a better world, which is more Father Miguel Brockmann, and Secretary-General just and equitable, where development achieved by Ban Ki-moon for facilitating it. humankind throughout the centuries can begin to Madam President, the Monterrey Consensus become everyone’s heritage. A new era is possible, was the first quadripartite conference for tackling and we are called upon to contribute to its achieve- the perennial issues of resource gap in financing ment for the well-being of human beings and the development in which, representatives of govern- future of upcoming generations. ment, the private sector, civil society, and financial/ development institutions participated. The intention was quite noble, but the six years following Monterrey can at best be described as modest. Indeed, they are disappointing in several areas. This underscores the need for this Conference to produce an outcome document that we shall all be faithfully committed to, and collectively resolved to implement.

183 The Doha Review Conference on Financing for Development

The two most important thematic components development projects, especially in the provision of of Monterrey mobilizing domestic and external modern infrastructure. We are, therefore, extend- resources challenged our will to strategically reform ing all the necessary incentives for public-private the economic, financial and political base of our partnership in many vital areas of our national development. While Africa has had to work harder economy, while we continue with our efforts to to increase the volume of the domestic resources meet these challenges through good governance that it can mobilize internally, in spite of the harsh and strategize macroeconomic policies. economic environment compounded by external Only four days ago, our President Umaru factors, our development partners have failed to Yar’Adua inaugurated the board of the Infrastruc- honor their repeated promises and commitments. ture Concession Regulatory Commission (ICRC), Nothing demonstrates this sincerity gap more making it clear that Nigeria needs to make massive than the pledge to give 0.07% of GNI as an aid to investments beyond the means available to govern- developing countries, which was made more than 30 ment in order to close the wide infrastructural gap, years ago, but to-date only five countries have hon- and private sector capital, therefore, is the effective ored it. Perhaps, only the most irreversible optimist recourse for government. among us can now continue to have faith in the real- In conclusion Madam President, my delegation ization of this pledge, making the hope of ODA as would like to join other African delegations that one of the means of alleviating the financing difficul- have spoken before me, in emphasizing that this ties of the developing countries almost an illusion. Conference should find the means of tackling the Madam President, two years after Monter- emerging issues since Monterrey. These include the rey, Nigeria started its economic reforms with negative impact of climate change, food crisis, and emphasis on consolidating its banking sector and the global financial crisis. With regard to climate strengthening the capital market, in order to gen- change, Africa needs assistance to implement both erate optimal resources required to meet the coun- the mitigation and adaptation strategies to combat try’s challenges for the rapid growth and develop- the negative effects of this impending catastrophe. ment. We are happy to state that our success in this We urge the international community to undertaking is so phenomenal that the capital base resume the Doha Development Round negotia- and lending capacity of our banks have increased tions and to ensure that the Aid-for-Trade initia- beyond our expectations, and our capital market tive of the World Trade Organization (WTO) is has been adjudged not only among the most robust operational as soon as possible. in the world, but also the least affected by the current global financial crisis. Madam President, I thank you. This radical improvement in our financial and banking sector has increased our confidence that the domestic financial sector can play a lead- Norway ing role in the implementation of our President’s Statement by 7-Point Agenda for the further transformation of His Excellency our economy. As recognition of this achievement, Mr Erik Solheim Minister for the Environment and Inter- the Governor of our Central Bank, Professor Chuk- national Development of the Kingdom of wuma Soludo has been nominated by the President Norway of the General Assembly of the United Nations as one of the members of the International Task Force 30 November 2008 on Reforming the Global Financial Architecture. Madam President, Nigeria continues to face Madam President, Friends, I would like to the challenge of mobilizing the necessary resources express my deepest condolences to the Indian peo- to meet the MDG targets and to implement several ple in the aftermath of Thursday’s horrific terrorist

184 Statements by Ministers attack. Today, we are all Indians these days and we Transparency is the answer. And we should be stand strengthened and more united than ever in very explicit about the need for tax haves to respect our fight against global terrorism. the principles of transparency. From this conference, there is basically only one A short while after the end of this conference, important message that needs to be conveyed. The another conference will open in Poznan, Poland— message is that there is no way, there is no way we the conference on climate change. I believe it is paramount that we bring these two process togeth- will accept the international financial crisis being er. Development and adaptation to climate change used as an excuse for reducing our ambitions when are in reality the same issue. Climate adaptation is it comes to fighting world poverty and global climate development, development is climate adaptation. change. To the contrary, the financial crisis should be another argument for strengthening our dedica- Preparing for hurricanes in the Caribbean or tion and commitment with respect to two issues. in Madagascar, controlling the great rivers coming down from the Himalayas, fighting drought in To ensure that Norway puts its money where Mali—whatever the climate issue, it is also a devel- its mouth is, we have decided to increase our offi- opment challenge. cial development aid to 1% of GNI, starting from In order to succeed, we need big money. I next year. We represented this budget to the Nor- believe the only way we can raise the amounts need- wegian Parliament in the midst of the financial cri- ed is through carbon market. Therefore, Norway sis. It is important that we maintain our ambitious has proposed—in the climate negotiations—that targets for ODA. 2% of the allowances traded on the global carbon However, other capital flows are still more market should be auctioned and the money used for climate adaptation. This proposal alone would important to development. Foreign direct invest- generate revenues in the range of US$20 billion. ment is more important. Trade and export earnings are more important. So are remittances. I will, how- Many other issues also deserve our attention. ever, use this opportunity to draw your attention to One is gender. We should make equal rights for the most harmsul capital flow in the world. I would men and women the basis for everything we do. urge you all to join forces to combat it and to put it at Empowerment of women is extremely important for economic growth. Another issue is debt relief the very top of the development agenda. I am talk- and illegitimate debt. We should continue the ing about illicit capital flows from poor countries. progress that has been made on debt over the last Estimates indicate that the amount of money few years in the UN and the Bretton Woods Insti- transferred illegally out of the poorest countries tutions. Again, we must not accept the financial is ten times higher than total global ODA. This is crisis as an excuse flor losing momentum on these completely unacceptable and must be stopped. important issues. We know the most effective remedy against Let me conclude by saying that the financial crisis, as challenging as it may be, also repre- illegal capital flows: it is transparency. As long as sents an opportunity. It is an opportunity that the we accept that huge part of our global economic world cannot afford to miss. It is an opportunity system is operating in the shadows, outside state to restructure the global system, to restructure the control, this evil will continue. global institutions. It’s an opportunity to green the Corruption, tax evasion, drug money, financing world economy, and it is an opportunity to look of terrorism and financing of civil wars, it all comes into how we fight poverty. together in illegal capital flows. And tax havens We should be aware that we, our generation of are at the core of the problem. This issue must be politicians, are now facing the greatest uncertainty resolved if we want the world to move forward. since the 1930s. We should take as the role models

185 The Doha Review Conference on Financing for Development

the heroes of the great depression. People like J.M. we set ourselves in Monterrey, more than seven Keynes or Franklin D. Roosevelt. They did not years ago already, in order to promote economic restore the global economy as it had been before and sustainable growth in keeping with the Mil- the crisis. The crisis of the 1930s gave rise to pen- lennium Development Goals that were established sion schemes in many countries, welfare states in in 2000, which, among other things, were aimed at other countries, and state intervention in the econ- the eradication of poverty. omy in most countries. It was a completely trans- However, these goals grow more and more formed type of capitalism that came out the crisis. distant every day. In terms of the aims that we This is where we should look for inspiration set ourselves in Monterrey for official develop- these days. We need to restructure the global eco- ment assistance (ODA), we lag far behind, while nomic system. And we need more attention on acknowledging the levels that a number of devel- poverty. Above all, we need to transform our econ- oped countries have attained in meeting their omies into low-carbon green economies. The finan- commitments. Nevertheless, these are more geared cial crisis is an opportunity to achieve all of these. towards debt relief, rather than towards new assistance disbursements. Thank you Madam President. At this Conference, we must reaffirm the commitment made in Monterrey, and must also reaffirm the need for its timely implementation,2 with- Paraguay out losing sight of the close relationship with the Statement by global agenda to achieve the Millennium Goals His Excellency by 2015. In turn, we appeal to international and Mr. Alejandro Hamed Franco regional financing entities for a timely and coor- Minister of Foreign Affairs of the Repub- dinated response in providing the complemen- lic of Paraguay tary financial resources that our countries need in order to finance projects which, even if they do not 30 November 2008 generate direct financial profitability, represent a significant component of social benefit. Allow me, first of all, on behalf of the delegation Following the adoption of the Monterrey Con- of Paraguay, to convey to His Highness Sheikh sensus in 2002, the international economic context Hamad bin Khalifa Al-Thani, the Emir, our par- has contributed to the growth of the economies of ticular gratitude for the cordial hospitality that has many developing countries. We are deeply alarmed, been extended by the people and Government of however, by the impact of the current deep and glo- the State of Qatar since our arrival in this lovely balized financial crisis that has taken shape over city of Doha, and for the excellent progress made the last number of months, the full scope of which at this Conference for the review of the imple- we have still not seized. Without a doubt, the most mentation of the Monterrey Consensus. In turn, vulnerable countries will be those countries that are on behalf of the Government of Paraguay, we most directly affected as a result of their depend- express our empathy and solidarity with the peo- ence on sources of external financing as well as on ple and Government of India for the recent terror- their terms of international trade exchange. ist attacks, which once again have taken innocent lives; we ratify our most absolute condemnation of We are aware that the effects of the current every terrorist act, which cravenly uses violence in global financial crisis, along with the impact of the order to attain its objectives. rise in food prices, the fall in international commodity prices and the loss of liquidity on inter- For Paraguay, this Follow-up International national markets, among other things, will create Conference on Financing for Development to greater difficulties for developing countries due Review the Implementation of the Monterrey to the resulting rise in inflation, slowing growth, Consensus is crucial, recalling the objectives that the risks of protectionism, and other exacerbating

186 Statements by Ministers factors, such as the likely contraction of South- as the aforementioned international financial cri- South cooperation and the reductions in ODA sis, the reduction of foreign direct investment, and other necessary financial elements for financ- capital volatility, the lack of stability of exchange ing for development. rates and the international prices of commodities and other elements of external effect. Paraguay acknowledges that the effects of this crisis are multifaceted in nature and, therefore, the This fiscal discipline has allowed us to enhance resolution of this crisis must be addressed at a mul- our payment ability and our capacity to deal with tilateral forum. Furthermore, we are of the view indebtedness and is the reason why we are now in that the ongoing reform process of the existing a better position to pull our weight in the public international financial structure should be based projects which require external financing. This is in the United Nations, with the presence of the 192 particularly so when it comes to roadworks, pro- Member States, thus underscoring the need for this ductive and communications works of infrastruc- process to be inclusive, transparent and participa- ture, as well as public investment and basic social tory, and one which would not focus exclusively on services, including care services for vulnerable technical structures, but rather would be a proc- groups in our country. ess which, first and foremost, was imbued with a Paraguay, as a landlocked developing country, humanistic concept. must make greater efforts than others to be able Following the election of the democratic Gov- to compete on the international market because ernment on 15 August, Paraguay has been working of the high costs that we bear in placing our com- towards improving the mobilization of its internal modities at export maritime ports and given our resources to support development by addressing, distance from trading centres. Therefore, we urge in particular, fundamental aspects in our fight this Conference in its final declaration to recognize against poverty, such as the basic social needs of the need to lend support to landlocked developing the most vulnerable groups, improving the edu- countries, given their well-known specific require- cational system, health and aspects of sanitation, ments, in particular through the establishment of as well as by establishing a framework and condu- efficient transit transport systems. cive conditions for the appropriate development Landlocked developing countries, which, for of production and the market placement of agri- the most part, represent small, vulnerable econo- husbandry sector products, which underpin our mies, need international trade to truly serve as an national economy. engine for our development. We are already in a The new Government has also made the fight disadvantaged situation and, therefore, warrant against corruption a priority across the board, as it special and differentiated treatment to be able to is a harmful practice which undermines the correct compete on an equal footing with other develop- usage of resources that should be used to satisfy the ing countries. Moreover, we are of the view that basic needs of the social groups that are in greatest the progress made in the negotiations at the Doha need in my country. Development Round, particularly when it comes to trade facilitation, are crucial for our group and In terms of mobilizing internal resources, one will contribute to our better inclusion in interna- might single out a number of elements which form tional trade. my country’s financial stability, such as the balanc- ing of our fiscal accounts, improving the level of Therefore, for these reasons, external resources international reserves, the control and measured are vital for consolidating the process of sustain- nature of our external indebtedness, the balanc- able development within our countries and we call ing of our national payments, significant improve- for the design of adequate and appropriate mecha- ments made in reducing our external trade deficit nisms so as to better channel the resources from and other elements. All of this against the back- international development financing organizations drop of factors which have not been helpful, such in more conducive conditions.

187 The Doha Review Conference on Financing for Development

To conclude, in view of this current crisis, we benefited from years of sustained economic growth. also believe that equal attention must be paid to To minimize the effects of the financial crisis, the support from our development partners in pro- Philippines has prepared a contingency plan that moting and facilitating foreign direct investment, provides assistance to its vulnerable sectors, partic- which is an essential complement to our national ularly overseas Filipino workers, workers in export- efforts to enhance our sustainable development. oriented enterprises, women, children, senior citi- In turn, this will facilitate our great leap forward zens and the differently-abled sectors. Today, the towards a more just and equitable society. Philippines is in a better position to cope with the global financial crisis that has spared no one. Amidst the backdrop of the global challenges of the food, fuel and financial crises, as well as climate change, Philippines we urge the international community to uphold the Statement by principles of the Paris Declaration that would untie His Excellency aid, review the concept of debt sustainability, sup- Mr. Ralph Recto port South-South cooperation in partnership with Secretary of Economic Planning of the emerging economies and developed countries, and Republic of the Philippines increase ODA commitment to developing coun- 30 November 2008 tries, particularly the parties to the United Nations Convention against Corruption. On behalf of the Philippines Government, I am Today, we have fallen short of the goals of honoured to participate in this important Review Monterrey. In the area of ODA, the overall amount Conference on the Implementation of the Monter- from member countries of the Organization for rey Consensus. At the outset, I should like to Economic Cooperation and Development has express my delegation’s gratitude for the hospitality diminished and the nominal increase represents of the Government and people of Qatar. The Philip- resources targeted at debt relief. It is worth noting pines aligns itself with the Group of 77 and China. that, today, the ODA flows total, more or less, $100 In response to the Secretary-General’s extensive billion while rescue packages in highly developed report on the implementation of the Monterrey economies now total more than $5 trillion. What Consensus, the Philippines is confident that its is more disturbing, especially in the context of the commitment to attain the internationally agreed food crisis, is that ODA in agriculture declined from development goals by 2015 will be achieved. 18 per cent in 1979 to 3.4 per cent in 2006. Thus, the hunger count today is at 850 million people. Midway to the target of 2015 for the implementation of the Millennium Development Goals, the Sooner rather than later, an additional 100 mil- Philippines has shown its capacity to be a respon- lion people will join the ranks of the poor. The long- sible development partner. It undertook pain- term prospects for alleviating hunger and poverty ful revenue-enhancing measures that provided are daunting as investments of some $15 billion additional domestic resources and invested them to $20 billion a year will be needed to ensure the in infrastructure and basic social services. The appropriate global food supply by the year 2030. It must be noted that in the area of external debt, Philippines also harnessed the remittances from a major concern lies in debt sustainability, espe- its overseas workers, thereby increasing domestic cially when we take into account the relationship resources needed for its own development. It must between existing debt sustainability criteria and be emphasized that private flows must not replace financing the implementation of the Millennium official development assistance (ODA). Development Goals. It is, therefore, important to Before the financial crisis erupted, the Phil- ensure that debt alleviation benefits all developing ippines placed its economic house in order. It countries in need, and that debt sustainability cri- improved its macroeconomic fundamentals and teria take into account the implementation of the

188 Statements by Ministers

Goals. Thus, the Philippines continues to advocate Third, we must preserve and strengthen the spirit for a debt-to-Goals swap arrangement. In the area of Monterrey by taking a holistic approach to devel- of investment, progress is attributed mainly to the opment by engaging all stakeholders. And fourth, remarkable increase in South-South investments, the substance of Monterrey must be reinvigorated which increased from $2 billion in 1985 to $60 bil- and its follow-up enhanced. lion in 2004, contributing 25 per cent of all foreign direct investment to many least developed countries. On trade, we are at an important crossroad. The Doha Round remains to be concluded and it Portugal is essential that its outcome should address the Statement by Round’s development promises. We remain com- His Excellency mitted to an open, rules-based multilateral trading Mr. Joāo Gomes Cravinho Secretary of State of Foreign Affairs and system. For the Round to succeed, it must truly Cooperation of the Portuguese Republic be a development round which not only opens up markets of interest to developed countries but also 1 December 2008 permits a level playing field for developing economies. In addition, the other relevant elements of Mr. President, Excellencies, Distinguished Del- the trade equation need to be addressed. Deliver- egates, first of all, allow me to begin by extending ing on the international commitments on technol- Portugal’s gratitude to our host, the Government ogy transfer is essential. Furthermore, it is equally imperative to provide an enabling environment that of Qatar, and to the people of Doha for their kind- would attract private investments in infrastructure ness and warm hospitality. I would also like to join and human resource development and collectively others in congratulating all those that have con- strengthen social safety nets for vulnerable sec- tributed with their hard work in order to make this tors. This high-level meeting here in Doha affords Conference possible. On a somber note, I also wish us the opportunity to complete the work begun at to extend our condolences to the Government and Monterrey, to mark the beginning of a truly global people of India for the terrorist attacks in Mumbai. and inclusive process to address the challenges we The attack on Mumbai is an attack against civiliza- face in financing development. tion everywhere in the world. Our biggest disappointment lies not in the lack It is a great honor for me to address this of progress in the Doha Round, but in the lack of Assembly in a moment of special relevance to all of progress in implementing Monterrey’s vision of an us. We are all aware that we are experiencing one international economic architecture that is fair to all. of the most important processes of change of our Reforms of the international financial institutions lifetimes. This rapid and profound change brings moved disturbingly slowly after Monterrey. Calls to with it threats to world stability and new challenges address systemic problems were unaddressed. for each of our countries. No region or country is immune in these demanding times. In conclusion, allow me to share some thoughts on the work which lies ahead. First, we At the outset, Portugal aligns itself with the must work together to strengthen the credibility of statement made yesterday by the French Presidency the multilateral economic institutions and restore of the European UnionThe international context in confidence in the global economy. This can only which we adopted the Monterrey Consensus does be accomplished through a process of construc- not exist any more. This year has witnessed very tive and inclusive engagement. This is the time for grave crises with respect to high energy prices, spi- prudence and steady hands, and we must ensure raling food prices, and grave financial instability. that we work together to ensure that the collective The coexistence of these crises, against the back- interest will prevail. Second, there is a need for fun- drop of climate change and shifting patterns of glo- damental reforms of the global economic system. bal power distribution, underlines how important

189 The Doha Review Conference on Financing for Development

it is to be capable of responding appropriately and through a persistent, pragmatic but gradual proc- collectively. There is very little that we can know ess, in order to avoid discrepancies in the system. about the challenges facing our societies in 20 Development effectiveness requires tailored-made years time, but one point that we can be confident responses according to different contexts and of is that what we decide today, and in various oth- challenges, and the UN system is in a privileged er multilateral contexts, will have a major impact position in this regard. upon the lives of millions of people, particularly the most vulnerable populations. We must have Mr. President, this Conference here in Doha the political lucidity to direct change, to undertake constitutes an opportunity for the international reform, and to live up to our responsibilities. This community to renew its commitments towards the is the right moment for us to rise to the challenges goals of Monterrey, as well as to reflect upon the ahead of us. Our efforts here in Doha will be criti- changes that have taken place and the adaptations cal for building global confidence and trust, help- that are required in order to update our strategies ing pave the way of the future. for achieving these goals. Portugal wishes to formally reiterate its support to the Monterrey objec- The emergence of new donors, and in particu- tives, and its commitment to an effective multilat- lar the recent relevance of emerging countries, as eral system, which is essential to achieving them. well as the proliferation of programmes and vertical funds in the field of development cooperation, have We believe that we face today a new level of definitely contributed to a new and more complex urgency, as the current crisis risks undermining the international aid architecture. We welcome new important gains that have been achieved in reduc- donors, who bring with them new resources, but ing poverty. This is why our first concern goes to also innovative ideas and approaches. At the same the least developed countries, where the scourge time, we cannot lose sight of the need to ensure aid of poverty is most dramatically felt and where the effectiveness and coherence, if our contributions cost of crises can really be life long. In this regard, are to make a difference. I would like to recall our commitment within the European Union to allocate no less than 50% of In this regard, I am pleased to say that Portugal our ODA /GNI increase to African countries. has already adopted a number of instruments and mechanisms to promote coherence, coordination Mr. President, regarding the Doha Outcome and complementarity in order to deliver more and Document that we wish to adopt during this Con- better aid, in line with the aid effectiveness agenda. ference, I would like to underline various of the most Multilaterally we have also made some progress, as important principles for the financing of develop- we can see through the adoption in the European ment. Firstly, we continue to reiterate that the mobi- Union of a Code of Conduct on complementarity lization of domestic resources is a key component and division of labor between donors. This proof our global partnership on financing for develop- vides us with an essential tool for our aid effective- ment, reinforcing the principle of ownership and ness goals, and if effectively applied, it will combat reaffirming that each country is primarily responsi- inequalities between the so-called “orphans” and ble for its own economic and social development. “darlings” of the donor community, and reduce Secondly, we believe that sustainable and duplications and overlapping activities. socially responsible Foreign Direct Investment is a Moreover, it is also very important to pro- very important instrument to promote economic ceed with efforts in terms of increasing coherence growth and social development. In this regard, we within the United Nations development system, believe that investment in infrastructure is very as well as greater complementarity between UN important to help partner countries’ sustained organizations which have different mandates. The economic growth and development, in particularly “One UN exercise” should be further developed, investments in social sectors.

190 Statements by Ministers

Moreover, Portugal considers that internation- Ladies and Gentlemen, let me conclude by al trade is a very strong engine for development, expressing my country’s full support to this process. for economic growth and for poverty reduction. Thank you. This is why we attribute the greatest importance to reaching a successful conclusion of the WTO “Doha Development Agenda” (DDA) negotiations. This will be essential both to the global economy, Qatar and to the achievement of the Millennium Devel- Statement by opmental Goals. An ambitious and balanced result, His Excellency within and across all the main elements of the Mr. Ahmad bin Abdullah Al-Mahmoud Minister of State for Foreign Affairs and Doha Development Agenda, will help developing Member of the Council of Ministers of countries better integrate into the global economy the State of Qatar and fight poverty. 1 December 2008 We acknowledge climate change, and the impact that it has upon our lives and those of future generations. This is a major challenge for Allow me, at the outset, to welcome you to Doha. developed and developing countries alike. A com- There is no doubt that the challenges that we face mon effort is therefore needed by the international are far bigger than any of us could have imag- ined when the Monterrey Conference concluded community in order to cope with it in an effective its work, for we see daily new challenges that we and efficient manner, and it is vital that we all agree did not expect, challenges that erode the financial on a detailed contribution for a new global frame- peace and stability of the citizens of the world. The work by the end of 2008, contributing to a global financial crisis and the speed with which it has had agreement under the UNFCCC by 2009. a devastating impact has puzzled even those most The most affected countries are the poorest experienced in this field. The effects of what was ones of the world, those that have less means to considered to be a controllable financial problem cope with this global phenomenon, even though in the largest economy of the world have spread they are the ones that contribute the least to it. speedily into an international financial crisis. For them, the best way to adapt is to develop in a The convening of this Conference comes at an sustainable manner. appropriate time as the current issues of the day are Lastly but not least, let me assure you that Por- the same problems as those before us, with which tugal associates itself with the European Union’s we are now dealing. We have an opportunity to commitment to work in close collaboration with take the measures capable of protecting the weak and vulnerable, those who cannot afford the cost all partners to contribute to a comprehensive and of adaptation to these new developments. We are genuine reform of the global financial system, required to recognize the linkages between financ- based on the principles of transparency, banking ing development and support of trade. We have to stability, integrity and improved economic govern- resist the temptation of defending our local econo- ance. This must be done in a spirit of frank coop- mies by resorting to trade protectionism. eration and openness. Thus, this Conference must lead to a renewed commitment to realize the development dimension of the Doha Round. In addition to this, it must secure reinforcement of the international partnership for development. That partnership, which was established at the Monterrey Conference, should be reinforced through our

191 The Doha Review Conference on Financing for Development

commitment, in Doha, to maintain the necessary In the name of the Government of Qatar, I financial flows in order to save the least devel- would like to emphasize, and reiterate, the neces- oped countries from the difficulties and hazards sity of establishing new creative systems to provide of shouldering the largest burden of the crisis, financial liquidity to implement major develop- as any world economic recession could lead to a ment projects through partnership between more great increase in the percentage of poor people in than one country and with financial and humani- the world, thereby increasing their suffering. We tarian institutions, under the supervision of an have to commit ourselves to increasing official international institution that would be part of the development assistance and to fulfill the commit- United Nations, or with other regional developments that were made. In addition, there should ment organizations. Furthermore, there is the need be increased financial support so that the finan- to establish mechanisms to guarantee the flow of cial crisis that we face will not erode the progress liquidity from profitable projects so that the pro- or the realization of the Millennium Development ceeds could finance other projects. Goals in the time frame that was set. In addition to implementation through inter- There is an historical opportunity before us— national partnership equities for development an opportunity that allows us to chart a new course projects financed by grants from countries and for a new international trade and financial system. financial institutions that are multilateral—in con- Our objectives must not be restricted to stressing sonance with the experiences of successful inter- the lessons that we learned from the crisis and national donors and financiers, and in order to seeking not to repeat them, but rather must reflect benefit from the positive aspects of globalization the new changes in the economic geography of the to enhance major development projects—the State world that has transpired since the Bretton Woods of Qatar is willing and now ready to participate in Conference. We have to build a new international such projects, based on its experience in establish- order that is just and equitable so as to support the ing State and other projects in this field. efforts of the developing nations and establish a Successful development depends directly on system that gives them commensurate representa- the increase in the level of cooperation with our tion. The system that was established under Bretton partners in trade and finance; hence, we have to Woods has not been able to adapt itself to the new increase our mutual support. We cannot—and no economic and political changes of the last decades. country alone can—write the story of its success As the United Nations was the correct forum to without guaranteeing the success of others. Our build the current financial structures, the reform of peace, our economic peace and security, depend this system must, of course, now take place through on the success of multilateral negotiations and on and under its aegis. Hence, this Conference could submitting proposals, submitting solutions that be the appropriate forum from which the process will be beneficial to one and all. of reform of the economic governance of the world that was proposed recently by the President of the General Assembly could be realized. Allow me to refer to the fact that the State of Qatar has fulfilled its commitments to provide development assistance of 0.7 per cent of its gross national income. On the initiative of His Highness Sheikh Hamad bin Khalifa Al-Thani, the Emir of the State of Qatar, we have established the South Fund for Development, with a donation of $20 million from His Highness. The State of Qatar has also established the Qatari Fund for Development.

192 Statements by Ministers

Thus, I would I like to urge you, distinguished if all efforts are concerted at the international level. brothers and sisters, to look at our proposal. Wish- We trust that this opinion is shared by many of you, ing you a happy stay and a successful Conference and that the related discussions at various impor- in our capital, Doha, and may God’s blessings and tant events, such as the Third High-level Forum on peace be with you all. Aid Effectiveness and the United Nations High-level Event on the Millennium Development Goals, as well as those here, in Doha, over the last three days, Romania are proving the importance given by the international community to reach these objectives. Statement by His Excellency The draft outcome document reflects the -com Mr. Anton Niculescu plexity and broad scope of this Conference. It is State Secretary, Ministry for Foreign true that important progress in many countries Affairs of Romania and regions of the world has been made. However, the situation in sub-Saharan Africa, for instance, 1 December 2008 remains difficult. Facing a period of economic slowdown in many parts of the world, encoun- I would like, first of all, to thank the Govern- tering multiple crises with a strong international ment of Qatar for hosting this very, very impor- impact, the Doha Conference brings us together tant event. Secondly, I would like to take this in order to give a new impetus to the Monterrey opportunity to convey Romania’s condolences to Consensus in its entirety. the people of India. The Monterrey Consensus serves as a com- Allow me to begin by associating myself with prehensive and balanced framework that builds the inspiring statement delivered by the French on the shared and differentiated responsibilities President, on behalf of the European Union (EU), of all actors, while the Paris Declaration and the during the first day of this Conference. I would also Accra Agenda for Action should catalyze further like to associate myself with those who have com- progress on aid effectiveness. As has been under- mended the co-facilitators, Ambassadors Maged lined on several occasions already, this Conference Abdelaziz of Egypt and Johan Løvald of Norway, is taking place in a different context than the one for the constructive manner in which they have led held in Monterrey in 2002. Romania has seen the the informal consultations on the Review of the review process as an opportunity for the interna- Implementation of the Monterrey Consensus, par- tional community to reflect on, and discuss, both ticularly during the drafting sessions on the Doha the progress achieved as well as the new challenges Outcome Document that took place in New York. that have emerged. I am particularly touched by the coincidence Internationally agreed development goals, that allows me to speak before this distinguished including the Millennium Development Goals, audience at a time when my country is celebrat- could not be achieved by the target of date 2015 ing its national day. Romania has come a long way without the support of all the development finan- since its great union ninety years ago. It is now a cial flows that require the solidarity of the inter- new member of the European Union and a donor national community. The European Union has of development assistance. Moreover, this event, further demonstrated its commitment to support at Doha, is taking place at a moment of crucial their achievement through the EU Agenda for importance for the future financing for develop- Action on the Millennium Development Goals. ment. We find those efforts already halfway down Romania supports the European Union official the road towards the 2015 target date for achiev- development assistance (ODA) commitments to ing the Millennium Development Goals, and we achieve the collective ODA target of 0.56 per cent strongly believe that this objective can be reached of gross national income (GNI) by 2010 and 0.7 per

193 The Doha Review Conference on Financing for Development

cent by 2015, and to channel at least 50 per cent of the conclusions of May 2008, Romania will make collective aid increases to Africa. In 2007, Romania every effort to reach the ODA targets of 0.17 per became a donor of ODA. This new status provided cent of GNI by 2010 and 0.33 per cent by 2015. We the opportunity to define the national development consider that the poorest countries, and countries policy and identify the priority regions and coun- in fragile situations, should not be victims of the tries where Romania could transfer the know-how current financial crisis. We would also like to recall and the experience gained both from the transi- that many of the middle-income countries are still tion period and the EU accession process we went facing significant challenges, and that their efforts through recently. to address them should be supported by the inter- In line with our national strategy for interna- national community. Those countries need our tional cooperation for development, which was solidarity and support for the achievement of the adopted in 2006, our geographic priorities are the Millennium Development Goals. countries from Western Balkans, Eastern Europe In 2008, we answered the appeal of the World and South Caucasus. We would also support Health Organization regarding the humanitar- projects in Afghanistan and Iraq. When increasing ian crisis in Burma due to the Nargis Cyclone, for the national capacity in the field of the develop- which we allotted €100,000. A further €200,000 ment assistance, we shall be able to channel more was allotted following the earthquake in China, development funds to the countries of Central in addition to sending humanitarian aid to the Asia and Africa; and we would be interested in also Sichuan region. In the context of the crisis situa- cooperating with Latin American countries. tion in Georgia, we sent humanitarian aid with a We identified several areas of expertise in which total value of €1.3 million and we allotted €100,000 Romania can make a valuable contribution to the through the World Food Programme and the development of partner countries, for example, in United Nations High Commissioner for Refugees; areas such as economic development, enhancing more funds will be channelled to the reconstruc- democracy and the rule of law, good governance, tion process in Georgia next year. In response to education, health, infrastructure and the environ- the food crisis, we also contributed €100,000 to the ment. We consider that achieving gender equality World Food Programme, and €150,000 for devel- is an important contribution to development and opment projects in Afghanistan. a continuing process at the global level and, therefore, we contribute to projects in this area in our A successful outcome of the Doha Conference, partner countries through our ODA. We also con- that duly takes into account the current global tribute to the international initiatives and funds challenges in a positive and ambitious manner, is that are providing support to developing countries essential for the development needs of all, and it is to combat pandemics, such as the Global Fund to our responsibility to ensure that no effort is spared Fight AIDS, Tuberculosis and Malaria. to implement it. In 2007, Romania reported a total national ODA contribution of €18 million, representing 0.07 of our GNI, including our contribution to the EU budget for cooperation for development and for humanitarian aid. As we declared in various fora, and recently in Accra, we are determined to comply with our international and European commitments in order to reach the ODA targets set up for the new EU member States. In line with the European Con- sensus for Development of December 2005, and

194 Statements by Ministers

prerequisite to the attainment of the Millennium Rwanda Development Goals. This was re-emphasized by Statement by the Paris Declaration in 2005 and more recently Her Excellency the Accra action agenda. In other words, we have a Ms. Rosemary Museminali strong framework for acting decisively and achiev- Minister for Foreign Affairs and ing our noble goals. Regional Cooperation of the Republic of Rwanda We are happy to note that since the 2002 Monterrey conference a lot has been done; signifi- 30 November 2008 cant debt relief has been delivered. 34 of the 41 eligible countries have already received debt relief to Madam Chairperson, Your Majesties, Your High- the tune of US$57.5 billion through the HIPC and Multilateral Debt Relief initiatives. Rwanda is one nesses, Excellencies, Heads of State and Govern- of the beneficiaries with her debt reduced by about ment, Heads of Delegations, Distinguished Ladies 80%. Official development assistance has also fairly and Gentlemen, allow me on behalf of my presi- but not sufficiently increased. dent His Excellency Paul Kagame and on behalf of the people of the Republic of Rwanda to express Significant achievements have also been record- our sincere appreciation to the government ed in many of the developing countries including and people of Qatar in particular, to His High- many in Africa. Several countries through several ness Sheikh Hamad bin Khalifa Al-Thani, Emir reforms and fiscal discipline have ensured that of Qatar, for the warm welcome and hospitality Macroeconomic stability is maintained, strong extended to us since our arrival in this beautiful and sound medium term development and pov- and vibrant City of Doha. erty reduction strategies have been drawn and are being implemented, good governance practices We also thank the President of the UN General including sound public Finance management sys- Assembly and the UN Secretary-General for this tems have been strengthened in many countries and previous similar initiatives. I wish to express including my own. our deepest sympathies to the Government and the People of India for the terrorist attacks in Mumbai. Madam Chairperson, Excellencies, Ladies and As a country that has experienced terror and con- Gentlemen, despite these achievements, a lot still needs to be done as it is now clear that most Afri- tinues to be threatened by it, we feel for you and can countries will not achieve all the MDG targets your people. unless drastic measures to address current funding Madam President, I want to echo many speak- bottlenecks are taken. ers before me in asserting that, the development The most significant target of halving poverty partnership launched in Monterrey in 2002 marked remains most likely to be missed by the majority of a historic step in the global efforts to fight poverty. the poor countries. Funding and investments must I also wish to acknowledge that we meet at a time target the key and usually significant projects that of global challenges including a staggering global will trigger growth such as infrastructure, energy financial crisis that is adding to the current food and ICT. Agricultural funding must be signifi- and energy difficulties. cant enough to tackle projects like irrigation, food A combination of these challenges, threatens processing and conservation if they are to impact the Monterrey process as well as the ability of many on the economic growth of the majority of poor in the developing world to remain on track to people that depend on Agriculture. achieve the Millennium Development Goals. The Excellencies, Ladies and Gentlemen, as we all international community recognized that mobiliz- know economic growth in low-income countries ing financial resources for development, the effec- has been relatively robust, averaging 7% in the last tive and efficient use of those resources are a key five years, still this falls well below the levels needed

195 The Doha Review Conference on Financing for Development

to make the necessary leaps needed to address the It is time for the international community there- major obstacles threatening the achievement of the fore, to take appropriate actions and put in place Millennium Development Goals. For the develop- mechanisms that will increase market access for ing world, new challenges like the climatic change, African products, eliminate trade-distorting sub- the food and oil crisis of 2008 together with the sidies in developed countries, facilitate transfer of recent financial crisis do not have sufficient frame- technology transfer, open up their service market. works or even technical or financial means to miti- To support LDCs efforts to take advantage gate them. These new developments pose addition- of the multilateral trading system, Aid-for-Trade al significant challenges that require more efforts, should be a crucial component of this financing for creativity and sensitivity if we are to achieve our development conference. development agenda. We urge the international community to engage More focused and innovative financing mech- in new dynamics and commitments to harmonize anisms need to be developed to avail the much ODA and adapt it better to the recipient countries’ needed resources to be invested in those strategic development strategies. This will reduce transaction areas like infrastructure including health infra- costs and bureaucratic procedures as well as address structure and agriculture. the issues of capacity building and sustainability. Madam Chairperson, Excellencies, Ladies and It is such a partnership that will make this Gentlemen, we acknowledge that the private sec- conference and those before it worth the time and tor must play a key role in the efforts to mobilize resources that we have all committed. We have financial resources for development. However, this what it takes to achieve Millennium Development requires structural reforms to increase competi- Goals if we are committed to this partnership. tiveness and productive investment. Madam Chairperson, I thank you for your attention. To achieve equitable development and a vibrant private sector in Africa, it is necessary to have a financial sector that enables access to financial Senegal products especially to the most vulnerable people in rural areas. Statement by His Excellency To attract the much needed foreign direct Mr. Serigne Diop investment and boost domestic investment, the Senior Minister to the President of the Government of Rwanda has embarked on reforms Republic of Senegal in the legal and regulatory framework aimed at 30 November 2008 creating an enabling business environment.

However, FDI flows to Africa in general and At the outset, I would like to express to His High- to Rwanda in particular, though on the increase in ness Sheikh Hamad bin Khalifa Al-Thani, the Emir recent years, are still too limited in geographical of Qatar, the warm and brotherly greetings of his coverage and remain largely focused on extractive brother, His Excellency Mr. Abdoulaye Wade, industries and cannot have a significant effect on President of Senegal. Because of serious problems employment creation and poverty reduction. with timing, he was not able to be present at this Madam Chair, Excellencies, Ladies and Gen- important meeting, which is taking place at a cru- tlemen, we should also recognize that a universal cial moment that the world is experiencing. rules-based, non-discriminatory and equitable I would also like to express here the deep grati- multilateral trading system as well as meaning- tude of the delegation of Senegal to the authorities ful trade liberalization can substantially stimulate of the State of Qatar who have hosted this Confer- development worldwide. ence, showing the particular interest that this great

196 Statements by Ministers country has in cooperation and solidarity among seeing today and because of the financing given by the peoples of the world. My delegation also thanks rich countries to support their own banking and very warmly the people and Government of Qatar financial institutions, while millions of people fall for their warm greetings and the attention that has victim to various types of deprivation every day. been given to us since we arrived in this beautiful In addition, there is the increasingly drastic city of Doha. factor of reduction in aid which is posed by this I would also like to salute the Secretary-Gen- current financial crisis because, as we see it, the eral and the President of the General Assembly of countries which drive the economy of the world the United Nations, and pay tribute to them for the are the most affected. All of this shows that the dif- efforts they have made to ensure the success of this ficult conditions that the world is experiencing as a Conference. result of the financial crisis should not, in any case, be a pretext for us to be distracted from the goals Finally, Senegal expresses its deep sympathy to we set previously as, in several respects, they are the Government and people of India for the ter- the only guarantees for social and financial stabil- rorist attacks in Mumbai, and to other countries ity in the world. whose citizens were also victims. My country firmly denounces these acts. On the contrary, these circumstances should encourage us to show a new determination to face We are meeting here again, six years after the the challenges of stable growth by more appropri- Monterrey Conference, to evaluate the state of ate ways and means, without overlooking any pos- implementation of the commitments that were sible alternative ways of acting, including innova- made by the international community to fight tive sources of financing, particularly with respect against poverty in an effective and decisive way, to increasing aid effectiveness. This innovative and to ease the daily suffering of some of the world’s financing—and here I would cite, among other population. This meeting should allow us to gain a things, the Digital Solidarity Fund, the air ticket full understanding of the many obstacles that we solidarity levy and the international drug purchase continue to face and to redirect our future actions facility (UNITAID)—is essential today as a com- in an appropriate manner. plement to aid and should serve as a source for sec- This has been made necessary because of the tors which are crucial to development. mixed results that we have seen up to this point, as As has been emphasized by the Head of State is confirmed by the report of the Secretary-Gener- of Senegal, His Excellency Mr. Abdoulaye Wade, al on recent events in Financing for Development during the global meeting of experts on accelerat- and the Implementation of the Monterrey Consen- ing the payments of aid and aid effectiveness at a sus, which highlights the important progress that meeting which was held in Dakar on 29 October, remains to be made in relevant areas. The Monter- “The international community must recognize and rey Consensus, and we reaffirm our full commit- support the development efforts made by our coun- ment to it, was reached in a context similar to tries and place confidence in our Governments to what we are seeing here today. In Monterrey, the keep their commitments by providing addition- disastrous situation that much of humanity was al resources with minimum conditionality, in a facing had led leaders of the developed countries timely manner, and invested in the socioeconomic to decide to substantially increase official develop- infrastructure that is necessary to achieve the Mil- ment aid (ODA). lennium Development Goals.” To date, the volume of ODA in the budgets of The food and energy crises which we have seen developed countries has fallen, in spite of the over- in recent months, which have affected all countries all social context that is increasingly fragile. This of the world, rich and poor, show to what extent fall in financial flows derives less from scarcity of the fate of humanity is interdependent. The better resources than from the lack of will that we are world that we hope for, therefore, means that we

197 The Doha Review Conference on Financing for Development

must demonstrate more perseverance to attain our Food and Abundance, which was launched by the goals by showing greater generosity and solidarity Head of State, His Excellency Mr. Abdoulaye Wade, and being more imaginative in our actions. It is show us that Senegal is on the right path. along these lines that Senegal made the commit- His important efforts would have led to stronger ment to act over the last six years, and to transform results if the international commitments had been into concrete action the goals and objectives of the met. This shows that in spite of the scale of the chal- Monterrey Consensus. lenges for development, particularly in Africa, they The economic reforms launched by the Gov- can still be overcome with real political will that is ernment of Senegal have allowed us to reach an sustained at the international level by concrete meas- annual economic growth rate, on average, of 5 per ures which aim to re-establish a balance in trade, cent between 2002 and 2007. In spite of an unfa- regulations dealing with the debt crisis, increasing vourable economic context in the world, which was ODA and even more importantly by massive inflows marked by inflationary pressures, this performance of foreign direct investment and capital. was part of our efforts to fight against poverty by implementing the Poverty Reduction Strategy, and Therefore, by offering developing countries was also in the context of my country’s eligibility for real prospects to join in the networks of success the Heavily Indebted Poor Countries (HIPC) Initi- and prosperity in the developed world, it will be ative. We should also emphasize that the debt relief possible for our planet to hope for a more hope- Senegal has received as part of this Initiative has ful future, where international cooperation will be allowed us to significantly increase the resources we seen as a synonym for peace and development to spend on education and health, sectors on which benefit humanity as a whole. But to achieve this, it my country spends 50 per cent of its budget, plac- is important now to strive to genuinely restructure ing us in a good position with respect to achieving global governance in the international financial the Millennium Development Goals. architecture, because the present architecture was inherited from the Bretton Woods era and is no Along with these efforts, Senegal has resolutely longer in line with the realities of the world today. committed to promote a national private sector by carrying out rigorous reforms in the business area. Accelerating these actions means that we have been named one of the main reforming countries in Slovakia Africa by the Doing Business Report of the World Statement by Bank. Establishing a climate to promote investment Her Excellency by creating structures such as agents for promoting Ms. Olga Algayerova investment in major works, the Presidential Coun- State Secretary, Ministry for Foreign cil on Investment, the agency for development, Affairs of t h e Sl o v a k Re p u b l i c and the Senegalese agency for promoting exports, shows the determination of my country and its 1 December 2008 leader to focus its action on accelerated growth for the period 2006-2015, with the goal of an economic Mr. President, Excellencies, Distinguished Del- growth rate of at least 7 per cent. egates, Ladies and Gentlemen, I wish to congrat- My country’s commitment to promote condi- ulate His Highness the Emir of the State of Qatar tions to re-launch economic growth was accompa- for hosting this important event and express our nied by a vast agricultural reform project, the goal gratitude for the warm reception, welcome and of which was to achieve food self-sufficiency and to hospitality. I should like to convey my Govern- significantly reduce our spending on the imports ment’s condolences to the families of the victims of food. Here, the results achieved in carrying out of the Mumbai attack and to the people and this project, the Grand Agricultural Offensive for Government of India.

198 Statements by Ministers

Mr. President, I would like to reaffirm my resources allocated for its ODA, in line with its government’s support to the implementation of obligation as an EU member state. the Monterrey Consensus and our commitment Mr. President, trade is a key tool to achiev- to strengthening the international partnership ing sustainable development. Much remains to for development. Progresses made on commit- be done, not only to conclude the Doha round of ments established at 2002 UN International Con- international trade negotiations, but also to ensure ference on Financing for Development held in a better functioning of the multi-lateral trading sys- Monterrey, Mexico, is quite positive, but still many tem. Slovakia supports the Aid for Trade initiative countries, particularly in sub-Saharan Africa and to help developing countries build export capac- Least-Developed Countries, are off-track in terms ity and corresponding infrastructure to be able of meeting the Millennium Development Goals. to use trade more effectively and in a sustainable Moving forward, in implementing the Monterrey way in the eradication of poverty. I would also like Consensus will require more intensity on national, to emphasize the importance of the South-South regional and international level to achieve improve- trade cooperation and the regional trade agreements in growth and poverty reduction based on ments in strengthening the role of the trade as an a framework of mutual accountability between engine for development in developing countries. developed and developing countries. The financing for development process has to be also adapted Mr. President, there were many calls to reform to the changes that the world economy had under- the Global Economic Governance throughout gone since 2002. this conference. Indeed the present financial crisis exposed many faults in current system. Slova- Mr. President, the Monterrey Consensus kia supports the need to improve the coherence emphasized country ownership and responsibility and consistency of the international monetary for its own development. It strengthened the agree- and financial system. There is a strong desire to ment on the policies required within the devel- increase the voice and participation of develop- oping countries to mobilize domestic resources, ing countries in international financial organiza- attract foreign direct investment and utilize aid tions ensuring that their perspective is taken into effectively. Countries should remain committed to account in the decision-making process. My coun- progress on policy reforms and good governance try, too, believes that this will be essential to the issues. In particular tax collection should be made continued effectiveness, legitimacy and credibility more effective and transparent. My country is open of the global financial system in a world of growing to share its own experiences from its successful economic interdependence. transition process. New challenges have arisen in recent years, The Monterrey Consensus recognized the need most notably the energy and food crises and cli- for substantial increases in ODA to help devel- mate change, which must be addressed decisively. oping countries meet their development goals. United Nations, in collaboration with all govern- Internationally agreed development goals require ments and stakeholders, must take immediate the mobilization of steady and predictable flow and concrete actions to confront the complex new of financial resources. Key issues on aid include threats to world economy and environment. At the improving both the quantity and the quality of aid same time we must ensure that MDG agenda and to developing countries in line with the Paris Dec- the drive to increase assistance in key development laration and the conclusions from this year’s High- sectors are not compromised by these challenges. Level Forum on Aid Effectiveness in Accra. Mr. President, Slovakia has been largely Development aid is among the priorities of shielded from a direct impact of the global finan- Slovakia external relationships. Slovakia, as a new cial turmoil. This has been in part due to govern- donor country, is gradually and steadily improv- ment steps to sustain macroeconomic stability ing its system of aid delivery and increasing and to achieve a balanced budget. The impeding

199 The Doha Review Conference on Financing for Development

euro zone accession on January 1, 2009 has also The visionary commitments we made at contributed to the relative stability of our national Monterrey continued to resonate because they currency and economy. However, being a small, depended on a new spirit of cooperation. Each of open, export-oriented economy the slowdown of us needed to take action, not because the other the world economy will naturally be reflected in side demanded it of us, not because noncompli- our country. Our economic growth forecast was ance would result in sanction or reprimand. We recently revised down to 4.9 percent in 2009 from took action because we knew that adherence to our an earlier 8.5 percent, but still remains one of the agreements and implementation of these actions highest in the region. was in our own very best interest. Mr. President, in conclusion, I wish to reiter- Today, we meet again under a dark cloud of ate our strong commitment to global partnership senseless violence. This time, the demon of terror has to finance development and our resolve to work struck at the commercial capital of a developing coun- towards an ambitious and action-oriented out- try, an act of senseless violence in one of the world’s come of this important review conference. largest and fastest growing emerging economies. Thank you for your attention. At the same time, the commitments we made at Monterrey are being tested. The global engine that has driven our growth and development is broken. This time, a financial crisis has surfaced at South Africa the heart of the industrialized world, but it threat- Statement by ens to defeat our common purpose and push back His Excellency the advances we have all made since the turn of Mr. Trevor Manuel the century. We need to pause and understand the Minister of Finance of the Republic of nature of this crisis. The financial crisis is spilling South Africa and Special Envoy of the over into the real economy at an unprecedented Secretary-General for the Follow-up speed. Productive sectors without working capital International Conference on Financing for Development to Review the Implemen- and long-term finance are closing their doors on tation of the Monterrey Consensus many millions living in the real world. The reality of global recession calls for decisive and collec- 29 November 2008 tive action to prevent another Great Depression. We know that the headlines will draw our focus Allow me, first, to thank the Secretary General towards erratic movements of stock price indices. for allowing me to serve as his Special Envoy for But we must keep our focus on the steady clamour this Conference. Six and a half years ago, I had the that is rising outside the factory gates and the silent privilege of working with Michel Camdessus in a reality of growing poverty. similar role with respect to the Monterrey Confer- As is the case for many low-income countries, ence. It has been a great honour to again advance the crisis constitutes a major setback at a time the Consensus on Financing for Development, this when African economies were making significant time together with Frau Heidemarie Wieczorek- progress. This comes on top of the food and fuel Zeul, who has just addressed you. price shocks, which pushed back the Millennium When we prepared for the Monterrey Confer- Development Goals by seven years and sent more ence, we did so under the shadow of 11 September than 100 million African people back into poverty. 2001. As the dust settled, world leaders were driven Many of the countries on our continent have forward. We were determined that a new global part- built a solid platform of macroeconomic stability. nership must be forged. We had seen that systemic But we have not yet completed the micro-econom- poverty is the ultimate systemic risk; that continuous ic reform, human development and infrastructure war could only be averted through development. expansion that is vital to self-sustaining and broad-

200 Statements by Ministers based growth of our continent. And now, we face Above all, we must work through all the insti- this profound setback, not of our own making. tutions at our disposal, to devise an urgent and collective response to the global realities. If we do We must all together sit up, take note and not unite in action to this crisis, we will be selling dispense with the luxury of procrastination. The the world’s poor short. One critical response must negotiations on the outcome document have been be to make a bold and unambiguous commitment terribly slow. There is a lack of urgency that does to maintain global solidarity. In this context, we not speak to the reality of what is happening in should welcome the many admirable pronounce- the world. Future generations will judge us harshly ments that have already been made at this podium. if they find that, at the very moment that history We must again congratulate the actions of the five required us to join hands in global solidarity, we developed countries who have already attained the were unable to rise above the petty animosities that goal of 0.7 per cent of gross national income. Let us cause us to look inward and fester. remember that adherence to such commitments is in our own very best interest. Yesterday, the Secretary-General convened a number of leaders to a retreat. All of us agreed that Despite their weakened state, financial markets the issues that divide the negotiations are small continue to impose a cast iron discipline on errant and inconsequential compared to the challenges sovereigns who fail to keep their bond or deviate that the world now faces. Our task is to lead the from the course of sustainable macroeconomic pol- world through the change that is clearly required. icy. But there is no equivalent mechanism that can We need a text that speaks unequivocally to the force the obedience of those who fail to keep their changes we need. But, as at Monterrey, it must word in respect of global solidarity. The only tools bring us together and not drive us further apart. we have are in the multilateral system. But if multilateral institutions are to work effectively, we must all What is required is a spirit of compromise and a yield up a measure of our individual sovereignty. real commitment to this task. At a global level, there are many different insti- I wish to join my friend and co-conspirator, fel- tutions, each with its own capacities, strengths low Envoy Heidemarie Wieczorek-Zeul, in calling and weaknesses. Realizing change will require all on all of you to assist in finding a workable solu- of them to act in concert. When it comes to pub- tion which is able to resonate far beyond the con- lic governance, especially at a global level, there is fines of this conference room and have meaning to nothing to be gained from competition between millions of people all over the world well into the the United Nations, the Bretton Woods institutions, future. This is what we achieved at Monterrey. We the World Trade Organization, and the many other dare not fail in Doha. initiatives that exist to solve problems and bring us South Africa is privileged to sit in many differ- together on matters of policy. What is obviously ent forums. We are Africans and realize that our required is greater collaboration. Can we not find a middle ground even between Washington, D.C., own development is inextricably bound to that of and New York? our continent. Like our African brothers and sisters, we joined the developing world in the G77. South Monterrey was an historic moment, made Africa’s participation in the Group of Twenty (G20) possible because the old zero-sum politics of the can, in no measure, substitute for proper represen- Cold War blocs had collapsed. The deadweight of tation for our continent. Nevertheless, even as we groupthink, which had held back consensus for militate for enhanced African representation, we more than a generation, finally lifted. In its place, will continue to engage with the G20 as an impor- we were able to build a new partnership based on tant forum through which to forge the necessary solidarity, mutual respect and collective action. compromises and mobilize the resources that we President Sarkozy reminded us again when he require to build a new economic multilateralism. addressed us this morning that we cannot build the

201 The Doha Review Conference on Financing for Development

world of the twenty-first century with the institu- poorest. They have least responsibility for it. We tions of the twentieth century. Clearly, the Group cannot stand meekly by and see how the necessary of Seven (G7) is one of those institutions that we funds that had been earmarked to combat poverty must leave where it truly belongs, in the history are now being rechannelled towards those who are books that describe the twentieth century. But we least affected. We cannot accept that the financial must ask if it is only this anachronism that holds us crisis be placed on an equal footing with the crisis back. Perhaps, with the demise of the G7, it is time of poverty and hunger that has existed for so long. that we reconsidered the G77 as well. This is not acceptable. We have been warned. We cannot allow this Conference to end in fail- The meeting held in Accra in September on the ure. We must sustain and build on the Consensus quality of official development assistance (ODA) we reached in Monterrey. It is more important than and the recent meeting to review the Millennium any of the small differences that divide us today. Development Goals during the New York General Assembly, have drawn attention to the reduction since 2006 of ODA. The increasing prices of food Spain threaten to throw 100 million more people into Statement by a situation of poverty. Placing the international His Excellency economic system on a new footing requires us, Mr. Miguel Ángel Moratinos first and foremost, to renew our commitment to Minister for Foreign Affairs and Coop- the Millennium Development Goals and to the eration of the Kingdom of Spain Monterrey Consensus so that combating extreme poverty becomes one of the essential conditions 30 November 2008 in overcoming the international financial and economic crisis. Reforming the system and the In proclaiming the Millennium objectives, the international financial institutions is pressing, but United Nations Summit of 2000 solemnly stated financial stability of developing countries should that the existence of hunger, poverty, epidemics, also be part and parcel of these objectives, begin- lack of water and illiteracy are first and foremost ning with an incitation to introduce fiscal reform the result of a lack of political will, a collective fail- in combating tax invasion, thus making it possible ure of the twentieth century. Mankind is not con- to generate further resources to combat poverty. demned to suffer passively. The most important The conclusions of this Conference in this connec- commitment of our generation, of Governments, tion should be part of the debates by the Group of of civil society, of the twenty-first century, is to Twenty (G20). eradicate extreme poverty, which is the principal We propose that we conclude an internation- cause of instability and violence in our world. This al covenant within the framework of the United commitment underpins the need to comply with Nations to combat tax havens and, through mutual the Millennium Development Goals by 2015. commitment, we will then be able to combine this We are meeting today in Doha, brought with the adoption of development policies by recipi- together by the United Nations, because we find ent countries. We propose that the forum for coop- ourselves in an emergency situation as the interna- eration for development, the Economic and Social tional financial and economic crisis is threatening Council, be strengthened as a multilateral space for to place this commitment to end extreme poverty assessing and reporting on the Millennium Devel- and to create conditions for a dignified human life opment Goals and for drafting a pattern for such for all inhabitants of our planet very much at a assessment. We propose also a code of good prac- secondary level of importance. This is not accept- tice for ODA in the context of the United Nations. able. We cannot accept that the prime victims of In connection with this assessment framework in the financial and economic crisis should be the the public sector, we support the Swiss initiative to

202 Statements by Ministers include corporate Swiss responsibility on the agen- Combating hunger is the first of the Millennium da of the G20 programme of work so that we can Development Goals. With the support of the Sec- lay the basis for a new form of generating produc- retary-General of the United Nations, we have con- tive investment in developing countries, thereby vened a high-level meeting on food security to lay guaranteeing and giving effect to the labour rights down a road map to achieve the objectives estab- defended by the International Labor Organiza- lished in Rome. This meeting will be held in Spain tion and, also, transparency in investment flows on 26 and 27 January 2009. Our proposal is based through the initiative for extractive industry and on the need to give a new political impetus to our the initiative for transparency in international aid. commitment. Therefore, we believe it is necessary The volume of ODA is important because it that the Secretary-General appoint a high-level should be increased not reduced. The European representative, assisted by a group of friends of the Union is the prime donor today, contributing 60 Millennium Development Goals, as happened with per cent of the total. We share the commitment Jeffrey Sachs in preparing the Millennium Summit. stated by the President of the European Commis- This will allow us to assess where we stand and to sion, Mr. Jose Manuel Barroso, to reach the level propose concrete measures for the special session of 0.56 per cent by 2010 and 0.7 per cent of gross of 2010, announced by the Secretary-General. national income (GNI) by 2015. The Spanish Gov- Spain undertakes to shoulder the expenses of such ernment, for its part, has committed to achieving a an event, in the context of the Spanish Presidency level of 0.7 per cent of GNI for ODA by 2012. of the European Union, and to make the prepara- In 1969, the former Canadian Prime Minister, tory arrangements for it. Mr. Lester B. Pearson, proposed the level of 0.7 per The agenda we face is highly complex. This cent of GNI to be devoted to ODA, on a voluntary includes concluding the Doha Round successfully, basis. Today, here in Doha 40 years after Pearson’s which will allow an increase in trade at the inter- proposal, we should make this 0.7 per cent obliga- national level and also make it possible to combat tory. This should be the Doha commitment. Now, climate change and to achieve gender equality, so how can we achieve this? Chapter VII of the United that women can make their essential contribution Nations Charter provides for mechanisms to pro- to achieving the Millennium Development Goals. tect peace and security at the international levels but, today, the threat to international stability is There are some who, in the face of the inter- hunger and poverty and, thus, we need a new international financial and economic crisis, wish to pretation of chapter VII to open the way to combat make us believe that we must overcome this cri- hunger and poverty, in the context of the United sis first and then we can return to dealing with the Nations, as a task shared by the entire international problems of combating poverty—that the needs of community. Frequently, we talk about humanitarian those living in extreme poverty are less important interference, but we should rather be talking about than bank balances. The Government of Spain, interference in combating hunger and poverty. headed by President Zapatero, firmly believes that We now find we have an expectation of a defi- it will only be possible to achieve a new phase of cit for combating poverty that some sources have international financial and economic stability if we estimated at some $210,000 million. We must, place the need to combat poverty and hunger to the therefore, note that it is not just a lack of resources forefront of our endeavours. Today, we must again but a lack of political will to allocate funds to com- say “Yes. Yes, it is possible by 2015” to give effect bat poverty. Consequently, we need new funds for to the Millennium Development Goals, and we financing, greater flexibility, a new impetus to the must make a political commitment that, together, negotiations and partnering of debt, and we must we can eradicate hunger and poverty in the next make this sustainable for the developing coun- decades of this century. This is our commitment on tries, particularly for the least developed countries. the part of the Government of Spain.

203 The Doha Review Conference on Financing for Development

Goals. My country, Sri Lanka, has made rapid Sri Lanka strides in achieving these Goals. But the develop- Statement by ing world needs more help. About one quarter of His Excellency the children living in developing countries are still Mr. Sarta Amunugama at risk of malnutrition; about 2.5 billion people in Minister for Enterprise Development and the world live without proper sanitation; and more Investment Promotions of the Democrat- than 500,000 mothers die every year in childbirth, ic Socialist Republic of Sri Lanka or due to complications associated with pregnancy. 30 November 2008 We need to renew our faith and deliver on our commitments made in Monterrey. We cannot resign from our collective responsibility towards Sri Lanka congratulates the President of this Con- the world’s woes and, moreover, our moral obli- ference on his election. I take this opportunity to gation towards the next generation. We have to express our full confidence in his able stewardship bequeath to them a better tomorrow. in guiding our collective deliberations here in this beautiful city of Doha. Against many odds, limited progress in certain areas has been made in developing countries. May I, at the outset, convey to India our pro- We should not let this hard-achieved progress be found sympathies on the recent tragedy in Mum- reversed by the numerous challenges that confront bai. India is our closest neighbour and friend. We us today. We, therefore, endorse the call for an too have long experience of the war on terror, and urgent and concerted global response to help main- our hearts go out to those victims of indiscrimi- tain the positive developments gained by develop- nate violence. ing countries and to advance along the growth Much has happened over the past six years since paths that we jointly agreed upon in Monterrey. Monterrey. The road to Doha has been mapped by However, without enabling local and interna- multiple crises, ranging from food security to ener- tional environments that help mobilize domestic, gy, and from climate change to the ongoing finan- public and private savings, and efficient, coherent cial crisis. Many analyses and high-level debates and consistent macroeconomic policies that are have provided different insights into the root causes conducive to productive investment, it will be an of, and possible solutions to, these critical issues. arduous task to maintain sound economic growth In all these different perceptions, we seem to and sustainable development. In this regard, we agree on one thing, namely, that these ongoing cri- recognize the importance of good governance, ses should not be allowed to evolve into tomorrow’s human resource development and appropriate pol- crises for humanity. We need to change our atti- icy reforms to harness the benefits of globalization tudes and approaches to face the challenges of the and to minimize its negative impact. twenty-first century. We cannot find them in the instruments of the twentieth century. The theme We reckon that ensuring economic develop- of our discussions here, in Doha, is all about that. ment and the well-being of all people lies with each The best guarantee of averting a larger global crisis, and every country. Yet, most developing countries therefore, is ensuring a political will and steadfast are often at a disadvantage in a heavily competitive commitment to development and providing the and interdependent global economy. Vulnerabili- resources for it. ties arising out of frequent natural catastrophes, deficiencies in socioeconomic infrastructure and We need to be mindful, then, in our decisions institutional capacities have exacerbated the chal- here. They will have an impact on many millions lenges faced by us. of humankind, who yearn for peace, development and the right to a decent life—free from fear, hun- To face these formidable challenges, the Gov- ger and poverty. We have passed the midway point ernment of Sri Lanka, under the leadership of since we adopted the Millennium Development President Mahinda Rajapaksa, has integrated the

204 Statements by Ministers

Millennium Development Goals into a national When we talk about barriers to international development strategy, called Vision for Sri Lanka. trade, there is no gainsaying that non-trade related The investments made on human resource devel- barriers have increasingly been used against development and public welfare projects have enabled oping countries. Most disturbing is selectivity in us to meet several key Millennium Development the human rights approach, using the promotion Goals relating to education and health, well before of civil and political rights in a manner that sub- the set deadline of 2015. verts local economic and cultural rights. This will not help bring a realization of peace and develop- These achievements are despite setbacks, such ment, nor will it ensure aid effectiveness. as the 2004 tsunami that devastated most parts of the coastline of the country, and amidst over Moreover, transparency, democracy and good twenty-five years of the scourge of terrorism. Yet, governance, the virtues of the modern civilized more needs to be done in eradicating poverty, world, should apply to all. For the international by addressing malnutrition, spurring economic financial and monetary systems that the world growth and promoting environmentally sustain- sees, this has enduring relevance, and failing to able development. abide by these universal norms and values puts at risk the credibility and effectiveness of the actions In this era of a globalized world, national prescribed by many such institutions. efforts to promote sustainable economic growth no doubt require international assistance. However, The present collapse in the financial markets, each country should have the right to decide their that may possibly lead to a worldwide economic development priorities and the level of govern- downturn, exposes the shortfalls in the existing ment regulation in managing the national econo- mechanisms to oversee the world economies, as my. Unless official development assistance (ODA) well as the inability to provide sufficient early warn- is properly aligned with the national development ings on emerging crisis situations. This leads us to priorities and strategies, the effectiveness of aid contemplate the necessity of enhancing coherence will become meaningless. and consistency in the global monetary and financial architecture sooner rather than later. In order to create tangible and sustainable progress in developing countries, not only the quan- Facing all these challenges successfully will tity of aid but also the quality of ODA remains highly require vision, courage, wisdom and, above all, important. ODA remains a stepping stone in stimu- cooperation. It is at times like this that we should lating national growth. Nevertheless, what most of not lose hope. Together we can prevail. the low- and middle-income countries, like my own Lastly, allow me to express the deep appre- country, Sri Lanka, may require is global partner- ciation of my Government to the Government ship in promoting fair trade that is universal, trans- of Qatar for the excellent arrangements made for parent, open, rules-based and non-discriminatory. this Conference and for the gracious hospitality However, since the impasse in the Doha World extended to us all. Trade Organization (WTO) negotiations, we have been experiencing the biggest implementation gap in the area of international trade. It is ironical that at the time when international trade should rightfully be playing its role as a catalyst to enhance economic growth and promote productive employment for all, there exist many market distortions—more restrictions than concessions. It is, therefore, our hope that this Conference will be able to send a strong message to the WTO to maintain a development focus in its work and programme.

205 The Doha Review Conference on Financing for Development

Sweden efficient and effective manner. The Paris Declara- tion on Aid Effectiveness and the Accra Agenda for Statement by Action should urgently be implemented. His Excellency Mr. Joakim Stymne On the other hand, in light of the financial cri- State Secretary for International Devel- ses, partner countries as well need to undertake opment Cooperation, Ministry for For- appropriate action to protect their own financial eign Affairs of the Kingdom of Sweden sectors and also undertake long-term reforms to attract capital, both domestic and international. 1 December 2008 Climate change is an additional global challenge. Extraordinary resources are needed. As Your Excellencies, Distinguished Delegates, Swe- donors, we must act in a coordinated and harmo- den aligns itself with the statement made by France nized way, and align our support with our partner on behalf of the European Union. countries’ national priorities. The financial archi- The Millennium Development Goals are more tecture dealing with climate change must be effi- relevant than ever. At this time of financial crisis, it cient, effective and equitable. This issue will require is essential that we ensure that the poorest people serious and innovative solutions within existing are not the hardest hit. In our efforts to reach the frameworks. The Commission on Climate Change MDGs it is important that we, here in Doha reaf- and Development, initiated by the Swedish Gov- firm the Monterrey Consensus as the foundation ernment, focuses on the international architecture of the global partnership for development. and financing of adaptation to climate change. Its Shared responsibilities and the spirit of partner- final report in the spring of 2009 will center on ship are the essence of the Monterrey Consensus. how to integrate adaptation to climate change into Partner countries and donor countries alike need development efforts and thereby improve global to deliver on their Monterrey commitments. This policy. We hope that this report will constitute a partnership is a prerequisite towards realizing the concrete and practical contribution towards iden- MDGs and achieving sustainable development. tifying new solutions in this area. For partner countries, a key measure is improved Sweden welcomes the reforms underway in mobilization of domestic resources. This involves the International Monetary Fund and the World improvement of democratic governance, the rule Bank. They are legitimate and tangible outcomes of law, reduced corruption, business-friendly poli- from the Monterrey Consensus. For the credibil- cies, a broadening of tax bases and efforts to make ity of the World Bank as an institution, and our migrant remittances cheaper and safer. commitments of the Monterrey Consensus, rapid implementation of the agreed first part of the voice For donor countries, it is essential to deliver reform in the Bank is critical. on aid volume commitments. There must be a fair The reforms that have been decided upon thus burden-sharing among donors. Donor countries far are, however, only a first step in the right direc- need to provide credible timetables that dem- tion. A lot remains to be done, and I cannot stress onstrate how each country intends to reach the enough that the processes for how these reforms agreed ODA targets. Such timetables should also are constructed matter. It is vital that they are legit- show that the fall in ODA for 2006 and 2007 was imate, inclusive and transparent. only temporary. The EU aims to provide timetables before the end of 2010. The financial crisis must Finally, it is of utmost importance that we not be an excuse to fail in this area. On the contra- reach a swift and ambitious conclusion of the ry, at this time, our commitment to global develop- Doha Round of trade negotiations. This is particu- ment must be clearly spelled out clearly. And not larly important to developing countries. Especially to forget, increased aid volumes must be used in an today, when we find ourselves in a situation with

206 Statements by Ministers substantial turbulence in global financial markets private enterprise to sustainable development in and recession in many parts of the world, an agree- the broad meaning of that word. ment would be a much welcome boost to the world I now come to the second question, that I economy. cherish, namely, the quality of our development To conclude, a great deal has been achieved cooperation. The Monterrey Consensus clarifies since Monterrey. At the same time, much remains the global partnership that is necessary to finance to be done. The partnership spirit from Monterrey development and the attainment of the Millenni- should guide us in our further efforts. We must all um Development Goals. We have recognized that pull our weight to attain the goals that we have all the capacity to develop does not just depend on agreed upon. the volume of the funds mobilized but also on how these funds are committed and on the policies that Thank you. are applied. The questions of aid efficiency and of their evaluation are being given greater attention by donors and by recipient countries. However, to Switzerland my mind the implementation of the principles of Statement by the Accra Agenda for Action will bear fruit only Her Excellency if populations are fully involved in defining what Ms. Micheline Calmy-Rey needs to be done and the policies to be implement- Minister for Foreign Affairs of the Swiss ed. In other words, it is a question of guaranteeing Confederation that governance in partner countries is democratic, participative and respectful of basic rights. 30 November 2008 Transparent, predictable governance, demonstrating constant concern to meet the needs and aspi- We are experiencing a financial crisis with grave rations of the people, facilitates the rational use of consequences. Many countries, including Switzer- the means available and increases the impact in a land, have taken unprecedented actions to mitigate very significant manner. the effects of it on the real economy. However the I come to the third point of my statement, and fear remains that all our countries will be affected, would like to say that Switzerland fully shares the including the poorest countries that are the ones concerns about the negative impact on development that are insufficiently integrated into the global of illegal financial flows. Switzerland is cooperating economy. In this difficult context, I would like to closely with the Organization for Economic Coop- draw your attention to four important development eration and Development and has adopted most questions. I will start with the role and the respon- of its recommendations, such as the guidelines on sibilities of the private sector, which we believe is the transfer pricing for multinational companies one of the pillars of the Monterrey Consensus. and the taxation department rules or the multi- taxation conventions. As of 2004, Switzerland has The current crisis, and in particular the need been levying taxes for other countries by withhold- to build or to rebuild confidence in the private ing taxes on interest payable to taxpayers residing sector, shows how important it is that the corpo- in the European Union and has transferred 75 per rate commercial strategies respect ethical, envi- cent to the countries concerned. Switzerland could ronmental and social values. Integrating into work together with other States to introduce on a commercial strategies the principles of corporate large scale, and to the benefit of the tax authorities responsibility goes hand in hand with the applica- of these States, a system of taxing at source interest tion of stricter standards for good governance and on capital deposited in Switzerland. Switzerland is transparency. In the longer term, respect for them fully committed to combating the illegal transfer of will ensure not only sustained commercial devel- funds, and the return to their legal owners of assets opment but also a more positive contribution by that have been stolen or fraudulently acquired, as a

207 The Doha Review Conference on Financing for Development

priority of the foreign policy of my country in the financial area. Over the last twenty years, Switzer- Trinidad and Tobago land has returned almost $1.8 billion to countries Statement by of origin. No other Government comes close to His Excellency this amount in terms of returning funds. Mr. Mariano Browne Minister of State, Ministry of Finance of Finally, a fourth comment: we are all facing the Republic of Trinidad and Tobago global challenges, one of the most urgent of which is climate change. In August 2008, Switzerland 1 December 2008 submitted to the secretariat of the United Nations Framework Convention on Climate Change a pro- Mr. President, Heads of State, Ministers, Excellen- posal for a global CO2 tax, and this proposal is now cies, Distinguished Delegates, I have the honor to on the negotiating table. address this gathering of Member States on behalf We must explain to our citizens why develop- of the Government and people of the Republic of ment aid is necessary. Solidarity is certainly a key Trinidad and Tobago and to align ourselves with factor, but we must also recognize that many risks the statement made by the distinguished Chair of and challenges require a global kind of response. the Group of 77 and China. We must, therefore, raise the awareness of people My delegation sincerely thanks our host, the about the notion of global public goods and defend Emir of the State of Qatar, His Highness Sheikh a broader interpretation of official development Hamad Bin Kalifa Al Thani, and his people for assistance (ODA), emphasizing that current prob- their courteous and warm expressions of friendship lems require the mobilization of additional funds. during our stay in this magnificent city of Doha. Finally, to ensure the predictability of aid, we must We also express our appreciation to the Secretary- show that the funds attributed to it through multi- General of the United Nations, and the President lateral and bilateral channels do promote develop- of the General Assembly for their role in advancing ment and have a real impact. the financing for development agenda. The current crisis seriously jeopardizes the My delegation also wishes to express our grief attainment of the Millennium Development Goals and deepest condolences to the people and Gov- and, indeed, threatens some of the successes we ernment India, and also to the families of the vic- have seen today. The ODA budgets are under strong tims for the senseless and tragic loss of lives that pressure. It is, therefore, important that we, the resulted from the terrorist attacks in Mumbai. donor countries, remain reliable partners, respectful of our commitments. Switzerland reaffirms its At this critical juncture, the world economy commitment to the Monterrey Consensus. faces very serious difficulties. The current financial crisis which had its epicentre in the developed Switzerland agrees that there is a need to pro- countries has already shaken the international vide more effective follow-up to the outcome of our financial system to its very foundations.- There collective efforts, as they will be defined tomorrow fore, the Government of Trinidad and Tobago is in the final outcome d`ocument of Doha. concerned that several global economic challenges may arise as a result. It is apparent that many industrialized countries face the prospect of an economic recession. Indeed, many indices signal a global economic slump which, in the view of experts, could be deep and prolonged. In an interdependent world, no country would be in a position to escape the effects of a global recession. All countries must

208 Statements by Ministers take appropriate action. The successful outcome of it is imperative to devise an appropriate plan of this Conference will be a step in that direction. action for attaining the six pillars of the Monterrey Consensus. One of the potential engines for pull- Remedial action should incorporate, amongst ing the global economy out of the current crisis is other measures, greater transparency and effec- trade. In this regard, the successful conclusion of tiveness in the regulatory framework for inter- the Doha Round of Negotiations is crucial. How- national financial institutions; revival and com- ever, it will be necessary to focus on developmental pletion of the suspended multilateral trade issues, and to place greater emphasis on the remov- negotiations; and a new global financial architec- al of non-tariff barriers which tend to restrict the ture to replace Bretton Woods. exports of developing countries. Moreover, there is In response to this crisis, several countries need to facilitate greater participation by develop- have also emphasized the need for restructuring ing countries in the decision-making processes of the International Financial Institutions (IFIs). This the multilateral trading and financial systems. issue has engaged the attention of Heads of State Mr. President, Trinidad and Tobago has been of the Commonwealth. In addition, the Group actively participating in the Doha Round of Trade of 20 Summit Declaration in Washington, which Negotiations. We have implemented a mix of mac- was held earlier this month (November 2008), also ro-economic policies including reform of the finan- identified the need for advancing reform of the cial and investment legislation to create a favorable International Financial Institutions (IFIs). Accord- climate for attaining and attracting investment and ingly, if` this situation is properly managed, a new facilitating the growth of the private sector. It is the world order may well emerge, characterized by the existence of this liberalized framework that has facil- principles of sovereignty, equity, sensitivity, coop- itated foreign investment flows which, together with eration and sustainability. gross domestic investments has facilitated the robust Mr. President, the overarching goal of the growth of the Trinidad and Tobago economy. Monterrey Consensus since 2002 is to address the As a result of these policies, the economy has challenges of “financing for development” around averaged 8.7% growth since 2002, unemployment the world, particularly in developing countries. Par- averaged 5.54% in 2007 falling to 4.5% in 2008, ticipating countries have also resolved to achieve while gross domestic product has trebled between the Millennium Development Goals (MDGS) and 2002 and 2008. The stability of the domestic econ- the Internationally Agreed Development Goals. omy and the strength of the macroeconomic fun- The Monterrey Consensus acknowledged that this damentals were recently endorsed by the Inter- approach necessitated the forging of new partner- national Monetary Fund (IMF) in the Article IV ships between developed and developing coun- consultations which were completed in November tries and the commitment, inter alia, to increasing 2008. Therefore, Trinidad and Tobago is already international financial and technical cooperation implementing many of the principles outlined in for development. the Monterrey Consensus. Accordingly, developed countries should dem- Mr. President, Trinidad and Tobago will be host- onstrate greater resolve in honoring their commit- ing two major international conferences in 2009. ment to provide 0.7 % of GNP as Official Develop- These are the Fifth Summit of the Americas and the ment Assistance (ODA) to developing countries. Commonwealth Heads of Government Meeting. The provision of such Official Development Assist- Both conferences have a developmental focus, with ance will undoubtedly enhance the ability of devel- particular emphasis on trade and development, the oping countries to achieve international competi- reduction of poverty, democracy and democratic tiveness and sustainable growth and development. processes, and good governance. In addition, the Mr. President, against the background of a glo- issue of the reform of the Bretton Woods institu- bal crisis in the food, energy, and financial sectors, tions is expected to be featured on the agenda.

209 The Doha Review Conference on Financing for Development

Mr. President, in summary, all Member States consistency of the international monetary, financial should be committed as well as duty bound to fol- and trading systems in support of development. low-up and implement the recommendations ema- Although there was progress made since nating from this meeting that are geared to forge a Monterrey 2002, the pace is rather slow. In view consensual approach for maintaining the momen- of the 2015 target, I believe the reasons for such tum of the global economy through innovative a slow pace are well understood by both develop- finance, trade and developmental mechanisms. ment partners as well as recipients. Tuvalu there- I thank you, Mr. President. fore, welcomes the Accra Agenda for Action and continues its commitment to the Paris Declaration on Aid Effectiveness, which is, but a signpost of Tuvalu how both the donors and recipients can effectively Statement by address the issue of aid delivery. His Excellency Mr. President, in this review meeting, we also Mr. Lotéala Metia face an acute global financial crisis. The speed at Minister of Finance and Economic Devel- which this crisis has unfolded presents many mul- opment of Tuvalu tiple challenges for both the rich and poor coun- 1 December 2008 tries. I join the call made by previous speakers that these global challenges require stronger global actions through partnership and solidarity. Mr. President, Excellencies, Distinguished Del- egates, Ladies and Gentlemen, allow me first to To curtail ODA commitments at this time, join the previous speakers in expressing my sincere will no doubt have consequences for the poorest thanks to the government and people of Qatar for countries which are already vulnerable and may the warm hospitality my delegation and I received further slow progress towards achieving the goals since our arrival in this beautiful country. I wish to that we have set to achieve by 2015. I am glad also thank the Government of Qatar for its gener- that the European Union and some developed ous support for Tuvalu to participate at this very countries have reaffirmed their commitments important meeting. in continuing to assist developing countries. I Second, let me express our heartfelt sympa- would urge that the other developed countries thies and condolences to the people of India and make similar commitments and continue to work particularly those who were affected by the recent towards the target of 0.7 percent of their Gross terrorist acts in Mumbai. Our thoughts and prayers National Product (GNP) to developing countries are with you at these difficult times. and 0.15 to 0.20 percent of their Gross National Product to least developed countries (LDCs). Mr. President, six years ago in Monterrey, Mexico, we forged a global partnership to address Tuvalu has made significant progress since the challenges of financing development with Monterrey 2002. In 2005, we completed our the main aim of achieving internationally agreed National Strategy for Sustainable Development goals, including the Millennium Development covering the period from 2005 to 2015 which also Goals (MDGS). We also agreed to take actions on aims to fulfill our obligations in achieving the six thematic areas namely, mobilizing domestic MDGs. However, to be able to realize the devel- financial resources for development; mobilizing opment aspirations articulated in this national international resources for development; interna- development framework, we need the support of tional trade as engine for development; increasing development partners. Tuvalu fully supports the international financial and technical cooperation concerns and proposals raised at this meeting by for development; external debt, and addressing the Honorable Minister of Finance of Bangladesh systematic issues on enhancing the coherence and on behalf of LDCs.

210 Statements by Ministers

Through an innovative partnership with its tra- United Arab Emirates ditional donors, Tuvalu was able to set up a Tuvalu Trust Fund. Revenue generated from this Fund Statement by has allowed Tuvalu to cover its budget deficits and His Excellency Mr. Sultan Bin Saeed Al-Mansouri gradually picking up the recurrent costs of basic Minister of Economy of the United Arab infrastructure projects which are not normally Emirates paid for by donors. It is our hope that with adequate capital of the Fund and with prudent finan- 30 November 2008 cial management, Tuvalu could gradually finance more of its development needs in the future. Allow me, at the outset, to extend to His Excellency Development in the context of low-lying Sheikh Hamad bin Khalifa Al-Thani, the Emir of countries like Tuvalu is meaningless unless climate the State of Qatar, our heartfelt thanks for his invi- change issues are addressed and integrated in all tation to attend this Conference. We would also like international development frameworks. Climate to express our deep appreciation for his presidency change is not only an imminent security problem of the meeting. It gives me great pleasure as well to for Tuvalu, but it is a global security problem. We thank the people and the Government of the sister cannot afford to continue in the kind of unsustain- state of Qatar for hosting this Conference and for able development path we currently pursue where their good hospitality and generosity. I should also there is a lack of concern for our environment. We like to thank the Secretary-General of the United therefore, urge all members of the United Nations Nations for his statement and his valuable reports and particularly the main contributors of green- on the topics that we are discussing in this meeting. house gases to urgently work towards reversing the I associate myself with those who have expressed current trends in global warming. their condolences to India for the terrorist acts, and we reiterate our condemnation of them. Mr. President, the substantial contribution that the Republic of China on Taiwan has made This Conference is being convened at a time to international development, in practically all when there is an urgent need for us to work col- regions of the world, should be recognized. The lectively at the highest level to reach effective and United Nations and its specialized agencies can no comprehensive solutions to deal with the current longer ignore the reality of the fact that the ROC global financial crisis. Its serious repercussions has been and will continue to be a responsible have clearly started to have an impact on the econ- player in international affairs. We strongly feel that omies of countries in general and especially on the proper representation of the ROC in these bodies progress of development in developing and poor is allowed to be considered seriously. countries, in particular. Unless we have the necessary political will and intensify our efforts to deal In conclusion Mr. President, we have done with this crisis and prevent it from turning into a a lot of talk since Monterrey 2002. It is time to global humanitarian one, it threatens to slow down take action with full political commitment, peri- the progress we have made in achieving the Mil- odic reviews and monitoring of the commitments lennium Development Goals. of both Monterrey and Doha by all respective stakeholders. While we welcome the outcomes of the Group of Twenty (G20) Summit convened in Washington, I thank you Mr. President. D.C., on 15 November 2008, and the agreements reached by the participants regarding setting the Monterrey funds in the international financial system and subjecting financial markets to the necessary regulations, we believe that each country should take some responsibility for dealing with

211 The Doha Review Conference on Financing for Development

the repercussions of this crisis with measures that Emirates will exceed 0.7 per cent of gross national are appropriate to its internal conditions. We, in income for official development assistance. In the United Arab Emirates, intend to work with the addition, the United Arab Emirates contributes international community to deal with this crisis, to the United Nations regional agencies and other while fulfilling our international commitments and international organizations. We contribute direct- implementing ongoing development plans, as well ly, financially and in kind, to the reconstruction of as our commitments to assist developing countries many countries emerging from conflicts. All those in achieving the internationally agreed develop- who are still facing conflict, whether receiving ment goals. In this context, we again underscore international humanitarian assistance directly or the importance of implementing the recommenda- through our membership in the Donors Support tions of the Monterrey Consensus, and reaffirm that Group of the United Nations Office for the Coordi- it is necessary to continue collaboration between nation of Humanitarian Affairs, are convinced that the developed and the developing countries in it is necessary to take advantage of it. In one case implementing all the commitments it called for. we forgave a debt of $7 million. We have assisted We should redouble our efforts, especially during Iraq in rebuilding its State and other institutions so these very difficult times, to overcome the political it could regain its political and economic stability and financial obstacles that prevent the full imple- as soon as possible. mentation of these commitments. On the domestic level, the United Arab Emirates Since its foundation, the United Arab Emirates has mobilized and harnessed its natural resources has been following a foreign policy based on con- in order to push development to the highest levels. structive international cooperation and effective Thus, we launched last year the Strategy of the Unit- contributions towards the achievement of developed Arab Emirates Government, which forms the ment and stability in the world. Before the adop- first binding plan of action for government-sector tion of the Monterrey Consensus, the United Arab performance to fulfil balanced, sustainable devel- Emirates was one of the leading countries in provid- opment and ensure a high quality of life for the ing development assistance to sisterly and friendly population. We are focused on developing human countries. My country contributes to the financing resources, strengthening the legal structure of the of development programmes in many developing economic system, enhancing the national economy countries through direct investments and direct to levels of international competitive standards and development assistance. These are provided by local standards, and strengthening our partnership national development funds and institutions as with the private sector, as well as establishing active grants and easy-term loans and are estimated to international participation in the national econo- exceed $70 billion, benefiting 95 developing States. my. By adopting a market economy and allowing In addition, we have financed a number of devel- the private sector a major role in development, we opment programmes in those countries by setting will succeed in transforming our economy into an up a trust fund with an endowment of $10 mil- integrated one, supported by laws and regulations. lion within the Government for the advancement The Government has also adopted policies to help of education in the Middle East and in the Dubai raise the income of the population and secure stable Cares Initiative, to provide essential education and lasting sources of income for men. for one million children in developing countries, We were keen to activate the economic diver- especially in Africa and Asia. We have also made a sity strategy, expanding the base of production, and contribution of $2 million to the Islamic Solidarity harnessing various resources to establish the nec- Fund. Furthermore, we are engaged with a number essary infrastructure to advance development in of developing countries in bilateral and multilater- other economic sectors. So far, the non-oil sectors al cooperation agreements in the economic, social contribute 64 per cent of the gross national income. and industrial fields. At the rate it is going, the for- The manifestations of development in the economy eign development assistance of the United Arab of the United Arab Emirates are explicit in a 7.8 per

212 Statements by Ministers cent increase in the number of people in the work market and in the legal sphere, and in the rise in United Kingdom of Great the number of major companies and corporations Britain and Northern investing abroad. The United Arab Emirates is in Ireland a leading position in the list of Arab countries and economic competitors and countries with the most Statement by economic freedom and is the most active in for- His Excellency Mr. Douglas Alexander eign direct investments. The measures taken by the Minister of International Development Emirates to combat corruption, money smuggling of the United Kingdom of Great Britain and money laundering have gained the admiration and Northern Ireland of many countries. Along with our commitment to build a society with a diverse economy, we were 1 December 2008 keen on preserving the environment through highlighting mention of it in our national development The United Kingdom of Great Britain and North- plans and applying national strategies to mitigate the ern Ireland agrees with the statement made by negative and adverse effects of climate change. The President Sarkozy, on behalf of the European most prominent measure is the MASDAR Initiative Union, earlier at this Conference. I would like to for renewable and alternative energy, among others. thank both the United Nations and His Highness, The United Arab Emirates will continue to the Emir, Sheikh Hamad bin Khalifa Al-Thani cooperate with the international community to for hosting this important and timely summit. I facilitate financing for development programmes also want to join others, as we have just heard, in in developing countries in accordance with the expressing the United Kingdom’s deep condolences Millennium Development Goals, as well as fulfill for the shocking terrorist incidents in Mumbai. its commitment to development programmes in This is a unique forum, bringing together the our own country. countries of the world to discuss financing for During this Conference, we hope to reach a development. The United Nations is the world’s clearer vision of how to implement the Monterrey voice. This Conference, which takes place at a time recommendations in the shadow of the financial of global economic uncertainty and threats from crisis facing the world today in a way that favours the food and energy crises and climate change, the aspirations of the international community to provides therefore a valuable forum to discuss what improve human conditions in all countries of the must be done to support developing countries. world, and in a manner that contributes fully to It was six years ago, when the world came the main stakeholders so that they can implement together in Monterrey, that we reached a consen- the pledges they committed themselves to during sus to work together to finance the Millennium the Conference. Development Goals and the internationally agreed development agenda. And this year, the Call to Action on the Millennium Development Goals, launched by the United Nations Secretary-Gen- eral Ban Ki-moon and my Prime Minister Gor- don Brown, brought together an alliance of world leaders, non-governmental organizations, faith groups and the private sector. Those assembled in New York in September highlighted the need for urgent action to meet the Goals. As the British Prime Minister Gordon Brown said, we need the greatest endeavours in pursuit of the boldest and noblest of causes.

213 The Doha Review Conference on Financing for Development

The recent crisis of the global financial system Such finance will have to come from a variety of makes such endeavours ever more necessary. No sources: public, private, national and international. country is unaffected, yet it is important to recog- Fifthly, we must explore innovative financing nize that the poorest countries are often hit hard- mechanisms to bring in new resources and new est by global shocks. To achieve future stability and ways of working. In September, together with the prosperity for all, we cannot put development to President of the World Bank, our Prime Minister one side. It is, therefore, more important and urgent than ever that the international community meets launched the High-Level Taskforce on Innova- its commitments on official development assist- tive International Financing for Health, and I was ance. The United Kingdom has doubled its aid to delighted to chair its inaugural meeting earlier today. Africa and we have met the United Nations target The Taskforce aims to mobilize innovative financing to provide 0.15 per cent of gross national income to help towards funding over a million health work- (GNI) to the least developed countries. We will ers, thus saving ten million lives by 2015. increase our ODA to 0.56 per cent of GNI by 2010, The message we send from this Conference and we are on track to increase it to 0.7 per cent this weekend should be one of global partnership of GNI by 2013, two years ahead of the European and solidarity. We must restate the importance of Union target. We will also implement our commit- development assistance, giving greater voice to ments on aid effectiveness made at Paris and, just developing countries, and enrich the consultation recently, at Accra. around the processes next year. We are here because But the Monterrey Consensus is not only we believe in the Monterrey Consensus. We should about ODA. I would like to highlight some other be open and direct in our conversations. There will key issues. The first is the leadership of developing be areas where our views differ, but we must also countries. We pay tribute to what many of our part- maintain our commitment to common values and ner countries have achieved since Monterrey, pro- to a common cause, fighting poverty and meeting viding the basis for accelerated growth and improv- the Millennium Development Goals. I am grateful, ing health and education outcomes. Continuing therefore, for the opportunity to participate in this these commitments is critical to further success. Conference and to hear the important statements made by others here in Doha. The second issue is the importance of achieving an outcome on the global trade round which genuinely benefits the world’s poorest countries. At the Group of Twenty (G20) Summit held in Wash- Venezuela ington, D.C., on 15 November, leaders instructed Statement by trade ministers to agree by the end of the year on His Excellency the parameters needed for a successful conclu- Ambassador Jorge Hidalgo Valero sion to the trade round started here in Doha back Briceño in 2001. It must be accompanied by the agreed $4 Vice-Minister for Foreign Affairs for billion Aid for Trade Programme to invest in the North America and Multilateral Issues infrastructure of developing countries. and Permanent Representative of the Bolivarian Republic of Venezuela The third issue is reform of our international financial institutions. Last month, the G20 com- 1 December 2008 missioned work on the most urgent areas, such as finance regulation, but we also need to address Mr. President, Your Excellencies, we express our longer-term issues. gratitude for the hospitality of our hosts, His The fourth issue is climate change. We know Highness Sheikh Hamad bin Khalifa Al-Thani, that ODA will not be able to deliver all the additional Emir of the State of Qatar and the Qatari people finance required to tackle climate change effectively. in this summit.

214 Statements by Ministers

We express our solidarity with the government The financial crisis is causing unwanted conse- and the people of India regarding the appalling ter- quences, among which are unemployment, capital rorist acts that have taken place. flight and an increase in the costs of financing for developing countries. And all of this throws mil- We are in Doha to reaffirm international soli- lions of people into poverty and misery. Obtaining darity, to seek constructive ways of safeguarding the Millennium Development Goals and the well- Official Aid Assistance and of proposing transfor- being of the poorest and most vulnerable people in mations of the system for financing development. the world will be compromised, even though it was Unyielding liberalization and deregulation, forcasted that even before this financial crisis many which have particularly worked in favor of large developing countries would not reach these goals. international financial corporations that some Up until now, the measures taken that were imperial spokepersons insist on maintaining, have supposedly to alleviate the effects of the financial caused an unprecedented crisis in the capitalist sys- crisis have concerned central banks of the principal tem, eroding equality and social justice, increasing developed countries providing liquidity to bail out the differences between developed and developing large corporations and bankrupt financial groups, countries and reproducing the poverty that today but there have been no actions stipulated to attend affects millions of people in the world. to the deficiencies of the millions of people suffering under the miseries of capitalism. The current This Summit is a relevant space for govern- crisis reveals that the Bretton Woods institutions ments of the Member States of the United Nations have expired. They reveal the capitalist system’s to reflect, in-depth, not only on financing devel- structural contradictions and provide new and opment with regards to the Monterrey commit- irrefutable arguments that favour the construction ments, but also on the causes and consequences of a new institutionality which expresses the new of the financial crisis and the reform of the world reality of the world, geared towards multilateralism financial system. based on the principles of social justice, solidarity and equality among all people. We cannot waste this opportunity to set out the need to re-launch, upon new foundations, the Mr. President, unilateralism and unipolarity international system for financing development, are in decline. This is demonstrated by the military to which effect the international financial, - eco adventure in Iraq and its rejection across the world, nomic and trade systems which have dominated along with, among other factors, the International the world since the end of the Second World War Monetary Fund’s loss of legitimary. There is an must be transformed structurally. The collapse of attempt to hide what cannot be hidden, the failure the financial institutions founded in 1944 which of a savage globalization at the service of large foreign capital and voracious multinationals. reflect the political and economic moment that came at the end of the Second World War has Joseph Stiglitz, the Nobel Prize for Econom- become apparent. ics, has pointed out that “..the old Bretton Woods institutions were dominated by a group of eco- Today, however, the people of the world cry nomic doctrines that have already been proven to out for the creation of new international financial have failed not only in developing countries but institutions which allow for equality, inclusion, sol- also at the heart of capitalism.” (Project Syndicate, idarity and a vision geared towards development November 2008). which reflects the interests of all States. Neoliberalism has caused and accentuated the We are faced with an unprecedented financial profound social inequalities in developing coun- and economic crisis. A decrease in world econom- tries and has denied people human rights, privileg- ic growth, particularly in developing countries has ing the few and excluding the great majority from been forcasted. the benefits of development.

215 The Doha Review Conference on Financing for Development

The recent global financial crisis casts the banks that keep those countries in situations of shadow of doubt on the supposed benefits of glo- underdevelopment. External debt, which some balization. In this sense, we emphasize its worry- term eternal debt, is one of its main consequences. ing impact on culture, on the decolonization of It is a matter of building alternative, regional finan- economies and the loss of peoples’ identity. cial architecture to achieve a true social and eco- A globalization of solidarity is the only viable nomic development, through productive invest- option in a world characterized by selfishness, ments that have a social impact and contribute to individualism, and contempt for the humanist val- an equal redistribution of income and the eradica- ues of equality and social justice. tion of poverty. The financial crisis that originated in the United In summary, it is a matter of meeting the States and the changes that are taking place in the expectations of long-awaited social justice for our international context open a way for the creation peoples who are frutstrated by a predatory and of a new global political agenda with new elements savage capitalist model. Within this new regional that would produce profound political, economic architecture, there are spaces for multiple initiatives and social transformations that would contribute such as regional financial and monetary coopera- to a redistribution of income, a reduction of pov- tion and integration, the use of local currencies in erty and to the realization of humanist societies. trade exchanges between countries in the region, the creation of stabilization funds for the balance Faced with the downturn in imperial politics, a of payments, the creation of regional mechanisms new international and regional institutionality must for granting small and medium-sized enterpris- emerge that contributes to counteracting the impacts es, guarantees and endorsements, the creation of the financial instability. But even more important of one or various regional credit rating agencies, is that it furthers developing countries’ attainment the instrumentation of joint emissions of public of increased political independence and negotiating bonds, the creation of central Banks and a single capabilities in the international spectrum. regional currency. These are the ideas currently Mr. President, Venezuela promotes the finan- under discussion and promotion in the Union of cial initiatives of South-South Cooperation, which South American Nations. respond to the will of sovereign governments who Mr. President, Your Excellencies, we find our- promote alliances based on the criteria of coopera- selves at the prelude to a new international finan- tion, solidarity and complementarity. cial order. The peoples of the world call for change. Mobilizing international resources for devel- The time has come to break with the hegemonic opment calls for the participation of new insti- ties of capitalism and neoliberalism. tutions that allow for developing countries to We decree the failure of the unjust internation- be attended to more quickly. A great initiative is al economic and financial system based on the pre- already a reality, the Bolivarian Alternative for dominance of the Bretton Woods institutions. We Latin America ALBA (ALBA) which is made up declare the incompetence of the Bretton Woods of Venezuela, Bolivia, Cuba, Dominica, Nicaragua institutions multilateral financial institutions so as and Honduras. to create a fair and equal global financial system. In the Union of South American Nations We highlight the devastating the financial crisis (UNASUR), the creation of regional financial insti- and its negative impact on developing countries. tutions, like the Bank of the South (Banco del Sur), We support South-South cooperation as a practice which will effectively respond to the sovereign based on solidarity which fosters and increases aid social and economic development goals of those r to developing countries. countries, is being explored. The time has come to recover the State’s role The southern countries’ international reserves- as the main guarantor of a fair and equitable dis- nourish the predatory and inhuman multilateral tribution of wealth, based on its ownership, use,

216 Statements by Ministers sovereign disposition and administration of its Mr. Chairman, Viet Nam has been continuing wealth and natural resources. It is necessary to to make MDGs more adaptable to its current state, strengthen the role of the State as the sovereign gov- integrate MDGs with national objectives, yearly and erning entity of public policies that allow it to face five-year Program of the Socio-economic Develop- the crisis and the risks caused by globalization. ment. Despite of various difficulties such as global economic turndown, natural disasters, floods, epi- The current financial crisis must not be regarded as an opportunity for speculators to increase demics etc., thank to our efforts, Viet Nam’s eco- their fortunes nor to shift the costs onto develop- nomic growth rate still sustained averagely of 7.8% ing countries, but as a chance to take actions and per year and the number of poverty households concrete measures geared toward founding a New decreased a half compared with the year 2004. International Financial System. Due to a more open investment climate, the total investment of the society achieved up to over 40% Mr. President, the President of the Bolivarian GDP. More ODA and FDI have been mobilized to Republic of Venezuela, Hugo Chávez Frías, pro- finance the national development programs. posed that a United Nations Summit be convened to examine the financial crisis and its consequenc- In the year 2007, Viet Nam became the full es. The Venezuelan Mission before the United member of WTO and average import-export turn- Nations created a resolution project which was over was 28%. The relationship between Viet Nam initially co-sponsored by 31 countries and subse- and Donors Community has been strengthened quently accepted by the G77 and China. We hope on the basis of mutual respects and benefits. Viet that this initiative, which benefits from the support Nam has continued to give high priority to devel- of more than 130 countries is accepted by all the opment programs and make every effort to facili- States which make up this multilateral forum. tate financing for development. Viet Nam’s foreign debts remained within safety level. Mr. President, Your Excellencies, it is in the hands of the Member States of the United Nations. Mr. Chairman, on this occasion, Viet Nam Thank you very much. would like to reaffirm to its determinations to implement the National Strategy to achieve international development goals, including MDGs. In this regard, I would like to urge developed coun- Viet Nam tries to realize their commitments to assist devel- Statement by oping countries. In this context, it is necessary to His Excellency enhance the central role of` UN in finding solu- Mr. Nguyen Chi Dung tions to restructure the international finance sys- Deputy Minister of Planning of the tems in order to mobilize efforts of the interna- Socialist Republic of Viet Nam tional community prevents the reoccurrence of the 1 December 2008 financial crisis. It is necessary to create a universal ruled- Excellency, Chairman, Ladies and Gentlemen, at based, open, non-discriminatory, equitable multi- the outset, on behalf of the Vietnamese Delegation, lateral trading system in order to promote the role I would like to express my sincere thanks and deep of trade as an engine for development. Developed gratitude to the State of Qatar for their excellent industrial countries should open their market by arrangement in the beautiful city of Doha for the lowdown their technical and trade barriers in order Follow-up International Conference on Financing to import agricultural foods and other consump- for Development. It is my great honour to attend tion products from least developing and develop- this important Conference to share with you opin- ing countries. International finance institutions, ions and ways to address individually and collec- donors, developed industrial countries and the tively challenges facing the world development. United Nations itself should increase funding and

217 The Doha Review Conference on Financing for Development

technological assistance for least developed and and stress that terrorist activities will never solve developing countries to improve socio-economic the problems that we face, but only contribute to situation, especially investment assistance, debt reversing the development that has been achieved burdens, trade development, international labour over the years. It is only through information shar- cooperation. ing and problem solving fora like this Doha Con- ference that we can gather hope and solutions for It is our sincere hope that, this Confer- the future of our globe. ence will achieve a higher-level of financing for development. Distinguished Delegates, Zambia like many other developing countries recorded unprecedent- Thank you. ed levels of economic growth in the past seven years. This consistent high economic growth was underpinned by deliberate initiatives and pro- Zambia grammes in all sectors of the economy, as the Gov- Statement by ernment adopted policy and structural reforms His Excellency that strengthened the diversification process. Mr. Caleb M. Fundanga However, the current global financial crisis Governor of the Central Bank of the poses a threat of reversal, to the hard work of the Republic of the Republic of Zambia past seven years. Indeed, the challenges emanating 1 December 2008 from this crisis have significant effects on small, open and landlocked economies such as Zambia. Your Excellencies, Distinguished Delegates, I In this time of crisis, we continue to observe would like to begin by expressing my delegation’s developed countries adopting policies that at one appreciation to His Highness Sheikh Hamad Bin time were said to hinder growth in developing Khalifa Al-Thani, the Emir of the State of Qatar, countries. I, however, urge developing countries to for the hospitality rendered to us and for hosting continue implementing reform programmes that this important Conference. Special thanks also go saw our economies attain high economic growth to the United Nations Secretary-General for the and reduced levels of poverty. good leadership role he continues to provide in Mr. President, Zambia would have been on these trying times. The Republican President, H.E. course to achieve most of the Millennium Devel- Rupiah Banda, would have been happy to person- opment Goals by the target of 2015 had it not been ally attend this Conference. However, circum- for these unforeseen circumstances. stances would not allow and hence, I am here to represent him. Therefore, Zambia places a lot of importance to this review conference on the implementation of I also wish to align ourselves with the state- the Monterrey Consensus as it takes place at a time ments delivered by Antigua and Barbuda, and of global economic uncertainty. This has made us Bangladesh on behalf of G77 and the Least Devel- realize that globalization facilitates growth and oped Countries, respectively. development, as well as increased financial and Mr. President, allow me from the outset to economic instability. What is needed now is an extend on behalf of the Zambian people, our sin- urgent global response where all the countries, cere condolences to the Government of India and developed and developing, participate in finding the families of the victims of the Mumbai terror- lasting solutions. ist attacks. Indeed, these heinous acts like the Sep- The United Nations has to play its right- tember 11, 2001 attacks seem to coincide with the ful role in multilateralism and there is need for a important gatherings such as this Conference. We new financial architecture that is transparent and condemn such acts in the strongest possible terms all inclusive. Donor Countries should honour the

218 Statements by Ministers commitments that they have made with regard to produce the world’s food needs. I also call for to the Official Development Assistance and other developed countries to increase technical support internationally agreed development goals includ- to the agriculture sectors of African countries in ing the MDGs. order to build capacity in food production. Provid- The Monterrey Consensus no doubt estab- ing assistance to support development of human lished the foundation for sustained aid and foreign resources in Africa would also entail improving the direct investment flows to Least Developed Coun- comparative advantage of the continent and thus tries and emphasized the crucial role that ODA increasing competitive advantage of exports. plays in economic development. However, as dem- In conclusion, Mr. President, let me state that onstrated by the development path of Korea, mobi- the need for a successful conclusion of the Doha lizing domestic resources for investments is key to Development Trade Round is very important. This sustained economic growth. Conference on Financing for Development with all We therefore, need to turn our attention to the Heads of States present could call for the early increased levels of taxes from the abundant natural conclusion of the discussions once and for all. It resources as well as mobilization of domestic sav- is sad that the Heads of States of developed coun- ings. Much more focus must be placed on enhanc- tries and emerging countries in the G20 chose not ing and broadening domestic revenues using effi- to attend an important conference such as this one. cient but equitable collection of taxes and where However, we remain hopeful that the resolutions we use donor resources, utilization must be very that will come out of this Conference will receive efficient. Furthermore, we need to strategically har- serious considerations from developed countries. ness resources from large local institutional inves- I thank you for your attention. tors like pension funds and insurance companies and put them to better use. The need to increase financial literacy and encourage savings amongst our people cannot be over-emphasized. This will obviously call for the formation of workable strategies to increase inclusiveness in our financial systems. Mr. President, some of the challenges we are facing today can easily be turned into opportunities by most African countries. Today poverty levels deepen due to the unprecedented high food prices. However, the vast untapped arable lands and rich water resources available in most parts of our continent coupled with good climatic conditions provide a window of opportunity for development not only for Africa but for the whole world. Although, infrastructure development remains an impedi- ment, sustainable partnerships with other emerging countries who now incur losses as a result of investing in developed countries, could provide the required investment resources. I, therefore call on emerging economies including those in the Middle East to consider partnering with African countries with potential

219

Chapter 5 Statements by Major Stakeholders

United Nations Economic Heads of State and Government met in Monterrey to reaffirm their will to take up the challenge of and Social Council financing for development throughout the world Statement by and, in particular, in developing countries. His Excellency Your presence here today shows your determi- Mr. Léo Mérorès nation to eliminate poverty, to achieve viable eco- President of the Economic and Social nomic growth and to promote sustainable devel- Council opment by establishing a global economic system 29 November 2008 that is fair, where everyone will have their place. The Economic and Social Council is at the heart of the efforts being made to achieve these objectives. On behalf of the Economic and Social Council and It would like to emphasize the importance of this its bureau, I would like to offer my sympathies to Follow-up Conference. Under our mandates, in the the people and Government of India for the ter- spring, we held a special high-level meeting with rible attack they have just suffered. the Bretton Woods institutions, the World Trade It is a great honour for me to speak to this Fol- Organization and the United Nations Conference low-up International Conference on Financing for on Trade and Development, in order to harmo- Development, which is to examine the implemen- nize priorities and initiatives and to ensure that the tation of the Monterrey Consensus. I would like to activities of all would be mutually reinforcing. In express my deep appreciation to the Government this difficult time, it is more important then ever to and people of Qatar for their hospitality and warm work together to achieve our common objective. welcome, and for the opportunity they have given In the United Nations system, the Council to me to address this distinguished group. plays a leadership role in this effort of cooperation In this difficult time, our will to ensure pros- and harmonization and has taken on the supervi- perity for all and to create an environment con- sion of implementing the United Nations develop- ducive nationally and internationally is running ment programmes. It is now playing a catalyst role up against important significant challenges. The in promoting coherence and coordination within current crisis, once again, tells us to what extent the United Nations system. The diversity of voices our countries are interdependent and our destinies that are heard is one of the advantages of the Coun- interlinked. It reminds us that collective action is cil. Developing countries, in fact, have the possibil- not a choice; it is an imperative. The 1997 crisis also ity to speak like other stakeholders. Thousands of produced the Monterrey Conference. In 2002, the non-governmental organizations accredited by the The Doha Review Conference on Financing for Development

Council enrich this debate. It also strengthens its ODA and the quality of assistance, and to find a ties with the private sector, and so the annual ses- sustainable solution to the problem of developing sion provides the stakeholders with an opportunity countries debt. to meet and to agree on what measures need to be The new duties of the Council, that is to say, taken to meet the internationally established Mil- an annual ministerial review and the Development lennium Development Goals. Cooperation Forum, are new ways to contribute to Grateful for the role played by the Economic the financing for development process and to fol- and Social Council in social and economic areas, low up on implementation of United Nations devel- the participants in the 2005 World Summit once opment programmes by adopting an integrated and again gave us some new functions. Efforts to coordinated approach. First of all, the ministerial strengthen this United Nations body are now bear- review was a mechanism to promote empowerment ing fruit. The Council is discharging its mandates in terms of developmental commitments made much more effectively and has now become more during a number of meetings that were held in the rapid and relevant. Ministers and heads of delega- 1990s, to follow up on those, and to provide us with tion participating in the 2008 high-level meeting, an opportunity to take a look at the efforts made adopted a ministerial statement in which they to implement the Millennium Development Goals recognized that the international community had by continuing to encourage the ongoing progress, many problems in trying to implement the Mil- focusing on the most serious gaps and how to over- lennium Development Goals that had been agreed come those insufficiencies. The review also brings internationally, including specific goals. They also to light major questions regarding development, recognized that global financial instability, price such as sustainable development in 2008 and public hikes for food, commodities and fuel, as well as the health in 2009. It also focuses the Council’s atten- effects of environmental degradation and climate tion on national policies through optional national change, called for concerted and rapid action. In statements, strengthening the ties with actions con- this context, they were concerned with the possible ducted at the national level. damages from these risks and attempts to achieve sustainable development in developing countries. Secondly, the Development Cooperation Ministers also expressed their concern over the Forum, which was held for the first time this year global food crisis, and emphasized that that would in New York, helps restore high-level political dia- seriously complicate the fight to combat poverty logue on development. The establishment of the and malnutrition and the efforts in developing Forum came at a time when the face of internation- countries seeking to ensure food security. They al development cooperation was changing radical- called on all donors in the United Nations sys- ly. The structure of assistance and of development tem to increase their developmental assistance to is becoming more complex, with the appearance developing countries, which they said they would of new stakeholders, funds and approaches. So do, particularly to medium-income countries and there are new challenges: how to reform the struc- to those who have especially suffered from hikes in ture of assistance, for example. We need to ensure agricultural prices. They welcomed the fact that the that globalization must not bring about a financial Secretary-General has established the High-Level shock against the poor, which would have a nega- Task Force on the Global Food Security Crisis. tive effect on certain economies. With respect to international cooperation for In July, countries were brought together, both development, ministers recognized the efforts of developed and developing, as well as all the stake- developed countries to increase developmental holders of development cooperation. The exchang- resources and the commitments that they made es that were begun, and which will continue, will in this regard, as well as the recent decline in offi- inspire the debate and activities as a follow-up to cial development assistance (ODA). They wel- the Paris Declaration on Aid Effectiveness and comed recent efforts and initiatives to increase the Accra Agenda for Action programme, and

222 Statements by Major Stakeholders will help follow up on and improve the effective- has too many conditionalities which undermine ness of assistance. The Forum offers an important national authority and do very little to improve potential for this. economic performance. Conditionalities attached to mechanisms for accounting and spending make Finally, in the outcome document, the 2005 assistance less predictable and can bring about World Summit specifically asked the Council to considerable delays in cashing money. In these intervene in emergency situations, an action that times of economic and financial crises where mar- would give it more flexibility than it had and was kets are melting and credit markets are frozen, we necessary for it to take up new economic and social must redouble our efforts to maintain our progress, challenges as well as assist in humanitarian disas- bearing in mind that investing in development is ters. The Council is now no longer an impotent investing in the future, a future for which we are all observer during international crises. collectively responsible. The financial crisis is an emergency situation around the world which can reverse years of growth, increase poverty and impede implementa- African, Caribbean and tion of the Millennium Development Goals. The international system is therefore being sorely tested Pacific Group of States in its attempt to promote prosperity, which could Statement by be compromised. We have an exceptional oppor- Mr. Fred Fono tunity now to adopt corrective measures, which Deputy Prime Minister of the Solomon would allow us to improve the way we act and how Islands and on behalf of the ACP Group we communicate and look for global solutions. The 1 December 2008 Council can make a contribution to this and will do its utmost to do so actively. Mr. President, Excellencies, Colleagues, Partici- The new functions of the Council offer a real pants, it is a pleasant duty which has been conferred possibility of ensuring that specific commitments on me to speak on behalf of the 79 African, Carib- are being implemented for development. We need, bean, and Pacific Group of States that constitute the therefore, to be creative, and to do everything we can ACP Group, and on behalf of whom I would first to accelerate our work on the high-level meeting in like to express my sincere gratitude to the host coun- the spring. Looking for new innovative modalities try for the means mobilized to facilitate our work. on holding the spring meeting and more interac- Our appreciation goes also to all those who were tion with institutional stakeholders will therefore involved in the organization of this Conference. allow us to get down to more effective preparation and follow-up on the deliberations. I firmly believe ACP States are also members of various other groupings which have already expressed themselves that implementing agreements from Monterrey in here or which are still due to do so, but the unique 2002 would do much to help the action being taken entity they constitute is based on certain specifici- for development for all. ties known by all of you, which makes it necessary The financial crisis and the current economic for us to address this assembly as a group. recession have highlighted the need for a more Mr. President, allow me first to convey to you coherent system. This is particularly true with our regret that the draft outcome document of this respect to structures and global financial institu- meeting, as it is now, as also underlined by the tions. While welcoming the initiatives that have Group of 77, does not make clear the implementa- already been taken, I believe that the Council will tion deficit of the commitments made in Monter- need to play its just role in this area. rey in order to be in a position to call on the whole In conclusion, I would say that the Secretary- community to improve the manner in which they General declared last July that assistance still have acted so far.

223 The Doha Review Conference on Financing for Development

Our countries cannot ignore this lack of clear lead to the alignment of immigration policies to reporting from all the actors, on the results achieved development objectives. since Monterrey both in terms of the amount and Mr. President, the ACP Group shares the view the quality of the aid delivered. that international trade can be a strong engine We would like to insist on the fact that we for development, but affirms that it should only should leave Doha with the necessary tools for a be guided by transparent rules agreed on by all. methodical monitoring of the actions undertaken In this area, the ACP Group must underline the as part of our mutual commitments, both by aid necessity of having coherence between trade poli- providers and beneficiaries. cies and development goals and invite members to avoid taking any market access measure which Regarding our commitments, we insist that goes beyond the level requested for consumer pro- the outcome text from our discussions here cannot tection and which is not supported by scientific be limited to vague promises by the donors while evidence. Such measures, as the proposed regula- imposing on developing countries’ commitments tions on novel foods, deprive the most vulnerable for concrete actions, like fiscal reforms, which, by developing countries from trade diversification the way, they are already really undertaking. and development opportunities which are the only The occasion offered to us here does not allow justification of their participation in international us to go into the details of each of the thematic trade talks. chapters considered by the meeting, but we would The ACP Group supports the call for a suc- like to highlight some elements which, from the cessful conclusion of the negotiations of the Doha assessment of a diversified and formalized group Development Agenda, and calls for the specific such as ours, are critical if we want our commit- interests of its members to be taken into account. ments to be seriously taken. The Group also requests that significant sup- Mr. President, regarding the mobilization port be immediately identified, with simplified of domestic financial resources, we accept the access modalities, in order to guarantee developing request made of us to reform our economies in countries the necessary means to implement the order to render them more enabling in the gen- trade agreements they are negotiating, both within eration of resources for financing of development, the multilateral framework and in the context of which we actually are already implementing, spe- free trade arrangements, such as the Economic cifically in the tax policy areas. It is evident that to Partnership Agreement. encourage and support that effort, donors have to Mr. President, we remain seriously concerned announce their clear intention, precise amounts, by the decrease in the ODA in the recent years and the delivery time frame, which we expect will which constitute a clear threat to the achievement be as short as possible, to finance for example of the 0.7% of Gross National Income targets. equipment and modernization of customs and tax services. Referring to the specificities of the ACP Group, one of them is the unique relationship developed Mr. President, as far as the mobilization of since 1975 with the European Communities, the international financial resources is concerned, the first Official Development Aid provider. This privi- introduction of innovative funding mechanism leged position allows us to be in a position to com- should not replace commitments already given ment, criticize, encourage, and make recommen- which are still to be honored. The ACP Group is dations. It is therefore important to note in the area particularly pleased to note the recognition by all of international financial and technical coopera- actors of the fundamental role played by migrant tion for development EU’s commitment to a time- workers’ remittances to their home country, and line leading to the achievement of the ODA target takes it as evident that such recognition can only of 0.7% of the Gross National Income by 2015. We

224 Statements by Major Stakeholders call on our partners to honor their commitment position in the world economy, and to introduce and to accelerate the pace of delivery if possible, a decision making mechanism which takes into and we invite other donors to give equally precise account the beneficiaries’ needs. The ACP Group commitments. notes with satisfaction that the African Ministers of Finance and Planning and the Governors of the The Group underlines the support received Central Banks mandated a committee to make from the European Commission on developing proposals in that field. countries’ demand to rethink the entire architecture of aid, which has become impenetrable, and Mr. President, I would like to end my statement echoing the Accra Action plan, demands that all by tackling the numerous new challenges which conditionality be removed from aid delivery. have appeared and which will require actions from developing countries and also require increased Finally, on this subject, the ACP Group stress- resources that only our development partners can es the importance of managing for results in aid help us to secure. administration, and expresses disappointment with the fact that development partners still find On the financial crisis, the ACP Group reiterates difficulty in using national financial management that the poorest countries and the countries in situa- and procurement systems. tion of fragility should not be victims, and this crisis should not undermine the implementation of com- Mr. President, I now come to debt manage- mitments in favor of financing for development. ment which we want to be more effective, and we note with regret that debt service is still too high in Regarding climate change, the ACP countries many developing countries. The Group welcomes will have difficulty facing the potentially devastat- the EU’s proposal for setting up an improved dia- ing costs of measures of adapting to the results of logue between lenders and borrowers in order to climate change. In this regard, the Kyoto Conven- design an enhanced debt restructuring mechanism. tion and the subsequent process should recognize The Group strongly insists on the need for a differ- the fairness issue and provide for a part of these entiated approach for debt management, and the costs to be financed by countries responsible for generalization of adapted measures to accompany most carbon dioxide emissions. countries on the basis of their development level Mr. President, the ACP Group insists on the and the step reached in debt alleviation in order maintenance of a coherent approach to enable the to consolidate the results specifically achieved by development of a sustainable biofuels policy which middle-income economies which still remain very takes into account food security concerns and vulnerable to the various shocks. avoids questioning, on the basis of subjective judg- Mr. President, Excellencies, let us now talk ment, the considerable investments already made about the reinforcement and adjustment of the by some countries. monetary, financial, and international trade - sys With regards to the food price crisis, one tems. We call on the whole community of states to should recall, as did the ACP and the EU parlia- ensure coordination with efforts which are being mentarians recently, that developing countries, made by the specialized institutions of the United many of them net food importers, are the biggest Nations. victims of volatile food prices and that there is We want policy coherence in all areas in order need to push the issue of food production back up to avoid nullifying the gains from the implementa- the international agenda. tion of development policies. Apart from the urgent action needed, we call Regarding the reform of the Bretton Woods for long-term commitments and we underscore Institutions, the ACP Group would like it to go the need for joint action to ensure that sufficient beyond the redefinition of the number of seats or aid and public spending are channeled towards the alignment of member’s quota with their relative achieving food security, as stated in the Maputo

225 The Doha Review Conference on Financing for Development

Declaration by the African Union Heads of State a common burden. The resources of the poorest and Government in June 2004, and to increase countries are affected as trade flows, investments investment in agriculture to achieve 2% growth and remittances from the diasporas drop. At the per year in agriculture, rebuild staple food stocks, same time, these countries are likely to be threat- which are at all-time low, and strengthen global ened by budgetary reallocations and cuts in donor monitoring and information systems. countries’ budgets. Mr. President, Excellencies, and Colleague Par- We cannot be protectionist but have to support ticipants, we are clearly in an emergency situation the financial flows for development, so there is just and we cannot postpone the urgent and significant one question: how can we make certain of finding actions needed to address it. We then end as we the necessary resources to display international started by calling for a harmonious, expeditious, solidarity when budgets must deal with national and comprehensive response, with clear, detailed, solidarity and are cut because of a crisis? This, then, and balanced commitments supported by an inclu- is what is required: innovative financing. We need sive monitoring mechanism aimed at addressing to rethink the aid system which was inherited from these problems. I thank you, Mr. President. a time when welfare was virtually the monopoly of States. However, in a period of crisis and uncertainty, temptations are strong to lean on what is United Nations familiar and what is known, but there is a risk of Statement by making the same mistakes again. His Excellency So let us here, in Doha, be brave. Let us be Mr. Philippe Douste-Blazy innovative. Let us turn no longer to States think- Special Adviser to the Secretary-General ing that they alone can solve these problems. Let on Innovative Financing for Development us no longer think that markets alone can solve 29 November 2008 all problems. The economy is a chain of solidarity and if we are to be innovative we have to rebuild it. We have to ensure that individually and col- Yesterday, the financial crisis; today, the economic lectively we pull together in global solidarity. I crisis; tomorrow, the jobs crisis: it is imperative not call on Heads of State and Government. I call on just to find the means of ensuring development but the representatives of international institutions lasting and perennial means. For several months, and aid agencies, on civil society, multinationals we have seen many gestures of national solidar- and citizens: together, let us seek solutions to the ity, but what about international solidarity? I will problems of financing for development, which can not hide from you that the recent Group of Twenty ensure the success of a new economic world order (G20) communiqué from Washington, D.C., is that can display greater solidarity. far from President Wilson’s statements in 1918, or Morgan Truman’s 1944 Bretton Woods speech. It is Innovative financing for development must be like a door opening that closes instantly. In 1919, the spearhead of this solidarity. This is already the the United States Congress rejected the Charter of case. We have the international tax on airline tickets, the League of Nations. In 1948, the Congress also which finances the international purchases of medi- rejected the Havana Charter. The third pillar of cines to reduce prices and improve accessibility to Bretton Woods—the World Trade Organization— medicines for AIDS, tuberculosis and malaria in the only came into existence half a century later. It is poorest countries. There is also the International urgent to act. It is urgent to act because the poorest Finance Facility for Immunisation, which, over the countries are those that are most vulnerable in the next few years, should see $4 billion raised on finan- face of a crisis. It is urgent to act because the crisis is cial markets in order to plan vaccinations for every spreading, affecting new countries. It started in the child in the world. States participating in the initia- North and it is spreading to the South. It becomes tive will reimburse the money over 20 years.

226 Statements by Major Stakeholders

We have to write the page of history, but it is projects, which I am sure could be accepted when not a blank page. Imagination means finding stable the G20 meets in the future. innovative forms of financing based on the econo- I will conclude by saying that the greatest dis- mies of the richest countries so that there can be plays of solidarity are always engendered by the redistribution of the fruits of globalization. It is greatest crises affecting mankind. We are at a turn- not the North versus the South, the rich versus ing point in this crisis. The nations gathered here the poor. Let me give you an example, one which today could choose together to allow the inequali- works and is particularly dear to me. During the ties between the rich and the poor to increase— sixty-third session of the General Assembly of the they could make that choice—or they could decide United Nations last September, President Lula of Brazil, referred to UNITAID, the first laboratory for to reduce them. They could go for a replay of the innovative financing in the world. This came about major depression of the 1920s, or for the choice of through the joint will of Northern and Southern being either nationalistic or of pulling together in a Hemisphere countries, with more than $500 mil- spirit of solidarity. lion dollars committed, with a tax of just €1 per I make my choice, as do you. airline ticket, with the support of Brazil and Presi- dent Chirac of France. The Presidents of Chile and Norway and other countries joined in and $500 The World Bank million were swiftly found from 80 countries. With the involvement of partnerships, such as the Clin- Statement by ton Foundation, this resulted in a cut of 50 per cent Mr. Justin Yifu Lin in the cost of medicines, helping to combat AIDS. Chief Economist and Senior Vice-Presi- dent of the World Bank Today, three out of four children in the world are being treated for AIDS because of this innovative 30 November 2008 UNITAID financing. Other ways forward have yet to begin. Soon, Mr. Chairman, Excellencies, Distinguished Del- we shall be launching a contribution for solidar- egates, Ladies and Gentlemen, it gives me great ity, which will be voluntary, involving citizens pleasure to have the opportunity to speak at this from the whole world. Projects are being started important meeting. President Zoellick regrets that to deal with the vast remittances sent by migrants he could not be present here in person. He has asked to their countries of origin and—may I say this me to convey his greetings to you and his best wish- quite frankly—in rich societies alone at prohibitive es for a successful outcome from these discussions. rates. Combating climate change can also free up President Zoellick attaches great importance to lis- resources to help the poorest countries which, so tening to developing country voices and learning unjustly, are the most vulnerable when it comes to from developing country experiences. The world is climate change. I welcome the fact that the Min- in the midst of a historic economic crisis whereby, ister for Economic Cooperation and Development in the next year, developing countries could account in Germany said recently that she would allocate for all of GDP growth worldwide. Therefore, hav- some of the monies from carbon auctions to devel- ing stronger voice and representation from development. That was a first and historic act, I think. oping countries is increasingly important. It is also There are many other projects proposed by significant that I am representing the World Bank. the pilot group of 55 countries asking for contri- Six months ago President Zoellick tapped me to butions, programmes guaranteeing the future pur- be the World Bank’s Chief Economist, making chase of vaccinations, digital solidarity and com- me the first person from a developing country to bating tax fraud—dear to our Norwegian friends, hold this post. Now in asking me to lead the Bank where tax on financial transactions is one of the delegation to this key meeting, he wanted to have

227 The Doha Review Conference on Financing for Development

someone from the developing world represent the market country or a poor country in Africa, has institution. This is more than symbolic. escaped the impact of the widening crisis. Mr. Chairman, we have distributed a fuller Coming on the heels of the food and fuel written statement on behalf of the World Bank price shocks, the global financial crisis could sig- Group. In my remarks here, I will focus on a few nificantly set back the fight against poverty and key messages. progress toward the MDGs. Sharply tighter cred- It is almost seven years since the international it conditions and weaker growth are likely to cut community met in Monterrey, Mexico, and agreed into financing available to invest in infrastructure on a mutual accountability framework for devel- and meet education, health, and gender goals. The opment cooperation, whereby developing and poor will be hit hardest. Current estimates suggest developed countries resolved to work together to that a one percentage point decline in developing promote economic growth and foster the achieve- country growth rates pushes an additional 20 mil- ment of the Millennium Development Goals lion people into poverty. Already, more than 100 (MDGs). At international meetings earlier this million people have been driven into poverty as a year, which marks the halfway point to the 2015 result of the rise in food and fuel prices. target year for the achievement of the MDGs, we noted the substantial progress that has been made In an increasingly globalized world, where under this framework of cooperation as well as crises can spread quickly across the globe, the the need to intensify our efforts to address the response must be global, coordinated, and fast. tough challenges that remain. Today, as the world Policy challenges need to be addressed at the coun- economy is buffeted by try level, but it is more critical than ever that the international community acts in a coordinated and the worst financial crisis seen in decades, a supportive way to make each country’s task easier. crisis that entails grave implications for developing countries and threatens to undo the hard-won Lessons from earlier crises point to the impor- gains in growth and development of the past years, tance of safeguarding investment in longterm the world needs international economic coopera- growth and development. As developing country tion even more. Our meeting in Doha provides a budgets adjust to a new fiscal reality, careful man- timely opportunity to reaffirm and strengthen our agement of resources will be necessary to safeguard commitment to the framework for cooperation investment in infrastructure and human develop- and mutual accountability agreed in Monterrey. ment, while ensuring that the poor and vulnerable Over the past year, developing countries have are protected through well-designed social safety faced the triple jeopardy of food, fuel, and finan- nets. Developing countries must also take steps, cial crises. As a result, many developing countries appropriate to their circumstances, to strengthen today are entering a danger zone. Growth in devel- their financial systems, to place them on a sounder oping countries that averaged 7.8 percent in 2006- footing and avoid disruption in access to credit, 07 is now projected to slow to 4.5 percent in 2009. especially to small and medium enterprises that The economies of high-income countries, many are crucial to job creation. of which have already entered into a recession, are now expected to contract by 0.1 percent in 2009, It is critical that aid flows to developing coun- with global growth down to 1 percent. There is tries be maintained, and past commitments honored much uncertainty and even these scenarios could and supplemented. At some $100 billion per annum, be optimistic. Some developing countries will be hit official development assistance volumes are mod- much harder than the average, experiencing growth est in comparison to the sums spent on addressing that is negative in per capita or even absolute terms. the financial crisis in developed countries. We must While the channels of transmission may differ, vir- also press ahead to implement the Accra Agenda tually no developing country, be it an emerging for Action to improve aid effectiveness.

228 Statements by Major Stakeholders

In the face of a prospective decline in private to the current crisis, drawing on its full range of capital flows to developing countries in the after- financial, analytical, advisory, and coordinating math of the financial crisis, we must intensify our resources—to protect the poor and vulnerable efforts to catalyze and leverage private capital in from immediate and long-term harm, assist the support of development, including through inno- financial and private sectors in responding to the vative public-private partnerships. On current crisis, support countries in managing the fiscal projections, net private capital flows to developing challenges, and avoid cuts and delays in invest- countries could drop from about $1 trillion in 2007 ments upon which economic recovery and long- to roughly half that level in 2009. term development will depend. It is also imperative to resist protectionism and The World Bank has moved quickly to help avoid turning inward in times of financial uncer- countries deal with the food and fuel price shocks, tainty. We welcome the commitment expressed through a $1.2 billion Global Food Crisis Response by G-20 leaders at their November 15 summit to Program that in under accelerated implementation strive to reach agreement this year on modalities and an Energy for the Poor initiative that is at an that lead to a successful conclusion to the WTO’ s advanced stage of preparation. Doha Development Agenda with an ambitious and The World Bank Group will substantially balanced outcome. Progress on that front would increase its financial support to developing coun- provide a much-needed boost to confidence in the tries in response to the financial crisis and under- current difficult environment. It will support the pin that with stepped-up technical and advisory recovery of global trade, which on current projec- services. The International Bank for Reconstruc- tions could fall in 2009 for the first time since 1982, tion and Development (IBRD) could make new and the reinvigoration of economic growth. Coor- commitments of up to $100 billion over the next dinated action is also needed to maintain the flow three years. This year, IBRD lending could almost of trade fmancing. triple to more than $35 billion compared to $13.5 The current global financial crisis poses major billion last year. The International Development challenges, but it also creates opportunities. A vigor- Association (IDA) donors have committed $42 bil- ous response to the crisis can set the stage for a new lion for the next 3 years, which can be frontloaded to meet the needs of low-income countries, includ- multilateralism that supports sustainable ing many in Africa. The International Finance Cor- and inclusive globalization. There is a mismatch poration (IFC) is launching four new facilities for between 20th century global institutions and 21st bank recapitalization, infrastructure financing, century global challenges. The G7 framework is no longer sufficient. The new approach should not be trade facilitation, and refocused advisory serv- a fixed or unitary system, but a flexible and inclu- ices. Combined with financing mobilized from oth- sive network that includes the rising economic ers, these new facilities could provide more than powers such as the BRICs but also representatives $30 billion over the next three years. The Multi- of the poorer countries, links up various interna- lateral Investment Guarantee Agency (MIGA) can tional institutions (IMF, FSF, WBG, WTO, UN), also provide much needed risk mitigation for flows and works on issues beyond trade and finance to of private finance to developing countries. include development, climate change, and fragile The reform of the Bretton Woods Institutions states. The old North-South paradigm no longer constitutes part of the agenda for a new multilater- fits today’s world, and must give way to a broader alism. A modernized World Bank Group must rep- framework for cooperation and learning, includ- resent the international economic realities of the ing South-South and South-North. 21St century and recognize the role and responsi- The World Bank Group stands ready to play bility of growing stakeholders. Voice and Participa- its part. Working with partners, the Bank can tion is an issue for resolution by World Bank share- help in what must be a multi-faceted response holders. Last month, shareholders endorsed an

229 The Doha Review Conference on Financing for Development

initial package of reforms. As a second step, share- global recession. While the recent declines in food holders agreed that the Bank should undertake a and fuel prices will mitigate the pressures for some comprehensive work program to realign sharehold- countries, it will create new problems for others, ing. The Zedillo Commission, created by President especially oil and methyl net exporters. Zoellick to look at World Bank Group governance This financial crisis originated in advanced more broadly, will report back next year. The Bank countries and the responsibility for addressing it rests is also taking steps to strengthen South-South and mainly with them. But all countries, rich and poor South-North cooperation, including establishing a alike, share a common interest in seeing a prompt new South-South Experience Exchange Facility. return to global stability and global growth. This will In conclusion, Mr. Chairman, our meeting require policy responses on four broad fronts. comes at a critical time. The international commu- The first and most important immediate task nity must work together to overcome the financial is to stabilize financial markets. After an uncertain crisis and prevent it from triggering a development and uncoordinated start, strong actions are now on and human crisis. It also must seize the opportuni- the way on this front and some positive signs are ty to lay the foundation for a new economic multi- emerging in advanced countries’ financial markets. lateralism that is responsive to today’s realities and The credit squeeze and the freeze have begun to ease challenges. The World Bank Group is fully com- and there is increasing confidence that the authori- mitted to work with partners in this effort. ties in major financial centres will take whatever steps are necessary to prevent a systemic collapse. But substantial risks remain, and continued efforts International will be needed to rebuild capital and to restore Monetary Fund liquidity in the financial system. At the same time, some emerging market countries are in need of Statement by financial assistance to manage contagion. The IMF Mr. Murilo Portugal is providing substantial support rapidly, with very Deputy Managing Director of the Inter- national Monetary Fund tightly focused conditionality, and we stand ready to continue to provide liquidity, including through 1 December 2008 the newly-created Short-Term Liquidity Facility. The second pressing challenge is to counter- I would like to thank the Government and peo- act the downward spiral in global demand. This ple of Qatar for their warm hospitality and for the will require a concerted fiscal stimulus and fur- excellent organization of these meetings, in which ther monetary easing in some countries. Not all the International Monetary Fund (IMF) is very countries have the need for, or are in a position to happy to participate and to contribute to. provide, such stimulus, but for those that need it, and who are in a position to do so, prompt action We are meeting at a time of enormous stress is required within the bounds that will allow fiscal and great uncertainty in the world economy. The sustainability to be maintained over the medium most serious financial crisis in generations has led term. Protectionist pressures should be strenuous- most advanced countries into recession; and as ly resisted, as protectionism would seriously harm the credit squeeze spreads and trade flows slow, our prospects for global growth. developing countries are facing serious setbacks through no fault of their own. For low-income The third imperative is to launch reform of the countries, in particular, recent gains in poverty international financial system and to address the reduction and improvement in living standards are weaknesses exposed by the current crisis. This will now in jeopardy. Their economies, already weak- also be an important factor in restoring confidence ened by the cumulative effect of the food and fuel in the global financial markets. The elements of a price surges, are now facing a second blow from the consensus on a strengthened system have begun to

230 Statements by Major Stakeholders emerge from discussions in recent weeks, includ- resources on the scale of the highly concessional ing at the Group of Twenty (G20) Summit held terms that low-income countries need. in Washington, D.C., on 15 November. The key International coordination is now more impor- components of such a reform will likely include a tant than ever. We must commit ourselves here to strengthening of transparency, accountability and reinforce effective multilateralism. We must reaf- risk management in the financial system, a broad- firm the commitments made at Monterrey, to ening of the scope of financial regulation, reinforc- increase the volume of official development assisting international cooperation among national and ance, to make aid more predictable and transpar- regional regulators and supervisors, and reforming ent and to provide it in ways that support national the Bretton Woods institutions so that they can goals and national institutions. We also need sys- more adequately reflect the changing relative eco- temic reforms based on more participatory and nomic weights in the global economy. The Fund inclusive processes, reflective of the evolving global will play a standard role in this reformed interna- realities. The Quota and Voice Reforms of the IMF tional architecture, exercising its surveillance man- will increase the voice of dynamic emerging mar- date over the global financial system. kets and, hence, the participation of low-income The onset of the global recession has made the members, as well as create a commitment for fur- need to follow-up on aid commitments to devel- ther quota reviews. oping countries even more important and more Let me close with a special reference to Africa, urgent than when we met in Accra less than three which is the home of many of the most vulnerable months ago. Low-income countries face the pros- economies in the world, but which has also made pects of declining private capital flows and shrink- very significant progress in recent years. It is essen- ing export markets. They are also the most exposed tial that we help Africa to cope with the financial to volatile commodity prices and deteriorating crisis and the global economic slowdown, and terms of trade. For the majority of them, whose assist it to benefit more from the integration into finances have been weakened by the high cost of the global economy. food and fuel imports over the past two years, there is almost no margin for fiscal maneuver to To this end, the IMF and the Government of address the impending downturn without addi- Tanzania will co-host a major conference in Dar es tional donor support. Salaam next March on this topic, bringing together policymakers from Africa, the private sector, And above of all, of course, we need to see accelerated progress in reducing poverty and civil society and private foundations. And we very improving the living standards of millions of peo- much look forward to the active participation of ple. There is no realistic prospect of faster poverty many of you here today. reduction so long as the delivery of aid continues to fall short of commitments that have been made by the donor community. For their part, low-income countries have a responsibility to continue improving the policies to lift people out of poverty, including making the management of aid and other budgetary resources more effective and more transparent. The Fund has increased its support for 15 low- income countries this year alone. We have also reformed our exogenous stock facility to make it quicker and easier for these countries to use it. However, only the donor community can provide

231 The Doha Review Conference on Financing for Development

United Nations circumstances, monetary policy has a limited impact. The situation calls for fiscal stimulus and Development Programme policies which have to be based largely, in today’s Statement by circumstances, on increased public spending. Mr. Kemal Derviş While room for maneuver varies across coun- Administrator of the United Nations tries, this strategy will involve significant global Development Programme and Chair- man of the United Nations Development fiscal expansions to boost effective demand and Group (on behalf of UNDG) employment as broadly and as rapidly as possible. The Group of Twenty (G20) Leaders Summit of 29 November 2008 15 November hopefully was a start for that, but it has to be completed with all countries in the I will address you on behalf of my colleagues from world cooperating and particularly focusing on the United Nations Development Group. Six years the harmonization and the international coordi- ago at Monterrey, the United Nations convened a nation of that effort. historic gathering not only of Governments but also As others have underlined, and the Secretary- of civil society, the business community and mul- General said very forcefully, these difficult eco- tilateral organizations, all committed to addressing nomic times are, however, also times of oppor- the many obstacles that hinder progress towards tunity. The array of interconnected challenges we achieving the Millennium Development Goals. That face provides a chance to renew the global partner- Conference agreed on the Monterrey Consensus, ship for development that underlies the Monterrey the first universal framework designed to address Consensus. I think what is particularly important the key challenges to inclusive growth and sustain- to stress is that the short-term pressures that face able development. It was a very good achievement. us must not make us forget the long-term develop- We come together again here in Doha to share ment challenges; the kinds of measures we take— lessons learned, consider emerging issues and their quality, their focus—have to keep in mind hopefully agree on a way forward. It is a pleas- these long-term challenges. ure and honour for me to follow the two special I hope that the discussions we will have in the envoys, Minister Heidemarie Wieczorek-Zeul and coming days will help ensure that the vision of the Mr. Trevor Manuel, who have worked hard with Monterrey Consensus is implemented despite the many others to make this Conference a success. crisis we face. What does this mean in practice? The meeting today comes at a very difficult time First, we need to deliver on our outstanding com- for the world economy. Unfortunately, we now face mitments. It would be really tragic and a huge an unavoidable immediate global downturn. The mistake for the world economy if these commit- next six months are going to be very difficult and ments were not met. we are no longer in the position to avoid that. But Eight years after the world agreed on the Mil- we are in the position to try to make that down- lennium Development Goals, hard-won gains could turn short and to engineer the coming out of the be reversed by the present crisis. We cannot allow crisis in a forceful way. It is the decisions we make this to happen. The crisis presents us with a terrible, as policymakers at national and international lev- difficult time and we really have to come together els that will determine how deep and how long the and avoid what many have already said would be a present recession will be. terrible human crisis. It particularly presents a huge Part of the response involves aggressive mon- challenge for the decent work agenda and, here, I etary easing to make lending more affordable and would like to stress how much we have worked to spur consumption and investment. This has with the International Labor Organization on the already started around the world with central banks fact that poverty reduction and employment crea- cutting interest rates substantially. But in today’s tion is one and the same thing. We cannot reduce

232 Statements by Major Stakeholders poverty in a sustainable way without focusing on Done right, a counter-cyclical response to the employment. And of course, the goals of health current downturn could help all of us address the and education must not be endangered. most daunting and complex of all the challenges in front of us, namely climate change. The economic crisis has created pressure on all forms of development finance. Even though this But all of this can only happen if we come Conference comes at a difficult time for the glo- together here at Doha and at other venues, at the bal economy, funding for development is above United Nations Climate Change Conference in all, however, a matter of political will. President Poznan next month and at other meetings, to begin Oscar Arias reminded us this morning, forcefully, crafting the essential elements of not just a New Deal that the world spends almost $1.3 trillion a year on but what I would call a Green Deal for development armaments. Many trillions are being mobilized for and for recovery. The recent coordinated action to the financial crisis. So the world actually can afford address financial market instability has shown that the $140 billion already pledged for official devel- quick and decisive policies are required and possi- opment assistance by 2010. ble when we confront global crises. Poverty reduction and climate change require the same pragmatic Second, in keeping with the 2005 Paris Dec- and cooperative approach. Disjointed actions and laration on Aid Effectiveness and the 2008 Accra ad hoc solutions will not be successful. Agenda for Action, aid volume should be matched with improvements in aid effectiveness. Most For all of this, a new multilateralism is required, notably, we must pursue increased predictability one that recognizes the interconnected nature and transparency, streamlined conditionality and of the crisis we face: financial instability, climate more strategic use of aid to complement growing change, extremely unequal income distribution, new sources of development finance. At the same volatile prices for food and energy, and unaccept- time, increased investments in national imple- able levels of hunger, poverty and inequality. These mentation and procurement systems need to be are the big challenges we face and I think we have matched with stronger efforts to mitigate waste- learned from so many aspects of the last decade’s ful practices. The bargain that was struck on aid at history that working together is the only way to Monterrey in Paris and in Accra is one where aid overcome them. A reformed, stronger and more donors would streamline their methods and pro- inclusive multilateralism is our only option if we cedures, and aid recipients would do their best to are to find workable and fair solutions. I think this be effective in using it. Conference in Doha has to show the commitment to this new multilateralism. Third, it is clear that this crisis provides a unique opportunity to stimulate an environmen- The United Nations has a key role to play in this tally sustainable global economic recovery. We new approach that meets the needs of the twenty- have this need for increased public expenditures, first century. With its inclusive membership, inter- for increased public investment. We can create governmental processes, leadership in peacekeep- a win-win situation if a good part of that public ing, rapid engagement in post-conflict countries, investment is actually focused on the green econ- and its ability to learn from the experience of the omy and on the transition to low-carbon energy; more than 160 countries where the United Nations that is to say, access for all to energy but in a low- has a presence on the ground, the United Nations carbon form. This is a priority, and I think that if can play a critical role in transforming develop- we put it into the fiscal stimulus packages around ment finance into development results. the world it can lead us not only to a quicker In bringing together the various agencies, funds recovery but at the same time to a green recovery. and programmes of the United Nations development I am extremely pleased to read and to learn that system, the United Nations Development Group, is the newly elected administration in the United trying to be a reliable partner with a unique depth States has made this one of their top priorities. and capacity and breadth of voice, and a partner, of

233 The Doha Review Conference on Financing for Development

course, to national governments. It stands ready to Organization for strengthen its efforts to assist countries in responding to the current global crisis with sustainable solu- Economic, Cooperation tions, not just short-term approaches. and Development Indeed, the United Nations Development Statement by Group has helped to transform the policy land- Mr. Ángel Gurría scape since the Monterrey Consensus was agreed in Secretary-General of the Organiza- 2002. We now have a comprehensive set of agreed tion for Economic, Cooperation and development goals and instruments. We do have Development detailed costings of these goals. We have, in part- 29 November 2008 nership with Governments, costed the Millennium Development Goals, and we have well-thought-out national development strategies. We also have time- Our thoughts and our prayers go to the Govern- bound commitments on financing, accompanied ment and people of India and to the victims of ter- by new funding windows and extended debt relief. rorism and their families. More recently, we have worked with the World Today, in Doha, we all have a sense of a turn- Bank to develop concerted support for conflict and ing point. This Conference is much more than a post-conflict countries. We are rapidly scaling up review of Monterrey. It is an emergency meeting capacity development services to help all countries on how to promote, preserve and protect the vital respond to climate change and access the carbon resources identified in Monterrey so that the cur- market and emerging special financing options. rent economic and financial crisis does not turn I think we have the beginnings at least of the into a development catastrophe with consequences infrastructure in place to deliver on the Monterrey lasting for decades, long after it is over. Consensus. But this will only happen if all stake- The dramatic failure of the regulatory, super- holders choose to act, and act in coordination. I visory, corporate governance and risk manage- will repeat again what many have already said, that ment frameworks of the financial markets is change is certain but progress is not. The need to now impacting the real economy. Countries and mobilize financing to reduce poverty provides us families around the world are already feeling the with a great opportunity to build a new multilat- pain. Many developing countries will become eralism that is more effective, more inclusive and even more vulnerable. They will experience lower more responsive to the emerging challenges we all growth, volatile exchange rates and stock markets, face. I really do hope that Doha 2008 will be the higher unemployment and poverty levels, more beginning of us all seizing this opportunity. fragility, weaker health systems and even more difficulties in meeting the Millennium Development Goals. At the same time, let me quote a delegate from the Organization for Economic Cooperation and Development (OECD) who said recently that “A crisis is a terrible thing to waste”. Indeed, the collective response to the crisis and the emergence of the “L20”, meaning the Group of Twenty (G20) (which we founded many years ago but which is now at the leaders level) reflect the acknowledge- ment of a new reality of power-sharing and responsibilities in the global economic governance of the twenty-first century.

234 Statements by Major Stakeholders

We at OECD are developing a strategic vulnerable to the crisis, we need to push for suffi- response to the crisis with two main strands. First, cient, predictable and effective flows of aid through we are focusing on a set of policies, rules and incen- the implementation of the Paris Declaration and tives for designing a robust, reliable and flexible the Accra Agenda for Action. Together, they con- financial system. The second focus is on restoring stitute a formidable aid reform agenda which needs growth, along a low-carbon path, while protecting your strong political support. the most vulnerable among the population. The regional multilateral development banks, The crisis has generated major public interven- the Inter-American Development Bank, the Afri- tions in financial markets and maybe beyond them. can Development Bank and the Asian Develop- At OECD, we are also beginning to look at an exit ment Bank, must be provided by their sharehold- strategy for the unwinding of such interventions ers with either more capital, more liquidity or when conditions allow. greater flexibility on their gearing ratios so that they can face the increasing demands for credit Why focus on OECD economies when we are from emerging and developing economies, given in Doha talking about financing for development? the reluctance of financial markets to extend loans Simply because the crisis started in developed to them. Many of the countries that had access to countries and the best contribution they can make the market today no longer do so and these insti- to developing and emerging economies is to over- tutions are precisely for that, to cover those gaps come the recession and get on a path of vigorous while the problem subsides. growth as soon as possible. In another dimension, the World Bank, the Now, in terms of the immediate situation, International Monetary Fund, the World Trade OECD members and some non-members have Organization, the International Labour Organi- agreed on three important actions. First, the aid zation, the United Nations Development Pro- pledge. The members of the Development Assist- gramme, OECD and the European Commission, ance Committee of OECD have reaffirmed their are all dealing with different aspects of the global aid commitments and agreed to maintain aid flows economic agenda. Thus, the capacity to cooper- at levels consistent with these commitments. This ate and speak with one voice about some, at least aid pledge should avoid the situation that we had some, of these issues can be a great contribution in the 1990s, when aid budgets were slashed in the to addressing them effectively. We will be working wake of a recession like the one we have today. We towards that end and towards greater coherence in should avoid that at all costs. the coordination of these institutions that have to Second, OECD members have issued a trade do with the economic agenda of the world. pledge, where countries agreed to conclude the We also need to assure that the crisis does not Doha Development Round with an ambitious and distract us from focusing on issues such as the food balanced outcome and to refrain from policies crisis or climate change. Climate change is the most inconsistent with such an endeavour, building on important long-term challenge for mankind. After the G20 and Asia-Pacific Economic Cooperation all, the duration of the recession will be counted in commitments. months, while our climate change policy decisions Third, a pledge to maintain official support for of today will define the shape of the world for dec- trade credits, which have been freezing up at an ades to come. alarming rate and threatening to shut down nor- We, at OECD, are working so that Monterrey, mal trade flows. Accra, Washington, D.C., Doha, Poznan, London, The Monterrey Consensus must remain a La Madalena and Copenhagen become an articu- beacon even at this time of repair and reconstruc- lated, coherent, mutually reinforcing chain of events tion of the global economic and financial system. and decisions leading to a single, simple and clear And as developing countries become increasingly objective: making the world a better place to live.

235 The Doha Review Conference on Financing for Development

The message from this meeting should be that Commonwealth Secretariat we will deliver on the promises made, not move Statement by away from them. Mr. Kamalesh Sharma Secretary-General of the Commonwealth Second, trade can generate the most dura- Secretariat ble ‘financing for development’. It is therefore a sure way to development. Enabling producers in 30 November 2008 poor countries to sell their production can lead to enduring prosperity. Mr. Chairman, Your Excellencies, Ladies and Gen- The message from this Doha meeting of tlemen. It was my honor to be present at the crea- November 2008 must be that the high hopes of tion, as the Chair of the UN-wide Working Group that other Doha process—the trade negotiations which produced the Monterrey Consensus. I have which began in this city in November 2001—must since observed closely the progress made in the last come to fruition. And let us not forget that those six years—some laudable and some not so. other negotiations were to achieve what was called I speak today on behalf of the commonwealth- the Doha Development Agenda. The current WTO an association of 53 member states committed to Round will not be complete without the full devel- consensus, to the fundamental right to develop- opment dividend. ment, and to democracy. The Commonwealth, from its richest to its We meet today at a time of profound change poorest members, has long argued for multilat- and uncertainly in the global economy. This, cou- eral, rule-based trading system under the auspices pled with the unevenness of progress made to date, of the WTO. Our deeds have matched our words: helping small countries to negotiate in the WTO; means that delivering on our Monterrey commit- and giving them practical assistance to complete in ments is now more, not less, important. a more open global trading market. Let me make four observations: This meeting, in being honest to itself, must First, the current financial crisis must not pursue an end to the inconsistency between com- divert us from addressing the continuing develop- mitments made by the international community ment crisis. Nor can this be a matter of ‘either/or’: when it comes to development and the reality when the world must mobile the resources to meet both. it comes to trade. It is an inescapable fact that the financial cri- Third, development must target two groups in sis will put pressure on all sources of financing for particular: women and young people. Women, as development. Developing countries will find capital the half of the population that bears considerable markets harder to access. The value of their com- more than half of its problems—and as the strong- modity exports will fall. They will find that private est single litmus test for the health of any society. sector investment is harder to attract. Income from There remains a significant gender inequality in all remittances will fall, and aid budgets—already areas, whether domestic or external. And young inadequate—will come under greater pressure. people, in that it is they who will inherit this century—not most of us here. And it on them that our But with an exceptional effort to meet commit- hopes for the 21st Century are invested. ments made and generate the resources, the Mil- lennium Development Goals can be met. Failure We have long championed both of these causes, to meet the MDGs would represent a terrible waste with strategy, budgets and programmes to match. of human potential—‘financing for development’ We also believe in a sustained and comprehen- is a means to an end: we are all agreed on the ‘end’; sive plan for promoting youth and women entre- and the primary purpose, which is human devel- preneurship. At this point of the review, it is fair opment and human dignity for all. to conclude that an enormous challenge still lies

236 Statements by Major Stakeholders ahead—first in guaranteeing their rights and basic large sections of the underdeveloped world having needs,, but also in unleashing all of their potential moved up, bringing hope to other regions. But the to benefit themselves and the societies of which expansion of the global zone of prosperity has been they are a part. uneven and the global community is challenged to concerted action to make poverty history not too Fourth, we have all started to see in recent far into the 21st, which century will be fateful in weeks and months, what has been the leitmo‑ defining our human destiny. We must believe that tif of the Modern Commonwealth in all of its 60 we are capable of grasping that opportunity. years. That is, that the challenges which the world presents us—financial, developmental or environ- Coherence between the local, national, and mental—can only be fully met through interna- global levels in the responsibility undertaken for tional cooperation. the twin components of governance and resources—which is at the heart of the Monterrey Consen- That is easier said than done, not least because sus—is pivotal for success. it has become abundantly clear that the current system of international institutions of the 20th century Also pivotal is the understanding that the social is not well suited to supporting countries in our and economic sectors are two sides of the same task in the 21st. This meeting should be an occa- people-centered challenge. The Growth Commis- sion when the international community commits sion recently established that the only common to remedy this through a truly inclusive process. factor between all the dramatically successful developing countries of the last three decades was It was in 2007 that Commonwealth lead- investment by each in health and education, not in ers began to pursue this reform collectively and any of economic policy. actively, setting out earlier this year their agreed principles for such reform: effectiveness, fair rep- We also believe that countries need to equip resentation, responsiveness, transparency, and themselves with skills and a robust level of activity accountability. These are principles which seem among small and medium enterprises; transpar- to be widely acceptable and accepted: indeed they ent and enlightened governance standards; and found a strong echo in the G20 statement issued in responsive institutions, to create the conditions for Washington a fortnight ago. sustainable economic advancement. The key is that the process of reform must Mr. Chairman, let me say in conclusion that the embrace all participants of the global community. key to success in defining the Monterrey Consensus Ways must be found by which the views and sug- when we first forged it, and in renewing our com- gestions of all governments can be brought to the mitment to it now, is partnership. Responsibility for table for consideration. Global reform requires implementation and contribution is shared. This global engagement in which all voices are heard. spirit must endure. The Monterrey Consensus was From this, a new architecture of financial govern- a watershed compact where we undertook collec- ance should emerge which enjoys the confidence tive responsibility to secure our shared future; such of the world’s citizens. If not, the reforms will not a perspective—and this solidarity—must endure. enjoy the legitimacy required to be sustainable. Thank you. Mr. Chairman, since we adopted the Monter- rey Consensus, underdevelopment continues to remain the primary global emergency. In some respects, the emergency has become more acute, with the cumulative crises of environment, food security, energy and finance, as well as the intrac- table situation of some regions. In other respects, there is positive news, with large sections with

237 The Doha Review Conference on Financing for Development

In light of the aforementioned, I would like to Iberoamerican Cooperation recall that official development assistance (ODA) Statement by remains very significant for middle-income coun- Mr. Miguel Hakim Simón tries. We have noted with concern that while over- Secretary for Iberoamerican Coopera- tion, Iberoamerican Secretariat all ODA has increased since Monterrey, the portion for Latin America has stalled at an average of 1 December 2008 $5 billion, falling from 10 per cent to 5 per cent of the total, and this is in spite of the fact that a I would like to begin my statement by conveying number of donors, such as Spain, have doubled to you the greetings of the Iberoamerican Gener- their net contribution. We hope that this global al Secretariat. The issues addressed on this occa- downward trend will be reversed. As was agreed sion are of great relevance to our Secretariat, and I at the conferences in San Salvador and Madrid on would like to start by thanking the Secretary-Gen- this particular issue, it is clear that cooperation eral of the United Nations for his leadership, and with middle-income countries cannot match the the Government of Qatar for its welcome and its cooperation extended to other countries. In these contribution through the magnificent organization cases, ODA should aim at reducing inequality by of this Conference. promoting social cohesion, strengthening institu- The Declaration adopted at the eighteenth tions and supporting those sectors that are most Iberoamerican Summit, held in El Salvador at the dynamic when it comes to contributing to eco- end of October, enshrined the need to achieve the nomic development. Millennium Development Goals and, therefore, We must underscore that Governments have underscored the pressing need to make progress a greater capacity to draw up and manage pro- in financing them. Most of the countries that con- grammes and public policies. It is important that stitute the Iberoamerican Conference are included we do not weaken this capacity through excessive in the group of middle-income countries, even dispersal in the channelling of assistance to one though there is a diversity of situations among this country. In cooperation with these countries, we group with regard to the challenges that we face. can use traditional instruments as well as other We believe that in order to make sustainable more innovative ones. In this regard, I would like development possible, and to reach and go beyond to single out debt swaps for development, such as the Millennium Development Goals, our countries those undertaken by Spain with other Iberoameri- require the following: can countries. First of all, new flows of private investment Another form of cooperation that has still geared towards productive sectors and employ- been underused by donors is triangular coopera- ment-generating sectors; tion, whereby a traditional donor channels finan- Secondly, open international trade which is cial resources through a developing country, which rules-based and also based on multilateral agree- in turn provides human and technical resources to ments. The prompt and appropriate conclusion of a third country. The triangular schemes also sup- the Doha Round would be the best possible contri- port South-South cooperation, a modality which bution to our countries’ development; I would like to refer to in my conclusion, given its importance and relevance in Latin America and in Thirdly, we must mobilize a greater volume other developing regions. of domestic resources aimed at financing national development. To that end, we require sustain- The twenty-three social, economic and cul- able and equitable growth, and a taxation scheme tural programmes that Governments are jointly that will provide sufficient resources in order to undertaking within the context of the Iberoameri- finance robust public policies in key social and can Conference are a good example of this triangu- economic sectors. lar cooperation and South-South cooperation, as

238 Statements by Major Stakeholders all the participating countries contribute towards Asian Development Bank their implementation through their experience and the provision of funds or other resources, thus Statement by Ms. Ursula Schaefer-Preuss enhancing the cross-cutting nature of their design Vice-President for Knowledge Manage- and implementation. ment and Sustainable Development at the The second report of the Iberoamerican Gen- Asian Development Bank eral Secretariat on South-South cooperation in 1 December 2008 the region compiles up to 1,500 actions promoted by Latin American countries working with their neighbours. We should add to this number Mr. President, Excellencies, Distinguished Partici- the actions undertaken with African countries or pants, Ladies and Gentlemen, I am very pleased countries of other regions. Argentina, the Bolivar- to join many development partners here in Doha ian Republic of Venezuela, Brazil, Chile, Colombia, and represent the Asian Development Bank (ADB) Cuba and Mexico are the most active when it comes at this important international event. On behalf to South-South cooperation, although all Latin of ADB, I extend our gratitude to the conference American countries have provided resources and organizers for their efforts. sectors which have proven to be successful. Next At the outset, I would like to join other delega- year, in 2009, we shall address the quantification in tions in conveying our deep-felt condolences to the monetary terms of this form of cooperation, which people and the Government of India on the tragic I am certain already exceeds the amount of ODA incidence in Mumbai last week. received by Latin America and the Caribbean. Mr. President, Ladies and Gentlemen, the The challenges are daunting, but we have the Financing for Development Agenda of the 2002 instruments and, we hope, the will to address Monterrey Consensus was a milestone for galva- them. If the launching of the Doha Round and nizing international action for scaling up and sus- the Monterrey Conference was the international taining commitments for development financing. response to the recession at the end of the past cen- It has helped to facilitate measurable progress on tury and the attacks against the United States, we the Millennium Development Goals (MDGs), and hope that this Conference and the future meetings supported broader socio-economic progress in of the Group of Twenty-Two (G22) will provide an many developing and emerging economies, includ- appropriate response to the current crisis we face, ing the Asia-Pacific region. as well as to violence, such as the violence that we have witnessed in the terrorist attacks in India. I Despite the achievements, we also believe that would like to conclude by expressing the solidarity further assessments on the progress, constraints, of the Iberoamerican General Secretariat with the and opportunities of the Monterrey Consensus are people and Government of India. needed. It is particularly important for our region— as we have recently faced the impacts of the financial crisis, food price crisis, and impacts of climate change. We believe that unless an appropriate set of actions are taken, the Asia-Pacific region can face a reversal of the recent socioeconomic gains for many of its poorest citizens. As the fastest growing region in the world, Asia and the Pacific has made considerable progress towards meeting the Millennium Development Goals (MDGs). During the last two decades, hundreds of millions of people have been lifted out of

239 The Doha Review Conference on Financing for Development

extreme poverty. The level of child mortality has The three main, strategic agenda for Strategy 2020 decreased, and access to primary education has are: inclusive growth, environmentally sustainable increased—although significant gender inequality growth, and regional integration. Based on Strat‑ continues to exist. egy 2020, we are taking the following actions on the challenges as discussed above: Yet, with only seven years left before the MDG 2015 target date, significant challenges persist. First, to support the region through the finan- These include disturbing levels of maternal - mor cial crisis, ADB takes specific steps, including the tality, low coverage of water and sanitation, the loss continued support for financial intermediation and of forest cover, and the serious implications for cli- institutions. ADB has also proposed the creation of mate change, and weaknesses in systems for social an Asian Financial Stability Dialogue to allow the protection. Moreover, many women continue to governments to coordinate responses and develop face discrimination in their homes and communi- early-warning and monitoring systems; ties and often suffer harsh working conditions. Second, to address the food price crisis, ADB The Asia-Pacific region is critical for the glo- is providing up to $500 million in immediate bal achievements of the MDGs—it remains to be budgetary support to strengthen safety net pro- home to more of the world’s poorest than any oth- grams through cash transfers, food-for-work, food er region on earth, with many countries suffering stamps, and school feeding schemes. To address the detrimental effects of persistent conflicts and long-term structural factors, ADB’s lending for major natural disasters. agriculture and rural development will rise to more than US$2 billion in 2009; Currently, the region’s development challenges are compounded the recent financial crisis, com- Finally, to assist the region for a more sustain- modity price crisis, as well as impacts of climate able development, ADB is supporting the region in change. Although the effect of the current financial both mitigation and adaptation, including enhance- crisis is not yet fully known, we expect that it will ment of clean energy, energy efficiency, and reduc- have significant consequences to the poor people tion in greenhouse gas emissions. Various adapta- in the region. Its impact on the unemployment and tion measures, including those related to health the governments’ expenditures on social programs and natural disasters, will also be supported. is a cause for grave concerns. Although we are fully committed to undertake A study of the relationship between growth these actions, we also have to ensure that our activi- and poverty by ADB, UNDP and UNESCAP esti- ties will be based on enhanced partnerships and mates that for every 1 percent reduction in annual additional resources. On partnerships, we recognize per capita income growth in the region, about 35 that for Asia and the Pacific, the greatest amount of million people who would have been freed from financing for economic growth and social develop- poverty will remain mired in it. Our concern on ment is sourced from within the region. Govern- the impact of the financial crisis is heightened by ments, private sector, and local civil society draw the fact it is quickly following the recent histori- upon their own resources and invest actively in the cal rise in food and fuel prices. At the same time, future well-being of their region and citizens. ADB the impacts of the natural disasters and climate has imbedded this approach to mobilizing and allo- change, especially on people’s health, place another cating development finance in its own corporate significant burden on our development. strategy. Our efforts will also include private capital flow, and to facilitate this, the share of ADB’s annual The above challenges are indeed daunting operations for private sector development will aim for the world and the Asia-Pacific region. That is for a target of 50% by the year 2020. why ADB’s corporate vision under its new long- term strategy, Strategy 2020, will continue to be For resource requirements, in May this year, we “An Asian and Pacific Region Free of Poverty”. have completed the US$11.3 billion replenishment

240 Statements by Major Stakeholders of our Asian Development Fund (ADF), ADB’s of the State of Qatar, President of the Conference, concessional leading window, to help ADB sustain may God preserve him, and to the Government and its support to the poorest countries, in the form of dear people of Qatar, for their generous hosting of both concessional loans and grants. In addition, we this important event. Qatar continues to sponsor need to ensure that the many low and other mid- and to host several initiatives relating to the most dle-incomes countries in the region that do not urgent international issues. borrow from ADF are also supported. We are now The statement of His Highness, the Emir, discussing a general capital increase (GCI) with before this Conference has stressed the relation- our shareholders. A timely conclusion on the GCI ship between stability and security, on the one will allow ADB to support accelerated investments hand, and economic development, on the other, in developing Asia’s emerging economies to deal and has also emphasized the relationship between decisively with many of the investment-intensive the current world financial crisis and the deficien- challenges of the region. cies and problems of development. But develop- Mr. President, Ladies and Gentlemen, the ment, as His Highness has said, cannot be summa- developing Asia-Pacific region is playing a larger rized by its financial dimensions alone. Financing role in the global economy and will continue to do is one incentive that motivates development but so—provided�� that it continues to receive the sup- does not create it. port that has helped generate its past achievements. The convening of this Conference comes cru- ADB remains confident that our development cially at an appropriate historical juncture, follow- partners, through the GCI and other efforts, will ing the international financial crisis which threatens continue to provide us with the resources to help the economy of most countries, rich and poor alike, make that success possible—both in the immedi- and could be a setback to the Millennium Develop- ate future and for many years to come. Thank you ment Goals, making them more difficult to realize. very much and we look forward to the successful outcome of this Conference. The reconsideration and review of the Monter- rey Consensus during this Conference is an opportunity to avoid the dangers and repercussions of the current financial crisis and to save the time Gulf Cooperation Council frame to implement the Millennium Development Statement by Goals, especially regarding the mobilization of the His Excellency financial resources for development. Mr. Abdullah Salim Bin Hamad Al-Harthy Permanent Observer to the United Several joint international efforts have been Nations of the Gulf Cooperation Council made to discuss the financial crisis and to seek to avert their repercussions and impact on developing 1 December 2008 nations. The last of these was the high-level meeting that was held at Doha on 28 November 2008, On behalf of His Excellency, Mr. Abdulrahman and was chaired by His Highness Sheikh Hamad bin Hamad Al-Attiyah, the Secretary-General of bin Khalifa Al-Thani, Emir of the State of Qatar, the Gulf Cooperation Council, it is my honour and the President of this Conference. to deliver this statement for the member States of There appeared elements of an international the Gulf Cooperation Council to the Follow-up consensus to limit the effects of this crisis on the International Conference on Financing for Devel- ability of developing nations to realize the Millen- opment to Review the Implementation of the nium Development Goals, which can be summa- Monterrey Consensus. rized in the following points: Allow me to express my thanks to His High- • The need to continue the implementation ness Sheikh Hamad bin Khalifa Al-Thani, the Emir of the Monterrey commitments, despite the

241 The Doha Review Conference on Financing for Development

international financial crisis by strengthening for development to the degree commensurate either the self-capabilities of developing nations with their abilities. And it is our hope that those or international cooperation in order to realize countries will act like the countries of the Gulf the Millennium Development Goals; State Council and fulfil their commitments to the • To reform the international financial insti- Monterrey Consensus. tutions, such as the International Monetary I wish to thank you for your Follow-up. May Fund and the World Bank, and to give a bigger peace and God’s blessings be upon all of you. role to the developing countries and emerging economies in managing their money strength and their capabilities to realize transparency in financial transactions; International Development • To strengthen the monitoring of money mar- Law Organization kets, while preserving the flows of foreign Statement by direct investment to developing nations; Mr. William T. Loris Director-General of the International • To emphasize that free trade must remain free Development Law Organization and to steer away from the politics of protectionism; to maintain the balance between the 1 December 2008 freedom of the market and private initiative; and to determine the role of the State in realizing the stability of markets. At the outset, I would like to express my sincere appreciation to the Emir of Qatar, His Highness It is now more urgent than at any other time Sheikh Hamad bin Khalifa Al-Thani, for hosting this to continue providing other development assist- important Conference and for the excellent arrange- ance to poor countries to enable them to realize ments that have been accorded to my delegation, the Millennium Development Goals. The member and I must say to all of the other delegations here. States of the Gulf Cooperation Council have fulfilled their commitments to the Monterrey Con- Mr. President, I rise in support of the compel- sensus as it provides more than 0.7 per cent of its ling reaffirmation of the Monterrey Consensus here gross national income in the form of development in Doha and to urge the international community assistance, distributed to more than 100 develop- to continue and enhance support of development ing countries. This assistance includes the develop- initiatives focused on strengthening the rule of law. ment of infrastructure and human resources, and The International Development Law Organization’s also helps recipient States to develop their industri- work and the efforts of other organizations engaged al and agricultural sectors and to provide employ- in rule of law and work must remain a priority. ment and a dignified living for their peoples. The establishment and progressive develop- In conclusion, allow me to state here, from this ment of the rule of law should be the center of our forum, that we reaffirm the position of the Gulf collective agenda. Strengthening the rules-based Cooperation Council, which is in consonance with multilateral trading system, enhancing the domes- the vision of His Highness Sheikh Hamad bin Kha- tic enabling environment for private sector invest- lifa Al-Thani, Emir of the State of Qatar, President ment, dealing with the scourge of corruption, of this Conference, and the current Chairman of working for the legal empowerment of the poor, the Gulf Cooperation Council. His Highness said and supporting reform and good governance in that development is an umbrella of peace that domestic institutions are key elements of this very protects each and every one. He has called on the complex agenda. They are formalized in the IDLO developed countries to translate their words into mission and are crucial to meeting the internation- deeds, and to contribute the necessary assistance ally-agreed development goals.

242 Statements by Major Stakeholders

Building the rule of law is even more impor- deserve further study. We also see the critical value tant as developing countries face the consequences that South-South forms of cooperation play in the of slower growth and increasing unemployment. development process. In good times, the rule of law is an enabling force International organizations offer a natural fora which creates the conditions for growth and social for convening diverse communities of practice development. In hard times, it is a stabilizing force on different legal and governance reform themes. which creates conditions for fair allocation of scarce Building on its 25 years of experience in working resources and just treatment of the disempowered. with lawyers, judges, regulators, and civil society Our experience in assisting developing coun- in more than 175 countries, IDLO is now chan- tries achieve their development ambitions in the neling its energies into strengthening and sustain- legal and judicial sector has convinced us that the ing trans-national professional networks and com- Accra Agenda for Action, with its strong endorse- munities of practice rooted in the global South. ment of nationally-owned development strategies, In the same spirit, IDLO ensures that its work provides the right basis for effective development is guided by the specific development objectives assistance in this sector. This is so on both on prac- of the countries which it seeks to serve. Middle- tical and normative grounds. income countries need assistance designed to foster It is practically sound because legal reform will increasing levels of opportunity and they, in turn, not happen without strong domestic ownership. can be an invaluable sources of advice for countries The international community can catalyze domestic seeking to make the breakthroughs which will per- legal and governance reform but it cannot drive it. mit them to advance beyond current constraints. National ownership is right on normative Experimenting with new forms of South-South grounds because law and governance are consti- cooperation is especially important in post-conflict tutive elements of a polity. National constituen- settings where having role models for success can cies must generate legal and governance reform. build political support and hope for change. Anything less will be unsustainable and possibly In seeking to achieve conditions for econom- counterproductive. ic resilience in developing countries, there is an Our reflection on the dynamics and mecha- important lesson to be drawn from recent experi- nisms that catalyze legal and institutional change ence. Analysis of the causes of economic crisis of has led IDLO to view its role as a multilateral insti- the advanced countries have faced in recent months tution as fundamentally enabling in nature. The has confirmed the centrality of the rule of law and four-year Strategic Plan approved by the IDLO good governance to economic stability. Failures in member states assembly at our annual meeting law and regulation lie at the heart of explanations in Rome last week gives practical meaning to this of this current crisis. notion. We have come to see legal and institutional IDLO believes that full implementation of change as long term, iterative, and non-linear. the Monterrey Consensus and the guidelines for For the purposes of this forum, it is essential follow-up which are emerging at this Conference to recognize that investment in justice requires a in Doha can create a durable and effective inter- long-term commitment. national partnership to fight poverty and advance development. But that partnership can only meet We believe that multilateral institutions play its full promise if we stay the long course required a key role in providing technical expertise but at to build governing systems which guarantee, at a the same time believe that none of us can claim minimum, that each individual can live free of fear a monopoly on such expertise. One need only and in dignity under the rule of law. Thank you. reflect on the substantial progress realized in many emerging economies today to realize that there are substantial development success stories that

243 The Doha Review Conference on Financing for Development

United Nations Commission Fifteen years after the adoption of the Standard Rules and the success in adopting an International for Social Development Convention on the Rights of Persons with Disabili- Statement by ties at the end of 2006, we still see that persons with Ms. Sheikha Hissa Khalifa Al-Thani disabilities around the world are suffering from Special Rapporteur on Disability of the discrimination and marginalization. Commission for Social Development Through my own work as Special Rapporteur 1 December 2008 to the United Nations on Disability during the past 6 years and which included a Global Survey on the measures taken by governments to ensure In the Name of God the Merciful, the Compas- equalization of opportunities; and country visits to sionate, Mr. President, Distinguished Delegates, assess that implementation on the ground; as well Distinguished Participants, I would like to thank as meetings with disability organizations in more you for allowing me to speak on behalf of more than 30 countries, the one major obstacle been the than 600 million persons with disabilities who lack of funding for the improvement of the situa- still suffer from the worst form of discrimination tion of persons with disabilities—especially when and abject poverty. it comes to basic rights such as medical care, edu- The adoption by the United Nations of the cation, employment and rehabilitation. World Programme for Action on Disability in 1982 Mr. Chairman, Distinguished Participants, represented a turning point in history in terms of the most important measure that the world’s civil the international concern for disability. Since that and governmental organizations can take in mov- date, disability has become an issue of discussion ing towards the fulfillment of their commitment for all societies. to the Equalization of Opportunities for Persons This concern became even more pronounced with Disabilities initiative on and to the ratifica- as the the United Nations adopted the Standard tion of the Convention on the Rights of Persons Rules for the Equalization of Opportunities for with Disabilities is to activate the principle of Persons with Disabilities in unprecedented una- international responsibility and to re-invigorate nimity, as an expression of moral commitment on international cooperation. the part of all This means channeling appropriate technical nations to work towards improving the condi- and financial support and resources to programs, tions and quality of life of persons with disabilities projects, and activities aimed at the empowerment in terms of their standing, their role and socie- of persons with disabilities, to enable them to enjoy ties’ perception on them, their rights and their full and exercise their rights to full participation, to participation; in addition to their medical care, support their independence and self-sufficiency, to rehabilitation, and assistive devices. It was also a build their capacities, to remove all obstacles and commitment to their right to accessibility, educa- barriers that hinder their full participation. tion, employment, dignity and family life…etc. All In reviewing the commitments made by Gov- of these commitments placed upon governments ernments since the Monterrey meeting in 2002 an obligation to implement measures and proce- and the measures implemented in accordance dures to allow the full and equal participation as all with those commitments, steps need to be taken members of society. to include financing programs aimed at meeting These commitments prompted most of world’s the civil and developmental rights of persons with regions to adopt Disability Decades in order to disabilities. Such measures would go a long way adopt, channel and implement policies towards in reducing the suffering of 650 million persons meeting the needs and rights of persons with with disabilities around the world and their fami- disabilities. lies-that often bear the sole responsibility for their

244 Statements by Major Stakeholders care with little help from civil and governmental Civil Society Forum organizations whose purpose is to provide support, protection, and services. Statement by Ms. Gemma Adaba I would like to remind the Governments gath- Representative of the International ered here today of the consensus they reached in their Trade Union Confederation to the Monterrey gathering in 2002, which stated that the United Nations only way to move into the 21st century in a healthy 29 November 2008 way and to advance into the fully inclusive and equitable global system is through a commitment We, the members of the 250 civil society organiza- to eradicate poverty, achieve sustainable economic tions and networks from around the world, have growth, and promote sustainable development. gathered here in Doha, Qatar, for a Civil Society Allow me to point out to this gathering here Forum, which was held from 26 to 27 November, that comprehensive social justice and sustainable just before this Conference. The theme was “Invest- development cannot be achieved if we overlook a ing in people-centered development”. We reviewed segment of the world population which represents the implementation of the Monterrey Consensus, the poorest of the poor; who are the least repre- discussed pressing new challenges and debated sented in the labor market; the most exploited; and possibilities for innovative financing. We are grate- who live in environments and under conditions ful for this opportunity to present a brief summary that are the farthest possible from sustainability. of our deliberations to you today. A more detailed document, our Civil Society Declaration, has been It is time to bridge the gap between what we made available to you. We urge you to listen and say and what we do—between our rhetoric and take full account of the voices and key recommen- our actions. It is time that we place our resources dations of civil society in your discussions, conclu- in the service of the goals that we have stated as sions and follow-up actions. our priorities. Today, the world is consumed by an urgent series It is not possible that we should draft, sign, rat- of crises—energy, food, climate and finance—that ify, and commit to agreements, treaties, and agree- not only threaten the realization of the Millennium ments; use their rhetoric in our political speeches Development Goals and the lives and livelihoods of and manifestos without matching those words to hundreds of millions of people in the North and the policies and programs; procedures and measures South, but also the stability of the world’s econo- that need to be implemented on the ground. mies. The Northern Governments and financial I appeal to you today to incorporate the issues system are responsible for the current crisis, but of sustainable development to a segment of the the costs and the impacts are paid for by the entire population that is considered the poorest of the world and by the poorest countries, in particular. poor in the world—including their families and In recent years, the world has witnessed a sub- communities. There is no way that we can speak stantial and growing transfer of capital from the about efficient financing for development while at global South to the North through, among other the same time marginalizing more than 600 mil- things, tax evasion facilitated by tax havens, debt lion people and depriving them from receiving servicing and unfavourable terms of trade. Taking much needed financial support. Thank you very into account all financial sources, there is a net much. May the Peace of God be upon you. capital flow of hundreds of billions of dollars per year going from the South to the North. This is a scandalous reverse welfare in which the poorest countries are financing the richest. Trade negotiations have reached a stalemate. Most Northern countries are falling far short of meeting their

245 The Doha Review Conference on Financing for Development

commitments. Persistent gender inequalities Fund and the World Bank reveals their disregard reflect, and are related to, all these structural imbal- for an inclusive process that links the critical areas ances in the global economy. Thus, it is urgent to of development and finance. include a gender perspective in all policies and at We are convinced that the United Nations all levels, in all sectors. and the financing for development process are the Overcoming these crises requires decisive key to reaching enduring solutions to the mul- action and leadership from the global community. tiple human crises we have outlined. We call on To date, however, such leadership has been sorely Governments to agree to a strong financing for lacking. The swift and massive response of the Gov- development follow-up process. This should pro- ernments of the richest countries to bail out banks vide for a new institutional mechanism within and private financial institutions with more than the legitimate framework of the United Nations, $3 trillion of public guarantees and funds stands in which ensures full respect for all aspects of the stark contrast to their failure to respond decisively internationally agreed development goals and to the unabated crisis of poverty and marginaliza- brings together all institutional stakeholders, not tion that has afflicted the majority of peoples of only the international financial institutions and the world. So far, the international community has the World Trade Organization, but also the World proven incapable of raising sums of money to tack- Health Organization and the United Nations and le the human crisis, even though these are in the its specialized agencies, such as the International range of a few percentage points of the enormous Labor Organization, the United Nations Develop- capital dished out to save financial institutions. ment Programme and the United Nations Devel- In addition, 12 years of debt relief initiatives opment Fund for Women, as well as civil society. have generated only slightly more than $100 bil- We reviewed all the chapters of the Monterrey lion in debts cancelled. Working people, particu- Consensus and we make a number of key recom- larly women, are being forced to pay the bill for mendations which we commend for the consid- a system founded on the concentration of wealth eration of all delegates in your deliberations. In and economic control in the hands of a few and the conclusion, we wish to say that in the face of the continuing and deepening impoverishment of the multiple crises, we urge Governments to take the majority. The commitments made by the Group side of women and men workers, farmers, youth of Twenty (G20) Governments two weeks ago in and children to promote environmental sustain- Washington, D.C., to strengthen regulation and ability by taking an alternative economic path. oversight will not be sufficient. We, 250 national and international civil soci- Moreover, we are deeply concerned to see the ety networks, representing millions of people G20 process give a central role to failed global from around the world, therefore call for change financial and trade and institutions, such as the in Doha that puts effective development, poverty International Monetary Fund, the World Bank and eradication, human rights, gender equality, decent the World Trade Organization. In the last 30 years, work and environmental sustainability at the fore- these institutions have pushed for increased capital front of the discourse, the policies and the search flows and market liberalization. They are responsi- for enduring solutions. ble for the current situation and they lack the legitimacy and the credibility to be part of the solution. We observe that instead of engaging in a high- level comprehensive debate on financing for development at this United Nations Review Conference, most countries from the North have opted not to participate at the Head of State level, and the absence of the heads of the International Monetary

246 Statements by Major Stakeholders

to implement them and possible next steps, defin- Business Sector Forum ing the financing for development road map that Statement by we must implement over the short and long term. Ms. Louise Kantrow Permanent Representative of the Inter- Particular attention was paid on how to enhance national Chamber of Commerce to the national cooperation among government, business United Nations and Chairperson of the sector and civil society organizations to address Business Sector Steering Committee integrated solutions for the many challenges today which require urgent action. In addition, three 29 November 2008 tools for financing for development were launched for the use of Governments of developing countries We join others in conveying our sympathy and and development agencies to increase their abil- support to the people of India during this difficult ity to collaborate effectively with the private sec- period. On behalf of the Business Sector Steering tor. Entrepreneurship was recognized as the core Committee, it gives me great pleasure to address driver for development, notably in the small- and you this afternoon. Our Committee was set up by medium-enterprise high finance sector and in the the Financing for Development Office of the Unit- trade sector. Greening the economy is also offered Nations Department of Economic and Social ing new opportunities. In addition, the youth must Affairs to coordinate and provide ongoing private become more involved as well. sector inputs to the financing for development Business is deeply committed to supporting process. This has included participation at high- the implementation of the Monterrey Consensus, level events of the Economic and Social Coun- given the critical importance of the breakthroughs cil, business hearings and review sessions during achieved by the United Nations and its Member the entire lead-up to this Follow-up International States. We believe that the Monterrey Consensus Conference on Financing for Development. is an historic United Nations achievement of huge It is clear that the Financing for Development proportions, provided we can act together to realize Office has embraced a multi-stakeholder approach, its objectives and set into motion the agreed-upon and the private sector is a full partner. Our delega- action plans. As a result of Governments worldwide tion to the Conference numbers over 200 and has committing to specific actions, the United Nations representatives from every region of the world and and its Member States have brought the citizens of from the full range of business sectors. The second the world the promise of government commitment International Business Forum on Financing for to specific actions for financing development, pro- Development was held yesterday. Its theme was viding it with a concrete foundation for advancing “The Impact of the Financial Crisis and Proposed our shared goals of global prosperity and peace. Roadmaps: Mobilizing Private Sector Resources for However, the global financial crisis threatens Development”. It was attended by more than 200 the well-being of citizens worldwide. The collapse participants from the private sector, country del- of credit markets since September presents a sud- egations and international financial institutions. den and drastic change in the global economic out- The Forum set forth specific proposals and look just since the last discussion of the Monterrey opened discussion on the current financial crisis, Consensus at meetings held by the Financing for the ongoing challenges facing Governments of Development Office in June in New York. There is developing countries and private sector companies a strong possibility of a decline in official develop- in accessing long-term affordable finance, and next ment assistance and a predictable rise in protection- steps for improving economic growth, job creation, ism, which impedes progress in increasing trade environmental stewardship and poverty reduction. and investment. A prolonged worldwide reces- Four sessions on specific issues provided action- sion will inflict grave damage on the economies able proposals, followed by discussions on options of all developing countries, contribute towards the

247 The Doha Review Conference on Financing for Development

escalation of serious poverty and seriously impede foundations. The process would include identify- the achievement of the range of the development ing and sharing challenges and impediments, suc- agendas set by the United Nations, especially the cess stories and failures and possible solutions and Millennium Development Goals. tools for advancing aid effectiveness. Given the enormity of the financial crisis International cooperation on a global scale is facing political and business leaders, a success- essential to build a consensus on what needs to be ful Doha outcome document is critical. We need done to reduce the potential depth and duration of to forge the political consensus and partnership a global slowdown and to ensure coherence among to deal with the crisis and set the framework for the national policy responses. A vital element in long-term financing for development follow-up. that consensus will be for countries to resist any As we face unchartered waters and adversity, we temptation to isolate themselves from the global need to show the world and its citizens that its crisis through protectionist measures. political leaders can work together in addressing The Group of Twenty (G20) response to the the most challenging financial crisis of our time. drastic change in economic circumstances includes We need the United Nations to be strong and the priority to shore up the two most important effective, setting a framework with financing for pillars of financing for development: trade and development follow-up that can help us to turn investment. Trade, that is to say, export earnings, our political commitments into concrete actions is by far the largest source of funding flowing to with effective development results across the full developing countries. Foreign direct investment range of developing countries. is the second largest source. Both sources are sig- To deal effectively with the financial crisis, a nificantly more important for development than systematic process needs to be established that official development assistance. We join others in enables immediate open exchange between pub- strongly advocating an urgent return to the Doha lic and private sector experts on how to ensure a Round of trade negotiations. stable global financial system. There needs to be At Monterrey, commitments were made. Since a defined long-term financing for development 2002, it could be said that we have not done enough follow-up process, with results-oriented, opera- to reach its goals and imperatives. However, what tional technical exchanges on a decentralized lev- we saw at yesterday’s International Business Forum el, involving experts from the public and private on Financing for Development was the outstand- sectors, aimed at developing road maps, tools and ing potential of what we can achieve. Private sector performance benchmarks. representatives made a clear reaffirmation of staying The financing for development follow-up proc- engaged. As called for in the Monterrey Consensus, ess needs to be in alignment with the Accra Agenda financing for development must deliver as one, and for Action on Aid Effectiveness by strengthening it is important to recognize the United Nations as country ownership, building effective and inclusive the global venue to coordinate multistakeholders, partnerships and achieving development results. the Bretton Woods institutions, the World Trade Global and regional financing for development Organization and others, to ensure the consistency meetings can be organized by the Financing for and coherence of the array of international agen- Development Office and other multi-stakeholders, das related to financing for development. including the private sectors. Pilot financing for Even under this uncertain economic outlook, development countries and regions could be desig- the business sector is committed to adhering to nated. A key focus needs to be developing and scal- its core values, increasing investment, creating ing up effective mechanisms, programmes, policies employment and expanding industries in devel- and tools that leverage limited official resources, oping countries. The business sector, we firmly including those in development agencies, by har- believe, remains a critical partner to restore con- nessing resources from the private sector and fidence in the world economy and promote the

248 Statements by Major Stakeholders rigorous implementation of the Monterrey Con- course, approve funding for official development sensus, with concrete and practical instruments, assistance (ODA). The IPU is assisting a growing ideas and resources. The Business Sector Steering number of parliaments to do this more systemati- Committee for the Financing for Development is cally and in greater depth. Parliament also scruti- offering its continued active participation in the nizes implementation of the budget and, more gen- follow-up of Doha. erally, the functioning of public administration. All of this is to say that parliaments must be part of your deliberations and finalization of the Parliamentary Hearing outcome document. Parliaments are essential for Statement by providing national ownership of development pol- Dr. Theo-Ben Gurirab icies. They are equally indispensable in improving Speaker of the National Assembly of good governance. I hope that this dual responsibil- Namibia and President of the Inter-Par- ity of parliament will be acknowledged in the out- liamentary Union come document. on behalf of the IPU Yesterday, members of parliament met here in 29 November 2008 Doha to review preparations that you have made for this important Conference. You will appreciate that The Indian Government and people enjoin our one of their major concerns was the impact that the sympathy and condolences. We condemn terror- current financial crisis may have on the outcome of ism totally. this Conference and, more generally, on the global community’s efforts to advance development. I am pleased to address the Follow-up Interna- tional Conference on Financing for Development The IPU shares these concerns. Last month, on behalf of the Inter-Parliamentary Union (IPU). our members debated the financial crisis and asked Ensuring that financing is available for develop- parliaments everywhere to take urgent action ment and, in particular, for the attainment of the to address the systemic issues underlying it and Millennium Development Goals, to which I am so mitigate its effects. The IPU will convene a - glo bal parliamentary conference at the beginning of closely attached, requires a collective effort. Parlia- next year to look more deeply into this crisis and ment must be a central part of that effort. It is rep- to make proposals to the international community resentative of society in all its diversity. It is the nat- for future action. ural and legitimate place where national consensus can be built around a country’s development poli- In this context, IPU supports a call by emerg- cies and social needs. ing markets and developing countries for a new Bretton Woods conference to establish a new and Many parliaments today offer useful platforms more globally just kind of international bank- for public hearings and debates on national devel- ing and financial system. I very much hope that opment policies that allow for input from civil soci- your Conference will send a strong message for ety, local authorities, academia, opinion makers the need to forge a better balance between market and the media in those initiatives. The result, when forces and human security. We need to manage our managed well, is a national development plan that economies more proactively with a much stronger is properly owned by the people. Democracy and focus on creating employment and gender balance. government which is accountable are key for this We must change our consumption and produc- to happen, thereby ensuring human security. tion patterns in ways that support the environment The power of the purse is vested in parliament. instead of destroying it. And we need to start for- It is parliament that adopts the national budget. mulating proposals for reforming the international Parliaments increasingly scrutinize the use made financial institutions and making the multilateral by international development assistance and, of framework more effective.

249 The Doha Review Conference on Financing for Development

But most of all, this Conference will want to We need to shift the agenda to address grow- send a strong message from Doha that we will not ing inequality and environmental sustainability. In allow this crisis to divert resources from the Mil- our view, far too much attention has been given to lennium Development Goals and from the many supporting development in the aggregate, particu- other commitments that are part of the Monter- larly by boosting economic growth, and too little to rey Consensus. extending the benefits of development to the poor The Inter-Parliamentary Union has been and the most vulnerable. In short, we place people actively involved in the financing for development at the centre of development. process from the very beginning, and we have In conclusion, democracy, peace, cooperation worked to implement the Monterrey Consensus and development are our common commitments at various stages. The IPU has created a process towards a better world of enlightened human val- to bring parliaments closer to the international ues and mutual support. The Inter-Parliamentary trade negotiations and to build political support in Union and its constituent parliaments are indis- parliaments for a trade agreement that is inclusive pensable partners in pursuit of that better world of and supportive of sustainable social development. justice and equality, a world of new multilateralism We have also promoted the alternative sources of and prosperity for all. Yes, we are much stronger, financing for development and debt relief. Like- as one of the presidents said this morning, acting wise, we campaign for greater ODA, as well as for together as partners. Often in the past, world cri- joint venture partnerships that benefit all. ses like the current one provided new thinking and Democracy, transparent government and the impetus for decisive action, which brought about rule of law are at the core of the Monterrey Con- a difference in human condition. Let us hope that sensus. It is all this that the IPU is pleading for. will be the same here in Doha. It works to assist many parliaments, particularly those in countries that are emerging from conflict, to build their capacity and human resources. We believe that this will, in turn, improve the quality of decision-making in all spheres of policy and, therefore, also development. Indeed, today’s financial crisis could be tomorrow’s human tragedy. Functioning parliaments and informed decision-making require the participation of women in political power-sharing and mainstreaming of gender issues. We must also make greater and faster headway in adopting gender-sensitive budgets. The IPU is assisting national parliaments in examining budgets from a gender perspective and promoting ongoing consultations. Some of these concerns and proposals are reflected in the Parliamentary Message which the IPU is addressing to this Conference, and I encourage you to be guided by its recommendations. The document has been circulated to the participants. In particular, I would like to draw your attention to the need to target the financial development agenda more explicitly to the people and their present and future needs.

250 Chapter 6 Closing Summit Plenary Session

Qatar At the World Education Forum held in Dakar, Senegal, in April 2000, over 160 Governments Closing Statement by committed themselves to achieving six goals, and His Excellency to significantly expand learning opportunities for Mr. Nassir Abdelaziz Al-Nasser children by 2015. At the United Nations High-level Permanent Representative of the State of event on the Millennium Development Goals, held Qatar to the United Nations in New York in September this year, the interna- 2 December 2008 tional community reaffirmed its commitment to achieving the education and health Goals. Howev- er, the 2009 Education for All Global Monitoring Mr. Chairman, at the outset, I would like to thank Report sends a clear message that without decisive you for this opportunity to present the Doha State- action being taken many countries will fall short ment on Financing Education in Conflict-Affected of attaining these Goals. Given current trends, if Areas, which reflects the high-level discussions urgent action is not taken, it is estimated that 20 held under the auspices of Her Highness Sheikha million children will still be out of school in 2015. Mozah bint Nasser Al-Missned, the wife of our Emir, in cooperation with the United Nations Edu- Deeply entrenched inequalities are undermin- cational, Scientific and Cultural Organization, on ing progress in a large number of countries, particularly those in, or emerging from, conflict. Educa- the occasion of the Follow-up International Con- tion is a fundamental human right and one of the ference on Financing for Development to Review most effective means for enabling people to escape the Implementation of the Monterrey Consensus. poverty and build sustainable livelihoods. It car- On 30 November, this gathering started ries high social returns, in particular, for girls and the above-mentioned discussions, in which the women. Education has a significant and endur- Secretary-General, Mr. Ban Ki-moon, and the ing impact on social and economic development, President of the General Assembly, Mr. Miguel and is a key instrument for eradicating poverty d’Escoto Brockmann, also participated, as well as and achieving all the Millennium Development high-level representatives from non-governmen- Goals. In the context of emerging global crises, it is tal organizations and from civil society. The Doha a moral imperative that Governments and donors Statement on Financing Education also reflects keep their promises in order to maintain the recent the deliberations at the high-level discussions on gains made in education and to achieve the Goals financing for development. by 2015. Education is vital, and priority should be The Doha Review Conference on Financing for Development

given to providing and protecting it in conflict, Conflict-Affected Areas will improve the outcome post-conflict and transnational situations. of the Review Conference of the Monterrey Con- Contrary to humanitarian and international sensus, and that it will contribute to the thematic law, educational institutions, including their stu- debate on education in times of emergencies and dents and staff, are increasingly at risk of violent crisis, which the President of the General Assem- attack, despite their role as centres of protection bly decided to convene next year. and learning. The right to education must be respected by all parties in conflict. Without the stability that education provides, children can be Russian Federation left in immediate danger of exploitation or harm. Statement by They can become subject to abduction, sexual- and Representative of the Russian Federation gender-based violence and recruitment as child Right of reply* soldiers. Moreover, disillusioned children can be attracted to radical groups or causes. 2 December 2008 We recognize that in conflict-affected areas the humanitarian aid response should be adapted to Our delegation was not planning to speak at today’s the context of each specific situation. This involves plenary meeting, which is to adopt the outcome using more flexible, rapid, timely and innovative document of the Conference. However, having response mechanisms. These should be used for listened to the statement made by Mr. Saakashvili, both short- and long-term interventions, even if and his unjustified statements about Russia, we it involves a degree of risk taking. Not ensuring were compelled to make this right of reply. We are quality education for all will have serious implica- perplexed that the rostrum of this global forum on tions for future generations. There is also a need for such an important problem as financing for devel- evidence-based research in this field to understand the human, social and economic risks of popula- opment—which has become particularly acute in tions currently without quality education. this crisis—was used for these unseemly political insinuations. Moreover, the world community has On behalf of the State of Qatar, and of all no doubt that it was precisely Georgia that attacked those who took part in the high-level discussions Southern Ossetia in August of this year, which led on financing for education in all areas affected by to the destruction of many human lives and to a conflict, we call on the Secretary-General and the humanitarian catastrophe in Southern Ossetia. President of the General Assembly to circulate Our delegation thinks that it is unacceptable to use the Doha Statement as an official working document of the Doha Follow-up International Con- the rostrum of the Doha Conference on Financing ference on Financing for Development to Review for Development for political purposes and for the the Implementation of the Monterrey Consen- distortion of the real facts. Thank you, sir. sus. As members of this meeting, we commit to positive action to urge donors and Governments from around the world to increase funding for, and effective implementation of, Education for All and Education in Conflict-Affected Areas. We recommend that this Statement be forward- ed from Doha to the meeting of the High-level Group on Education for All, to be held in Oslo, Norway, from 16 to 18 December this year.

Mr. Chairman, the State of Qatar hopes that * Right of reply to the statement by Georgia, chapter 3, the Doha Statement on Financing Education in page 61.

252 Closing Summit Plenary Session

developing countries alike, its greatest impact will Qatar be on those least able to bear it, namely, those who Closing Statement by lead a precarious existence with little margin to His Highness meet the rapid rise in food and energy costs and Mr. Sheikh Hamad bin Khalifa Al-Thani who are the most dependent on official aid flows. Emir of the State of Qatar and President of the Follow-up International Con- Well, we must take steps to protect and improve the ference on Financing for Development operation of the financial system. We must not for- to Review the Implementation of the get that it is the poorest that deserve our first con- Monterrey Consensus cern and protection against the impact of a crisis. In this regard, we reiterate our pledge in the Monterrey 2 December 2008 Consensus and the 2005 World Summit Outcome to maintain our commitment to official development The State of Qatar and the President of the Gen- assistance (ODA) and action to ensure that the least eral Assembly of the United Nations have agreed developed countries are not subject to unsustain- to adopt a joint statement. In keeping with the con- able debt burdens, and recall the commitment of sensus for partnership for the financing for devel- developed countries to dedicate 0.7 per cent of their opment, the State of Qatar and the President of the gross national income to ODA. General Assembly of the United Nations call upon Member States—having asked them to meet here We note that national financial institutions have in Doha to discuss financing for development—to thus far borne most of the burden of responding to continue the Monterrey Consensus work to over- the crisis, providing financial resources liquidity to come the international financial crisis. the international financial system. We also note the difficulties that have arisen in providing a coordi- International partnership is the pillar for nated response across countries and institutions; in financing for development and the real engine particular, the International Monetary Fund (IMF) whereby the international development goals can has played a modest role in providing emergency be achieved, in keeping with the provisions of the financial support. To support the stable develop- outcome document of the 2005 World Summit. In ment of both developed and developing countries, a world that has witnessed accelerating techno- the IMF requires resources commensurate with the logical advances, we have been unable to marshal task of confronting international liquidity and sol- them to provide for the simplest human needs of vency crises without imposing burdens and condi- global food security. We have not been able to give tionalities on borrowers. We encourage the boards safe air and water, sustainable sources of energy, or of governors of these institutions to expedite meas- even a minimum of well-being, to half the world’s ures to that end. population. However, poverty, hunger, easily preventable diseases and illnesses continue to threat- We also believe that the current financial cri- en future generations by allowing some ten mil- sis makes it imperative to conduct a more funda- lion of our children to die every year. We are far mental review of the global institutions that govern from our Millennium pledge to provide universal international trade and finance. The global econo- primary education for those who do survive. The my has seen major changes not yet reflected in our most serious global financial crisis since the crea- international governance arrangements. Measures tion of the United Nations further threatens our taken to deal with the crisis should include major ability to confront these issues and to provide the reforms that ensure a more equitable and stable financing necessary to meet the internationally global financial system, which will provide the agreed development goals, including the Millen- basis for sustainable and equitable development nium Development Goals. for all countries. While the crisis in the global financial sys- We stress the importance of coordinated, tem threatens both rich and poor, developed and coherent action in responding to the crisis as well

253 The Doha Review Conference on Financing for Development

as in formulating national development strate- financial system must adequately reflect the needs gies. We urge the General Assembly to continue its of developing countries. It must ensure sufficient efforts to reinforce the role of the Economic and and suitable financing for rapid and sustainable Social Council as the central monitoring agency development in developing countries, including to ensure coordination of economic and financial domestic financial systems to finance domestic policy across the United Nations system, includ- investments for growth and employment creation. ing the monitoring of the multinational financial It is important that any reform of international institutions and bodies, their governance, their institutions with broad political legitimacy should decisions and their consequences, and to assess the provide for adequate representation of the develop- broader social and economic impact, including on ing and least developed countries and also emerging growth, employment and poverty eradication. We markets. Recalling that the United Nations spon- recognize that these increased responsibilities will sored the Monetary and Financial Conference that require reforms in the relationship between the created the Bretton Woods institutions, it is appro- United Nations General Assembly and the Bretton priate that the outcome document of this Confer- Woods institutions, as well as the regulatory insti- ence calls for the United Nations to hold a confer- tutions, to enhance the latest accountability to the ence at the highest level on the world financial and international community. economic crisis and its impact on development. The current crisis has not been limited to the We look forward eagerly to the work of the financial aspects alone, but will also cause reduc- Commission of Experts of the President of the tions in growth and employment. Measures to United Nations General Assembly on Reforms of combat the effect of the crisis must include addi- the International Monetary and Financial System. tional support for developing countries to ensure We call upon all States to join us in supporting the their participation in the international trading sys- establishment of an international financial system tem, to provide for development and to serve as an that is just and fair, in order to support financing engine of development. Recognizing that, in the for development. This is the Doha Statement. past, countries have sought to protect their national well-being through restrictions on foreign producers and investors, we must now ensure cooperative General Assembly solutions to the crisis and resist the temptation to respond to it with more protectionism and trade of the United Nations restrictions. We must. This makes the full recogni- Closing Statement by tion and incorporation of the development dimen- Mr. Miguel D’Escoto Brockmann sion of the Doha trade round even more important. President of the General Assembly of the We pledge to pursue completion of the Round as United Nations part of an integrated response to the current crisis. Report of the Chairman of the Main We also note that it is important to keep our Committee of the Follow-up Conference attention on other crises that we face, for example, on Financing for Development to Review in areas such as food security and climate change. the Implementation of the Monterrey Consensus In dealing with the current crisis, we must also resist simplistic short-term solutions that will not 2 December 2008 deal with its basic causes, as well as the belief that we need not act expeditiously. We must continue Your Highness, the Emir of Qatar, Honorable to monitor the situation and make more frequent Heads of State and Government, Excellencies, periodic assessments of the measures to be taken Representatives of Civil Society, Dear Friends, and of their implementation. We reaffirm that it is in the common interest of both developed and 1. We have reached a successful conclusion developing counties that reform of the global to this Follow-up Conference on Financing for

254 Closing Summit Plenary Session

Development to Review the Monterrey Consensus. aware of the difficulties you had to overcome. I am I congratulate all the delegations from 160 United pleased that we could reach detailed agreements, Nations Member States who have contributed to especially those relating to development coopera- the drafting of the remarkable Doha Declaration tion, trade and climate change, among others. No on Financing for Development. I thank His High- one ever promised that our task of making this a ness Sheikh Hamad bin Khalifa Al-Thani, the Emir better world would be easy, but, on the other hand, of Qatar, for hosting this historic gathering, ena- nothing can be more satisfying. bling the United Nations to reaffirm the new part- 6. We have heard from representatives of 250 nership for development that was agreed upon in civil society networks who also came to Doha to Monterrey six years ago. speak on behalf of the millions of people around 2. In the midst of an ongoing financial crisis of the world, particularly women, whose voices go far-reaching but yet unknown consequences, we unheard. We appreciate their emphasis on investing have not only strengthened commitments to inno- in people-centered development and their compre- vative cooperation for financing for development, hensive and compelling proposals for changes that we have taken the first steps to agree on major enhance action for effective development, poverty changes in our international financial governance. eradication, human rights, gender equality, decent We agree that these changes must respond to the work, and 4 environmental sustainability. I will needs and concerns of all nations, rich and poor, forward the Declaration of the Civil Society Forum North and South, and that the process of change to all members of the General Assembly. will be inclusive and democratic. In short, our negotiations have highlighted a new sense of soli- 7. We are aware that the Monterrey meeting in darity and good will among nations at a time when 2002 was in part a response to the financial cri- we can be tempted to withdraw into our narrowly sis that devastated economies in Asia and Latin defined self-interests. America in the 1990s. At that time there were calls for reform of the faulty international finan- 3. In the face of a loss of confidence in our inter- cial architecture that makes all countries, rich and national financial institutions, the difficult process poor, vulnerable to misguided policies and lack of of rebuilding trust has begun. Very few of us believe regulation. Another investment bubble was quickly that we can continue on the same path that 3 has inflated and the clamor for change was stifled. We brought us to this breakdown, a collapse that reflects certainly hope that the current crisis can be brought not only the implosion of the so-called Washington under control so that a devastating global depres- Consensus, but the exhaustion of our fragile plan- sion can be avoided. But there can be no doubt that et and the bankruptcy of the dominant culture of fundamental change is now imperative. Our decla- greed and dominance. We are replacing arrogance ration is clear that we must seize this opportunity with humility, agreeing that all of us must take on to make our global financial system more equita- responsibility for the development of our societies. ble, sustainable and stable. We are putting aside hypocritical policies and insist that we all play by the agreed rules of the game. 8. We agree that the United Nations is uniquely qualified as a forum for discussion of these 4. The Emir put it very well when he said: “The changes. We stress the importance of coordinated, developed countries have no right to direct others coherent action in responding to the crisis as well what to do, giving them advice and directives while as in formulating national development strategies exempting themselves from the due contributions that adequately reflect the interests of developing to the issue of development that are proportionate countries. An essential part of a stable and equita- to their capabilities.” ble system will require the reform of all interna- 5. As Chair of the Main Committee, I had the tional economic institutions and standard setting opportunity to meet with many of you during the bodies to ensure adequate representation of least long and sometimes heated negotiations. I am fully developed countries.

255 The Doha Review Conference on Financing for Development

9. The General Assembly must continue its efforts 13. We all appreciate the professional work of the to reinforce the role of the Economic and Social hundreds of United Nations staff who have ensured Council as the central monitoring agency to ensure the seamless organization of this conference. Work- coordination of economic and financial policy ing together with the national team, these profes- across the United Nations system. This include the sionals have come from around the world to create monitoring of the multilateral financial institu- a safe and well serviced environment within which tions and bodies, their governance, their decisions our deliberations have taken place. We thank them and the consequences of such decisions in order all for their hard work. to 5 assess broader social and economic impacts 14. And a final special thank you to His Highness on growth, employment and poverty reduction in Sheikh Hamad bin Khalifa Al-Thani, the Emir of particular. We recognize these increased respon- Qatar, for hosting this conference. I am confident sibilities will require reforms in the relationship that Qatar’s commitment to this process will be between the General Assembly and the Bretton sustained in the months ahead as we seek to fol- Woods institutions as well as regulatory institu- low-up on financing for development and the task tions, to enhance the latter’s accountability to the of reforming our international financial architec- international community. ture. His commitment and generosity are exem- 10. We must continue to monitor the unfolding plary and I offer my heart-felt gratitude. Under his crisis and step up our search for viable responses wise leadership, Qatar has become synonymous to its underlying causes. Towards this end, we have with the nonviolent struggle for justice and lasting authorized the General Assembly to hold a confer- peace in our world. ence at the highest level on the world financial and 15. I would be remiss if I did not take this oppor- economic crisis and its impact on development. tunity to also thank Her Highness Sheikha Mozad As president of the General Assembly, I will make bint Nasser Al-Minad for her selfless commitment preparations for this conference a priority and help to the crucial issue of financing for education, define its modalities by March 2009 at the latest, as especially for the most vulnerable populations liv- requested. I look forward to working closely with ing in situations of conflict and natural disasters. the Secretariat, which provides, in addition to the Together their example has greatly contributed to capacity to organize what will be a intense confer- our feeling spiritually renewed as we leave beau- ence process, a diverse and professional pool of tiful Doha. May God shower his more abundant experts on these complex issues. blessings upon them and all the people of friendly 11. In preparation for this conference, I have con- and hospitable Qatar. vened a Commission of Experts of the President Thank you all. of the General Assembly on the Reform of the Monetary and Financial System, drawing on pre- eminent experts from around the world. 12. On behalf of all of us, I wish to pay special tribute once again to the two very able facilitators who have guided the outcome document from the beginning, their Excellencies Ambassadors Johan Lovald of Norway and Maged Abdelaziz of Egypt. They have given generously of their time throughout the process and, more recently, together with the Chair, Paul Oquist, my senior advisor on financial and development cooperation, have ensured the 6 adoption of a consensus document that we can all be proud of. I am personally deeply grateful to them.

256 Closing Summit Plenary Session

General Assembly believe that we can continue on the same path that has brought us to this breakdown—a collapse that of the United Nations reflects not only the implosion of the so-called Closing Statement by Washington Consensus, but the exhaustion of our His Excellency fragile planet and the bankruptcy of the dominant Mr. Miguel d’Escoto Brockmann culture of greed and dominance. We are replac- President of the General Assembly ing arrogance with humility, agreeing that all of us Chairman of the Main Committee must take on the responsibility for the development of our societies. We are putting aside hypocritical 2 December 2008 policies that insist that we all play by the agreed rules of the game. In my capacity as Chairman of the Main Committee, The Emir put it very well when he said, and I I was given responsibility for overseeing the draft- quote, “The developed countries have no right to ing process for the outcome document of this Con- direct others what to do, giving them advice and ference. I am pleased to present a draft document directives, while exempting themselves from the for consideration and adaptation by the plenary. due contributions to the issue of development that We have reached a successful conclusion are proportionate to their capabilities”. to this Follow-up International Conference on As Chair of the Main Committee, I had the Financing for Development to Review the Imple- opportunity to meet with many of you during the mentation of the Monterrey Consensus. I con- long, and sometimes heated, negotiations. I am gratulate all the delegations from the 116 United fully aware of the difficulties you had to overcome. Nations Member States who have contributed I am pleased that we could reach detailed agree- to the drafting of the remarkable Doha Declara- ments, especially those relating to development, tion on Financing for Development. I thank His cooperation, trade and climate change, among oth- Highness Sheikh Hamad bin Khalifa Al-Thani, ers. No one ever promised that our task of making the Emir of Qatar, for hosting this historic gath- this a better world would be easy but, on the other ering, enabling the United Nations to reaffirm the hand, nothing can be more satisfying. new partnership for development that was agreed upon in Monterrey six years ago. We have heard from representatives of 250 civil society networks that also came to Doha to speak on In the midst of an ongoing financial crisis of behalf of the millions of people around the world, far-reaching, but yet unknown, consequences, we particularly women, whose voices go unheard. We have not only strengthened commitments to inno- appreciate their emphasis on investing in people- vative cooperation for financing for development; centred development, and their comprehensive we have taken the first steps to agree on major and compelling proposals for changes that enhance changes in our international financial governance. action for effective development, poverty eradica- We agree that these changes must respond to the tion, human rights, gender equality, decent work needs and concerns of all nations, rich and poor, and environmental sustainability. I will forward the north and south, and that the process of change Declaration of the Global Forum of the Civil Soci- will be inclusive and democratic. In short, our ety to all members of the General Assembly. negotiations have highlighted the new sense of We are aware that the Monterrey meeting in solidarity and goodwill among nations at a time 2002 was, in part, a response to the financial cri- when we can be tempted to withdraw into our sis that devastated economies in Asia and Latin narrowly defined self-interests. America in the 1990s. At that time, there were In the face of a loss of confidence in our inter- calls for reform of the faulty international finan- national financial institutions, the difficult- proc cial architecture that makes all countries, rich and ess of rebuilding trust has begun. Very few of us poor, vulnerable to misguided policies and lack of

257 The Doha Review Conference on Financing for Development

regulation. Another investment bubble was quick- with the Secretariat, which provides, in addition ly inflated and the clamour for change was stifled. to the capacity to organize what will be an intense We certainly hope that the current crisis can be conference process, a diverse and professional pool brought under control so that a devastating glo- of experts on these complex issues. bal depression can be avoided, but there can be no In preparation for the conference, I have con- doubt that fundamental change is now imperative. vened a Commission of Experts of the President of Our Declaration is clear that we must seize this the General Assembly on Reforms of the Interna- opportunity to make our global financial system tional Monetary and Financial System, drawing on more equitable, sustainable and stable. pre-eminent experts from around the world. We agree that the United Nations is uniquely On behalf of all of us, I wish to pay special qualified as a forum for discussion of these chang- tribute, once again, to the two very able facilita- es. We stress the importance of coordinated, coher- tors who have guided the outcome document from ent action in responding to the crisis as well as in the beginning: their Excellencies, Ambassador formulating national development strategies that Johan Løvald of Norway and Ambassador Maged adequately reflect the interest of developing coun- Abdelaziz of Egypt. They have given generously tries. An essential part of a stable and equitable of their time throughout the process and, more system will require the reform of all international recently, together with the Chair Paul Oquist, my economic institutions and standard-setting bod- senior adviser on financial and development coop- ies to ensure adequate representation of the least eration, ensured the adoption of a consensus docu- developed countries. ment that we can all be proud of. I am personally The General Assembly must continue its efforts deeply grateful to them. to reinforce the role of the Economic and Social We all appreciate the professional work of Council as the central monitoring agency to ensure the hundreds of United Nations staff who have coordination of economic and financial policy ensured the seamless organization of this Confer- across the United Nations system. This includes ence. Working together with the national team, the monitoring of the multilateral financial institu- these professionals have come from around the tions and bodies, their governance, their decisions world to create a safe and well-serviced environ- and the consequences of such decisions in order ment within which our deliberations have taken to assess the broader social and economic impacts place. We thank them all for their hard work. on growth, employment and poverty reduction, in particular. We recognize that these increased And a final, special, thank you to His High- responsibilities would require reform of the rela- ness Sheikh Hamad bin Khalifa Al-Thani, the tionship between the General Assembly and the Emir of Qatar, for hosting this Conference. I am Bretton Woods institutions, as well as regulatory confident that Qatar’s commitment to this process institutions to enhance the latter’s accountability to will be sustained in the months ahead as we seek the international community. to follow-up on financing for development and on the task of reforming our international finan- We must continue to monitor the unfolding cial architecture. His commitment and generosity crisis and step up our search for viable responses are exemplary and I offer my heartfelt gratitude. to its underlying causes. Towards that end, we have Under his wise leadership, Qatar has become syn- authorized the General Assembly to hold a confer- onymous with a non-violent struggle for justice ence at the highest level on the world financial and and lasting peace in our world. economic crisis and its impact on development. As President of the General Assembly, I will make I would be remiss if I did not take this oppor- preparations for that conference a priority and help tunity to also thank Her Highness Sheikha Mozad to define its modalities by March 2009, at the lat- bint Nasser Al-Minad for her selfless commitment est, as requested. I look forward to working closely to the crucial issue of financing for education,

258 Closing Summit Plenary Session especially for the most vulnerable populations, liv- the Implementation of the Monterrey Consensus.” ing in situations of conflict and natural disasters. Operative para. 1 of the draft should read: “Adopts Together, their example has greatly contributed to the Doha Declaration on Financing for Develop- our feeling of spiritual renewal as we leave beautiful ment: outcome document of the Follow-up Inter- Doha. May God shower his more abundant bless- national Conference on Financing for Development ings upon them and on all the people of friendly to Review the Implementation of the Monterrey and hospitable Qatar. Consensus, which is annexed to the present resolution”. Operative para. 2 of the draft resolution should be amended to read: “Recommends to the Antigua and Barbuda General Assembly that it endorses, during the main part of its sixty-third session, the Doha Declaration Closing Statement by Mr. John W. Ashe on Financing for Development as adopted by the Ministerial Representative for Sustain- Conference”. I thank you, Mr. President. able Development Matter,s Chairman of I am now taking the floor on behalf of the Group the delegation of Antigua and Barbuda of 77 and China to present a draft resolution entitled (on behalf of the Group of 77 and China) “Expression of thanks to the people and Govern- 2 December 2008 ment of Qatar”. The resolution reads as follows: “Having met in Doha, Qatar, from 29 Novem- It is a privilege to present a statement on behalf ber to 2 December 2008, at the invitation of the of the Group of 77 and China. We are particular- Government of Qatar, 1. Expresses its deep appre- ly delighted that a consensus was reached on the ciation to his Highness Sheikh Hamad bin Khalifa Follow-up International Conference on Financing Al-Thani, Emir of the State of Qatar, for his out- for Development to Review the Implementation standing contribution, as President of the Follow- of the Monterrey Consensus. With this consen- up International Conference on Financing for sus, we have now taken major steps in addressing Development to Review the Implementation of the the systemic challenges we face as an international Monterrey Consensus, to the successful outcome community. With this document we can now move of the Conference; 2. Expresses its profound grati- ahead in the spirit of Monterrey to address all these tude to the Government of Qatar for having made challenges that we now face. The Group of 77 and it possible for the Conference to be held in Qatar China would particularly like to express its appre- and for the excellent facilities, staff and services so ciation to our development partners who have graciously placed at its disposal; 3. Requests the answered the call to react in a decisive manner. The Government of Qatar to convey to the city of Doha flexibility and cooperation by all allowed us to have and to the people of Qatar the gratitude of the a successful outcome to this summit and reinforces Conference for the hospitality and warm welcome the fact that we are an international community. extended to the participants”. We would like to propose to the Conference I commend this proposed draft resolution to the that the document reflecting our conclusions and Conference for its unanimous approval. Finally, in undertakings be named the Doha Declaration on closing, Mr. President, I wish to recognize the con- Financing for Development in honour of this city. tribution of the delegation of Qatar, beginning with This would require the following consequential its Mission and respondent Mission to the United changes to the proposed draft resolution contained Nations, and that of Ambassador Al Nasser for all in document L.1. The title of the draft resolution the help he offered the group, as well as that of Vice- should read: “The Doha Declaration on Financing Minister Ramhi, here, in Qatar. I thank those two for Development Outcome Document: outcome gentlemen for their outstanding contributions. document of the Follow-up International Con- ference on Financing for Development to Review

259 The Doha Review Conference on Financing for Development

France United Nations Closing Statement by Closing Statement by Representative of the French Republic Mr. Sha Zukang (on behalf of the European Union) Under-Secretary-General for Economic and Social Affairs 2 December 2008 (on behalf of the Secretary-General of the United Nations) The European Union is obviously quite pleased with this consensus. It is a unanimous agreement, a 2 December 2008 dynamic consensus in Doha. We have made a commitment that we are going to do more, we are going The Secretary-General regrets very much not being to do better, in order to build a world that is more able to be with us at the closing dinner and at the just, and to push back poverty. On behalf of the meeting today. I would, therefore, like to say just a European Union, I would like to thank, in particu- few words on his behalf. lar, the authorities of Qatar for the very warm welcome that has been extended to us. I would also like First, I wish to reiterate our deep gratitude to to thank the President, as well as the co-facilitators, the Emir and to the Government and people of Qatar for their generous hospitality and for the the secretariat, all the delegations who have taken excellent arrangements they made for holding part in the Conference, civil society and, of course, this Conference. Our staff at the United Nations all our experts and assistants who have worked worked closely with the Qatari authorities for sev- relentlessly and with a great deal of passion so that eral months in order to make this happen, and we we can come up with this very important text. were consistently given extraordinary coopera- Doha was supposed to be a follow-up confer- tion and shown a disposition to spare no effort to ence—notably, a follow-up conference—but, in fact, make the Conference a great success, and a great Doha has become a new beginning for development, success it has been. and that is good because the situation is urgent. That We can now safely say that the document that is why the European Union wanted to be a positive has just been adopted represents an important player from the outset of this Conference. As the milestone in the struggle for development, and Acting President of the European Union, President that it adds significant value to what we achieved in Sarkozy, has said, development cannot be sacrificed Monterrey almost seven years ago. On every aspect at the altar of the economic crisis. Africa, mainly, of the Financing for Development Agenda, we can but not only Africa—all the developing countries— identify areas in which there has been progress. must have their rightful place in international insti- Perhaps it has not been as much as we would have tutions and take part in decisions. wanted, but that is precisely one of the reasons why Europe will comply with the 0.7 per cent of we came to Doha, to reiterate our political com- 2015. It is a major choice. It is a founding choice. mitment to this process and to show our deter- And dear colleagues, ladies and gentlemen, I now mination to continue to carry it forward. We now have the honour, on behalf of Europe, at a time have our marching orders and you can be sure that when our work is concluding on this collective and the Secretariat of the United Nations will fulfill its major success, to say how pleased I am with all of responsibilities with the utmost dedication. you. Together, we have been responsible. The success, of course, belongs most of all to Yes, Doha is a new start. Perhaps historic con- the Member States themselves. It is they who conditions are coming together because of the crisis, structed it. It is they who worked laboriously to perhaps in order to build this new world that we reach it. And without their political will, it could are calling for—a world with greater solidarity. not have been achieved. We would like to recog- Then let us all be the founders of this new world. nize the key role played by others in this process.

260 Closing Summit Plenary Session

I would just like to mention here the key role of and in the interactive roundtables have noted the the President of the General Assembly and his two contradiction between the ability of many countries facilitators, the two Special Envoys of the Secretary- to instantly mobilize billions of dollars to support General, and many officials of the United Nations their failing financial institutions and their inability system. We also cannot fail to recognize the crucial to find the conviction to fulfil their commitments to role played in this process by other stakeholders, finance the efforts of developing countries to meet including many intergovernmental and regional the Millennium Development Goals, to improve organizations, civil society organizations and the the conditions of the poorest people on the earth. business community. If we continue to think that we can protect Once again, Mr. President, thank you very ourselves and can provide solutions to the crisis much, and let us celebrate today and get back to through focusing on our individual interests only, work tomorrow. we will fail to learn a lesson from the present crisis; we will also fail to meet the requirements of the concept of international partnership. We start from Qatar the principle that we should help others. This means that we can help ourselves as well. No one can work Closing Statement by single-handedly, focusing on individual interest, Representative of His Highness Sheikh Hamad bin Khalifa Al-Thani because this global crisis requires global solutions Emir of the State of Qatar and President and global alliances that are based on partnership of the Follow-up International Con- and participation in shouldering responsibilities. ference on Financing for Development Doha was a place to build the future. And some to Review the Implementation of the of the speakers noted the importance of involving Monterrey Consensus the United Nations system fully, together with the Bretton Woods institutions, in responding to the 2 December 2008 call for global solutions to the global crisis. Global answers require the presence of all regions of the I would like to thank the Under-Secretary-General world, representing the voices of the rich, of the for Economic and Social Affairs for his greetings emerging economies and of the poorest people. and for addressing those nice words to the State of As mentioned by His Excellency, His High- Qatar. I would now like to deliver the final state- ness Sheikh Hamad bin Khalifa Al-Thani, the ment of this Conference. Prince of Qatar, and I quote, “Many of us looked As we review our work of the past four days, at development from one perspective, which is the as contained in our Doha outcome document, we financial perspective. However, we realize now, should first ask ourselves if we have done every- from the lessons of history and politics, as well as thing that we could to meet the challenge of the crisis, that development is one whole that cannot current crisis that every speaker has acknowledged be fragmented. Development is the larger arena to be the most serious since the Great Depression of a human being’s progress and development; if of the 1930s. But that challenge was not so much we are here at this Conference working under the to provide the negotiated solutions appropriate to slogan of ‘Financing for development’, however, solve our problems. Our biggest challenge was to it should be clear, at the same time, that financ- put aside our individual concerns and interests and ing is just an incentive for everybody to have their focus our attention on what could be done now to rights”. His Highness also said that “some of us ease the burden of what is certain to be a sustained should realize that development is an umbrella of disruption of global trade and financial flows to peace that protects everybody, and that in many the world’s poor. The issue was related to what we circumstances of human development it is more could do under the international consensus and helpful in the preservation of peace than in the integration. Many speakers at the plenary sessions accumulation of weapons”.

261 The Doha Review Conference on Financing for Development

One of the clearest consequences of the finan- know, and our evaluation of the measures that need cial crisis and the deficiency in liquidity would be to be taken in order to develop the resources and deterioration in the flow of international invest- capabilities for all citizens of the world needs to be ments and, as well, re-directing the budgets of an ongoing process as well. developed countries to local needs rather than The State of Qatar has tried to support this mul- to aid and assistance. And, of course, this in turn tilateral process by hosting a number of internation- would aggravate the task, which is already quite dif- al meetings, including the present Conference, and ficult, of providing the economic and social infra- we are pledged to do everything we can to ensure structure needed if developing countries are to suc- our commitment to support the global development ceed in mobilizing their local resources to ensure partnership. That is the basis for the financing for an increase in the flow of official help and aid. development process. To achieve this, we—the State We should, therefore, really seek more crea- of Qatar, join the President of the General Assembly tive sources of financing in order to decrease the in asking you to strengthen the global development impact of deteriorating and shrinking investments. partnership in the face of the critical challenges and Within that framework, my country, the State of choices that face the global community. Qatar, suggested having a multilateral invest- Finally, as the concluding document of the ment alliance that would bring together donor Conference has been adopted by consensus, I avail countries, multilateral financial institutions and myself of this opportunity to thank the President humanitarian bodies. These investment agen- of the United Nations General Assembly, the Sec- cies could be administered and supervised by the retary-General of the Secretariat, the Under-Secre- United Nations, or by other regional develop- tary-General for Economic and Social Affairs, the mental institutions. The profits generated by the staff of the Secretariat, the interpreters, the Qatari project could then be made available to provide an increasing revolving fund of finance for additional National Committee, the volunteers and all the projects. This fund could readily capitalize on suc- unknown soldiers, who contributed to the prepa- cessful national experiences; it could also provide ration and organization of this Conference and infrastructure and humanitarian assistance, as well brought it to a successful conclusion. as support for South-South cooperation. I declare the close of the United Nations Fol- The principle of global solidarity and develop- low-up International Conference on Financing ment in partnership applies not only to the solu- for Development to Review the Implementation tions to the challenges raised by the current crisis, of Monterrey Consensus. Once again, welcome but to its impact on other challenges of a more to Qatar and we wish you all a very pleasant trip structural and long-term nature. While we concen- back home. trate on the stability of the financial system and the accumulation of financial wealth, it becomes more likely that we shall no longer be able to provide for the basic needs of food, shelter and energy for the world’s growing population. Thus, while we may have reached a conclusion and agreed on a common view, as contained in our outcome document, and although we have concluded our Conference, our work will not fin- ish. We must ensure that we will continue to monitor the commitment that we have undertaken and adapt our response to conditions as they evolve. The global economy is an ongoing process, as you

262 Closing Summit Plenary Session

the financing necessary to meet the internationally Joint Statement by agreed development goals including the Millen- The President of the General Assembly nium Development Goals. While the crisis in the His Excellency global financial system threatens both rich and Father Miguel D’Escoto Brockmann poor, developed and developing countries alike, its and greatest impact will be on those least able to bear President of the Conference it, namely those who lead a precarious existence His Excellency with little margin to meet the rapid rise in food and Sheikh Hamad bin Khalifa Al-Thani energy costs and who are most dependent on offi- Amir of the State of Qatar cial aid flows. While we must take steps to protect at the conclusion of the Follow-up and improve the operation of the financial system, Conference on Financing for Develop- we must not forget that it is the poorest that deserve ment to Review the implementation of the our first concern and protection against the impact Monterrey Consensus held in Doha of the crisis. In this regard, we reiterate our pledge in the Monterrey Consensus and the Summit Outcome to maintain our commitment to official Doha Statement development assistance and action to ensure the to strengthen the Global Development least developed countries are not subject to unsus- Partnership for Financing for Development tainable debt burdens and recall the commitment of developed countries to dedicate 0.7 per cent of We the state of Qatar and the President of the their national income to official assistance. United Nations General Assembly call upon the Member states of the United Nations assembled We note that national financial institutions in Doha, Qatar for the Follow up International have thus far borne most of the burden of respond- Conference on Financing for Development to join ing to the crisis and providing financial resources them in responding to the complexity of the global liquidity to the international financial system. We crisis by reaffirming our commitment to the Glo- also note the difficulties that have arisen in provid- bal Development Partnership as the underlying ing a coordinated response across countries and principle of the Financing for Development proc- institutions. In particular, the IMF has played a ess and as the basic means for achieving the inter- modest role in providing emergency financial sup- national development goals as outlined in the 2005 port. To support the stable development of both World Summit Outcome. developed and developing countries, the IMF requires resources commensurate with the task of In a world that has witnessed accelerating confronting international liquidity and solvency technological advances, we have been unable to crises without imposing burdensome condition- marshal this to provide for the simplest human alities on borrowers. We encourage the Boards of needs of global food security, safe air and water, Governors of these institutions to expedite meas- sustainable sources of energy or even a minimum ures to that end. of well being for half the world’s population. Pov- erty, hunger, easily preventable diseases and ill- We also believe that the current financial cri- nesses continue to threaten our future generations sis makes imperative a more fundamental review by allowing some 10 million of our children to die of the global institutions that govern international trade and finance. The global economy has seen every year. And we are far from our Millennium major changes not yet reflected in our international pledge to provide universal primary education for governance arrangements. Measures taken to deal those who do survive. with the crisis should include major reforms that The most serious global financial crisis since ensure a more equitable and stable global financial the creation of the United Nations further threat- system, which would provide the basis for sustain- ens our ability to confront these issues and provide able and equitable development for all countries.

263 The Doha Review Conference on Financing for Development

We stress the importance of coordinated, We reaffirm that it is in the common interests coherent action in responding to the crisis as well of both developed and developing as in formulating national development strate- countries that reform of the global financial gies. We urge the General Assembly to continue system must adequately reflect the interests of its efforts to reinforce the role of the Economic developing countries. It must ensure sufficient and and Social Council as the central monitoring suitable financing for rapid and sustainable devel- agency to ensure coordination of economic and opment in developing countries including domes- financial policy across the UN system, includ- tic financial systems to finance domestic investing the monitoring of the multilateral financial ments for growth and employment creation. institutions and bodies, their governance, their decisions, and their consequences, to assess It is important that any reform to international broader social and economic impacts, includ- institutions with broad political legitimacy should ing on growth, unemployment, and poverty. We provide for adequate representation of developing recognize these increased responsibilities will and the least developed countries and also emerg- require reforms in the relationship between the ing markets. Recalling that the United Nations UN General Assembly and the Bretton Woods has sponsored the “United Nations’ Monetary institutions as well as regulatory institutions, to and Financial Conference” that created the Bret- enhance the latter’s accountability to the inter- ton Woods institutions, it is appropriate that the national community. Outcome document of this conference calls for the United Nations to hold a conference at the high- The crisis has not been limited to the financial est level on the world financial and economic crisis sphere, and will cause reductions in growth and and its impact on development. We look forward employment Measures to combat the effects of the to the work of the Commission of Experts of the crisis must include additional support for develop- President of the United Nations General ing countries to ensure their participation in the international trading system provides financing for Assembly on Reforms of the International development and serves as—an engine of develop- Monetary and Financial System concerned with ment. Recognizing that countries have, in the past, the reforms to increase stability and support for sought to protect their national well being through financing development for all countries to provide restrictions on foreign producers and investors, we support for the conference. must ensure cooperative solutions to the crisis and We call upon all countries to join us in support- prevent the temptation to respond to the crisis with ing an international financial system that is fair and trade restrictions and protection. This makes the equitable in support of financing for development. full recognition and incorporation of the development dimension of the Doha trade round even more important. We pledge to pursue completion of the Round as part of an integrated response to the current crisis. We also note that it is important to maintain our attention to the other crises that we face in areas such as food security and climate change. In dealing with the crisis, we must resist simplistic short-term solutions that will not deal with the basic causes of the crisis, as well as the belief that we need not act expeditiously. We must continue to monitor the situation and make more frequent periodic assessments of the measures to be taken and their implementation.

264 Chapter 7 Summaries of Roundtable Discussions

Round table 1 3. Mr. Islam noted the importance of synergy Mobilizing domestic financial between domestic resource mobilization, debt, resources for development trade and private capital flows. With regard to direct taxation in developing countries, he pointed 29 November 2008 out the lack of sufficient databases and information technology in tax administration. Given that the 1. Round table 1 was co-chaired by Emomali value-added taxes introduced in many developing Rahmon, President of Tajikistan, and John Michu- countries did not sufficiently cover the shortfall of ki, Minister for Finance of Kenya. Justin Yifu Lin, tax revenue caused by trade liberalization, donor Chief Economist and Senior Vice-President of countries should support national efforts in the the World Bank, moderated the panel. Presenta- area of tax collection. Because of insufficient phys- tions were made by the following panellists: Azizul ical infrastructure in developing countries, there Islam, Minister for Finance of Bangladesh; Assane was an urgent need for the international commu- Diop, Executive Director, Social Protection Sec- nity to assist the least developed countries in that tion, International Labour Organization; Angel respect. Transnational corporations should not Gurría, Secretary-General of the Organization for seek tax incentives that lasted long periods of time. Economic Cooperation and Development; Michael Lowering the transaction cost for remittances was Keating, Director of the Africa Progress Panel; Her also identified as a useful measure. Royal Highness Princess Máxima of the Nether- lands, member of the United Nations Advisers 4. Mr. Diop referred to the impact of the cur- Group on Inclusive Financial Sectors; and Vito rent financial crisis on financing for development, Tanzi, former State Under-Secretary for Economy which would negatively affect employment and and Finance of Italy. poverty-reduction prospects. It was estimated that 20 million jobs could be lost by 2009, which could 2. Mr. Lin introduced the topics under discussion. significantly increase poverty levels. A multilat- In particular, he stressed the importance of deriv- eral framework was necessary to minimize such ing investment from domestic rather than external effects. It would be necessary to protect the most sources as a foundation for long-term growth. He vulnerable segment of the population by providing argued that now would be a good time for many basic social services. The need for decent work for countries to invest in development in order to pre- all was emphasized. pare themselves for high economic growth in the future. He also noted that, if financial resources 5. Mr. Gurría stressed the importance of taxation were derived from domestic sources, it would help for effective State-building. Since there was a direct countries to minimize currency mismatches and link between the quality of Government expendi- withstand the impact of financial crises. ture and the readiness of citizens to meet their tax The Doha Review Conference on Financing for Development

obligations, the importance of improving the rela- large informal sectors and the difficulty of enforc- tionship between Governments and taxpayers was ing tax collection, lowering tax rates did not guar- emphasized. A clear understanding was needed antee increased tax revenues nor did providing tax that tax revenues would be spent in a transparent incentives to transnational corporations. and efficient manner. However, tax collection was 9. The presentations by the panellists were fol- not necessarily confined within national borders. lowed by an interactive discussion among partici- Tax havens undermined the tax base of both devel- pants, including representatives of Governments, oped and developing countries by offering secrecy institutional stakeholders, civil society and the and a no-tax environment to evaders. There was business sector. a need to develop a renewed focus on enhancing domestic revenues through broadly based taxation, 10. The following key points were made in the thus enabling greater predictability of revenues. presentations and discussions: Necessary measures would include creating effec- • Taxes represent the most important resource tive tax systems, tackling the scourge of corruption, for investment, which in turn is essential for addressing tax havens and tax evasion, and helping effective State-building. Effective tax policies to create an investment-friendly environment. that are fair, neutral, simple and broad-based, 6. Mr. Keating focused on the impact of the glo- together with a tax administration that is easy bal economic slowdown on Africa. In the light of to comply with, are essential for sustainable declining commodity prices, the levels of trade development. There is a need to avoid the polit- and remittances from overseas had been decreas- icization of tax compliance and collection. ing. Given the critical lack of productive capacity • In order to support capacity-building in tax and relatively high cost of electricity in develop- policy and administration in developing coun- ing countries, further investment in infrastruc- tries, it is essential to provide technical assist- ture was essential. ance in those fields, in particular to establish 7. Princess Máxima addressed the issue of inclu- bilateral tax treaties and the exchange of infor- sive finance for development. She noted that much mation. Upgrading the technical skills of tax of the population in developing countries had no officers and the use of information technol- access to formal financial services, such as bank- ogy in tax administration are prerequisites for ing and insurance. As a result, the poor faced high enhancing tax revenue. transaction costs and high risk in the informal • Given that developing countries are not fully financial sector for sending and receiving remit- integrated into international forums on tax tances. In order to enhance domestic resource matters, the United Nations Committee of mobilization it was important to educate people Experts on International Cooperation in Tax how to save. Matters could play an important role for such 8. Mr. Tanzi referred to his 27 years of experience countries. To further promote such interna- at the International Monetary Fund in providing tional cooperation, several participants sup- advice to developing countries. He emphasized the ported the upgrading of the Committee to a need for effective tax policies that were fair, neutral, Commission. simple and broad-based. It was equally important • Capital flight—derived mostly from illicit that tax administration should be easy to comply financing flows, tax evasion and avoidance, with if sustainable development was to be achieved. transfer-mispricing by transnational corpo- Debt financing of budget deficits—the most com- rations and corruption—imposes large costs mon way to finance Government expenditure—was on development. It denies developing coun- not sustainable in the long term. Lowering taxes tries the precious financial resources essential usually resulted in higher tax revenue. In develop- for development. Capital flight is estimated ing countries, however, owing to the existence of at between $500 and $800 billion per year, an

266 Summaries of Roundtable Discussions

amount greater than total official development • Taking into consideration the recent bankrupt- assistance to all developing countries. In order cy of some major financial institutions, there is to prevent such capital flight, it is necessary to an urgent need to establish a guideline or regu- strengthen the exchange of information among lation for transparent loan terms and consum- tax authorities on a regular basis. er-protection mechanisms for microcredit. • Corruption is an issue for both developed and • Given the critical lack of productive capacity developing countries. In order to reduce cor- and relatively high cost of electricity in devel- ruption in the area of natural resources, the oping countries, further investment in infra- Extractive Industries Transparency Initiative structure, including energy, agriculture and should be recognized as an important instru- human development (especially education), ment for preventing corruption. The United is essential. Nations Convention against Corruption and the Stolen Asset Recovery Initiative should be strengthened, extended and adopted by more countries. • The taxation of natural resources and fees on Round table 2 public services could supplement existing tax Mobilizing international resources for development: foreign direct investment revenues in developing countries. In the light and other private flows of the high volatility of the prices of natural resources, the taxation of natural resources 30 November 2008 should be designed so that tax rates can be increased when the price is high and a price 1. Round table 2 was co-chaired by Denis Sassou support mechanism can be triggered when the Nguesso, President of the Congo, and Bob McMul- price is low. Commodity price fluctuations call lan, Parliamentary Secretary for International for prudent management of fiscal revenues to Development Assistance of Australia. Supachai ensure a source of permanent stable revenue Panitchpakdi, Secretary-General of the United for commodity-dependent developing coun- Nations Conference on Trade and Development, tries. When public services are provided with- moderated the panel. Presentations were made out any fee, consumers tend to overuse such by the following panellists: Hiroto Arakawa, Sen- services. Thus, imposing a modest fee on public ior Special Adviser, Japan International Coopera- services is an ideal way to support the efficient tion Agency; Trevor Manuel, Minister for Finance management of Government expenditure. of South Africa, Special Envoy of the Secretary- • It is estimated that approximately 20 per cent General for the Conference; Joyce H. de Ginatta, of the population in developing countries (2 President, Federación Interamericana Empresarial billion people) do not have access to formal of Ecuador; Huguette Labelle, Chair of Transpar- financial services, such as banking (savings ency International; Avinash Persaud, Chairman of and loans) and insurance. As a result, the poor Intelligence Capital; and Kamalesh Sharma, Com- face both high transaction costs and high risk monwealth Secretary-General. in the informal financial sector for sending 2. Mr. Supachai referred to the positive devel- and receiving remittances. opments in financing for development that had • In order to enhance incentives for savings, it is occurred since the Monterrey Conference, such as necessary to ensure that real interest rates are trade expansion, improvement in macroeconomic positive rather than negative. Financial depres- discipline, surpluses in current accounts and the sion should be avoided. accumulation of foreign reserves in developing countries. In the light of the current financial crisis, that progress might come to an end. A new

267 The Doha Review Conference on Financing for Development

landscape would have implications for foreign of questions about underlying issues needed to be direct investment (FDI) and for creating produc- addressed, including the great volatility of capital tive capacity for sustained economic growth. FDI markets and aspects of capital market innovations trends since 2002 had been variable. Even though that were harmful to financial stability. The speaker the total amount of FDI to developing countries also noted the need to address the spillover of the had tripled, it had not been evenly distributed, international credit crunch into a global recession, with most funds to major emerging economies, and underscored the impact of the crisis on risk such as Brazil, India and South Africa, while the appetite and the move of investment back to dol- least developed countries had received only 3 per lar-based securities and treasuries. cent of total global FDI flows. The direction of total 5. Mr. Manuel also referred to the interruption of net flows had shifted from North-South to South- good economic performance on the African conti- South, with increased greenfield investment and a nent and the setback to achievement of the Millen- concentration in the extractive industries. FDI had nium Development Goals resulting from the crisis. consistently exceeded official development assist- He highlighted areas critical at the current junc- ance (ODA). To prepare for difficult times, devel- ture: coordinated global action in response to the oping countries needed to set their own macroeco- crisis and its impact; the need to license, regulate nomic policies and mobilize funds from abroad and supervise all financial intermediaries; the need for their own needs. FDI could sometimes have to overhaul and oversee custodial institutions, such a negative effect on domestic business in terms of as credit-rating agencies, that had not worked; and competition. Governments needed to be explicit in the need to revisit accounting standards. As for the their policies and strategies in terms of where they implementation of Basel II, issues designated for wanted to direct FDI investments. It was impor- internal risk management within financial institu- tant for financial relationships to be transparent. tions needed to be drawn out to be regulated by 3. Mr. Arakawa stressed that the current finan- external institutions. cial crisis would have an impact on private flows to 6. Ms. de Ginatta discussed dollarization and developing countries. It was expected that real gross its impact on FDI. A solid currency allowed busi- domestic product (GDP) growth would decrease nesses—and not the Government—to have control from 8.0 per cent in 2007 to 6.6 per cent in 2008 and over most of their decisions. In the case of Ecuador, to 5.1 per cent in 2009, as a result of the slowdown the United States dollar had been adopted as the of GDP growth rate in developed economies. The national currency and the local currency had been challenge ahead was to set strategies for sustained eliminated in order to regain the trust of economic growth and inclusive development, which should actors. Ecuador’s macroeconomic plan was cen- include high levels of investment; macroeconom- tred around the adoption of the United States dol- ic stability; urbanization and rural investment; lar as its currency, which together with investment effective government; competition and structural promotion policy had created a fiscal system that change; export promotion and industrial policy; provided incentives; strengthened the country’s and infrastructure development. To promote FDI, competitiveness; and ultimately promoted exports, there was a need for an enabling environment, cre- improved legal security and reduced corruption ated through policy reform and institutions, and and speculation. Annual inflation had been reduced for risk mitigation. In both cases, ODA could have from 91 per cent in 2000 to 1.39 per cent in March a catalytic role in technical assistance. 2005. The scenario after the dollarization process 4. Mr. Manuel noted that the current interna- also favoured the growth of deposits in the econo- tional financial crisis had exposed the failure of the my, from just under $3 billion in 1999 to over $10.5 existing crisis-prevention system. Regulatory sys- billion in 2008. Regarding exports, non‑petroleum tems in developed countries, aiming at better risk exports had increased from US$ 3 billion in 1999 management and consumer protection, did not to $4.6 billion in 2007, of which non-traditional work and needed to be re-evaluated. A number exports had increased from $1.15 billion in 1999

268 Summaries of Roundtable Discussions to almost $3.0 billion in 2007. The activity of the taxation. Equity investment flows were not espe- real economy had been reflected in the growth of cially volatile; it was short-term loans which could electric consumption by almost 40 per cent from not be rolled over in an adverse financial environ- 1999 to 2006. In conclusion, in Ecuador, the dol- ment, such as during the Asian financial crisis, larization process had shielded the economy from that could be destabilizing. The way to get the best political crisis, protected the banks and generated financing arrangements for FDI was to encour- trust, which had in turn led to increased bank age competition among investors. There was real deposits. With those policy approaches, countries opportunity in targeting the sovereign wealth funds could achieve economic growth more easily as cur- and private pension funds of developed countries, rency distortions were reduced. which were obligated to diversify their portfolios. With regard to the reform of financial regulation, 7. Ms. Labelle emphasized that private capital it was important to establish better regulation and flows needed to directly promote development in not just more regulation. the recipient country; therefore, enterprises should not only focus on the short term. She noted that 9. Mr. Sharma noted the need for coherence in not all FDI was productive and there was a need governance at the local, national and global lev- to strike the right balance between the roles of the els. There also needed to be coherence in human Government, the private sector and civil society development at those levels. Regional integration in attracting and utilizing FDI. She suggested five was also vital in order to attract private capital for ways to encourage productive and sustained FDI: development. There was a need to develop a solid (a) transparent reporting of revenues by corpora- foundation for entrepreneurship. With respect to tions and payment of taxes and fees to the Gov- the activities of international financial institutions, ernment to ensure that there was no diversion to consideration also needed to be given to the type of unwarranted personal gain and commitment to funds made available for the development of small corporate social responsibility, with the Extrac- and medium-sized enterprises, with importance tive Industry Treaty Initiative being an important given to funds that promoted entrepreneurship by mechanism; (b) ensuring that international corpo- youth and women. There was also a need for more rations operated in a transparent way, with disclo- discussion on “aid for investment” in addition to sure standards, to prevent conflict of interest; c( ) “aid for trade”. supporting enforcement and monitoring mecha- 10. After the panel presentations, a policy discus- nisms for regional and international commitments sion was held among participants, including repre- on transparency, such as the United Nations Con- sentatives of Governments, as well as institutional vention against Corruption and the Organization and non‑institutional stakeholders. The following for Economic Cooperation and Development points were made: Convention against Corruption; (d) ensuring, through source-country Governments, that com- • Transfer of profits abroad by companies should panies acted with the same level of integrity abroad be discouraged. There is a need to improve the as they did within their national borders; and (e) visibility, transparency and predictability of enforcement of a transparent financial system and investments. A strong regulatory framework is investment in infrastructure and human resources also important in limiting the volatility of pri- on the part of developing countries. vate capital flows. 8. Mr. Persaud, in his presentation, debunked • In order to strengthen international tax coop- the myth that FDI was better than other forms of eration, the United Nations Committee of private capital flows. Over the long term, the out- Exports on International Cooperation in Tax flow of dividends from profits related to FDI, when Matters should be upgraded to an internation- investors were nervous, could destabilize recipi- al tax organization. ent country financial markets. Also, international corporations could use transfer-pricing to avoid

269 The Doha Review Conference on Financing for Development

• There is a need to increase ODA in areas that Doha round of multilateral trade negotiations with would enhance the functioning of the busi- a balanced outcome. The coordinated liberaliza- ness sector. tion of trade under fair and equitable rules was vital for all countries; one of the key objectives of • It is important to enhance the provision of the World Trade Organization was to ensure a level long-term debt to entrepreneurs. playing-field for all its members and help countries • There is a need to strengthen parliamentary neglected by globalization to integrate themselves. oversight over the reform of financial systems. “Aid for trade” was critical in that respect since • Particular attention should be paid to policy many poor countries lacked the supply capacity implications arising from the current eco- to take advantage of improved market access, and, nomic crisis. developed countries therefore needed to renew their commitments. 3. Mr. de Mendonça stated that Brazil had benefited from trade liberalization in the 1990s thanks to the industrial base built under the import-sub- Round table 3 stitution phase. Subsequently, an enabling inter- International trade as an engine national environment was critically important for development for development. However, that environment had been defined by United States and European poli- 30 November 2008 cies; as an important exporter of agriculture and resources, the United States competed with devel- 1. Round table 3 was co-Chaired by Olga oping countries and Europe, and its agricultural Algayerova, State Secretary of the Ministry of For- subsidies gave it a competitive advantage. Although eign Affairs of Slovakia, and Ana Vilma de Escobar, some developing countries, such as those in East Vice-President of El Salvador. Valentina Rugwa- and South-East Asia, managed to achieve export- biza, Deputy Director-General of the World Trade based development, many developing countries Organization, moderated the panel. Presentations failed to benefit from international trade. A suc- were made by the following panellists: Pedro Luiz cessful Doha round could rebalance the system. Carneiro de Mendonça, Under-Secretary-General Still, the current crisis threatened that opportunity for Economic Affairs of Brazil; Debapriya Bhatta- and it was crucial to coordinate crisis-fighting and charya, Permanent Representative of Bangladesh to resist protectionism. As President Lula had stated, the United Nations and other international organi- the Doha round had become not just an opportu- zations in Geneva, and President of the Trade nity but a necessity. and Development Board of the United Nations Conference on Trade and Development; Miguel 4. Mr. Bhattacharya noted that trade was just one Hakim, Secretary for Iberoamerican Cooperation, of the engines for development and depended on the other engines, such as domestic policy space Secretaria General Iberoamericana; Abdoulie Jan- and foreign direct investment. The major instru- neh, Executive Secretary of the Economic Com- ment for facilitating the beneficial effects of trade mission for Africa; Sun Zhenyu, Ambassador of for developing countries was special and prefer- China to the World Trade Organization; and Paavo ential treatment. Complimentarity and coherence Väyrynen, Minister for Foreign Trade and Devel- were the key principles involved. However, inter- opment of Finland. national conditions were going to be extremely 2. Ms. Rugwabiza, introducing the subject, not- difficult in the near future owing to the current ed the importance of keeping international trade financial crisis, climate change and the volatility open in the face of the current financial crisis since of food and commodity prices. Worldwide reces- it was intrinsically related to growth and develop- sion was not only an economic but also a politi- ment, and stressed the urgency of completing the cal threat, as demonstrated by recent events in

270 Summaries of Roundtable Discussions

Afghanistan, Iraq and South Asia. Immediate Christmas falling by 30 per cent—and by up to challenges included sustaining the multilateral 70 per cent for some goods. China needed over trading system and resisting hegemonic and pro- 100 million new jobs annually, which required at tectionist tendencies; concluding the Doha round least 8 per cent annual growth. Therefore, world- with a balanced outcome, including tariff-free wide stimulus, open trade and financial flows were and quota-free market access for all least devel- needed to avoid the mistakes of the 1930s; the con- oped countries and their goods; and resolving clusion of the Doha round was vital in that sense. the commodities issue, the cotton issue being the Agricultural subsidies needed to be eliminated and prime example. Domestic policy and institutional tariffs needed to be cut deeply with less than full reforms were also necessary to ensure that trade reciprocity by developing countries, and vulnera- benefits resulted in poverty reduction. ble countries should enjoy special and preferential treatment. China’s average bound and applied tariff 5. Mr. Hakim assessed the implementation of was 15.2 per cent, compared with the 60 per cent five trade-related paragraphs of the Monterrey world average bound rate and the average agricul- Consensus. Substantial progress had been made tural tariff rates of 42 per cent in Japan and 22 per in expanding World Trade Organization acces- cent in the United States of America and Europe, sion; increasing financial resources derived from and China’s tariff would be cut further to 12 per trade, although 2009 would see the first decline cent. He stressed that China’s aid was strictly based in exports since 1982 in the Latin American and on non-interference in the internal affairs of recip- Caribbean region; expanding bilateral and region- ient countries, an approach that China had itself al free-trade agreements; and redoubling aid for requested of its donors in the past. trade. However, the most important paragraph on the conclusion of the Doha round had not been 8. Alluding to Finnish experience, Mr. Väyrynen achieved, although the “Lamy package” had come emphasized that trade and poverty reduction were close to convergence. Therefore, the Doha Confer- the right policies for developing countries. He was ence needed to provide at least a political impetus optimistic about the Doha negotiations following and a road map for further negotiations. Mr. Lamy’s plan to convene a new ministerial meeting before the end of 2008 and the planned Euro- 6. Mr. Janneh stressed that trade was indeed the pean Union meeting on free trade agreements. The most important engine for development for Africa speaker also expressed hope that emerging market in many ways, although the continent faced serious countries would follow the European Union lead obstacles, such as limited supply capacity, limited in offering tariff-free and quota-free access to least trade-related infrastructure and credit availability, developed countries, and complimented China’s a lack of diversification and difficult geography, announcement of such treatment for 95 per cent of including 15 landlocked countries, so that the cost least developed countries’ exports. of trade could reach 50 per cent of goods value, as in the case of Chad. Therefore, well-targeted aid 9. Following the presentations, an interactive for trade for ports, telecommunications and cus- debate was held. Some delegates expressed dissatisfaction with the level of progress in the Doha toms capacity-building was effective, as the newly round, the current international trading system and established trade policy centre in Addis Ababa restrictions on World Trade Organization acces- had shown. sion, and called for reforms of the international 7. Mr. Zhenyu spoke of China’s historical experi- trading system and institutions. Many delegates ence of 400 years of closed-door policies and their stressed the importance of keeping international liberalization since the late 1970s. He stated that the trade unrestricted in the current difficult times and 30 per cent annual increase in Chinese imports in encouraging South-South cooperation. They noted recent years was helping other countries, especially the complementary nature of aid for trade to the in Asia. The financial crisis was already having an Doha round, and called for it being additional to impact on trade, however, with export orders for official development assistance and transparent.

271 The Doha Review Conference on Financing for Development

Round table 4 assistance. The Arab States—mainly the oil export- Increasing international financial and ers of the Gulf Cooperation Council (GCC)—pro- technical cooperation for development vided generous official assistance to a large number of developing countries. The amount of ODA in 1 December 2008 the ESCWA region had reached 25.5 per cent of FDI and 47 per cent of remittances received. The 1. Round table 4 was co-chaired by Laurent distribution of Arab development funds was com- Gbagbo, President of Côte d’Ivoire, and Laszlo prised of 15 per cent to Africa, 27 per cent to Asia Varkonyi, State Secretary of the Ministry of For- and 65 per cent to Arab States, based on a foun- eign Affairs of Hungary. Olav Kjorven, Assistant dation of solidarity and cooperation. The top two Secretary-General and Director, Bureau for Devel- institutions providing funding were the Islamic opment Policy, United Nations Development Pro- Development Bank and the Arab Fund for Eco- gramme, moderated the panel. Presentations were nomic and Social Development. Assistance went made by the following panellists: Bader Al-Dafa, primarily to the services sector—transportation Executive Secretary of the Economic and Social and communication, education, health and hous- Commission for Western Asia (ESCWA); Ahmad ing and energy. Technical assistance was provided Mohamed Ali Al-Madani, President of the Islamic in all areas and the Arab development funds sup- Development Bank; Eckhard Deutscher, Chair of ported “Aid for Trade” to increase competitive- the Development Assistance Committee (DAC) of ness and research and development. Saudi Arabia the Organization for Economic Cooperation and provided about two thirds of total aid from Arab Development; Gargee Ghosh, Senior Programme States, followed by Kuwait, United Arab Emirates Officer for Development Finance and Policy, Bill and Qatar. Although those were still developing and Melinda Gates Foundation; Jean Ping, Chair- countries, aid disbursement from the region con- person of the African Union Commission; Sam stituted 0.5 per cent of GNP, higher than the per- Worthington, President and Chief Executive Offic- centage among DAC countries. The aid, which was er of InterAction. non-conditional, was mainly provided in the form 2. In his introductory remarks, Mr. Kjorven of grants and long-term loans of high concession- stressed the importance of delivering on official ality. In recent years, the significant increase in aid development assistance (ODA) commitments had been due to assistance for the reconstruction and making changes to make aid more effective. of Iraq, Sudan and Palestine. Those adjustments include further untying of aid, 4. Mr. Al-Madani noted that all members of the improving coordination and harmonization, and Islamic Development Bank (IsDB) were developing strengthening triangular and South-South coop- countries; sub-Saharan African countries, where eration. Discussions on those measures must be acute poverty was still a serious problem, made placed in the context of the negotiation of the draft up 40 per cent of its membership. He stressed that Doha outcome document, which would set the the current crises would have a further negative stage for work in the coming years. Also, against impact on the poor. He discussed the IsDB les- the backdrop of the international food, energy and sons learned and best practices in the area of offi- financial crises, development cooperation is all the cial assistance. Improvement of coordination and more important. Counter-cyclical public invest- innovative mechanisms in scaling up aid through ment is needed now in developing countries and the Islamic Solidarity Fund for Development had ODA must be scaled up to help. resulted in substantial increase in aid to the poor- 3. Mr. Al-Dafa reviewed the trends and patterns est countries to facilitate reaching the Millennium of ODA in the Western Asia region, where ODA is Development Goals. Technical assistance had been particularly important for infrastructure projects. developed to enhance absorptive capacity and lead Recent increases in ODA in the region were main- to self-reliance of recipient countries. Partnership ly attributable to debt relief and natural disaster with non‑official institutions in strategic areas had

272 Summaries of Roundtable Discussions resulted in providing affordable access to health people in developing countries to overcome hunger care and microfinance. Mr. Al-Madani put forward and poverty, while the Global Health Programme some concluding thoughts concerning how to ensured that advances in health care were created make aid more effective: a( ) the need to encourage and shared with those who needed them most. She more initiatives to share knowledge and innovation emphasized the need for political will and a results- through development cooperation; (b) the need to oriented framework for ODA. Better data and eval- help recipient countries to graduate from aid; and uation mechanisms for better policy-making were (c) the need to realize that helping the poor was a required. The need for new finance mechanism to win-win situation. supplement existing ODA was also noted. 5. Mr. Deutscher pointed out that failure to 7. Mr. Ping referred to the recent economic and meet the goals set by the DAC donors would have financial crisis, which had driven down demand, a severe impact on the poor, particularly in the export and price for commodities and consequent- wake of food and financial crises. He also empha- ly had a negative impact on the African economy. sized that economic and financial crisis should not Based on past experience, ODA from developed affect the ODA budget of DAC donors. Referring countries was usually reduced after a crisis. In that to what had been agreed at the Accra High-Level environment, he emphasized the need for devel- Forum on Aid Effectiveness, a mid-term review oped countries to lower agricultural subsidies and of the implementation of the Paris Declaration on improve market access for developing countries. Aid Effectiveness, which had been held in Accra in Finally, he called for increased aid to Africa from September 2008, he emphasized that further efforts Islamic countries. were needed to strengthen country ownership dur- 8. Mr. Worthington discussed the change in the ing development cooperation; build more effec- aid architecture, especially regarding the NGO tive and inclusive partnership for development; community. He pointed out that with rapid growth increase productivity and concessionality of aid; of private fund for development cooperation there and improve the management of aid by recipients. was a need to acknowledge these funds; $54 bil- Recent evaluation showed that although there had lion of private funds had been disbursed through been some improvement in those areas, the pace NGOs for development cooperation in 2006. From of progress was slow. He added that further reform 2000 to 2006, there had been a tripling of private and faster action were needed to meet the time funds from individuals, foundations and corpora- frame of the Paris Declaration Commitment. Cur- tions through NGOs to development programmes. rently, 75 per cent of ODA from DAC donors to the NGOs worked with Governments and in partner- least developed countries was untied. That amount ship with community-based organizations, the had to be further increased to allow local and United Nations, business and foundations. NGOs regional suppliers to benefit from procurement. added value at the local level, helping in local With regard to technical cooperation, the speaker capacity-building and strengthening the capacity stressed that it must be country-led and country- of Governments. He emphasized that NGO pro- owned and donors should facilitate coordination grammes were participatory in design and imple- between themselves to avoid fragmentation. He mentation. Long-term programmes (10-15 years) highlighted that the bottom line was the need for were established in partnership with governments action to implement commitments to address to ensure a steady flow of aid. NGOs had launched problems with all partners doing their part. a process to ensure the effective use of aid, based on 6. Ms. Ghosh discussed the activities of Bill and Paris Declaration principles, to consider a platform Melinda Gates Foundation, which focused on of standards and norms. He stated that his organi- working to help all people lead healthy and pro- zation would lobby the new United States admin- ductive lives. There were two programmes geared istration to double ODA commitments and to seri- to developing countries: the Global Development ously explore innovative financing mechanisms, Programme aimed to increase opportunities for including the Currency Transaction Tax (CTT).

273 The Doha Review Conference on Financing for Development

9. After the panel presentations, a policy dis- Round table 5 cussion was held among participants, including External debt representatives of Governments and institutional and non-institutional stakeholders. The following 1 December 2008 points were made during the presentations and discussions: 1. Round table 5 on external debt was co-chaired • Innovative sources of financing should be by Isatou Njie-Saidy, Vice-President of Gambia, additional and complementary to ODA, and and Mario Delgado Alfaro, Deputy Director-Gen- new initiatives should be inclusive and partici- eral for International Financial Affairs, Ministry of patory. The implementation of new initiatives, Economy and Finance of Spain. Murilo Portugal, such as CTT, is welcome. Governments should Deputy Managing Director of the International be urged to pilot and take part in the Working Monetary Fund (IMF) moderated the panel. Pres- Group on Solidarity Levies. entations were made by the following panellists: Nancy Birdsall, President of the Center for Global • Provision of aid through NGOs should be Development; Carlos Braga, Director of the Eco- transparent and accountable. nomic Policy and Debt Department of the World • Some specific aid programmes may not be Bank; Benoît Coeuré, Co‑Chairman of the Paris consistent with the development needs of Club; Robert Gray, Chairman of Debt Financing recipient countries. and Advisory, HSBC; and Mary Robinson, Presi- dent of the Ethical Globalization Initiative. • What are the conditions that are conducive to aligning public wishes for ODA with the 2. Ms. Birdsall’s presentation was in the con- actual budgetary allocations for aid in devel- text of the ongoing financial and economic cri- oped countries? sis, including the crisis in employment, food and energy. She argued that the impact of those crises • Aid for climate change should be additional to would undo the progress made since the Monter- ODA commitments. rey Conference unless rapid and creative changes • The United States representative stated that were made in the international financial system. his country would meet ODA commitments, Debt relief under the Heavily Indebted Poor Coun- including doubling ODA to Africa. ODA tries (HIPC) Initiative, for all its success, had failed should be predominantly for leveraging oth- to reduce the vulnerability of poor countries. The er resources, such as private flows and trade. main message of her presentation was that low- Therefore, the Doha round must be conclud- income countries faced two kinds of vulnerability: ed. The Millennium Challenge Account was structural and episodic. Terms-of-trade volatility working on providing untied aid at the request was the highest for low-income countries, almost of countries that had good governance and two thirds higher than high-income countries and sound economic and social policies. one third higher than middle-income countries. Terms-of-trade shock frequency was even higher than natural disaster frequency. Some of the possible responses to volatility and risk, such as pro- cyclical fiscal adjustment and export diversification, were outside the reach of many low-income countries. While the former could be tackled through aid, the latter was a more complex issue. Similarly, self-insurance through reserves was not a feasible option for many low-income countries, and market and market-like insurance was a missing option for that group of countries.

274 Summaries of Roundtable Discussions

3. Ms. Birdsall suggested two policy solutions to those objectives. Most developing countries had mitigate the impact of structural and episodic vul- experienced growth during the last six years, their nerability. For the former, the rule that determined debt overhang had been reduced and the number access to International Development Association of instances of debt payment rescheduling at the (IDA) grants should be simplified instead of giving Paris Club had been reduced by 50 per cent. How- loans to countries with a per capita income of, say, ever, out of 23 countries which reached the point $800 and subsidies to make IMF financing grants of completion, only 9 currently had low risk of equivalent. To deal with episodic external shocks, debt distress. That analysis of risk did not factor a contingency facility should be created that was in the effects of the financial crisis. The debt sus- automatic and timely and delayed debt service or tainability framework of IMF and the World Bank otherwise relieved debt in the event of an exter- for low-income countries attempted to limit bor- nal shock and allowed more borrowing under the rowing from other sources in order to keep debt current debt sustainability framework. There was sustainable. Prudent macroeconomic policies and still hope if fixes to HIPC rules could lead the way debt management played a crucial role in debt to fixes to aid transfers overall and the Bretton maintaining debt sustainability. Woods institutions should take charge in making 5. Mr. Coeuré first presented the implementa- those changes. tion of the Monterrey provisions on external debt. 4. Mr. Braga affirmed that while most areas of Significant progress had been made in the pro- the Monterrey Consensus had experienced very vision of debt relief under the HIPC Initiative/ limited progress since its adoption, substantial Multilateral Debt Relief Initiative, and Paris Club improvement had been achieved in the area of members have been major contributors under the external debt. He admitted that the financial crisis HIPC Initiative. Debt burdens have been alleviated had the potential to undo some of that progress. in the HIPC countries, enlarging the fiscal space He focused his presentation on low-income coun- for poverty eradication. Paris Club members had tries and the HIPC Initiative. In his opinion, the also been major contributors to debt relief outside role of debt in promoting development raised the HIPC Initiative too. He also gave examples of many economic and philosophical questions. On debt treatments accorded to countries to deal with the one hand, borrowing allowed countries to pur- natural catastrophes, severe terms-of-trade shocks sue economic objectives, such as financing invest- and conflict. Paris Club members supported the ment and smoothing consumption, but on the Organization for Economic Cooperation and other hand, indebtedness could be harmful and Development (OECD) principles and guidelines on balance its effect depended on how the new on sustainable export credit lending (2008) and resources were utilized. In response to Ms. Bird- used the Debt Sustainability Framework to make sall’s view that structural and episodic vulnerabil- sure that new lending did not exceed a country’s ity were the areas where solutions had to be found repayment capacity. in the form of debt relief for low-income countries 6. In the context of Doha and new challenges, and the provision of grants and concessional loans, Mr. Coeuré emphasized that we needed to make the speaker explained that structural and episod- efforts to avert the current crisis. We had to build- ic vulnerability were not the objectives when the up on existing frameworks or arrive at new ones HIPC Initiative was formulated. When evaluating to deal with exogenous shocks and price and asset the HIPC Initiative, one needed to use the crite- volatility. In the current Debt Sustainability Frame- ria established when the Initiative was launched, work for low-income countries, no new lending namely, to reduce debt overhang in developing was allowed for countries identified as being in countries, to increase transparency, to reduce debt debt distress. That had to be revisited. One option payment rescheduling and to release resources for was to relax the Debt Sustainability Framework poverty alleviation. According to the speaker, sub- to finance infrastructure investments, etc. Look- stantial progress had been made in achieving all ing towards the future, the new challenge was in

275 The Doha Review Conference on Financing for Development

working out the involvement of non-Paris Club the case of the latter, he was of the view that if the creditors. Paris Club had already had two outreach debtor was well organized and prepared to negoti- meetings in 2008 with 11 non-Paris Club credi- ate on mutually acceptable terms, a solution could tors. Another challenge was to determine ways of be found. On the issue of new debt in HIPCs, Mr. arriving at long-term debt sustainability. He also Gray underscored the importance of debt manage- took up the issue of litigating creditors and called ment in the HIPCs. The speaker also pointed out on all creditors to refrain from selling claims to the importance of longer-dated fixed rate Gov- non-cooperative litigating creditors. The Paris ernment bonds, as well as the role gross domestic Club was ready to revisit its own principles and product (GDP) and inflation-linked bonds played learn from others. It had recently taken steps to in keeping debt sustainable. He felt that IMF could become more transparent through data-sharing. play a role by purchasing the latter instruments Paris Club debt data was now available on its web- and helping to define their market price. site and an annual report of Paris Club activities 9. Ms. Robinson addressed the issue of external was also in the offing. debt from a human rights perspective, focusing 7. Mr. Gray provided a private sector perspective on the need for responsibility and accountability on the ongoing challenge of creating a stable and on the part of developed countries. Developing durable environment for the management of exter- countries were affected by food, fuel and finan- nal debt by developing countries. Some of the sali- cial crises as well as by climate change, but these ent developments since the Monterrey Conference were not inevitable. They were the result of the in 2002 were the improved working relationship behaviour of developed countries. The current between the private and official sectors in the area financial crisis, for example, had been caused by of crisis prevention and resolution, which had con- the irresponsible financial behaviour of developed tributed to a better dialogue on debt sustainability; countries, accompanied by too much deregulation the increasing realization that regulations, includ- and living beyond their means. She pointed to the ing Basel II, had to be counter-cyclical in order to asymmetry between the developed and develop- maintain debt sustainability; the increasing intro- ing countries in terms of policy space. Developed duction of collective action clauses in bond issues; countries had a lot of policy space to deal with and the increased blurring between domestic and their problems, as exemplified in the response to external debt, creating a new set of challenges. the ongoing crisis in the form of bail-outs and the steps taken to shore up the global financial system. 8. Increased transparency, including complying Developing countries, on the other hand, did not with the IMF Special Data Dissemination Standards have similar policy space and would get criticized and early dialogue between debtors and creditors for interventionist policies. Developed countries could, in his view, contribute to reducing misun- should also think in terms of policy space when derstandings by creditors about a country’s meas- dealing with the problems of developing countries ures to restore confidence. In addition, the IIF’s and take measures to resolve the fall-out of the cri- Code of Conduct for Emerging Markets endorsed sis on developing countries. by the Group of 20 in 2004 could contribute to stability of capital flows. The private sector was work- 10. An effect of the financial crisis was the expected ing with the Paris Club to provide relief under the worsening of the debt distress situation in develop- HIPC Initiative in the areas of debt reconciliation ing countries. The review of HIPCs by the World and providing debt relief. Reconciliation of com- Bank had shown that many post-completion point mercial debt posed challenges and there should HIPCs were falling back into debt-crisis situations. be room to develop a template that addressed the Fourteen low-income HIPCs, which had reached issues of delays in reconciliation. On the issue the HIPC completion point by being rigorous and of litigation, he was of the view that authorities responsible, were now facing deep or moderate should distinguish between the majority that pro- risk of debt distress. The actual situation of HIPCs vided relief and the minority that litigate. Even in was probably worse, since the financial crisis had

276 Summaries of Roundtable Discussions occurred after that analysis had been carried out • A weakness in debt relief initiatives is how by the World Bank. Ms. Robinson made an appeal to deal with post-conflict countries. There to the international community not to let the poor- is a need for a broader debt relief for those est countries feel the heaviest burden. The financial countries. crisis carried a moral responsibility and the burden • The approach to the debt problem is flawed must not fall unfairly on developing countries. The because it is considered only an economic crisis, which had been created by the “first world”, problem when it has many dimensions (the created moral and ethical issues. She proposed to human rights aspect is missing). The United add a new dimension to the financing for devel- Nations is the proper place to address the opment agenda to deal with responsibility and problem because it is a democratic institution accountability. where all have an equal voice. 11. After the panel presentations, a policy dis- • There is a need to enhance the debt manage- cussion was held among participants, including ment capacity of developing countries in a representatives of Governments and institutional transparent legal framework and create a and non-institutional stakeholders. The following charter of principles that promote responsible points were made: lending and borrowing. • The costs of climate change, financial, food and • Debt problems include unsustainable and energy crisis will have to be borne by Africa unresolved debt. If debt problems remain unre- and other developing countries although it is solved then poverty remains unresolved too. not their fault. • There is a need for short-term loans to help • Full delivery on the HIPC Initiative will developing countries deal with the conse- require more efforts. Eighteen countries have quences of the current financial crisis. not reached the decision point. The new assistance promised to developing countries is going • IMF financing is needed to provide funds to ahead at slow pace. If the Gleneagles target is budgets. to be reached, a much faster rate of growth of • How should the post-HIPC countries, which those funds needs to be achieved. are in pre-crisis situation, be handled? The • Debt relief puts blame on the debtor countries. HIPC Initiative is not available to some low- The impact of debt relief is diluted by condi- income and middle-income countries. tionality and worsened terms of trade. Financ- • In 2008, about $30 to 35 billion is available to ing for development’s failure in the area of debt middle-income countries in response to their relief includes the inability to promote debt demand related to the crisis. Some of the loans cancellation and policy space. A deeper and will be budget support loans. broader debt cancellation is needed because the current debt relief mechanism has failed. • Is a rules-based approach for middle income debt needed? Maybe a moratorium on debt • There is a need to examine odious/illegitimate makes sense but a rules-based approach is debt. The Paris Club has indicated that it is better. Middle-income debt treatment should ready to discuss odious debt although it poses focus on unsustainable debt. legal issues. • Accountability of the international financial • The Debt Sustainability Framework, debt relief system is an issue. There are failures on the part mechanisms and terms of treatment remain a of regulators, ratings agencies and investors challenge. Some of the features recommended themselves, and those failures have an impact for improvements are speed, comprehensive- on the debt situation of developing countries. ness, realism, fairness and transparency.

277 The Doha Review Conference on Financing for Development

Round table 6 noted that the President of the General Assembly Addressing systemic issues: enhancing had created a Commission of Experts on Reform the coherence and consistency of the of the International Monetary and Financial Sys- international monetary, financial and tem, tasked with a report on proposals to recon- trading system in support of development figure the mechanisms and institutions of global economic governance, based on lessons learned 2 December 2008 from the financial crisis. The Doha Conference was another important step in that direction. Mr. Sha 1. Round table 6 was co-chaired by Joon Oh, Dep- noted the call from the Conference to hold a Unit- uty Minister for Foreign Affairs of the Republic of ed Nations conference at the highest level on the Korea, and Jorge Valero, Vice-Minister for North world financial and economic crisis and its impact America and Multilateral Affairs of the Bolivarian on development. Republic of Venezuela. The Under-Secretary-Gen- 3. Mr. Dimian shared the recent observation that eral for Economic and Social Affairs of the United at the current time markets were less concerned Nations Secretariat moderated the panel. Presenta- about the return on money and more on the return tions were made by the following panellists: Hany of the money—indicating that a crisis of confi- Dimian, Deputy Chairman of the International dence had engulfed the global financial system. Monetary and Financial Committee and Deputy In restoring confidence, global coordination was Finance Minister of Egypt; John Eatwell, Profes- needed. While fiscal stimulus packages were an sor, University of Cambridge; Adib Mayaleh, Chair important measure to restore market confidence, of the Group of 24, Governor of the Central Bank the global community had to step up efforts for the of Syria; Louis Michel, European Commissioner prudent regulation of financial markets. The prob- for Development and Humanitarian Aid; Joakim lem was not the existence of an early warning sys- Stymne, State Secretary, International Develop- tem but the lack of enforceability of such warnings ment Cooperation, Ministry of Foreign Affairs of on countries which accumulated financial fragility Sweden; and Heidemarie Wieczorek-Zeul, Federal caused by the sale of financial assets by firms that Minister for Economic Cooperation and Develop- later on turned out to “troubled”. ment of Germany, Special Envoy of the Secretary- General for the Conference. 4. Mr. Eatwell stated that while Governments were currently struggling with short-term respons- 2. Mr. Sha, introducing the subject, identi- es to the international economic and financial cri- fied the two major issues of the systemic agenda: sis, in the medium term Governments had to agree (a) specific policies to support the more effective on effective global regulatory reform. The current functioning and coordination of the international financial crisis represented a shock to both the the- financial architecture; and (b) strengthening the ory and practice of financial development and reg- role of developing countries and transition econ- ulation. While risks undertaken by individual pri- omies in global economic governance. Recently, vate actors had a systemic effect, individual firms the international community attention had been could not tackle a systemic crisis when it erupted. focused largely on the challenge of crafting policy Financial regulation in the system had been heav- responses to the weaknesses in the financial sys- ily biased at the firm level and that had been evi- tem, exposed by the ongoing global financial tur- dent in such initiatives as Basel II and the Capital moil. Those responses were spawning additional Requirement Directive of the European Union. challenges in adapting the governance structures That would require a fundamental overhaul of the of the international institutions and other global international financial architecture. A regulatory decision-making bodies. The financial crisis had approach should focus less on the differentiation broadened the consensus on the urgency of a far- between types of financial institutions and more reaching reform of global economic governance on the scale of leverage that institutions engaged and the international financial architecture. Mr. Sha in. There was an urgent need for an economic and

278 Summaries of Roundtable Discussions political consensus on global multilateral financial 7. Mr. Stymne stressed that a global crisis reform and a Bretton Woods II system. The Com- required global solutions. Regulations should be mission established by the President of the General effective and not excessive. While one must be Assembly could respond to that need. The United careful, in creating new institutions, to recognize Nations and the United Nations system had an the potential of existing institutions, it was impor- important role to play in systemic issues since they tant to strengthen the integrity and accountability were essentially of a political nature. of the international financial institutions. There was a need to establish a broader ownership of the 5. Mr. Michel stressed that the current financial Bretton Woods institutions, and the reform proc- crisis should not provide an occasion for donor ess itself should be inclusive, legitimate and trans- countries to shirk their responsibility in terms parent. Mr. Stymne pointed out that in the specific of meeting their official development assistance area of increasing the resources of the Bretton (ODA) commitments. He emphasized that the Woods institutions, Sweden could be an important European Union (EU) would meet its targets of contributor but it was not a member of the Group 0.56 per cent of gross domestic product (GDP) for of 20 and thus it would be “counterproductive” to ODA by 2010 and 0.70 per cent by 2015. The threat limit the discussion of resources to that Group. of a deep crisis was very real. Protectionist tenden- The United Nations had an important multilateral cies should be resisted. Climate change had been role in fostering governance and rule of law. There mostly caused by the actions of developed coun- was also a need to successfully conclude the Doha tries and therefore assistance on climate change round of trade negotiations. grounds should be additional to aid already committed. The overall goals of the Monterrey Con- 8. Ms. Wieczorek-Zeul stated that the time had sensus should be realized, including effective and come for a new global deal. We must see the cur- transparent taxation. The current crisis required rent crisis as an opportunity and seize it to fight countries to be less “ego-centric” and to mobilize the economic crisis and prevent it from becoming together the political will to resolve it. a humanitarian crisis in developing countries. We 6. Mr. Mayaleh emphasized the two key issues in needed to rethink the relationship between mar- the systemic chapter—financial architecture and kets and the role of States. The lack of a clear set of the voice and participation of developing countries. international principles for the management and Global finance should contribute to development, resolution of financial crises was a major problem. not undermine it. Since Monterrey, increasing glo- The Group of 20 had recommended and decided bal inequality had not been addressed. Surveillance on measures to manage the international finan- mechanisms had been asymmetric. The Monter- cial system, but without inclusive international rey Consensus called for the establishment of an representation. The crisis also suggested that the orderly debt-restructuring mechanism and that current international financial institutions did not objective needed to be reinvigorated. The Inter- have the capacity to effectively address such situa- national Monetary Fund (IMF) needed to review tions. Better macroeconomic policy coordination the conditionalities associated with its instruments was required. and should reconsider those that blocked their 9. Following the presentations, an interactive use by developing countries. It was an important debate was held. Civil society participants empha- moment to reform the governance of the interna- sized the importance of protecting the participation tional financial institutions in order to restore the of the sector as the source of new and critical ide- legitimacy and effectiveness of those institutions. as. The business sector representative stressed the Deliberations on those reforms should include capabilities that the business sector could contrib- countries that were not members of the Group of ute to government policy design and implementa- 20. Many of those countries were members of the tion in addressing systemic issues and their strong Group of 24. willingness to do so. Other participants proposed that IMF should focus more on overall systemic

279 The Doha Review Conference on Financing for Development

issues, including addressing the need for new forms of global regulation. IMF needed to strengthen its multilateral surveillance and pay more attention to the consistency of macroeconomic policies of developed countries and not be distracted by the public sector governance issues in developing countries from its true mandate. IMF should be active in promoting the reform of the international monetary system, including better management of external shocks, macroeconomic policy coordination, efficient multilateral liquidity provision and consideration of a debt workout mechanism.

280 Chapter 8 Civil Society Forum

OUTCOME OF THE CIVIL SOCIETY FORUM* CIVIL SOCIETY DECLARATION

25-27 November 2008, Doha, Qatar

Preamble Today the world is consumed by an urgent series of crises: energy, food, climate, and finance We, the members of more than 250 civil society that not only threaten the realization of the MDGs organizations and networks from around the world and the lives and livelihoods of hundreds of mil- gathered before the official Review Conference on lions of people, in the North and the South, but Financing for Development in Doha, Qatar, 25 – also the stability of the world’s economies. The 27 November 2008 under the theme “Investing in Northern governments and financial system are people centered development”. We reviewed the responsible for the current crises, but the costs and implementation of the Monterrey Consensus and the impacts are paid for by the entire world, and by discussed pressing new challenges and debated the poorest countries in particular. According to possibilities for innovative financing. The Monter- the Food and Agriculture Organization $30 billion rey conference emerged out of a financial crisis in are required every year to eradicate poverty. Trade Asia and Latin America in the 1990s. But it was also negotiations have reached a stalemate. Persistent guided by a perceived crisis in development: the gender inequalities reflect and are related to all need to examine the shortfall in resources required these structural imbalances in the global economic for countries to achieve international agreed devel- system; thus it is urgent to include a gender per- opment goals including Millennium Development spective into all policies, at all levels and sectors, as Goals (MDGs) and to cut the number of people well most Northern countries are falling far short living in extreme poverty by half by 2015, improve of meeting their aid commitments. Overcoming social conditions such as health and education, these crises requires decisive action and leadership employment, raise living standards, support gen- from the global community. To date however, such der equality and women’s empowerment, and pro- leadership has been sorely missing. tect the environment. Besides, the dramatic effects of the current crises, in recent years the world has witnessed a substantial and growing transfer of capital from the * The civil society forum was convened by the Doha global South to the North. Conservative estimates NGO Group on Financing for Development (ANND, indicate that between $500 – 800 billion leaves NGO Committee on FfD, CIDSE , New Rules for Southern countries every year through capital Global Finance Coalition, EURODAD, AFRODAD, flight. The major component of such illicit capital Third World Network, Social Watch - Third World Institute, LATINDADD, UBUNTU Forum, flows is due to tax evasion by multinational corpo- ITUC, Women’s Working Group on Financing for rations operating in Southern countries and is facil- Development, AWEPON) itated by tax havens. Moreover, Southern countries The Doha Review Conference on Financing for Development

continue to send most of their resources to the pushed for increased capital flows, market liber- North in the form of debt servicing and exports. alization and eroded national policy space violating Taking into account all the financial mechanisms, national sovereignty. They are among the major insti- there is a net capital flow of hundreds of billions of tutions responsible for the current situation, have no dollars per year going from the South to the North. legitimacy and no credibility to play such a role in This is a scandalous “reverse welfare” in which the the reform of the international financial system, let poorest countries are financing the richest. alone to start a self-reform process. Trade liberalization, of the kind pursued under the Doha Round, has The swift and massive response of governments contributed to increased vulnerability of developing of the richest countries to bail out banks and private countries in key areas. These include unemploy- financial institutions with more than three trillion ment, downward pressure on workers’ conditions US dollars of public guarantees and funds stands in and rights, the reduction of access to key public serv- stark contrast to their failure to respond decisively ices and the threat to food sovereignty. to the unabated crisis of poverty, and marginalization that has afflicted the majority of peoples in the We demand global economic structures and world. According to the World Bank, to cut by 2/3 policies that put peoples´ rights first, that respect the child mortality in the poorest countries, some and promote human rights and social and envi- 20 – 25 additional billion dollars per year are need- ronmental justice, that ensure decent work oppor- ed. The International Labor Organization (ILO) tunities which are based on employment opportu- estimates that the current crisis will result in the nities, respect for labor rights, social protection, loss of 20 million jobs by the end of 2009; another social dialogue, sustainable livelihoods taking into 100 million people will be pushed into the informal account the care economy largely dependent on economy on top of the existing 200 million unem- women as well as essential services such as health, ployed and 1.3 billion underemployed workers. As education, housing, water and clean energy. People every minute a woman is dying because of com- need to have greater control over resources and the plications in pregnancy and birth, we call for an decisions that affect their lives. increase in funds to fight the persistent high mor- We observe that instead of engaging in a high tality rates. To guarantee basic instruction to all the level comprehensive debate on financing for devel- children in the world, between 10 and 30 billion opment, most countries from the North are report- dollars per year is required. So far the international edly not sending their head of state and the absence community has proven incapable of raising such of the Heads of the IMF and the World Bank to sums, which are in the range of a few percentage attend this conference reveals their disregard for points of the enormous capital dished out to save an inclusive development discourse. financial institutions. Moreover, twelve years of debt relief initiatives have generated only slightly more than 100 billion dollars in debts cancelled. Global key issues Working people, particularly, women are being Exchanged views on some development trends on: forced to pay the bill for a system founded on the concentration of wealth and economic control in Foreign Direct Investment (FDI) the hands of a few and the continuing and deepen- Foreign direct investment in its current format has ing impoverishment of the majority. The commit- failed to address the social development dimen- ments made by the G-20 government leaders two sion as well as enhance technology transfer from weeks ago in Washington to strengthen regulation the rich to the poor countries. In this regard delib- and oversight will not be sufficient. erate attempts must be made to institute a holistic We are deeply concerned to see the G-20 proc- approach to foreign direct investment that includes ess give a central role to failed global financial and among others, the social development aspects, sus- trade institutions such as the IMF, World Bank and tainable technology transfer and elimination of the WTO. These institutions in the last 30 years have tax havens that deny poor countries much needed

282 Civil Society Forum financial resources for development. The history goals, including ensuring that FDI creates decent of FDI has shown that its involvement in natu- employment and appropriate skills training. ral resources has been highly disruptive. As such, investment in natural resources should respect Domestic resource mobilization national sovereignty, the environment and guar- In order to achieve the international development antee the right to prior and informed consent goals and overcome dependence on external lend- by affected communities including indigenous ers, whether governments, banks or the Interna- peoples. FDI should follow environmentally and tional Finance Institutions, the countries of the socially sustainable production systems, and align South need to substantially increase revenue from its operations with national and local economies. national resources, and channel these resources Appropriate regulatory frameworks should towards meeting the needs of the people living in be put in place to ensure corporate accountability, poverty. The Monterrey Consensus had highlight- including the ILO Declaration on Multinational ed domestic resource mobilization both public Enterprises and social policy. Measures should be and private as essential for sustaining productive developed at international level to align business investment and increasing human capacities. The activities with observance of human and workers’ domestic policy tools that can inform this process rights, in particular in the areas concerning the include fiscal reform, as well as fiscal and monetary state duty to protect and promote human rights, the instruments to moderate economic downturns and corporate responsibility to respect human rights, protect at risk economic sectors and populations and the need for access to effective remedies for from negative impacts. victims, including through judicial mechanisms. The just allocation of domestic resources toward Bilateral investment and free trade agreements gender equality is critical to achieving MDG3 and should be discussed with all relevant stakeholders, signals a country’s commitment to gender equal- notably national parliaments, social partners and ity through investments of their own resources. civil society ensuring democratic ownership. Such National development planning needs to enhance agreements that do not promote development and the participation of women and actively take into decent work should be reversed or not concluded. account their concerns. To this end, national wom- The drive to improve productivity and- com en’s, youth and civil society organisations espe- petitiveness, particularly through outsourcing, cially at the grassroots level should be included in subcontracting and value chains, should not be the process of planning, programming, manag- pursued at the cost of workers’ rights, working ing, monitoring and evaluating national develop- conditions and wages, but should be based on the ment plans, including through Northern country social and environmental imperatives of sustain- support, informed by the principles of national able development. democratic ownership and mutual accountability. Further, we call on signatories of the Abuja Dec- Instruments promoting foreign trade such as laration (2001) to undertake all possible efforts to export credit and investment guarantees should be achieve the allocation of 15% of national resources made conditional on compliance of multi-nation- to health, in order to achieve MDGs 4, 5 and 6. al corporations with environmental, social and human rights standards, and binding transparency We call for deeper and meaningful policy space criteria. Governments should simultaneously make for developing countries’ governments and stake- use of them to actively support technology transfer holders to be free to develop social and economic to the South in particular structurally weak regions policies, micro and macroeconomic policies that are and to development enhancing endeavours, such as based on people-centered sustainable development addressing climate change. Further, there is a need providing decent work opportunities and capacity- to create effective regulation of capital flows and building for the working poor as well as address- utilization of FDI to support social development ing the causes and impacts of climate change, the

283 The Doha Review Conference on Financing for Development

food crisis, and to include the informal economy. suffering from huge debt burdens and the current We call on greater attention towards women, vul- food, climate, energy and financial crises threaten nerable people, including the disabled, in facilitat- to further exacerbate the problem of debt domina- ing their access and control over resources for the tion. Particularly in times like these of severe cri- purposes of enhancing their contribution to their sis, the autonomy of South governments to prevent economies in developing countries, and urge gov- badly-needed resources from being diverted away ernments to institute progressive tax regimes that from fundamental human and environmental are sensitive to their activities. Further, there must rights and needs must be recognized and upheld also be greater attention to rural economies that by the entire international community. need broader and more equitable access to credit, We oppose the continued role and proposed in-puts, information and technology, and the just strengthening of the International Financial Insti- and equitable redistribution of land assets. tutions IFIs) given their failure to address the debt We propose a more representative space for crisis over the years and their role in generating dealing with taxation, building on the work of the illegitimate debt and imposing harmful policy con- OECD tax committee, by upgrading the UN tax ditionalities. Instead, governments should establish committee to an adequately resourced and fully a new financial architecture that is inclusive, par- mandated intergovernmental body based on polit- ticipatory and democratically accountable to the ical representation and technical expertise. peoples it aims to serve. The United Nations should play a key role in its development and the institu- We recognize the net resource outflow from tions and mechanisms should be subject to inter- the poor to the rich countries through commercial national human rights norms and treaties. Among capital flight and other instruments including debt other needs, the new binding institutional frame- servicing. We call for sustainable measures includ- work should revise the current debt sustainability ing closing enhanced corporate disclosure of rev- framework so as to include domestic debt, human enue, ownership of assets and taxes paid, closure development and environmental and climate jus- of harmful tax havens, addressing illicit capital tice considerations. There is also an urgent need to flows and implementation of the UN Convention establish fair and transparent debt work-out mech- against Corruption. There should be an effective anisms that are independent from the IFIs. monitoring mechanism on the implementation of the Convention. This reinforces the need for A significant development following the enhanced corporate and governmental disclosure Monterrey Consensus has been the growing legal of revenue on a country level (Country-by-Coun- and political interest in a recognition of the con- try Reporting). Further, we call for adoption of the cepts of odious and illegitimate debts. The current Code of Conduct prepared by the UN Tax Com- debt relief schemes, such as the Heavily Indebted mittee’s group of experts. Poor Countries (HIPC) initiative and the multilateral Debt Relief Initiative (MDRI) are not adequate Debt solutions to the debt problem. Some developing countries such as least developing countries and In order to free developing countries of their per- middle-income countries have been excluded petual debt crisis, we call on governments to take from both initiatives. We call for the cancellation immediate action to ensure the cancellation of all and repudiation of illegitimate and odious debt as debts claimed of impoverished countries and de- well as decisive actions to stop the re-accumulation linked from lenders´ conditionality. South country of such debt. These actions should include, in the governments should also take the necessary unilat- immediate, a commitment to undertake and sup- eral actions to recover sovereignty over their financ- port the realization of comprehensive audits of es, including debt repudiation and non-payment. financial, social, ecological and historic debts - Despite debts cancelled in recent years, the both official audits such as the recent Ecuadorian majority of countries throughout the South are still experience and citizen audits as are now being

284 Civil Society Forum proposed in numerous countries - in order to might be detrimental to genuine pro development expose the illegitimate debt claims. A charter on projects and benefit only profit making initiatives. principled or responsible lending and borrowing Stronger efforts are urgently needed to further should also be developed. improve the quality of aid, in particular by strength- We call on the governments of South coun- ening democratic ownership, with a greater focus tries to reorient their economic policies, currently on targeting gender justice, and ending economic dominated by the IFIs and their focus on insuring policy conditions. Aid must make a more positive debt repayment, and to join together in concerted impact on recipient communities’ by strengthen- action to strengthen their political and institution- ing inclusive and democratic governments and al capacity to deal with the problems related to the targeting beneficiaries. We urge donor organiza- current system of indebtedness. tions and donor countries to not just adopt agreed principles, best practices and mechanisms based Aid on Good Humanitarian Donorship Principles, In 2006 and 2007, levels of global aid fell, indicating the Paris Declaration and the Accra Agenda for a blatant failure of developed countries to live up to Action, but to go beyond these agreements and to their aid promises. The financial crisis must not be further broaden and deepen the aid effectiveness used as an excuse to further renege on aid prom- agenda. Donors should encourage and financially ises. Indeed, increasing aid is needed more then support Civil Society engagement and recognize ever. The number of people suffering form hunger the key role they play in implementing and moni- is now nearing one billion. Developing countries toring program and policies. Building on these need support to weather the financial, climate, and agreements, donors should agree to fully untie aid food crises – crises principally caused by devel- as well as to fully de-link aid from economic policy oped countries that will hit the poorest countries conditions. Such conditions undermine owner- and poorest communities the hardest. Countries in ship and often increase poverty, and as such they the South continue to need funding to fight pov- conflict with the goals of poverty eradication and erty and gender inequality. Developed countries increased aid effectiveness. should therefore advance their aid commitments. Greater transparency of aid would increase The G8 should speed up their promise to increase its impact on poverty reduction and achieving the annual aid by US$50bn to US$130 billion by 2010. Millennium Development Goals: it would allow All countries should accelerate progress towards greater developing country ownership and reduce realizing the 0.7% ODA/GNI target. We call upon transaction costs and waste. Donors should agree donors to act coherently by establishing binding and implement an international aid information timetables for increasing ODA to reach the 0.7% standard to make it easier for everyone to access target by 2015 at the latest. more detailed, comparable and timely data so that We recognize and commend the five countries aid can be traced to the intended beneficiaries that have honored the 0.7% previous commit- and deliver a yearly transparent update. Greater ment to meet their ODA target, namely: Norway aid transparency should reflect the needs of Par- (0.89%), Sweden (1.03%), Luxemburg (0.89%) liamentarians, civil society, governments and Denmark (0.8%), Netherlands (0.8%). We urge other stakeholders, and complement important donors to allocate genuine resources to ODA; efforts on the part of developing countries to make items such as debt relief and cancellation, and aid national budgets more transparent and account- to refugees, should not be included in the count. able particularly regarding the spending on health Also we call for donor countries to refrain from and education. We urge more donors to participate putting remittances in the same basket as aid; these in the work of the International Aid Transparency are private flows not in the control of governments. Initiative and look forward to its report to the DCF We are concerned that Public Private Partnership and other relevant bodies.

285 The Doha Review Conference on Financing for Development

The Development Cooperation Forum (DCF) including the MDGs, as well as with decent work as a universal body, must be mandated to address objectives and the observance of core labor stand- development strategies, policies and the financing ards. Developing countries must be accorded the of development cooperation, as well as promoting policy space to determine whether, how and when coherence between the activities of various devel- they want to liberalize sectors and markets. opment partners. This forum should receive the Trade liberalization should not be carried necessary political, institutional and financial sup- out if it has the potential to negatively impact on port to enable the relevant development actors to employment, hurt vulnerable sectors and threat- convene, including the new official development en industrial development. It must be coherent cooperation providers, for discussions on funda- with the aims of “re-distribution of wealth, decent mental issues of development cooperation. We work, gender equality and democratic and partic- support an invitation to the Secretary-General to ipative ownership”. make a comprehensive report on these issues to the Development Cooperation Forum. We contend that trade and investment have the potential to serve as effective instruments to Innovative Financing Mechanisms raise financing for development, but only in the presence of a number of complementary policies. While welcoming innovative financing mecha- Such policies should target: nisms, we believe it is necessary to clearly define the key aspects of such mechanisms. Innovative • Restrictions on profit repatriation; sources of finance provide much needed additional • Balanced rules on investment, with rights and resources for development, and these should be obligations for investors and the observance of above and beyond the 0.7% commitments of GNI workers’ protection and rights; to ODA. We furthermore ask the member states to commit themselves to studying, developing and • Value-adding, technology and skills transfer, implementing a levy of 0.005% on, progressively, all technology content and creation; foreign exchange transactions. Numerous studies • Creation of backward and forward linkages demonstrate that a currency transaction tax would with the domestic economy; be technically feasible, could be efficiently raised, • Linkage to development and decent work and could mobilise far more funds than all inno- outcomes; vative financing instruments so far put together. Moreover, the implementation of such a levy would • Fiscal policies to maximize the developmental mean that a very important step has been made benefits of trade and its potential for progres- towards a better distribution of the world’s wealth. sive redistribution of resources. On the WTO’s Doha Round negotiations, we Trade re-affirm the centrality of development concerns The impact of the global financial crisis in developing and the interests of developing countries in any countries is exposing vulnerabilities that stem from outcome of the Round. It should be remembered the implementation of an export-led model that and reaffirmed that the objective of this Round is placed much emphasis on the liberalization of trade, not market access per se, but the reorientation of without looking at mechanisms for ensuring trade the multilateral trading system so that it will con- would become an instrument for the stable provi- tribute to the development of developing countries. sion of development finance. We call upon Member To promote a just and balanced trading system, States to use the FfD Doha process to reshape the agricultural subsidies by the North that affect trade WTO Doha negotiations towards a genuine devel- should be stopped. Commitments on movement opment round. In the interests of policy coherence, of persons should be made effective. Also, govern- outcomes should be fully aligned with the Inter- ments should provide 100% duty-free and quota- nationally Agreed Development Goals (IADGs) free access to all products from LDCs.

286 Civil Society Forum

The Doha Round would worsen the financial at the national and international levels, that support crisis through the pressures put on developing capital accumulation and enhance productivity. countries to open their financial services to foreign financial institutions. The practices and financial Systemic issues instruments of these institutions are now recog- The United Nations, through the General Assem- nized as causing the financial crisis. The FFD proc- bly, ECOSOC and other bodies, has a fundamental ess is much-better equipped to deal with trade and responsibility to address root causes of human dis- development concerns that clearly exceed an insti- tress and obstacles for the achievement of human tution like the WTO, whose mandate is centered development, security and dignity, including mili- on negotiating market opening concessions. Given tarization, occupation, collective punishment and the link between financial deregulation and liber- economic embargo. It should also recognize the alization and the global financial crisis, the WTO important role of women in negotiating and in should suspend negotiations on liberalizing finan- facilitating peace processes where their participa- cial services in the General Agreement on Trade tion should be enhanced. in Services (GATS). Any other GATS negotiations including on domestic regulation should not The agreements of the global conferences affect governments’ policy space to regulate finan- of the 1990s, their action plans and established cial services. WTO members should ensure that human rights, labor and environmental agree- acceding countries are not be required to under- ments should be implemented, and systemic take WTO-plus commitments, particularly when reforms undertaken in financing for development it would undermine sustainable development and should be coherent with them. poverty eradication. Trade, not political or other A “major international conference at Summit factors, should determine accession. level should be held in 2009 to comprehensively Existing Free Trade Agreements (FTAs) includ- review the international financial architecture and ing Economic Partnership Agreements (EPAs) global economic governance structures”. Such a that pressure developing countries to lower their Conference should be held under the umbrella of agricultural tariffs and to liberalize their finan- the United Nations with the inclusive principles cial sector and other services should be reviewed, that govern the Financing for Development proc- re-negotiated or stopped. Modalities that impose ess, including the active participation of civil soci- deeper liberalization, such as the negative-list ety organizations. approach, should not be imposed. WTO rules In the longer term, in order to bring the more should be reviewed to enable developing countries limited agenda of the G-20 initiative, with its to have sufficient flexibility, special and differential restricted membership, into the universal forum of treatment and non-reciprocal treatment in region- the United Nations, a permanent Executive Com- al agreements so that they do not face additional mittee under the auspices of the UN with regional pressure towards excessive liberalization. representation and a rotation systems needs to be Aid for Trade should not be conceived as a established that can deal with pressing econom- substitute for a reformed trading system that refo- ic and financial issues in a comprehensive way. cuses its objectives on achieving full employment Modalities for the establishment of such a forum and sustainable development. Aid for trade can should be set up in the coming months. A more only succeed if it is unconditional, non-debt creat- effective ECOSOC BWI High Level meeting would ing, additional to existing commitments and ori- provide an opportunity to start such a process. ented to build the productive capacities of recipient countries, rather than the mere implementation of trade rules. We reaffirm the call of UNCTAD XII that successful integration of developing countries into international trade requires proactive policies

287 The Doha Review Conference on Financing for Development

Overall commitments related to gender equality and women’s rights, such as the Beijing Platform We therefore urge all governments gathered here for Action, the CEDAW, the Maputo protocol, in Doha to take immediate action on the following without resorting to impositions and condi- critical policy issues: tionality within the narrow framework of aid • Place people and their needs back at the centre delivery. of development. • Recognizing the global challenges to meet • Developing countries should be allowed to cuts in Green House Gas emissions, countries take effective democratic ownership and lead- should acknowledge responsibility for their ership of their domestic policy space that allow historic emissions and commit additional national social and economic policies as well as funds to address climate change and explic- development programs to foster the creation of itly outline by how much they will finance the decent work for all, gender equality and equita- adaptation needs of developing countries. ble growth and fair trade and investment poli- • Measures should be adopted which have the cies that maximize potential domestic resource promise to generate significant levels of addi- mobilization and improve resource utilization tional funding for environmental and devel- as a key step towards poverty eradication - opment initiatives including further work on without interference from Northern countries currency transaction and financial tax initia- or the Bretton Woods Institutions. tives. To demonstrate this support, interested • Fair and progressive taxation systems should governments should become members of the be established that are re-distributive and gen- Leading Group on Solidarity Levies and take a der sensitive and accord tax relief for low wage pro-active role. workers and the poor. • Political and financial support towards soli- • Countries should ratify the United Nations darity mechanisms in information and com- Anti-Corruption Convention and estab- munication technology (ICT) transfer should lish an effective system of monitoring its be increased. implementation. • Governments should develop gender sensitive • The Committee of Experts on International indicators, tools and methodologies for the Cooperation in Tax Matters should be upgrad- evaluation of the quality and effectiveness of ed to become an intergovernmental body and development. incorporate the International Task Force on • A fund or financial facility should be created to Illicit Financial Flows and Capital Flight into promote women’s empowerment. this intergovernmental body. • Gender equality should be back on the sys- • Governments should agree to binding timeta- temic issues agenda. Gender should be a cross- bles to reach the UN target of 0.7% of Gross cutting issue through the whole financing for National Income of ODA by 2015 at the lat- Development document and process, includ- est. Donors and recipients should scale up the ing in the systemic issues agenda. It must be share of ODA for gender equality and wom- ensured that these follow-up mechanisms en’s empowerment to reach 10% by 2010 and are effective spaces for consistent and regular 20% by 2015. As well, ensure that year-to-year inputs on gender equality. increases of a satisfactory level are also agreed. • Political and financial support towards soli- • ODA processes must uphold the mutual darity mechanisms in information and com- responsibilities and obligations of governments munication technology (ICT) transfer should to fulfil internationally agreed development be increased.

288 Civil Society Forum

• Debt cancellation of Southern countries must • The ECOSOC-BWI High-Level meeting has be extended and de-linked from lender con- to be reshaped to become a more effective and ditionality. Structures should be established action-oriented instrument and thus could for addressing the debt crisis in a transparent provide an opportunity to start such a process. and accountable manner. Issues related to odious and illegitimate debt have to be addressed. More critical review and redefinition of the Conclusion debt sustainable framework must be undertaken including women’s rights organizations In the face of the multiple crises, we urge govern- as well as in debt swaps. ments to take the side of women and men workers, farmers, youth and children to promote envi- • Northern countries should drop their demands ronmental sustainability by taking an alternative on onerous tariff reductions in all WTO nego- economic path. We, 250 national and internation- tiations, end their subsidies for agricultural al civil society networks, representing millions of exports to Southern countries and other agri- people from around the world, therefore call for cultural subsidies that negatively affect trade. change in Doha that puts effective development, They should instead address the trade, finan- poverty eradication, human rights, gender equal- cial and monetary pre-conditions for southern ity, decent work, and environmental sustainabil- countries to utilize trade as a tool for devel- ity at the fore. opment, the promotion of gender equity and full employment. Policy flexibilities to protect From Talk to Action: agriculture in developing countries should the way forward after Doha be proportionate to the flexibilities currently available to developed countries. In particu- The FfD follow-up process should continue in the lar developing countries should be allowed to same inclusive principles as demonstrated to date. protect their agriculture using a flexible and Civil society organizations should be recognized as effective Special Safeguard Mechanism (SSM). an important development actor in their own right • In the context of the current financial crisis and should accordingly have their own space in the and its impacts on development, measures FfD process at national, regional and international such as closing tax havens, ending the shadow level. This should be accompanied by sustained banking system, stronger regulation of private financial support especially for organizations and equity funds and hedge funds and a ban on movements of the South. speculative financial products including over The FfD follow-up process should provide for a the counter derivatives should be urgently new institutional mechanism within the legitimate implemented. framework of the UN which ensures full respect of • In 2009, the UN should organize a “major inter- all aspects of the Internationally Agreed Develop- national conference at Summit level to comment Goals and brings together all institutional prehensively review the international financial stakeholders, not only the International Financial economic governance structures” and include Institutions, the World Trade Organization and the active participation of civil society. World Health Organization, but also the UN specialized agencies such as the International Labor • In the longer term, instead of a restricted mem- Organization and UNIFEM, as well as civil society. bership G-20, a permanent forum under the auspices of the UN needs to be established that All aspects of the Internationally Agreed Devel- can deal with pressing economic and financial opment Goals (IAGs) including the MDGs need to issues in a comprehensive way. Modalities for be addressed and there needs to be regular national the establishment of such a forum should be and international reporting of the implementation set up in the coming months. of the Monterrey Consensus and the Doha Outcome

289 The Doha Review Conference on Financing for Development

Document. Systematic evaluation and monitoring process. There needs to be an adequately staffed mechanisms should be implemented to guarantee and resourced unit within the United Nations sys- ongoing accountability with clear indicators. tem that is able to support this process. We support the holding of a follow-up FfD conference in 2013. Accessibility to information and access to all Systematic evaluation and monitoring mecha- proceedings for all stakeholders, including all civil nisms should be implemented to guarantee ongo- society organizations should be improved to ensure ing accountability with clear indicators. that FfD is upheld as a truly multi-stakeholder

SUMMARY OF THE DOHA CIVIL SOCIETY FORUM

25-27 November 2008, Doha, Qatar, Ramada Plaza

The Civil Society Forum was held was held under nation of tax havens that deny poor countries much the theme “Investing in people-centered develop- needed financial resources for development. ment” in preparation for the Follow-up Interna- III. Concerning trade, it concludes that the impact tional Conference on Financing for Development of the global financial crisis in developing coun- to Review the Implementation of the Monterrey tries is exposing vulnerabilities that stem from too Consensus (Doha, Qatar, 29, November - 2 Decem- much emphasis on the liberalization of trade, with- ber 2008). More than 250 civil society organiza- out looking at mechanisms for ensuring that trade tions and networks participated in the meeting, provides a stable source of development finance. which featured plenary sessions, roundtables and side events. Participants adopted a Civil Society IV. On the question of aid, civil society organiza- Declaration at the Forum, which was delivered by tions called for binding timetables for donor countries to reach the 0.7% ODA/GNI target by 2015 at Ms. Gemma Adaba, Representative to the United the latest. Innovative sources of finance, such as a Nations for the International Trade Union Con- small currency transaction tax, can provide much federation (ITUC) to the plenary session of the needed additional resources for development. Follow-up International Conference on Financing for Development in the afternoon of 29 November V. As for external debt, the Declaration calls for 2008. The declaration put forward a number of key a new debt architecture that is inclusive, participa- recommendations, organized around the six the- tory and democratically accountable to the peoples matic areas of the Monterrey Consensus. it aims to serve. The United Nations should play a key role in its development, and the institutions I. On domestic resource mobilization, the Decla- and mechanisms should be subject to international ration affirms that in order to achieve the interna- human rights norms and treaties. tional development goals and overcome dependence on external sources, developing countries VI. With regard to systemic issues, the Declara- need to substantially increase revenue from nation- tion calls for a new mechanism within the UN, al resources, and channel them towards meeting which ensures implementation of the internationally agreed development goals and brings together the needs of the people living in poverty. all institutional stakeholders. The UN should hold II. With respect to foreign direct investment a major international Summit level conference in the Declaration calls for a holistic approach that order to comprehensively review the international includes, among others, the social development financial architecture and global economic gov- aspects, sustainable technology transfer and elimi- ernance structures.

290 Chapter 9 International Business Forum

SECOND INTERNATIONAL BUSINESS FORUM ON FINANCING FOR DEVELOPMENT

28 November 2008, Doha, Qatar, La Cigale Hotel

The Business Sector Steering Committee, with sup- I. The opening plenary theme“Assessing the Glo- port from the Financing for Development Office of bal Financial System and Next Steps for Ensuring the United Nations and the Government of Qatar, Stable Financial Flows for Development”, pro- in preparation to the Follow-up International Con- vided views on the impact of the global financial ference on Financing for Development to Review situation and the implications it has on develop- the Implementation of the Monterrey Consensus, ing countries. Policy responses were discussed on held the Second International Business Forum how to limit potential damage and actions needed on Financing for Development, on 28 November to increase financial stability and aid effectiveness. 2008 in Doha, with the theme - “The Impact of the Private sector companies made proposals on how Financial Crisis and Proposed Roadmaps: Mobi- to manage risk and how they can contribute as cor- lizing Private Sector Resources for Development”. porate citizens to development. It was attended by over 200 business leaders, coun- II. The first session, with the theme “Proposals try delegations, and international financial insti- for Building a Stable Public-Private Framework tutions who participated in sessions that set forth for Development”, focused on how to create a specific proposals and opened discussions on the globally balanced, ecologically sustainable eco- current financial crisis, the ongoing challenges fac- nomic growth and on how to be proactive in the ing developing country governments and private equitable distribution of wealth. Proposals aimed sector companies in accessing long term affordable to improve public-private frameworks for develop- finance, and on the next steps for improving eco- ment, increase the transparency and stability of the nomic growth, job creation, environmental stew- global financial system and its underlying econo- ardship, and poverty reduction. The outcome of my, and improve the capacity of both investors and the Forum was presented by Dr. Louise Kantrow, policymakers to access needed information for risk Permanent Representative to the United Nations management, investment decision-making, and of the International Chamber of Commerce, to economic growth. the plenary session of the Follow-up International III. The second session with the theme, “Propos- Conference on Financing for Development in the als for Building Business-Enabling Environments afternoon of 29 November 2008. and Enhancing Donor Effectiveness”, presented The Second International Business Forum ideas aimed to increase the capacity of developing consisted of an opening plenary and four issue- country governments to work closely with the pri- based sessions: vate sector and civil society to create a sustainable The Doha Review Conference on Financing for Development

business-enabling environment that centers on eco- to more effectively mobilize private sector resourc- nomic growth and job creation. These frameworks es for infrastructure projects and other critical would increase the capacity of donors to align their development needs. activities in support of national and regional devel- V. The fourth session on “New Paradigms for opment, enhancing aid effectiveness. Development Finance”, set forth actionable pro- IV. The third session on “Proposals for Leverag- posals for developing country governments, devel- ing Limited ODA with Private Capital: Proposals opment agencies, and the private sector, to enable for Advancing Infrastructure, Domestic Capital greater success in meeting emerging challenges – Markets, and Venture Capital”, set out specific finance for small and medium companies; financial ideas for development agencies and governments services to the poor; climate and water challenges.

21 December 2008

292 Chapter 10 Parliamentary Hearings on Financing for Development

PARLIAMENTARY HEARING INTERNATIONAL CONFERENCE ON FINANCING FOR DEVELOPMENT

28 November 2008, Doha, Qatar

Summary Report in its outcome document. He was pleased that the IPU would participate in the Working Party on Chaired by the President of the IPU, Dr. Theo-Ben Aid Effectiveness. Gurirab, the Hearing was held to provide parlia- However, Mr. Deutscher warned that the mentarians with an opportunity to exchange views financial and economic crises would have a nega- on some of the salient issues before the Conference. tive impact on aid flows and said that it would be In all, some 50 parliamentarians participated. important for the credibility of donors to hon- Welcome remarks were made by the Honorable our their commitments. On a positive note, he Mohamed Bin Mubarak Al-Khulaifi, Speaker of the informed the meeting that in a recent statement, OECD DAC members had confirmed their aid Advisory Council of Qatar. The panel consisted of: commitments and agreed to maintain aid flows in Mr. Eckhard Deutscher, Chair of the OECD/DAC line with those commitments. The performance of Development Assistance Committee; Ms. Jane DAC donors against that pledge would be moni- Stewart, Director of the ILO Office to the United tored by the OECD Secretariat. Nations in New York, former MP and cabinet minister (Canada); and Mr. Roberto Bissio, Executive Ms. J. Stewart spoke about the importance of Director of Social Watch and representative of the employment for development. She stressed that Civil Society Forum at the Doha Conference. work was at the centre of development and proposed that the ILO declaration on full and produc- Mr. E. Deutscher focused on development aid tive employment and decent work could provide a and its importance for inclusive globalization. He simple yet powerful framework for development. suggested that development aid and effectiveness Referring to the dual financial and economic cri- in its delivery were central issues of the Doha Con- ses, she said that they had already resulted in an ference. He pointed to the important role of parlia- additional 20 million jobless persons and another ments in ensuring broad national ownership of the 40 million who had to live on less than one US$ development agenda and in holding government to 1 a day. She proposed that work and employment account. He welcomed the strong participation of be placed at the centre of any development plan. parliamentarians at the Accra High-Level Forum Echoing other speakers, she hoped that the current on Aid Effectiveness held in September 2008 and crises would give rise to creative thinking and a the numerous references to the role of parliament search for new strategies. The Doha Review Conference on Financing for Development

Mr. R. Bissio reminded the parliamentarians to keep donors motivated. At the same time, it was that the Monterrey Conference had also been held noted that aid alone could not suffice to support at a time of crisis. However, the current turmoil the achievement of the MDGs. For that, the entire that had followed the debt crisis of the world’s big- FfD agenda must be supported. gest economy would be more serious and result Parliamentary engagement and oversight will in strong pressure on political and social systems, be critical to advance the FfD agenda as a whole, with the most vulnerable the hardest hit. He said especially at times of crisis. Parliamentary commit- that while it was difficult to make predictions, the tees must become better informed of development crises would have a particularly severe impact on cooperation issues: while dispelling myths about developing countries as exports would suffer and the purpose and impact of aid, parliaments must commodity prices would drop. He feared that mil- also intensify their scrutiny of how aid money lions of migrant workers from developing countries was actually spent. Parliaments must also be more would be sent back as job opportunities dwindled. involved in ensuring that donors’ systems on the That was already happening in the USA, for exam- ground were rationalized, avoiding fragmentation ple, where two million Mexicans were expected and duplication of efforts. to return home the following year. Speaking on behalf of civil society organizations, he said that The Parliamentary Message to the International their presence at the Conference brought a sense Conference was referred to in some of the interven- of urgency to those issues and called on leaders to tions. The Message was found to be balanced and take responsible action. to touch on several issues that were often forgotten in such debates. One such issue had to do with mil- An active discussion followed with interven- itary spending and how it had grown dramatically tions by several parliamentarians in attendance. It in recent years, sidestepping development priori- focused on the following issues: ties. Support was also expressed for the IPU’s deci- The global financial crisis.Several speakers and sion to convene a global parliamentary conference panellists underscored that the crisis had spread on the financial crisis in spring 2009. from the financial sector to the real economy. In In his closing remarks, the IPU President addition, decision-makers had to contend with appealed to all present to press their national dele- increasing poverty and unemployment, as well as gations to ensure that two important references on the growing cost of climate change. Gender was also the role of parliament, which were still provisional mentioned as a key cross-cutting issue in many of in the draft outcome document of the Conference, those crises. The case for decisive counter-cyclical would be preserved. measures to shore up demand and thus reboot the global economy was made. The opportunity for creative thinking and change. Speakers proposed that the concurrent crises provided an opportunity for reflection on the unfair global income distribution and uneven development and on how to address these issues with a new economic world order and international financial architecture. The new world order must have parliamentary democracy as its backbone. Development aid. The importance of donors honouring their commitments was touched upon by several speakers. Concern was expressed that aid levels might lag behind and that demonstrating impact and results would be even more necessary

294 Chapter 11 Calendar of Side Events

29 November 2008

1:00 p.m. - 2:45 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel (By invitation only) Title: Financing agriculture in a global financial crisis Organizer: United States of America

12:30 p.m. - 2:45 p.m. Venue: Al Majlis Auditorium, Sheraton Hotel Title: Financing for development and the economics of gender Organizer: Norway and UN Regional Commissions

1:00 p.m. - 2:45 p.m. Venue: Al Maha room, Sheraton Hotel Title: Mobilizing domestic financial resources for development: The role of microfinance Organizer: UNCDF with UN Advisors Group on Inclusive Financial Services (UNAG)

1:00 p.m. - 2:45 p.m. Venue: Dukhan room, Sheraton Hotel Title: The role of asset recovery for financing for development Organizer: Principality of Liechtenstein and International Center for Asset Recovery (ICAR)

1:00 p.m. - 2:45 p.m. Venue: Al Rayan, Sheraton Hotel Title: Effective financing for development: Longer term financial scenarios for developing countries Organizer: OECD

4:00 p.m. - 6:00 p.m. Venue: Al Maha, Sheraton Hotel Title: Innovative sources of development from Monterrey to Doha, towards a scaling-up [Les financements innovants de Monterrey à Doha, vers un changement d’échelle] Organizer: Special Adviser to the Secretary-General on Innovative Sources of Finance, Government of France, Gavi Alliance, Global Fund to Fight AIDS, Tuberculosis and Malaria and UNITAID

5:15 p.m. - 7:00 p.m. Venue: Dukhan room, Sheraton Hotel Title: On the footsteps of Monterrey: Towards a holistic review of trade, debt and finance Organizer: Center of Concern The Doha Review Conference on Financing for Development

5:15 p.m. - 7:00 p.m. Venue: Al Rayan, Sheraton Hotel Title: A time of crisis and opportunities: policy response and renewed multilateralism Organizer: UNDP

Dinner Venue: Marriott Hotel (By invitation only) Title: High-level roundtable luncheon on “Innovative financing for digital development” Organizer: Global Alliance for ICT and Development

30 November 2008

8:15 a.m. - 9:45 a.m. Venue: Al Maha, Sheraton Hotel Title: Mobilizing the private sector for development: Launching the FfD toolkit Organizer: Nicaragua and Switzerland

8:15 a.m. - 9:45 a.m. Venue: Dukhan room, Sheraton Hotel Title: Monitoring development results for women and the poor in One UN Country System Organizer: Women’s Working Group on Financing for Development, Friedrich Ebert Stiftung and International Association For Feminist Economics (IAFFE)

8:15 a.m. - 9:45 a.m. Venue: Room 2 Waterhole/Laffan area, Sheraton Hotel (By invitation only) Title: Facilitating agrofinance for Africa Organizer: Germany

11:00 a.m. - 12:00 p.m. Venue: Al Rayan, Sheraton Hotel Title: Debt2Health - Signing ceremony and press encounter Organizer: The Global Fund to Fight AIDS, Tuberculosis and Malaria/ Innovative Financing Team

10:00 a.m. - 1:00 p.m. Venue: Al Maha, Sheraton Hotel Title: The role of regional cooperation and global partnership in financing for development Organizer: UN Regional Commissions

10:00 a.m. - 12:00 p.m. Venue: Dukhan, Sheraton Hotel Title: In times of crisis: Making budgets work for children, women and the MDGs Organizer: UNICEF and UNIFEM

9:00 a.m. - 2:45 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel Title: Debt relief, debt sustainability and the MDGs Organizer: The World Bank and IMF

1:15 p.m. - 2:45 p.m. Venue: Al Majlis, Sheraton Hotel Title: Panel discussion on “Tackling the food and hunger crisis: Investing in food security, safety nets, and smallholder agriculture”

296 Calendar of Side Events

Organizer: FAO, IFAD and WFP 1:00 p.m. - 2:45 p.m. Venue: Al Maha, Sheraton Hotel Title: Jointly fighting tax evasion and tax avoidance – Ensuring sustainable domestic resource mobilisation domestic resource Organizer: Germany

1:00 p.m. - 2:45 p.m. Venue: Dukhan, Sheraton Hotel Title: The role and level of private resource assistance for NGO sponsored development Organizer: InterAction (American Council for Voluntary International Action)

1:15 p.m. - 2:45 p.m. Venue: Sheraton Hotel (By invitation only) Title: Financing education to achieve the education for all goals Organizer: Qatar, Her Highness Sheika Mozah bin Nasser Al Missned with UNESCO

3:00 p.m. - 5:00 p.m. Venue: Dukhan room, Sheraton Hotel Title: Financial crisis, global imbalances and national policy space Organizer: The Netherlands and UNCTAD

3:00 p.m. - 5:00 p.m. Venue: Al Maha, Sheraton Hotel Title: Financial stability, a global public good: A Latin American perspective Organizer: Chile and ECLAC

5:15 p.m. - 7:00 p.m. Venue: Room 2 Waterhole/Laffan area, Sheraton Hotel Title: To ensure human development: currency transaction tax (CTT) for FfD and new international financial structure Organizer: UBUNTU Forum Secretariat and NGO Working Group on CTT and FfD

5:15 p.m. - 7:00 p.m. Venue: Dukhan, Sheraton Hotel Title: Global framework agreements: a new tool for regulating transnationals? Organizer: Friedrich-Ebert-Stiftung and Gemma Adaba and the International Trade Union Confederation

5:15 p.m. - 7:00 p.m. Venue: Al Maha, Sheraton Hotel Title: Visible and invisible contributions: gender equality, domestic revenues and ODA Organizer: UNIFEM/UNDP

5:15 p.m. - 7:00 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel Title: South perspective on challenges and opportunities beyond Doha: Systemic issues and the need for a new global economic architecture Organizer: South Centre

297 The Doha Review Conference on Financing for Development

1 December 2008

8:15 a.m. - 9:45 a.m. Venue: Dukhan, Sheraton Hotel Title: Financing decent work – an imperative for sustainable development (may join task force) Organizer: International Trade Union Confederation, European Trade Union Confederation, Global Progressive Forum and Solidar and Social Alert International

8:15 a.m. - 9:45 a.m. Venue: Al Maha, Sheraton Hotel Title: Aid for trade: the EU response; including launch of the UK aid for trade strategy Organizer: European Commission and the United Kingdom

10:00 a.m. - 1:00 p.m. Venue: Dukhan, Sheraton Hotel Title: Working out of crisis: Aligning finance with decent work for a fair globalization Organizer: UN-NGLS, ILO and Realizing Rights: The Ethical Globalization Initiative

10:00 a.m. - 1:00 p.m. Venue: Room 2 Waterhole/Laffan area, Sheraton Hotel Title: New partnerships in the extractive industries Organizer: Transparency International

10:00 a.m. - 1:00 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel Title: Avoiding future financial meltdowns: what kind of financial regulations? Organizer: Friedrich-Ebert-Stiftung and Initiative for Policy Dialogue

10:00 a.m. - 1:00 p.m. Venue: Al Maha, Sheraton Hotel Title: Introduction to cash on delivery aid Organizer: Center for Global Development, The William and Flora Hewlett Foundation, African Center for Economic Transformation and Education for All – Fast Track Initiative

1:15 p.m. - 2:45 p.m. Venue: Al Maha, Sheraton Hotel Title: Climate change and development – How to mobilize, transfer and use innovative funding Organizer: European Commission, Governments of Germany and Sweden

1:15 p.m. - 2:45 p.m. Venue: Room2 Waterhole/Laffan area, Sheraton Hotel Title: Taxation and development Organizer: CIDSE along with church-based/CSO partners

10:00 a.m. - 12:00 p.m. Venue: TBC (closed meeting) Title: First meeting of the taskforce on “Innovative international finance for health systems” Organizer: Taskforce on Innovative International Finance for Health Systems

1:15 p.m. - 2:45 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel Title: Challenges of financing for development in Africa Organizer: African Business Roundtable and NEPAD Business Group (FfD Business Sector Steering Committee)

298 Calendar of Side Events

3:00 p.m. - 5:00 p.m. Venue: Al Maha, Sheraton Hotel Title: The global financial and economic crisis: African perspectives Organizer: African Union, African Development Bank, Economic Commission for Africa and Africa Progress Panel

3:00 p.m. - 5:00 p.m. Venue: Room 1 Waterhole/Laffan area, Sheraton Hotel Title: Lessons from practitioners: innovative financing for development Organizer: France, the World Bank and the Gates Foundation

3:00 p.m. - 5:00 p.m. Venue: Room 2 Waterhole/Laffan area, Sheraton Hotel Title: Launch of 2008 report: Human rights and financing for development Organizer: Social Watch

3:00 p.m. - 5:00 p.m. Venue: Dukhan, Sheraton Hotel Title: Accra to Doha: from aid effectiveness to better financing for development Organizer: The Reality of Aid

5:15 p.m. - 7:00 p.m. Venue: Al Maha, Sheraton Hotel Title: Facing the crisis, which priorities for aid allocation? [Face à la crise, quelles priorités dans l’allocation de l’aide?] Organizer: France

5:15 p.m. - 7:00 p.m. Venue: Dukhan, Sheraton Hotel Title: A new deal for people in a global crisis: Social security for all Organizer: ILO, UNDESA, UNICEF and HelpAge International

299

Chapter 12 Selected Press Releases

General assembly president hails Doha He said delegations recognized the need for Conference as paving way for ‘people- the General Assembly to continue its efforts to bol- centered development’ ster the role of the Economic and Social Council in monitoring multilateral financial institutions, 2 December 2008 their governance, decisions and the consequences of such decisions in order to assess their broader Stressing that the world was insisting on democ- social and economic impacts on growth, employ- ratization of the United Nations and international ment and, in particular, poverty reduction. Those decision-making processes, General Assembly expanded responsibilities would require reforms President Miguel d’Escoto Brockmann said this in the relationship between the Assembly and the evening that the successful conclusion of a devel- Bretton Woods institutions. opment financing summit in Doha, Qatar, would Responding to questions, the Assembly Presi- pave the way for “people-centred development to dent said that, well ahead of the proposed summit, replace profit-centred development”. he planned to present political leaders with a pro- As he summed up the Follow-up International posal for a new financial architecture, adding that Conference on Financing for Development on the he expected participation at the highest political Implementation of the 2002 Monterrey Consensus, level, from all regions of the world, for a meeting which opened on 29 November, Mr. d’Escoto said that would be tantamount to the launching of a at a press briefing that the Conference’s concluding new Bretton Woods system. “Doha Declaration” stressed the need to maintain He said the Doha Conference had not set out aid commitments despite global economic uncer- to establish alternatives to the Bretton Woods tainty, and called for the convening, “at the highest institutions. Stakeholders had come to review the level”, of a summit under United Nations auspices implementation of the Monterrey Consensus and to examine the impact of the crisis on development the state of the international development financ- and review the international financial and mone- ing agenda. The Declaration recognized that the tary architecture. international context had changed profoundly over He said he planned to make preparations for the past six years, and discussions during the Con- that summit a priority and to define its organiza- ference had evinced a “universal rejection” of the tional structure by no later than March 2009. Fur- prevailing model that a few countries could make ther, he had convened a Commission of Experts decisions for the entire world. on Reform of the Monetary and Financial System, Saying that the world had repudiated the including the World Bank and the International notion of a Group of Seven (G-7), a Group of Eight Monetary Fund (IMF), in response to the current (G-8) or even a G-20, he declared: “We believe crises that were affecting all countries, large and the only relevant forum is the G-192—that is the small, rich and poor. entire membership of the United Nations General The Doha Review Conference on Financing for Development

Assembly.” The Conference marked the only time Responding to another question, he said since Monterrey that systemic issues and reform of developing and middle-income countries should the global financial system had been discussed in a expand South-South cooperation, even as those United Nations forum. Since Monterrey, the great countries pressed the richest nations to comply Powers had been trying hard to move such issues with their commitments. He highlighted the devel- outside the United Nations system, so the Confer- opment efforts of Saudi Arabia and Cuba, as well as ence had been a great advance. those of Qatar, but stressed that poverty and hunger were “ticking time bombs” that required the There was also commitment to reactivate the cooperation and political will of all nations. Such Doha Round of World Trade Organization (WTO) democracy was also required of the Bretton Woods negotiations. “We did not come to ask the rich to institutions, which, since their creation, had slowly give charity but to stand by past commitments and been twisted into possessions of the rich; hijacked the moral obligation to help countries that had by the so-called “Washington Consensus”. consistently suffered because of marginalization and exclusion,” he declared, adding that it was time Expressing optimism that the United Nations to move from the logic of “I and me” to the logic of was moving in the right direction, he said the “we and ours”, which was the way to ensure broth- world body had been “dragging its feet” in many erhood, peace and justice. areas of its mandate, but he had been heartened by the support he had received as he had presented his Many people thought the Conference would proposals on democratizing the Organization. not be a success, he noted. Sadly, right until the last minute, some had even been trying to sabotage negotiations, but the “spoilers” had, in the end, Non-governmental organizations come round and decided not to be isolated. The welcome conference outcome, note international community had delivered its man- ‘missed opportunity in some respects’ date in the Doha Declaration that the world was moving away from the dominant culture of greed 2 December 2008 towards democracy, cooperation and peace. Asked if the Declaration was “mere pious rhet- Welcoming a proposed United Nations meeting on oric” and a restatement of the commitments made the financial crisis and its impact on development, at Monterrey that had languished ever since, he non-governmental organizations attending the said that after Doha, and the strongly stated posi- development financing conference in Doha, Qatar, tion of the European Union, there would be greater said this afternoon that while the just-concluded pressure on those who had sat outside the develop- four-day event had made advances in several areas, it ment financing process. was also, in many respects, “a missed opportunity”. Indeed, French President Nicolas Sarkozy had Evaluating the outcome document adopted by presented the European Union’s firm decision to acclamation at the closing session of the Conference, ensure that the bloc’s Member States would reach the non-governmental organizations released a state- the 0.7 per cent gross domestic product target for ment that was read out at a press conference featuring official development assistance (ODA) in 2015, he John Foster of Social Watch International Network, recalled. “Some had not wanted us even to men- Gemma Adaba of the International Confederation of tion the official development target here, but we Free Trade Unions, Sylvia Borren of the Global Call for Action against Poverty and Ziad Abdel Samad of will keep talking about it because it is a debt and the Arab NGO Network for Development. a moral obligation,” he said, adding that if some countries could find trillions of dollars to prop up They said 250 civil society organizations, rep- their flagging, outmoded institutions, they must resenting more than 100 million citizens around stand by their long promised obligations. the world, had come to a Civil Society Forum in

302 Selected Press Releases advance of the Doha Conference. “The Review Conference went beyond follow-up Conference reaffirmed Monterrey goals, took hesi- to mark ‘historic’ new beginning, says tant note of the current crises and their impacts, French Development Minister failed to move adequately forward in a number of urgent subjects, but moved beyond Monterrey in 2 December 2008 several important areas,” the statement said. The outcome document went far beyond the The Doha Follow-up Conference on Development 2002 Monterrey Consensus in making the link Financing had gone beyond mere follow-up to the between the promotion of gender equality, wom- Monterrey Consensus of 2002, to marking a his- en’s economic empowerment and equitable and toric new beginning, Alain Joyandet, Minister for effective development. However, that would only Development of France and chief negotiator for be meaningful if the systemic issues underpinning the European Union said at a press conference in poverty were decisively addressed. Cuts in public Qatar this afternoon. services, for example, would increase the burden of Welcoming the general consensus reached this unpaid and invisible work carried out by women. morning in the outcome document of the meet- With regard to decent work, the non-governing—formally known as the Follow-up Interna- mental organizations welcomed the clear recogni- tional Conference on Financing for Development tion of its centrality to development strategies and to Review the Implementation of the Monterrey poverty eradication. However, decent jobs must be Consensus—Mr. Joyandet said it was a consensus created for women and men. On tax issues, civil of responsibility that showed good will on the part society had asked for the upgrading of the United of the international community. Nations Committee on Tax to an intergovernmen- He said the European Union had arrived in tal body, but that had not been agreed, though con- Doha with a spirit of consensus and a will to renew sideration of the matter continued and there had been some advance in the focus on tax leakages. its commitments. It had accepted the document Non-governmental organizations were prepared to submitted by the co-facilitators without reserve. continue contributing to strengthened action on Some modifications were inevitable and some the issue through the United Nations. countries disagreed on various points, but in the end those obstacles had been overcome. In the Members of the group also welcomed progress process, a new and more solid world partnership on innovative financing mechanisms and com- had been created. mented that there was no slipping backwards in Monterrey commitments on the Millennium To a question about the response to the finan- Development Goals, the right to development and cial crisis, he replied that it was important that it the need for just and democratic societies. There take into account the decisions of the G-20, but was evidence that some of the advice conveyed to also create a better balance between the countries the Conference by the Civil Society Forum had of the industrialized North and developing South. been incorporated into the outcome document, Asked whether he would now request his own although not as much as had been hoped. Government to meet its aid commitments, the Minister said there would be “no problem” with They also reminded delegates and officials that that because that aid was budgeted to increase those most seriously affected in every country were through 2011, as would the contributions of the expecting material action that reversed the slide French development agency. into poverty, increased resources for development and mobilization against climate change, stimu- Asked whether a completely new world finan- lated employment and supported life and access to cial structure was needed rather than reform, he health for “those marginalized and threatened by said the reforms needed were so extensive that it disease and disaster”. might as well be called reconstruction.

303 The Doha Review Conference on Financing for Development

Conference succeeded in reaffirming A strong statement on gender equality had need to continue development aid, says been included, because the world was lagging Secretary-General’s envoy behind in reducing maternal and child mortality, as well as the empowerment of women, she said. 2 December 2008 In that context, the maintenance of basic services was a priority. The Financing for Development Conference in She said the Conference had focused on tax Doha, Qatar, had succeeded in reaffirming that evasion, which had robbed many developing development assistance should continue even countries of money that could go towards public throughout the current financial crisis, Heide- goods such as education and health. The docu- marie Wieczorek-Zeul, Germany’s Minister for Development Cooperation, said at a press confer- ment reflected agreement that transparency in the ence this afternoon. extractive sector must be increased and related initiatives commended. Debt sustainability analysis “Now is the time to show that we do not leave was supported, as were innovative relief schemes the poor in this world aside,” said Ms. Wieczorek- such as the Debt2Health initiative that benefited Zeul, who is a Special Envoy of the Secretary-Gen- the Global Fund, which was signed by Germany eral for the Conference, following the agreement and Pakistan. on the final text of the |outcome document. In all preceding financial crises, development aid had Finally, she said it had also been agreed that been cut, but this time, partly because of the Con- many cross-cutting issues were relevant to financ- ference, it had been shown that it was against all ing for development. countries’ interest to cut back on such aid. Asked about advances in foreign direct invest- “The conference was and is a success because ment, she said that recognition of its importance in it shows that the world stands together in the face development was included in the document, along of the economic crisis,” she said, adding that soli- with discussion of corporate responsibility. The part- darity was important for everyone, but particularly nership between the public sector and private sector for those in developing countries. The Conference was stressed, as was the importance of remittances was significant in that it was a meeting not only of and transparency in natural resource extraction. special groups like the G-20, but of the entire Gen- She said there was a strong consensus that eral Assembly membership of 192. The unanimity existing financial structures must be widened. on the outcome document was important, representing a Doha consensus that could build on the Within the World Bank, for example, there was Monterrey Consensus of 2002, to which the Con- a movement to ensure better representation for ference was a follow-up. African countries. The African Union should be represented in many more organizations. The high She said the outcome document reaffirmed the level-conference on the financial crisis, proposed Monterrey agreement on development assistance, in the draft document, should better focus that and stated that extra funding was needed because discussion. There was a need for inclusive financial of the financial crisis. Timetables for fulfilling com- reform process. There needed to be more partner- mitments for assistance had also been reaffirmed. ship, but there was no blueprint for what a new Aid effectiveness and quality had become a high financial architecture would finally look like. priority, which had not been the case in Monterrey. In addition, it urged new donors to join the effort, In answer to other questions, she said there and stressed innovative financing mechanisms. was full affirmation of all existing Group of Eight She herself had emphasized emissions-trading (G-8) commitments. The text also contained a schemes, because the link between development stronger section on official development assistance and climate agenda was crucial. (ODA) than in Monterrey. The Conference was not

304 Selected Press Releases the venue to negotiate trade agreements, but World He explained the idea of such a conference Trade Organization (WTO) officials were present. had been controversial since some thought the United Nations should not be directly involved in Asked what major disagreements had occurred financial matters, while others felt the world body over the outcome document, she said the real dif- should be the venue for all international negotia- ferences in the world could no longer be described tions, especially since it was more inclusive than by groupings of countries. There was a great need any other organization. for cooperation because the current crises had hit people in all countries. Official development assist- There had also been a very important -deci ance was, of course, a contentious issue, as was sion to strengthen the financing for development the holding of a conference on the financial crisis follow-up process in New York and to hold another under the auspices of the United Nations. It would follow-up conference in five years, in a location yet be better, however, to stress the consensus rather to be decided, he said. As for the draft outcome than the differences. document, there remained some “minor clean- ups” to perform, but it would almost certainly be Finally, asked what difference the Confer- ready for this afternoon’s closing session, where the ence outcome would make in the lives of poor text would be adopted by acclamation. people, she said: “A conference does not change He said the final document would send a very reality, only action that implements the decisions strong message to the trade negotiations in Geneva changes reality.” for a successful conclusion of the Doha Round. On foreign direct investment, it stressed that it must be directed to the right sectors and that an ena- Final conference text to include plans bling environment for investment must be created for meeting on world financial crisis, in each country. In that area, developing coun- Executive Secretary says tries had been more flexible than they had been in Monterrey with up-front language on labour 2 December 2008 and environmental standards. There had also been a recognition that much more could be done to The draft outcome document for the Financing for facilitate the remittances that migrant workers sent Development Conference in Doha, Qatar, included back to their home countries. plans for an international meeting on the world On official development assistance (ODA), he financial crisis to be held under United Nations said there had been no expectation of new com- auspices, Oscar de Rojas, Executive Secretary of the mitments, but the draft outcome document did Conference, said at a press conference this morning. include a strong call to meet existing ones. An increase in the quality of aid was stressed. On taxes, “We have white smoke,” said Mr. Rojas as he those hoping to create a stronger intergovernmen- announced that delegates had reached agreement tal body within the United Nations had been disap- late last night on the draft final outcome text for the pointed, but the text did agree that something must Follow-up International Conference on Financing be done internationally. The momentum for con- for Development to Review the Implementation of crete action seemed to be building and something the Monterrey Consensus. was expected to happen “within a year or two”. Mr. Rojas, who is also the Director of the Financ- Questioned about discussions on climate ing for Development Office in the United Nations change language, he said there had been some disa- Department of Economic and Social Affairs, said greement between the United States and the Euro- the modalities of the upcoming conference would pean Union over a paragraph concerning how far be decided by March 2009, but it would include the text should go on an issue that was not part of issues directly affecting development. the Conference, but it had not been a major factor.

305 The Doha Review Conference on Financing for Development

As for whether the Conference would make Heiner Flassbeck, Chief Economist of the UN Con- a difference to poor people around the world, he ference on Trade and Development (UNCTAD). stressed that the United Nations was a norm-set- Introducing the report, Mr. Vos warned that ting organization, and it took time for those norms the world might dip into a recession that would to translate into action on the ground. However, probably include developing countries due to the Conference would certainly make for improve- global financial linkages. World gross production ments in people’s lives eventually. could actually fall, which had not happened since Asked whether non-governmental organiza- the 1930s. Borrowing costs and private financial tions would be happy with the document, he said flows to developing countries were slowing, world the text included many of their ideas, though not trade growth was decelerating rapidly, and com- others that they had advocated strongly, such as a modity prices, including those of food and fuel, currency transaction tax. Because the follow-up were plunging. process had been kept alive, however, there was He said the report predicted a decline in per a possibility that the idea would be found more capita income, a recession in the most developed acceptable in five years’ time. economies and slowing growth in countries with With regard to whether donor countries should economies in transition. Middle-income coun- avoid corruption by implementing projects directly tries would be hit hardest by the spill-over effects on the ground rather than handing over financial of the financial crisis, but all developing countries aid to Governments, he said that, in varying situa- would be affected due to slowing trade. Net food tions, both were needed. The text took the problem and oil importers might see lower prices, but they of corruption seriously, but the risk must be taken would suffer mainly through reduced trade push- in order to provide the necessary funding. ing them further into poverty. Many countries might have to borrow more or see their reserves evaporate while exporting countries would see UN officials call for ‘new global deal’ sharp cuts in income. at press conference to launch report on world economy So far, about $11 trillion, or 20 per cent of world gross product, had been committed to stimulus and bailout packages, he said, noting that the 1 December 2008 report maintained that the measures would be much more effective if such measures were coordi- With a deepening global recession in view, United nated internationally and aligned with other inter- Nations development officials called this morning national objectives such as sustainable develop- for a “New Global Deal” of coordinated, massive ment. Among the systemic measures required were stimulus measures aligned with sustainable develop- governance reform at the International Monetary ment and systemic reform of world finance, as they Fund (IMF) as well as reform of financial regula- launched a major economic report at the Financing tion and supervision, liquidity provisioning and of for Development Conference in Doha, Qatar. the present international reserve system. “We have a house that is still on fire and we “What we are experiencing now is a crisis fore- have to put out the fire and take measures to keep told,” said Mr. Jomo, noting that the Department this from happening again,” said Rob Vos, Director of Economic and Social Affairs and UNCTAD of the Development Policy and Analysis Division had been warning about global financial imbal- of the Department of Economic and Social Affairs ances and the precariousness of the housing mar- said at a press conference to launch the 2009 World ket for several years. The objective now was to Economic Situation and Prospects. Accompanying limit the spread of the financial crisis, especially him were Jomo Kwame Sundaram, Assistant Sec- to the real economy. That could be done by main- retary-General for Economic Development, and taining liquidity and public spending as well as

306 Selected Press Releases other stimuli. It was also important for the United Continue struggle against pandemic, Nations to continue providing leadership on sys- panellists urge at press conference to temic reform, which had last occurred at Bretton mark world AIDS day Woods in 1944. Since then, the system had developed in an ad hoc fashion. Leadership by exclusive 1 December 2008 groups such as the Group of Seven (G-7) had not produced optimal results; the redesign of the mul- Marking the twentieth anniversary of World AIDS tilateral system must be inclusive. Day at the Financing for Development Conference Mr. Flassbeck added that problems involving in Doha, Qatar, a panel of experts this morning commodities and currencies as well as the unwind- urged the international community to continue to ing of risky positions all over the world had clearly fight the scourge despite the current financial crisis. been foretold in United Nations analyses. Fluctua- “Our dream is not to say ‘Yes, we can’, but ‘Yes, tions in commodity prices had been exacerbated by we did it,’ ” said Luisa Morgantini, Vice-President the crisis and there were new imbalances and over- of the European Parliament. The regional legisla- valuations of currencies without anyone offering a ture remained strongly committed to the struggle viable currency regime. Those problems could only against AIDS and it was to be hoped that coor- be handled systemically and simultaneously. dinated international efforts would keep that Asked about lower oil prices and the response commitment not only on AIDS, but also other of the Gulf countries, Mr. Vos said those countries endemic diseases, the fight against which was should participate in the stimulus measures, while crucial to development. Mr. Jomo noted that they, as well as Asian countries, Accompanying her at the press conference would be buying many of the bonds that developed were Trevor Manuel, Special Envoy of the Sec- countries would be selling to fund their stimulus retary-General for the Conference and Finance programmes. Reserve management would also be crucial for the Gulf States. Minister of South Africa; Joel Nhleko, Permanent Representative of Swaziland to the United Nations; Responding to a question about the origins of Laila Isharair of the General Secretariat for Devel- the crisis and various possible future scenarios, Mr. opment Planning and a member of the Qatar Voss said it could be said that the housing crisis National AIDS Committee; Christoph Benn of had begun in the United States. However, because the Global Fund to Fight AIDS, Tuberculosis and world financial flows were so interconnected, the Malaria; and Renu Chahil-Graf of the Joint United financial crisis had been global from the start. Nations Programme on HIV/AIDS (UNAIDS). Worst-case scenarios would most likely occur if the financial panic continued. Mr. Jomo added that Dr. Benn noted that, despite great progress in an expansion of available resources was needed to the areas of prevention and treatment, the fight deal with the problems of the status quo because against AIDS remained a moral and survival obli- only China and the Gulf States had enough funds gation that should not be slowed by the financial to provide the kind of large-scale economic stimu- crisis. The Global Fund had committed more than lus that was needed. $14 billion to the struggle since its creation in 2002, but it faced a funding gap of $8 billion. Two mil- Asked about the competence of the United lion people had been put on antiretroviral treat- Nations to lead a multilateral response to the crisis, ment with millions more having been treated for Mr. Jomo said the Organization had a good track tuberculosis and millions of orphans under care. record in that area, pointing out that the Secretary- However, millions more remained untreated and General had set up a commission led by Nobel without care. Prize-winning economist Joseph Stiglitz. Whether that initiative would have a major impact would Describing the situation in his heavily-affect- depend on negotiations with Member States. ed country, Mr. Nhleko said that while infection

307 The Doha Review Conference on Financing for Development

rates had declined in Swaziland—the high point Asked what the United Nations system was of 40 per cent prevalence had been reduced to 26 doing to counter the sex trade and satellite televi- per cent—many people were infected daily, which sion channels that promoted risky lifestyles that remained a matter of great concern. Many families could increase the spread of HIV, Dr. Chahil-Graf had lost their breadwinners and many others had stressed the importance of applying all preven- been impoverished by spending on medical treat- tion strategies in countering the dangers of HIV ment and funerals. The economy suffered from a spreading through prostitution. Dr. Isharair added lack of productivity as the country had lost much of that UNDP programmes were dealing with that its labour force. Swaziland also lacked health work- issue and that there was a need to raise awareness. ers in addition to having about 100,000 orphans In Qatar, that was being done through mosques, out of a population of one million. schools and universities. As a response, the country spent a large In response to a question about Swaziland’s amount of its resources on raising awareness, vol- efforts to analyze gender-disaggregated data, Mr. untary testing and counselling, he said. Swaziland Nhleko said statistics showed that HIV was more was reorienting spending toward the social sector prevalent among women than men. As for polyga- while taking local culture into account, for exam- my and the spread of HIV, the emphasis of aware- ple, by encouraging sexual abstinence in a cultur- ness-training was on getting all parties involved to ally-specific way. AIDS programmes were being remain faithful to each other. mainstreamed into many sectors, and more money was being spent on drugs and prevention. A raft of Asked about universal access to HIV treat- social projects for orphans had also been created. ment, Dr. Benn said 3.5 million people were on treatment, which was 35 per cent of people who Mr. Manuel said the issue of HIV was at the needed it. Dr. Chahil-Graf described the extensive heart of the development challenge and should be efforts to protect the rights of people living with considered together with access to water, sanitation HIV/AIDS, adding that those efforts would be and food. Finance ministers must ensure that all ramped up in the years to come. programmes were run in a “full-spectrum” manner and supported treatment regimes, aftercare as well On the need for strong health systems that would as care for orphans, widows and others left behind. allow better handling of HIV/AIDS problems, Mr. Describing Qatar’s efforts, Dr. Isharair said Manuel said it was true that countries had to deal a Government committee had been established with a much wider set of health problems, adding alongside a strategy created in collaboration with that a wider sociological discourse was required. the United Nations Development Programme (UNDP) to encompass both prevention and serv- Coordinated, massive and swift economic ices for those living with HIV. The disease was not stimulus required to counteract synchronized highly prevalent in Qatar and the most important global downturn, new UN report asserts thing was that a law had been drafted to protect the rights of those living with the virus. • world per capita income is expected to decline next year Dr. Chahil-Graf added that even given the low prevalence in the Gulf region, it was important to • falling export growth and capital inflows and address HIV/AIDS because of an increase in the higher borrowing costs for developing coun- factors for infection, such as drug use and migra- tries, as contagion spreads from the major tion. While the exact figures were unknown due economies to underdeveloped surveillance systems, measures • dollar set to resume its decline, with possibility were being taken in the region, including the training of imams in awareness-raising. Groups for peo- of a hard landing in 2009 ple living with HIV had also been formed, among • deep reforms of global financial system called other positive steps that needed to be encouraged. for to prevent crisis recurrence

308 Selected Press Releases

(DOHA, QATAR, 1 December) UN economists in 2009, causing world output to fall and GDP are recommending massive economic stimulus growth in the developing world to drop to 2.7 per packages that are coherent and mutually reinforc- cent, dangerously low for the ability of countries ing on a global basis, and linked with sustainable to sustain poverty reduction efforts and social and development imperatives. These should come on political stability. top of the liquidity and recapitalization measures already undertaken by countries. Harsh development environment The 2007 sub-prime mortgage debacle spread Developing country policy makers spent the third into a global financial crisis in 2008, and since quarter of 2008 tracking inflationary threats, acute- has turned into a calamitous economic downturn ly felt through the rising cost of basic commodities that will last into 2009 and likely beyond, says such as food and fuel. They were caught by sur- an advance edition of the UN annual economic prise in October, when the financial crisis and eco- report, issued today at the international Financing nomic downturn hit economies with the speed and for Development review taking place in Doha. strength of a tropical storm. Also recommended are stronger regulation The cost of external borrowing has since ris- of financial institutions, adequate international en sharply for developing countries and capital liquidity provisioning, an overhaul of the inter- inflows are reversing. Stock markets have dropped national reserve system and a more inclusive glo- further on the back of a difficult year, while curren- bal economic governance, to prevent against any cy and commodity markets have become extreme- future repetition. ly volatile, with the exchange rate depreciating at According to the baseline scenario of World an alarming pace in several countries and prices Economic Situation and Prospects 2009, world out- of primary commodities tumbling since summer put will reach a meagre 1 per cent in 2009, com- highs. Export growth is now decelerating and the pared to 2.5 per cent in 2008 and global growth current account balance of many countries has rates of between 3.5 and 4 per cent in the preced- shifted back into the red. ing four years (see Table I.1 ). The 2009 projec- Contagion from developed countries—with tion includes a decline in output of 0.5 per cent in a majority of them already in recession—to the developed countries, along with growth of 5.3 per rest of the world entails a “globally synchronized cent in the transition economies and 4.6 per cent in downturn [that] may be the first of its kind in the the developing world. post-war era,” WESP says. This global growth trajectory points to a drop in income per capita for the world in 2009. Crisis management has moved slowly . . . Under a more optimistic scenario—factoring Monetary policy in the United States during the in fiscal stimulus of between 1.5 and 2 per cent of first half of 2008 was aggressively expansive in gross domestic product (GDP) of the major econo- attempts to stave off a recession, while European mies, and further interest-rate cuts—the developed central banks maintained a tightening stance in the economies could post a 0.2 per cent rate of growth, face of the inflation threat (see Figure I.11). and the developing world would surpass 5 per cent This policy mismatch typifies the lack of coor- growth, UN economists calculate. Given the great dination during the boom years, when growth was uncertainty prevailing today, the unfolding of a strong and the over extension of credit in the United more pessimistic scenario is possible. States and over-accumulation of savings in surplus If the present credit squeeze prolongs and countries could have been addressed with less pain confidence in the financial sector is not restored and more room for manoeuvre. Along these lines, in the coming months, the UN warns, the devel- the UN’s World Economic Situation and Prospects oped countries could enter into a deep recession 2007 and 2008 advocated consolidation in the US

309 The Doha Review Conference on Financing for Development

economy matched with stimulus in surplus coun- major downside risks. In that case, investors might tries such as China, Japan, and in Europe. again embark on a “flight to safety”, but away from dollar-denominated assets instead of to them, pull- Finally by October 2008, response measures ing the US economy down further, and the global within countries took on a more comprehensive, economy with it. less piecemeal approach, and unilateral national approaches gave way to increased international The UN sees an opportunity to align- fis cooperation and coordination. About $4 trillion cal stimulus packages with long-term sustain- worldwide was invested in efforts to unfreeze able development goals. The massive resources credit and money markets. Interest rate cuts took required for fiscal stimulus can be applied in shape rapidly in developed as well as some devel- part to public investments in infrastructure, food oping countries. production, education and health and renewable energy sources, helping developing countries to “But with consumer and business confidence diversify their economies and meet their Millen- seriously depressed and banks reluctant to lend, nium Development Goals. further lowering of interest rates by central banks will to little to stimulate credit supplies . . . and pri- To shore up weaknesses which led to the vate spending,” UN economists caution. extraordinary damage brought on by the downturn and to prevent this from happening again, UN With limited space for monetary stimulus, economists are advancing a broad range of steps, fiscal policy options are needed to reactivate the including the following: global economy. • fundamental revision of the governance struc- China has already launched a $586 billion (15 ture and functions of the IMF and the World per cent of GDP) fiscal package to be implemented Bank for enhanced international policy coor- in two years, which may contribute to reinvigorat- dination and for more inclusive participation ing global as well as domestic demand. In the US, of major developing countries; fiscal stimulus equal to 1.1 per cent of GDP in the first half of 2008 probably kept economic growth • fundamental reforms of existing systems of afloat for an extra quarter. The Republic of Korea financial regulation and supervision to stem recently announced a package of roughly the same past excesses; size relative to its GDP. • reform of the present international reserve sys- To stave off a much deeper recession, UN tem, away from the almost exclusive reliance economists argue for greater fiscal stimulus, in on the US dollar and towards a multilaterally an internationally coordinated fashion. In a glo- backed multi-currency system; balized economy, fiscal stimulus in a single coun- • reforms of liquidity provisioning and compen- try is undercut by import leakage and other effects; satory financing mechanisms, backed, among when instituted across the board, a reinforcing others, by better multilateral and regional multiplier effect can take hold. pooling of national foreign exchange reserves, and avoiding onerous policy conditionality. . . . but bold reforms are needed to prevent The “Global Outlook” chapter of the UN World future crises Economic Situation and Prospects 2009 is released There is, however, a lack of an institutionalized and today in Doha. The full report, including regional credible mechanism for coordination of stimulus overviews and detailed trends in global trade and packages or monetary policies. With net indebted- finance, is due out in early January 2009. ness of the United States still growing—to about For more information, contact the UN $2.7 trillion at the end of 2008, up from $2.5 tril- Department of Public Information: Newton Kan- lion in 2007—a disorderly adjustment of global hema in Doha, [email protected]; or in New York, imbalances and a hard landing of the dollar remain Tim Wall, [email protected], 1 212 963 5851.

310 Selected Press Releases

Secretary-General calls for $30 billion Development (IFAD) said the global food crisis to restructure world agriculture, could be seen as a result of the failure to invest in agri- create long-term food security culture in too many countries, stressing, “We cannot take food security at the global level for granted.” 30 November 2008 Emergency funds must be mobilized immediately, but long-term production must be doubled by 2050, As the Financing for Development Conference con- with a secure, more varied diet that would be sus- tinued in Doha, Qatar, United Nations Secretary- tainable in the context of climate change. General Ban Ki-moon called this afternoon for an The moderators introduced the Chairperson infusion of $30 billion to help restructure world of the side event, Luisa Dias Diogo, Prime Minis- agriculture and create long-term food security. ter of Mozambique, and panellists Sibusiso Barna- “This is not charity,” Mr. Ban stressed at a side bas Dlamini, Prime Minister of Swaziland; Peter event themed “Tackling the Food and Hunger Power, Minister of State for Overseas Development Crisis, Investing in Food Security, Safety Nets and of Ireland; Stefano Manservisi, Director-General for Small Holder Agriculture”. “It is an investment in Development of the European Commission; Soraya our collective future. Ending hunger is critical to Rodriguez Ramos, Secretary of State for Interna- global stability and prosperity.” tional Cooperation in the Ministry of Foreign Affairs and Cooperation of Spain; and Nancy Birdsall, Pres- He noted that in 2007, an additional 75 million ident of the Centre for Global Development. people had become undernourished, a number higher than the entire population of Turkey. Food Prime Minister Dias Diogo said her country prices were still twice as high as they had been in was plagued by floods and droughts while pro- 2002 and the situation was expected to get worse ductivity per hectare had stagnated, leaving it vul- as global population grew, climate change acceler- nerable to food insecurity. In 2007, Mozambique ated, prices fluctuated and the financial crisis con- had launched its Green Revolution strategy with tinued to unfold. a focus on small-scale farmers, using a decentralized financing mechanism aimed at producing The most vulnerable people needed food more food and increasing work opportunities in today, he said, emphasizing that, for that purpose, rural areas. The objective was to erase the deficit Governments must avoid export bans. For medi- in maize, rice and wheat productivity over the next um-term needs, smallholder farmers must get three years, with funding and technical assistance fertilizers and seeds, and for the longer term, the targeted to the particular need of each district. underlying structural problems plaguing the food There was a need for assistance from internation- system must be solved. al partners and for developing countries to share Jacques Diouf, Director-General of the Food their experience of best practices. and Agricultural Agency (FAO) and co-moderator Prime Minister Dlamini maintained that the of the side event, said that in the six years since global food, fuel and finance crises required global, Monterrey, many developing countries had ful- coordinated action. Food was a priority and there filled their commitments to reform, but official was a necessity to help the vulnerable in the short development assistance (ODA) had declined. At term while boosting agricultural productivity in the same time, investment in agriculture remained the long term, with the focus on small-scale farm- extremely low in developing countries. About 86 ers. Foreign direct investment had an important per cent of people living in poverty were involved role to play, given the magnitude of infrastructure, in agriculture, and almost 1 billion people in the technical assistance and resource needs. However, world were on the edge of hunger. it was crucially important that such investment Co-moderator Lennart Bage, President of the deliver concrete development benefits, including International Fund for Agricultural more employment and less hunger. In the face of

311 The Doha Review Conference on Financing for Development

the financial crisis, assistance was more important training youth and keeping them in the rural areas. than ever and the pledges made at Monterrey and The European Commission’s €1 billion programme elsewhere must be fulfilled. “Global food security would prioritize those areas, starting immediately, deserves no less an urgent response than we have alongside emergency safety net programmes to feed seen for the financial crisis.” those suffering from the food crisis in both rural and urban areas. For the medium term, microcredit Mr. Power said that in the last two years his and other resources would also be provided. country had become increasingly concerned that there had not been enough focus on agricultural Ms. Birdsall stressed that long-term demand production and the need to feed everyone on the for food was outrunning long-term supply for many planet. The same causes of the Irish “Great Hun- reasons, including population increase, climate ger” potato famine in the nineteenth century had change and subsidies. Volatility had also increased resulted in today’s food insecurity—failed Govern- and prices had been rising gradually since around ment policies and lack of crop diversity. A report 2002. A spike in 2007 had led to a slight decline but on world hunger produced by Ireland, therefore, food prices were still historically low in compari- expressed frustration at the lack of progress and the son to the era before the 1980s. It all added up to a lag in extending to Africa the many techniques that situation in which supply and demand were out of had been used successfully to increase productivity sync and exacerbated by the demand for biofuels. in Asia. It set benchmarks for technical assistance To deal with that problem, the distortions caused and other resources needed, and stated that hunger by subsidized foodstuffs and biofuels should be was the result of a lack of political commitment and eliminated. Food stocks should be rationalized, leadership. Development must focus on “putting and research boosted dramatically. food in the mouth of every person on this planet”. Ms. Rodriguez, emphasizing that the world Need for creative development finance food crisis had not disappeared even though the initiatives stressed at signing of accord on turning debt into health funding financial crisis had now taken over the media spot- light, said high food prices continue to hit the poorest people. Children were suffering stunted growth 30 November 2008 due to a lack of nutrition and could not afford to go to school because more money was needed In the current economic atmosphere, it was more for food. Among farmers, in particular, women important than ever to develop creative methods suffered from “invisibility” and, in many places, to finance development initiatives, an official of from low land ownership. Aid efforts must pro- the Global Fund to Fight AIDS, Tuberculosis and vide small farmers with technical help, seeds and Malaria said this morning at the Financing for infrastructure. In addition, education and health Development Review Conference in Doha, Qatar. services must reach rural areas. Rural development At the signing of an agreement between Ger- and food production must be boosted in a manner many and Pakistan to turn debt into health fund- coherent with all other development sectors. Spain ing, Robert Filipp, Head of Innovative Financing was increasing its aid for that purpose and would for the Global Fund, said that under the Debt- sponsor a conference in January to ensure coher- 2Health initiative, launched in September 2007, ence of efforts. creditors would relinquish a part of their rights to repayment of debts on condition that the benefi- Advocating that rural development become ciary country invested an agreed amount through the centre of national and international policy, Mr. Fund-approved programmes. Manservisi stressed that agricultural research and infrastructure augmentation should concentrate Joining Mr. Filipp at the signing, were Heide- on benefiting small farmers and prioritize local and marie Wieczorek-Zeul, Germany’s Federal Minis- regional markets. Capacity-building should focus on ter for Economic Cooperation and Development

312 Selected Press Releases and Special Envoy of the United Nations Secretary- UN Agencies: Investing in development General for the Follow-up International Conference is not only the moral choice, it is also on Financing for Development to Review Imple- in everyone’s self-interest mentation of the Monterrey Consensus; Hina Rab- bani Khar, Minister of State for Economic Affairs 29 November 2008 of Pakistan; Michel Kazatchkine, Executive Direc- tor of the Global Fund; and Uwe Ohis, Senior Vice Time for a new kind of multilateralism: President of the KfW German Development Bank. We cannot address the challenges of the 21st Century with 20th Century tools “It is not abstract debt relief; it is conversion into investment and health,” Ms. Wieczorek-Zeul The United Nations Development Group (UNDG) said, noting that €40 million in claims was being calls on all members of the international commu- relinquished under the agreement so that Paki- nity to honour their commitments and invest more stan could contribute to the Global Fund’s pro- in sustainable human development and the Millen- grammes. Up to €200 million in debts to Germany nium Development Goals. had been made subject to such debt swaps, and In a statement issued on the eve of the Follow- Indonesia had been the first partner to participate up International Conference on Financing for in the arrangement. “If we are able to be creative, Development to Review the Implementation of the there is no limit to the amount of financing that is Monterrey Consensus, the UNDG highlights the available,” Ms. Khar added, commenting that the need to identify concrete ways in which the cur- collaboration with Germany in that area had been rent multilateral system can be reformed to better “very fruitful”. Debt swaps were win-win arrange- respond to the unprecedented challenges posed by ments, she said. the global economic crisis. Mr. Kazatchkine said that, for the first time, The Doha Conference comes at a difficult time such a debt swap was being carried out through a for the global economy. The world is confronted multilateral institution, which showed the confi- by a host of multidimensional and interconnected dence that donors and recipients had in the Global challenges: a global economic and financial crisis Fund. Debt-for-health funds had been advocated and the effects of the continuing volatility of food for many years, particularly by former Secretary- and fuel commodities, as well as the ongoing chal- General Kofi Annan. Meanwhile, malaria and lenge of climate change. tuberculosis remained endemic in Pakistan and the “From some angles, the situation looks almost new source of funding would help save many lives. insurmountable. But the reality is that while we Asked which countries were being considered may face an unavoidable immediate global down- for debt swaps, Ms. Wieczorek-Zeul said the prior- turn, it is the decisions we make as policy makers at ity was countries that were not eligible for Heav- national and international levels that will determine ily Indebted Poor Countries (HIPC) programmes. how deep and long the present recession will be,” Dialogue was ongoing with Latin American coun- said Kemal Derviş, Chair of the UNDG. “We have tries in particular. The momentum from such ini- in our hands the keys that can open up the doors to tiatives could be strengthened, but development a future of sustainable and equitable growth.” required a greater focus on the health sector. Agreeing that health was a core pillar of devel- What we need to do opment, Mr. Kazatchkine reiterated that innova- Even though this conference comes at a difficult tive programmes should not replace official devel- time for the global economy, the UNDG argues opment assistance (ODA) in that regard. that funding for development is not only a matter of resources, but also of political will. The world spends almost US$1.3 trillion a year on armaments.

313 The Doha Review Conference on Financing for Development

Many more trillions are being mobilized for the are needed to boost economic demand and financial crisis. The US$140 billion already pledged employment. The fiscal stimulus required to sup- for official development assistance by 2010 is there- port global economic growth in response to the fore clearly affordable. financial crisis gives an unprecedented opportu- The UNDG says that the increase in aid must be nity to invest in new technologies, green jobs and matched with increases in quality and effectiveness. our global green economy. Investments made now Most notably, we must deliver aid more predict- in the mitigation of and adaptation to the effects ably and transparently, streamline conditionality, of climate change may provide an opportunity to and make more strategic use of aid to complement both boost demand in the short-run and contrib- growing new sources of development finance. ute to inclusive economic growth, access to energy and poverty reduction in the long-run. Extraordinary times require extraordinary actions, the UNDG asserts. The statement appeals A reformed, stronger and more inclusive multi- to world leaders to find solutions that meet imme- lateralism, affirms the UNDG, is the only option if diate needs and long-term development goals. we are to find workable and fair solutions. We can- Now, the UNDG insists, is not the time to allow not address the challenges of the 21st century with the global fight against poverty, hunger and disease the tools of the 20th century, the UNDG contends. to fall by the wayside. The statement affirms that The new structure should recognise the vul- governments must renew their pledge to spend nerability of poor countries to the negative impact 0.7 percent of their GNI to Official Development of interconnected crises: financial instability, -cli Assistance (ODA). mate change, volatile prices for food and energy, Increasing levels of human development is and unacceptable levels of hunger, poverty and part and parcel of the process of reviving economic inequality. And in developing policy responses demand and shoring up social stability, as well as decision-makers should never forget that the poor being a humanitarian imperative. Otherwise, many and most vulnerable had no hand in precipitating countries will see eight years of relative gains, espe- the crisis or the climate challenges we now face. cially in the achievement of halving extreme pov- Only a global, equitable, inclusive and strong- erty and hunger by 2015, eroded and—ultimate- er multilateral system of international coopera- ly—reversed. As the costs of dealing with this most recent crisis mount, developing countries could see tion can generate the kind of investment, col- the current dismal trio of limited access to financing, laboration, synergies and innovation needed to volatile commodity prices and a diminishing market simultaneously tackle global poverty, hunger, for exports made worse by shrunken ODA flows. environmental sustainability, human development and climate change. The statement also stresses that developing countries need to mobilize more domestic resources and implement the policies needed to tackle The UN Development Group poverty and promote growth and development. stands ready to assist Specifically, more resources need to be invested in The United Nations has a key role to play in this sustainable human development through concur- renewed multilateralism. With its inclusive mem- rent investments in education, nutrition, health, bership, intergovernmental processes, leadership decent work, human capacity, rights and opportu- in peacekeeping, rapid engagement in post-crisis nities, social protection, food assistance, agricul- countries, and its ability to learn from the experi- ture, and infrastructure. ence of the more than 160 countries where it has a There is, the UNDG argues, a unique opportu- presence on the ground, the UN system can play a nity to make the global economic recovery sustain- critical role in transforming development finance able. Strengthened public investment programmes into development results.

314 Selected Press Releases

Bringing together the various agencies, funds • UNDG members include: ECA, ECE, ECLAC, and programmes of the UN development system, ESCAP, ESCWA, FAO, IFAD, ILO, ITU, the UN Development Group is a reliable partner OHCHR, OSAA, SRSGCAC, UN DESA, UN with a unique depth of capacity and breadth of DPI, UNAIDS, UNCTAD, UNDP, UNEP, voice. It stands ready to strengthen its efforts to UNESCO, UNFPA, UN-HABITAT, UNHCR, assist countries in responding to the current global UNICEF, UNIDO, UNIFEM, UNODC, UNO- crises with sustainable solutions to development HRLLS, UNOPS, UNWTO, WFP, WHO, challenges. WMO, the World Bank (observer), UNFIP (observer), OCHA (observer), the Office of For more information please contact Marco Bau- the Spokesperson for the Secretary-General mann: UN Development Operations Coordination (observer), and the Office of the Deputy Sec- Office, 1-917-445-2803, [email protected] retary-General (observer). Note to Editors • For more information on the UNDG, visit: • The United Nations development system is a www.undg.org neutral partner for developing countries. Its UN Development Operations Coordination Office collective presence is global, with teams in 136 One UN Plaza, DC1-1600, countries and programmes in 160 countries. It New York, NY 10017 USA delivers over $16 billion worth of activities that Telephone: (212) 906 5500 support development every year and is guided Fax: (212) 906 3609 by national priorities within a globally-agreed www.undg.org normative framework of human rights and development goals. • The UN development system helps countries The Secretary-General remarks to access sources of development finance, pro- at side event on innovative financing mechanisms vides policy and technical advice, and strengthens national capacities to respond to existing and emerging development challenges. It plays Doha, 29 November 2008 a crucial role as part of a broader global framework to achieve effective financing for devel- Minister Alain Joyandet opment and attain sustainable and equitable [Minister of State for Cooperation and Francophony, France], development outcomes. Mr. Douste-Blazy, Ladies and Gentlemen, • The UN Development Group unites 33 UN funds, programmes, agencies, offices and I am delighted to be with you at this important departments, and five observers to deliver more side event. effective support to developing countries.The The Monterrey Consensus recognizes the val- Secretary-General created the group in 1997 as ue of innovative sources of financing as a comple- a mechanism to strengthen the UN system and ment to, and not a substitute for, traditional official coordinate its operational activities for devel- development assistance. opment at the country level. The UNDG cre- Today, the search for new sources is even more ates common policies and mechanisms to help urgent. The current financial crisis and the looming its members analyse country issues, formulate economic slowdown will certainly affect the budg- strategies, implement programmes, monitor ets of developed and developing countries alike. results, and advocate for change. This creates synergies, efficiencies, and economies of scale Since Monterrey, there has been significant that result in better development assistance. progress on innovative financing.

315 The Doha Review Conference on Financing for Development

One major development was the establishment I look forward to working with you to realize in 2006 of the Leading Group on the great potential in this area.

Solidarity Levies to Fund Development. The Thank you very much. Group has generated several new and well recognized projects. The Secretary-General remarks to lunch The International Finance Facility for Immu- event on financing for development and nization has been raising funds for programmes the economics of gender through the Global Alliance for Vaccines and Immunization. GAVI is delivering on its promise Doha, 29 November 2008 of providing reliable, long-term and stable funding for children’s vaccination. Thank you Minister Erik Solheim [Minister of the Environment and International In addition, an advanced market commitments Development of Norway] for your kind introduction. programme aims to provide long-term funding for Excellencies, the development of much-needed vaccines. The Ladies and Gentlemen, challenge ahead is to expand the scale of this effort to cover a longer time period. I welcome this opportunity to speak with you on the economics of gender. This is an extremely And the Air Ticket Solidarity Levy is meant important subject, and I thank Norway for organ- to scale up access to treatment against HIV/AIDS, izing this event. tuberculosis and malaria. Twenty-five countries have committed to introducing the levy. Millions of women around the world wake up early, cook for the whole family, take care of chil- The funds raised so far through innovative dren and elders, and go out to the fields or markets sources of financing remain small compared to to work all day. They manage life’s greatest hurdles, ODA. But these pilot initiatives indicate the great from birth to sickness to ageing to death. Some potential that exists. And there are more initiatives economists call this the “caring sector”. in the pipeline. Without these contributions, all economic President Arias of Costa Rica recently launched activity would grind to a halt. Yet their work is an initiative that would provide extra funding for hard to quantify in conventional terms. It does not countries that limit military spending. result a paycheck. It does not show up in national Other proposals include internationally coor- statistics. But make no mistake: these efforts create dinated levies on carbon emissions, arms purchas- deep, lasting value. es and currency transactions. Women and girls in the traditional labour My Special Adviser on Innovative Sources of market usually earn less than men. And they still Finance, Mr. Philippe Douste-Blazy, is exploring do most if not all of the caring work at home. They other ideas as well, and building consensus around face a double burden without a double reward. pilot projects. There is a saying from my part of the world: I am eager to see the international community “Women hold up half the sky”. I would go so far as bring its creativity to bear on this effort. Indeed, to say that women hold up much more than their many new initiatives will be developed during share of the sky. this conference. We have a moral imperative to empower wom- This is still a growing area, but already I know en and promote gender equality. But doing so is also it will feature prominently in financing for devel- one of our most powerful tools for fighting poverty opment in the future. and realizing the Millennium Development Goals.

316 Selected Press Releases

Financing gender equality should have a promi- Our challenge, in rich and poor countries like, nent place on the agenda here in Doha and in our is to give young people the skills, confidence and response to the financial crisis. opportunities they need to make informed choices and lead safe, healthy and fulfilling lives. Many women are concentrated in low-paying jobs with little security. They are often so busy Sport can empower young people in just this working at home that they do not have time for way. So I very much welcome this chance to learn full-time paid jobs. We need social security systems about the teamwork between the Qatar Olympic that take account of these constraints and respond Committee and the United Nations. to women’s needs. The Global Sport Fund uses sports to help young people—particularly the millions of boys We must also address a little-known aspect of and girls affected by poverty, natural disasters and the “brain drain”: the departure of so many edu- armed conflict. cated developing-country women for opportunity in the global North,, at far higher rates than that of It is helping young people to get involved in educated men. Developing countries face the real amateur sports. It is bringing together parents, risk of shortages of women leaders. teachers, coaches and sports stars who can serve as positive role models. The Monterrey Consensus provides guidance for investing in gender equality. The And it is teaching youngsters how to play by the rules, engage in teamwork and show respect for United Nations Commission on the Status of each other. I should stress that these are important Women has also made important recommenda- principles for people of all ages. tions for achieving this goal. I congratulate the Government of Qatar for its Measures to empower women may seem like commitment to this initiative. a detour on the road to development. In fact, they I look forward to our continued work together are the straightest and surest path to reaching our to keep kids safe from drugs and to help them fulfil common destination of a more peaceful and pros- their dreams. perous world. And while I know this is serious work, I hope Thank you. the boys and girls will also be able to have a bit of fun in the process. The Secretary-General remarks at Thank you very much. event for global sport fund for youth The Secretary-General remarks to Doha, 29 November 2008 the United Nations advisory group on inclusive financial sectors Members of the Qatar Olympic Committee, Ladies and Gentlemen, Doha, 29 November 2008 It is a pleasure to join you today in support of this important initiative. Your Royal Highness Princess Maxima, [of the Netherlands] We all know the vulnerability of young people Ladies and Gentlemen, to drug addiction and criminality. Dear Colleagues, And we are painfully aware that too many I am pleased to accept these key messages and the young people become child soldiers or victims of final statement of the United Nations Advisors human trafficking. Group on Inclusive Financial Sectors. You have

317 The Doha Review Conference on Financing for Development

performed a great service to the United Nations Secretary-General calls for genuine and its Member States. You have fulfilled your ‘elastic multilateralism’ to tackle mandate with distinction. global challenges simultaneously It is fitting that the handover is taking place at this international conference on financing for 29 November 2008 development. Your work reminds us that increasing financial flows to developing countries is only Genuine inclusiveness was needed in order to a first step. We must also address the exclusion tackle simultaneously the great global challenges of many poor people from the benefits of finan- represented by the world financial crisis, global cial services within their countries. Such an effort warming and extreme poverty, takes on even greater importance amid fears that the global financial crisis will further constrain aid Secretary General Ban Ki-moon said this budgets and our work for development in general. evening at a side event during the Financing for Development Conference in Doha, Qatar. Many of us take for granted the benefits of financial services. By contrast, most poor people “As the spokesperson for the world’s most uni- have no bank accounts, insurance plans or facili- versal body, I am, naturally, an advocate for greater ties for loans and money transfers. Such services inclusivity in international decision-making,” he can bring ideas to life. They can help people man- said, adding: “But let me be clear—inclusiveness age risks and invest in their children’s futures. They doesn’t mean we just expand the number after the can play a crucial role in attaining the Millennium letter ‘G’.” A new multilateralism should be elastic Development Goals. enough to forge an optimal response to the full Microfinance has been particularly success- range of challenges the world faced. Different issues ful in enabling poor communities to prosper. This were particularly relevant for different countries, shows that inclusive financial services are a good and different forums would therefore be needed to way of helping people to help themselves. So we respond to diverse issues. should also be concerned about the possible impact He said success could be achieved by bal- of the current crisis on microfinance—from the ancing the legitimacy that came from universal ability of institutions to raise funds to the ability of involvement in decision-making with the efficien- borrowers to repay their weekly loan installments. cy that resulted from delegating deliberations to I am grateful to the UN Advisors for leading a few key players. “In some cases, small commit- the way. Your key messages to governments, regu- tees within existing multilateral institutions might lators, development partners and the private sector help them move more nimbly and decisively. In provide a tangible framework for action. some cases, we may need to build stronger links I encourage all who receive these messages to between emerging bodies like the G-20 and larger share them widely. We must carry the message to assemblies like the UN.” governments, banks, development agencies, and The recent G-20 summit of the biggest econo- other stakeholders. I am sure that many organiza- mies had begun a necessary re-consideration of the tions and institutions would get involved if only they knew how. These messages provide clear direction. world’s financial system and the Doha Conference had brought together developed and developing We cannot continue denying more than two countries to continue the response to the financial billion people the opportunity to reach their full crisis, he said. However, it was crucial that the views potential. We must break down the entrenched of those most affected be considered before impor- barriers to access. tant decisions were made. Stronger links must be Thank you again for this contribution to the forged to ensure that all countries had a stake in Doha review conference and to making the world multilateral processes that were both authoritative a better place. and effective.

318 Selected Press Releases

Also present at the side event were Kemal Der- Daily press briefing by conference vis, Administrator of the United Nations spokesperson Development Programme (UNDP), Pascal Lamy, Director General of the World Trade Organ- 29 November 2008 ization, and Angel Gurria, Secretary-General of the Organization for Economic Cooperation and A draft outcome document for the financing for Development (OECD). Olav Kjorven, Director of development conference that opened today in the UNDP’s Bureau of Development, introduced Doha, Qatar, had been submitted for discussion the participants. by Member States, Enrique Yeves, Spokesperson for the President of the United Nations General Mr. Lamy said coherence between national Assembly said at a press briefing this afternoon. and international policies was crucial in meeting current challenges. Macroeconomic imbalances, Introduced by Maher Nasser, Spokesperson the current financial crisis, the lack of early warn- for the Follow-up International Conference on ing systems, climate change and other challenges Financing for Development to Review the Imple- must be addressed together, both nationally and mentation of the Monterrey Consensus, Mr. Yeves internationally, and the voices of all must be heard. said a group of countries had been negotiating the However, that did not mean that all countries must document in New York since the beginning of the be members of one core group on any one particu- sixty-third session of the General Assembly. They lar issue. Innovative ways, including innovative had hoped to complete it there, but that had not forums, must be found to allow all to contribute been possible. A group had then met from 10 a.m. to solutions. yesterday to 1 a.m. this morning and come up with a 66-paragraph document on the six themes of the Mr. Dervis agreed with the need for new solu- Conference, which had been presented to the Main tions, stressing that it was crucial for all existing Committee at 10 a.m. today. Negotiations on the forums operate effectively, in order for all voices text would now continue. to be heard and in order for all problems to be addressed coherently. A massive worldwide Key- Mr. Nasser, who was joined by Olav Kjorven, ensian dose of spending, on the order of trillions Director of the Bureau of Development at the Unit- of dollars, was needed to deal with the current cri- ed Nations Development Programme (UNDP), and sis. Part of the public expenditure could be used Mohamed Abdullah Al-Rumaihi, Assistant Minis- to move to a low-carbon economy. Toward 2030, ter at Qatar’s Ministry of Foreign Affairs, reported between $250 billion and $600 billion would be that this morning’s opening of the Conference had needed for that adaptation, some of which could featured Secretary-General Ban Ki-moon, who had be private, but initial public expenditures should presided over a moment of silence for the victims give impetus to the transition. of the attacks in Mumbai, India, as well as the election of the Emir of Qatar as President of the Con- Mr. Gurria underscored the particular impor- ference. The first statements by State delegations tance of political leadership in tackling the three had started in the plenary this morning and would interlinked global crises because those who were run until the end of the four-day event. always prone to inaction on reducing economic imbalances and climate change now had an excuse He said the first round table discussion, on because of the financial recession. “Mobilizing domestic financial resources for development”, was taking place from 3 p.m. to 6 p.m. Tomorrow morning’s round table at 10 a.m. was scheduled to focus on “Mobilizing international resources for development: foreign direct investment and other private flows”.

319 The Doha Review Conference on Financing for Development

Mr. Al-Rumaihi then spoke of the challenges Addressing common concerns through of negotiating and organizing the Conference, renewed cooperation1 which runs through 2 December. The sheer num- Informal high-level discussion on the implica- bers of Heads of State and Government, ministers tions of the financial crisis for development, cli- and vice-ministers, organizations and other partic- mate change, and multilateralism ipants rendered the logistics very complex. It was part of the objective, however, to bring together as Hosted jointly by the Secretary-General of the many kinds of participants from as many sectors United Nations and the Emir of Qatar as possible. During the Conference, it was hoped 28 November 2008 that politics would be set aside, that a meaningful outcome document would emerge from the nego- Four Seasons Hotel, Doha , Qatar tiations and that speakers would propose strategies to develop true financing for development. The retreat takes place on the eve of the Interna- tional Conference on Financing for Development Elaborating on a theme introduced by Secre- to Review Implementation of the Monterrey Con- tary-General Ban on the eve of the Conference, sensus, 29 November to 2 December. Mr. Kjorven mentioned how solutions to the global financial crisis could open up doors to a future of Background sustainable development and equitable growth and how investing in “green” technology could produce The Doha Conference on Financing for Develop- jobs, spur growth and end the global recession. ment will take place at a time when significant instability in global financial markets is under- He said Governments today were faced with mining the real economies of both developed and a complex mix of challenges. Revisiting the 2002 developing countries. Slower economic growth Monterrey Consensus, it was evident how the and continued uncertainty are threatening efforts world had changed in the interim, and how many to tackle the key concerns of the United Nations severe crises now dominated international atten- and its members: human security, poverty and tion. However, it was important to remember that hunger, and climate change. As the costs of deal- a time of crisis could be a time of opportunity and ing with the financial and economic crisis mount, that the best solutions might be found in the nexus all forms of financing for development identified in where all the concurrent crises came together. New the Monterrey Consensus are coming under pres- technologies to mitigate climate change, for exam- sure—domestic resources, trade and investment, ple, could provide jobs and economic stimuli. remittances, foreign lending and ODA. Among the challenge at the climate change As the international community works to meeting in Poznan, Poland, in two weeks’ time address this crisis, it will be critical to assist and would be turning financial flows and stimulus support the poorest and most vulnerable coun- packages toward sustainable development, he said. tries. The trading prospects of these countries need For multilateralism to become an instrument for to be expanded not curtailed, and the promises of progress, it was important to bring together not increased ODA made in earlier summits must also only all stakeholders, but also all the current chal- be met. Providing sustained support to develop- lenges because they were all interlinked. ing countries so that they can maintain growth and their prospects for achieving the

1 Note to Journalists: The following concept note gives background on the high-level retreat on the global financial crisis being convened by the UN Secretary- General and the Emir of Qatar.

320 Selected Press Releases

Millennium Development Goals is likely A press encounter will follow to prove a wise long-term investment—not just Time : 7:30 pm for the moral imperative of development within Four Seasons Hotel developing countries, but for prosperity and secu- Doha , Qatar rity worldwide. Beyond the need to safeguard developing Summary by the Chair (UN Secretary- countries through this turmoil, the cloud of the General Ban Ki-moon) of the high-level financial crisis has some emerging silver linings. informal discussion on the implications First, the fiscal stimulus required to support global of the financial crisis for development, economic growth in response to the financial cri- climate change and multilateralism sis gives an unprecedented opportunity to invest in new technologies, green jobs, and our global green Doha, Qatar, 28 November 2008 economy. This shift to a low-carbon economy would help us to tackle climate change and protect future On the eve of the Doha Conference to Review the generations. Second, recent coordinated action in Implementation of the Monterrey Consensus, a the developed economies to address instability in group of committed leaders met to discuss how a financial markets has shown some results. Similar globally coordinated response to the financial cri- actions are needed to protect developing country sis can protect developing countries, underpin our economies. The existing challenges that the world drive to a green economy, and stimulate a commit- faces in terms of maintaining growth, reducing ment to a renewed multilateralism. poverty and tackling climate change require this Leaders expressed their deep gratitude to His same spirit of enhanced and pragmatic coopera- Highness the Emir of the State of Qatar for hosting tion. The key issue then becomes: How can this this meeting and the Financing for Development new multilateralism be forged, and what institu- Review conference. tions are required to support it? Leaders unanimously condemned the terrorist attacks in Mumbai over the past two days, called Objective of the meeting for the perpetrators to be swiftly brought to justice, To act as a bridge from the G20 Washington meet- and expressed solidarity with the people and gov- ing to the Doha Conference by proposing concrete ernment of India. actions that: Leaders agreed that the Doha conference was • limit the impact of the financial crisis on devel- timely, falling just two weeks after the G-20 Sum- oping countries mit in Washington on Financial Markets and the • maximize the potential for responses to the World Economy. They also agreed that the Doha crisis that also address climate change conference offers an opportunity to listen to the • allow for a strengthened and more inclusive perspectives and concerns of a larger group of multilateralism to develop that will allow faster countries. Broad participation in and support for and more coordinated actions to tackle com- the designs of reforms will make them more effec- mon challenges tive and sustainable. Finally, they reiterated their determination to remain committed to achieving Output of the meeting the Millennium Development Goals, even in the A short statement by the chair summarizing areas face of the financial crisis, and meet ODA commitments. The importance of meeting the special of concern and agreed actions. A summary of the needs of Africa was emphasized. informal discussions will be relayed in the opening plenary session of the Doha Conference on In the discussion, leaders stressed the impor- November 29th. tance of a globally coordinated response to the

321 The Doha Review Conference on Financing for Development

financial crisis and recession. Emerging markets Secretary-General, in message to flag and developing countries will need sustained access raising ceremony at development to credit, including for trade financing. Because of financing the impact that the economic slowdown will have Review in Doha, says big global on domestic resource mobilization and investment, challenges require big, practical many developing countries will also need contin- solutions ued support through ODA. The role of the private sector in mobilizing additional resources for development was also emphasized. Leaders recognized 28 November 2008 that economic growth in emerging economies and developing countries must be maintained for the Following is the text of UN Secretary-General Ban good of the global economy. It will be important to Ki-moon’s message to the flag raising ceremony curb protectionist tendencies and bring the for the Follow-Up International Conference on Doha Trade Round to a successful develop- Financing for Development to Review the Imple- ment-focused conclusion. Previous progress made mentation of the Monterrey Consensus, as deliv- on the Millennium Development Goals and real- ered by Sha Zukang, Under-Secretary-General for izing basic human rights must not be undermined. Economic and Social Affairs, yesterday, 27 Novem- Leaders agreed that we would work within our ber, in Doha, Qatar: own administrations and international organiza- With the raising of this flag, we welcome the tions to ensure that our responses to the global world to Doha for a crucially important United financial crisis would prevent it from becoming a Nations conference. global human crisis. Many leaders at the meeting stressed that their This is a time of great turmoil in global finance countries had started to reorient their economies markets and the world economy. Our vital work to support investment in low carbon technologies to eradicate poverty and promote development and green market-based growth. Green invest- is threatened, not only by an international credit ments have the potential to stave off the economic crunch, but also by higher prices for food, energy slowdown by creating jobs. and basic commodities, accelerating climate change and a stalemate in global trade negotiations. There Leaders recognized that the G-20 Summit held is great concern that a severe economic slowdown in Washington prepared the ground for a strong action-oriented agenda to stabilize and reform could have a chilling effect on trade, aid, invest- financial markets. Building on this example, they ment flows and efforts to achieve the Millennium stressed that there was now a unique opportuni- Development Goals. ty to inject this new sense of multilateralism into At such times, it is right and necessary that the other areas that need our common attention, espe- international community gather under the auspices cially fighting poverty and climate change. Fun- of the United Nations. These are global problems, damental to this is a recognition that developing affecting all people. They demand global solutions, countries will require greater voice and influence arrived at with the involvement of all people. in our institutions. Finally, leaders agreed that a strong outcome The Monterrey Consensus can point the way at the Doha conference would send a signal to the forward. That landmark text is the most com- global community that we will stand together to prehensive and authoritative statement of devel- fight common problems, and take advantage of opment principles to which both developing and shared opportunities. Leaders therefore agreed to developed countries have formally subscribed. instruct their delegations at Doha to do everything We are here now to assess progress in implement- possible to support the final stages of the negotia- ing those commitments, and to find ways past the tions on the outcome document. obstacles in our path.

322 Selected Press Releases

That effort has become more urgent and com- officials from the World Bank, International Mon- plex as a result of multiple global crises. We face etary Fund and World Trade Organization. big challenges. So we are called on to think big, Negotiations on an outcome document are and find practical solutions that work for all the underway in New York, as Secretary-General Ban world’s people, especially the poor who bear the Ki-moon and other heads of multilateral organiza- fullest brunt of the consequences. I urge all partic- tions warn of the toll that the economic slowdown ipants in this review Conference to keep the global may exact on developing nations and the poor. good foremost in mind throughout their delibera- There is concern as to the chilling effect the crisis tions. With leadership and goodwill, we can rise may have on trade, aid and investment flows, and a to the test. potential rise in protectionism. Secretary-General Ban has invited Heads of As global economy falters, world State to an advance meeting on 28 November, co- leaders to meet in Doha on ensuring hosted by the Emir of Qatar, at which responses to sufficient finance for development the financial crisis and economic slowdown will Secretary-General Ban Ki-moon convenes Heads be discussed. of State in response to financial crisis one day prior to UN development summit, 29 November A year of UN focus on development – 2 December The Doha conference culminates a year of extraordinary turmoil in finance markets. It also has been New York, 11 November 2008 a year of heightened UN activity on development, including the 12th UN Conference on Trade and Heads of State and Government ministers will Development and the formation of a system-wide gather in Doha, Qatar, in late November for a long- task force on the global food crisis, in the first half planned conference to make recommendations on of 2008. In September, the key inputs required to fuel development—trade, aid, investment, debt alleviation, national resource Secretary-General garnered over $17 billion mobilization and effective international financial in pledges in support of the Millennium Develop- architecture. Their task has become more urgent ment Goals at a high-level meeting in New York, and more complex following the debacle in world and the UN General Assembly held an informal financial markets and sharp deceleration in eco- hearing on the global financial crisis in October. nomic growth. Plenary sessions and six interactive round The UN’s Follow-up International Conference tables will be held during the meeting, hosted by on Financing for Development was scheduled to Qatar, at the Convention Centre annexed to the assess progress made on the 2002 Monterrey Con- Sheraton Doha Resort and Convention Hotel. It sensus, a landmark North-South agreement on will be preceded by the Doha Global Civil Society development principles. The Doha meeting will Forum (26-27 November) and the second Interna- also steer the Monterrey agenda on challenges that tional Business Forum (28 November). Side events have taken on a higher profile since 2002, such as will also be held by Governments, UN agencies, climate change and food and agriculture. and private sector and civil society organizations. UN officials stress that the Finance for Devel- Background opment (“FfD”) review will have the most universal and inclusive participation of all formal inter- The first UN-sponsored summit-level meeting to governmental meetings on economic issues held address financial and related issues pertaining to since the abrupt fall in financial markets in the sec- global development and international economic ond half of the year. Also playing a key role will be cooperation was held in Monterrey, Mexico, in

323 The Doha Review Conference on Financing for Development

March 2002. Fifty Heads of State and over 200 Six roundtables will be held on the following issues: ministers of finance, foreign affairs, development 29 November (3 pm – 6 pm) and trade were joined by the heads of the UN, Mobilizing domestic financial resources for World Bank, International Monetary Fund and development World Trade Organization, and by business and civil society leaders. 30 November (10 am – 1 pm) Mobilizing international resources for development: The six-part Monterrey Consensus that foreign direct investment and other private flows emerged from the summit is the most comprehensive and authoritative statement of development 30 November (3 pm – 6 pm) principles to which both developing and developed International trade as an engine for development countries have formally subscribed. 1 December (10 am – 1 pm) Commitments made in Monterrey marked the Increasing international financial and technical turnaround in the previous decade-long decline or cooperation for development stagnation in levels of development assistance. The 1 December (3 pm – 6 pm) 2002 development summit also marked the begin- External debt ning of a new era of cooperation between the Bret- ton Woods institutions, the WTO and the UN. 2 December (10 am – 1 pm) Addressing systemic issues: enhancing the coherence and consistency of the international mon- Schedule of media events etary, financial and trading systems in support of development 24 November Media accreditation facilities open at Doha con- For more information, see http://www.un.org/esa/ffd/ vention centre. All official meetings and press conferences will be 28 November webcast, at www.un.org/webcast High-level meeting on the global financial cri- Media accreditation: Detailed information and sis, convened bythe Emir of Qatar and the UN on-line applications are available at the UN Media Secretary-General. Press conference or stake-out Accreditation and Liaison Unit website: www. to be announced. un.org/media/accreditation. 29 November Media contact: Opening of the Finance for Development Review Newton Kanhema, UN DPI Conference. The Emir of Qatar, President of the +1 212 963 5602; e-mail: [email protected] General Assembly, UN Secretary-General will be Pragati Pascale, UN DPI among the speakers. +1 212 963 6870; e-mail: [email protected] 29 November - 2 December Tim Wall UN DPI In plenary, the Head of State or Government or +1 212 963 5851; e-mail : [email protected] Minister from each delegation will make a short statement. A list of speakers giving the order will Hotel Information: be available in the Media Centre. Accommodations in Doha, Qatar: email: [email protected] • In a separate forum, negotiations to finalize an Fax: +974 443 5954 agreed outcome document will be on-going as needed. • A daily press briefing will be held by the Confer- ence Spokesperson—timing to be announced

324 Selected Press Releases

Talks on development finance start Among the proposals that are under today in UN General Assembly consideration: Doha outcome will review and update the 2002 • More robust support for regional develop- Monterrey Consensus ment banks and for the Bretton Woods insitu- tions as “the key pillars of a »» strengthened United Nations New York, 8 September 2008 international financial architecture”, and the convening a conference to “review the interna- The first draft of an inter governmental action tional financial and monetary architecture and plan on ways and means to finance development global economic governance structures”. The IMF Board of Governors would be invited to is being taken up at an informal meeting of the place this discussion on the agenda of its next UN General Assembly today, following opening meeting. speeches by the Presidents of the GA and the UN Economic and Social Council, the Deputy Foreign • Attention to strengthening the tax base of Minister of Qatar and two special envoys of the developing countries and combating tax eva- UN Secretary General. sion and illicit capital flight, including by upgrading the UN Committee of Experts on Negotiations for the review of the Monterrey International Cooperation in Tax Matters to Consensus—the North-South development accord the status of an intergovernmental body. agreed in Mexico in 2002—take place in a year of global financial turmoil and record-level global • While opening-up of domestic economies is imbalances. The Follow-up International Confer- essential to take advantage of opportunities ence on Financing for Development (29 November provided by globalization, sufficient policy – 2 December, Doha, Qatar) also culminates 2008 space should be allowed to enhance resilience to its risks; thus, governments should be able to high-level meetings on trade and development, control pace and sequencing of liberalization. aid effectiveness, food crisis, Africa’s development needs and the Millennium Development Goals. • Efforts should continue to pursue the other Expectations have been raised that Doha will build Doha agenda—the round of development ori- upon these discussions to advace the UN develop- ented multilateral trade talks initiated in Doha ment agenda. in 2001. The initial negotiating text, prepared under • Advocating new and more effective ways to lev- the direction of the President of the UN General erage the catalytic role of development assist- Assembly by two co-Facilitators (Egypt and Nor- ance, including through regional cooperation, way), with the support of the Financing for Devel- and continuing to roll out new and alternative opment Office of the Secretariat, in New York over sources of development funding. the summer, finds notable expansion in trade, aid • Special financial mechanisms to meet the chal- and finance flows and in reducing debt burdens lenges of climate change and high food and since the 2002 Monterrey Conference. But uneve- energy prices. ness in the reach of private flows, shortcomings in Before diplomats begin three days of talks hitting aid targets and ongoing difficulties of vul- (Monday-Wednesday, 8-10 September), the meet- nerable economies (least developed, landlocked ing will be opened on Monday morning by the and small island nations especially) are cited among General Assembly President, H.E. Dr. Srgjan Kerim the areas of concern, along with gaps in interna- (former Yugoslav Republic of Macedonia). In turn, tional financial structures and mechanisms. addresses will be made by the President of the Eco- nomic and Social Council, H.E. Mr. Léo Mérorès (Haiti); Qatari Deputy Foreign Minister, H.E. Mr.

325 The Doha Review Conference on Financing for Development

Mohamed Abdulla M. Al-Rumaihi; South African Finance Minister Mr. Trevor Manuel, a Special Envoy of the UN Secretary-General for the Doha Conference on financing for development; and Director-General, Ms. Ingrid Hoven, speaking on behalf of another Special Envoy, Ms. Heidemarie Wieczorek-Zeul, German Minister for Develop- ment Cooperation.

326