PREPARATORY COMMITTEE FOR INTERGOVERNMENTAL EVENT ON FINANCING FOR DEVELOPMENT RESUMES ORGANIZATIONAL SESSION

Press Release
DEV/2235

PREPARATORY COMMITTEE FOR INTERGOVERNMENTAL EVENT ON FINANCING FOR DEVELOPMENT RESUMES ORGANIZATIONAL SESSION

Consultations with all stakeholders in the preparatory process for the High- level International Intergovernmental Event on Financing for Development should be held on equal footing, the Preparatory Committee for that Event was told this afternoon as it met to resume its organizational session.

The representative of Pakistan said effective participation of all institutional stakeholders should be ensured at the intergovernmental level. At the same time, the legislative unity of the Preparatory Committee should be maintained. His delegation found a proposal by the World Bank for a three-tier consultative inter-governmental mechanism useful, but was unclear on how those consultations would lead to greater commitment and ownership by the Bank of the process and the product.

All stakeholders should be involved, the representative of Japan said. His delegation had proposed that his country co-sponsor the final event, along with several other stakeholders. That proposal had been made to secure co-ownership of the preparatory process, as well as the outcome of the event. Furthermore, it was unrealistic to expect the World Bank to claim ownership of the outcome of the process. It was therefore necessary to try to involve as many stakeholders as possible so there could be joint ownership of the outcome.

The representative of Saint Lucia said the Preparatory Committee could not have a meaningful process, event and outcome if it engaged only one institution or addressed only one aspect of financing for development. Similarly, its proposals should include modalities for participation of all relevant stakeholders. It was therefore too early for consideration of a modality to be concluded with the World Bank without consultations with other important stakeholders.

[The General Assembly decided, at its fifty-fourth session, that the Preparatory Committee should consider innovative ways and mechanisms to facilitate active involvement of all relevant stakeholders in both the preparatory process and the High-level Intergovernmental Event.]

Also this afternoon, the Preparatory Committee took note of a note by the Secretary-General concerning the organization of the coordinating secretariat for the event. It also adopted its provisional agenda for its resumed session.

Preparatory Committee for High Level - 1a - Press Release DEV/2235 Event on Financing for Development 27 March 2000 3rd Meeting (PM)

The Under-Secretary-General for Economic and Social Affairs, Nitin Desai, addressed the Committee and announced that Oscar de Rojas of Venezuela had been appointed to serve as the full-time Executive Coordinator for the preparatory process.

The representatives of Sudan, Nigeria, on behalf of the “Group of 77” developing countries and China, Portugal, on behalf of the European Union, Indonesia, Ghana, Colombia, on behalf of the Rio Group, and the United States also spoke this afternoon.

The Preparatory Committee will meet again tomorrow, 28 March, at 10 a.m. to continue its work.

Preparatory Committee for High-Level - 3 - Press Release DEV/2235 Event on Financing for Development 27 March 2000 3rd Meeting (PM)

Committee Work Programme

The Preparatory Committee for the High-level International Intergovernmental Event on Financing for Development met this afternoon to resume its organizational session, which is scheduled to end on 31 March.

Its provisional agenda (document A/AC.257/3/Rev.1) includes the organization of the coordinating secretariat and the modalities of the participation of relevant stakeholders in the substantive preparatory process and in the high-level event itself.

Other items include arrangements for future sessions of the Preparatory Committee and the adoption of the provisional agenda for its first substantive session scheduled for next May. The Preparatory Committee will also consider the form of the high-level final event -- including the possibility of a summit, international conference or a special session of the General Assembly -- the venue, timing, duration and format.

At its fifty-fourth session, the General Assembly decided that the Preparatory Committee should consider innovative ways and mechanisms to facilitate the active involvement of all relevant stakeholders in both the preparatory process and the high-level intergovernmental event.

Before the Preparatory Committee is a report of its Bureau (document A/AC.257/6) containing recommendations on the modalities for such involvement. The Bureau recommends a proposal of the World Bank on a three-tier consultative intergovernmental mechanism. The Bureau met the Executive Directors of the Bank in Washington on 15 March, and says it was seeking similar consultations with the International Monetary Fund (IMF) and the World Trade Organization (WTO). It recommends that all three institutions participate in the meetings of the Preparatory Committee.

The Bureau also recommends consultations in the latter half of the year by the regional commissions, in conjunction with the regional development banks and the United Nations Conference on Trade and Development (UNCTAD) on substantive matters before the Preparatory Committee. It suggests that intergovernmental organizations, United Nations specialized agencies and funds and programmes and other relevant official or quasi-official bodies such as the Bank for International Settlements be invited to participate in the preparatory process.

It envisages three modalities of participation of non-official stakeholders in meetings of the Preparatory Committee and the high-level event, including their accreditation to them. The Preparatory Committee could also hold two sets of hearings in the fourth quarter of this year in New York for participants to give statements and engage in dialogue with Committee members. The third modality of participation by non-official stakeholders could be to place major documents of the Preparatory Committee on the Internet and invite views.

Statements

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, said the Secretariat would wait until the Committee had decided on the form of its agenda before the Organization took further decisions on the preparatory process. This was the first interim stage. Last Friday, Oscar de Rojas (Venezuela) had been appointed to serve as the full-time Executive Coordinator for the process.

Meanwhile, he noted that the Secretariat had already decided to borrow staff members from other organizations such as the World Bank and the United Nations Conference on Trade and Development (UNCTAD), among others, to ensure the success of the work of the Preparatory Committee. Skills needed would be decided when the agenda was fully formulated. Those persons would not be gratis, but would be working on loan. They would remain on the budgets of their originating organizations.

He suggested that, as the agenda took form, Committee members should establish a trust fund to support the participation of developed countries, particularly the least developed ones. Also, the overall responsibility of the Secretariat would be through the Executive Coordinator, and existing mechanisms would be used to strengthen involvement of other bodies, organs and agencies of the United Nations, and other organizations.

MUBARAK HUSSEIN RAHMTALLA (Sudan) supported the establishment of the trust fund. The Preparatory Committee believed it would be judicious to give serious thought to the proposal and the measures that would have to be taken for its creation, he said.

JORGEN BOJER (Denmark), Co-Chairman of the Preparatory Committee, reported on the consultations held to date with relevant stakeholders on the modalities of their participation, including the possibility of creating a joint task force, in both the substantive preparatory process and the high-level event itself.

He said a delegation of the Bureau had met with the Executive Directors of the World Bank in Washington, D.C., on 15 March. At the meeting, the Bank had proposed a three-tier consultative intergovernmental mechanism, as follows: consultations between the Bureau and the Executive Board of the World Bank; informal consultations between the Bank and United Nations; and the designation by the Bank of a senior-level team to consult with the Bureau and ensure regular and full collaboration.

The Bureau regarded the proposal as helpful and recommended it to the Preparatory Committee, he said. Consultations were being pursued with the International Monetary Fund (IMF) and the World Trade Organization (WTO). No definitive responses had been received from the two institutions, although the Fund had expressed interest. The Chairman said last Friday he had had a telephone conversation with the Chairman of the Council of the WTO who was the Permanent Representative of Norway to the European Office of the United Nations in Geneva on the subject. The Norwegian Ambassador had informed him that a response was being prepared.

Member States as well as Observer States would be invited. As decided by the General Assembly at its fifty-fourth session, States should be represented at the high-level event by political decision makers, at least at the ministerial level. Accordingly, decisions to be taken by the event and the Preparatory Committee would be those of States.

The Bureau had also recommended that regional commissions, in conjunction with the regional development banks and UNCTAD, should organize consultations during the second half of this year. The Bureau envisaged three modalities of participation of non-official stakeholders: in meetings of the Preparatory Committee and the high-level event; in hearings and other forms of consultation and dialogue; and in communications with the Secretariat. The last would draw upon the technology of the Internet.

AUSTIN PETER ETANOMARE OSIA (Nigeria), on behalf of the “Group of 77” developing countries and China, reaffirmed the importance the Group attached to the high-level event. It commended the Bureau for ensuring that all stakeholders were consulted on an equal basis and were gladdened by the possibility of the participation of the World Bank, the IMF and the WTO in the event. The Group hoped that the three-tier modality of participation proposed by the World Bank would be organized in a such a way as to ensure a successful shared responsibility and outcome of ownership. The Group also welcomed the recommendation regarding participation by regional commissions. The Group supported the involvement of the private sector in the event.

ANTONIO MONTEIRO (Portugal), on behalf of the European Union, said the venue and dates for the High-Level International Intergovernmental Event on Financing for Development should be dealt with only after the modalities were clarified. The final event should examine the targets that had emanated from United Nations conferences and other credible forums. Consequently, the European Union would be interested in learning and defining the modalities of all stakeholders in the preparatory process. Its Member States would maintain openness and flexibility in the work of that process.

He was satisfied that the World Bank would participate in the preparatory process. It was a necessary partner in financing for development. The IMF and the WTO should also be encouraged to participate. However, the modalities for their participation should be different from those for the World Bank. Further, he urged the outcomes of the event be consistent policies.

SHAMSHAD AHMAD (Pakistan) said the effective participation of all institutional stakeholders should be ensured at the intergovernmental level, while the legislative unity of the Preparatory Committee was maintained. His delegation found the World Bank’s proposal helpful, but was not clear how the Bureau-Bank consultations would lead to greater commitment and ownership by the Bank of the process and the end product.

The final event should be held at the highest possible level to ensure political commitment to financing for development, he said. The key to the success of the preparatory process and the final event itself was thorough preparation and sufficient time for substantive inputs from all stakeholders. The agenda of the final event should be holistic and comprehensive. Substance should not be sacrificed at the altar of efficiency, effectiveness and practicalities.

MAKMUR WIDODO (Indonesia) said it was clear that a decision on the modalities for the participation of all relevant stakeholders must be made immediately. That would enable the Committee to move on to its consideration of the substantive part of the preparatory process. While the Bureau had taken the interests of all into account, the ultimate goal of the exercise was to generate a spirit of cooperation and compromise.

There was a distinct division of roles and mandates, as well as mechanisms for decision-making between the United Nations and relevant stakeholders, he stated. Therefore, the views of the latter should be reflected in addressing the issues of financing for development, particularly those aspects of the agenda that fell under their purview. Moreover, it would be useful to clarify the good intentions of the World Bank on their co-ownership of the process, as well as on the expected outcome. He also supported holding regional consultative meetings during the latter half of the year on substantive matters before the Preparatory Committee.

KWABENA OSEI-DANQUAH (Ghana) noted that the General Assembly had called for the participation of the World Bank and others in the Preparatory Committee and the event, as they had an important role in financing for development. The onus of the Bank would be evident in the quality of the final product, which would also depend on the participation of all stakeholders. The Committee should stress that the Bank and others participate fully in both the preparatory process and the event. Full and effective participation in the Preparatory Committee would lay the groundwork for the consultations. That was the only way that the outcome of the event would be fruitful.

He said that the preparatory substantive discussions would also benefit from the participation of the IMF and the WTO, and supported recommendations for participation of regional organizations and other agencies and bodies of the United Nations. Regarding participation of the private sector, discussions should be undertaken with them to decide on their impact in the process.

ANDRES FRANCO (Colombia), speaking on behalf of the Rio Group of countries, said the preparatory process was of great importance to the United Nations system. The Group was interested in the high-level event and would therefore like the Preparatory Committee to succeed in its work. The process should provide an opportunity for strengthening the United Nations capacity to deal with questions relating to financing for development. The Group would participate constructively in the work of the Committee to ensure the achievement of its objectives.

YUJI KUMAMARU (Japan) said all stakeholders should be involved. His delegation had proposed that Japan co-sponsor the event, along with several other stakeholders. That proposal had been made to secure co-ownership of the preparatory process, as well as the outcome of the event. Furthermore, his delegation had noted what had been done in the World Bank and understood that it was unrealistic to expect the Bank to claim ownership of the outcome of the process. However, it was necessary to try to involve as many stakeholders as possible so there could be joint ownership of the outcome.

R. SONIA LEONCE-CARRYL (Saint Lucia) said the Preparatory Committee could not have a meaningful process, event and outcome if it engaged only one institution or addressed only one aspect of financing for development. Similarly, its proposals should include modalities for participation of all relevant stakeholders. It was, therefore, too early for consideration of a modality to be concluded with the World Bank, without consultations with other important stakeholders. Adequate arrangements should be made for the participation of the private sector.

Her delegation looked forward to a summit or conference to address financing for development in 2001 in a holistic manner and it remained open to offers to host

it. The agenda for the event should be comprehensive, and a holistic approach should be adopted.

MICHAEL F. GALLAGHER (United States) said it was desirable that the IMF and the WTO be brought along in the consultations. They should be encouraged to catch up with the Bank in their response. He encouraged the Co-Chairmen and the Bureau to continue their consultations with the Bank, the IMF and the WTO to ensure acceleration of the consultations.

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