PREPARATORY COMMITTEE FOR HIGH-LEVEL CONFERENCE ON FINANCING FOR DEVELOPMENT CONCLUDES FIRST SUBSTANTIVE SESSION

Press Release
DEV/2247

PREPARATORY COMMITTEE FOR HIGH-LEVEL CONFERENCE ON FINANCING FOR DEVELOPMENT CONCLUDES FIRST SUBSTANTIVE SESSION

The Preparatory Committee laying the groundwork for a high-level conference on financing for development this afternoon concluded its first substantive session, agreeing to a substantive preliminary agenda, covering among others, capital flows, external debt, trade and aid.

The decision on the agenda, contained in document A/AC.257/L.2, stated that the draft agenda was adopted on the “understanding that it is of an indicative nature and will evolve during the substantive preparatory process ahead of the final event, including through inputs from Member States, regional intergovernmental consultations and all relevant stakeholders".

In other action, the Preparatory Committee adopted, as amended, other provisions of the draft decision, agreeing subject to approval by the General Assembly, to hold a second and third substantive sessions from 12 to 23 February and from 30 April to 11 May, respectively, next year.

It also reiterated, in accordance with paragraph 17 of the General Assembly resolution 54/196, the need for adequate resources for financing for development process. It mandated its bureau to continue consultations with the International Monetary Fund (IMF) to conclude an early agreement on an appropriate modality for its participation at the intergovernmental level in the financing for development process.

By other provisions of the text, the coordinating secretariat was asked to hold periodic briefings with members of the Preparatory Committee to inform them of the progress made in the preparation of the substantive documentation.

The Chairman said that he expected the Preparatory Committee to reconvene in early autumn to make its final decision on the form, venue, timing, format and duration of the final event. The actions of the Preparatory Committee took place in two meetings today.

During its four-day session, the Preparatory Committee for the High-level International Intergovernmental Event -– as the Committee is formally known -– reviewed consultations between the United Nations, the World Bank, the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD) on the involvement of institutional stakeholders in the conference scheduled for next year. The private sector and civil society organizations are involved in the preparatory process and will be represented at the main event itself.

The agenda issues range from mobilization of domestic financial and international resources for development; foreign direct investment and other private flows; enhancing trade to finance development; increasing international financial cooperation for development; to increasing official development assistance and external debt. Systemic issues, such as enhancing the coherence and consistency of the international monetary, financial and trading systems in support of development are also covered.

The Preparatory Committee was established by the General Assembly, at its fifty-fourth session, to consider, based on the results of consultations held with relevant stakeholders, innovative ways and mechanisms to facilitate their active involvement in both the preparatory process and the high-level intergovernmental event.

Speaking on the draft decision on the agenda were the representatives of Nigeria (on behalf of the “Group of 77” developing countries and China), Chile, Portugal (on behalf of the European Union), The former Yugoslav Republic of Macedonia, Republic of Korea, St.Lucia, Cuba, Sudan, Guatemala, Guyana and Belarus and Algeria.

Statements were also made by representatives of the World Bank, IMF, and the United Nations Development Programme (UNDP).

Mauricio Escanero (Mexico), Chairman of the consultations on the agenda, also spoke.

Asda Jayanama (Thailand), Co-Chairman of the Preparatory Committee, chaired the morning session.

Jorgen Bojer (Denmark), also Co-Chairman, made a closing statement.

The representative of Nigeria made a closing statement on behalf of the Group of 77 and China.

A representative of the UNCTAD also spoke.

Statements

In his closing statement, AUSTIN PETER ETANOMARE OSIO (Nigeria), speaking on behalf of the Group of 77 said that the adoption of this "unique decision” had been due in large part to the enduring patience of all delegations. He urged that the resumed session be held as soon as possible in order to sustain the momentum gained by the adoption of the resolution today.

ANDHINI IYER KRISHNA, Senior Economic Affairs Officer of UNCTAD said the Preparatory Committee should be proud of its work. Indeed, the mascot of this process, the albatross, had not settled around the Committee's neck like the ancient mariner's curse, but had instead taken flight. The draft resolution adopted by the Committee would set the stage for great progress sparked by cooperative input from Member States, non-governmental organizations and other international stakeholders.

The Co-Chairman, Jorgen Bojer (Denmark) said that he was feeling a sense of great relief and promise at the adoption of the draft resolution. He likened the continuing work of the Committee to a barrel being rolled to the top of a mountain. The resolution, he said, provided "some rocks to prop it up", but much work remained to be done in order to make that barrel stable. It was important to note, however, that the Committee now had the tools to mobilize the start of their work. He recalled the sentiments of Under-Secretary-General for the Department of Economic and Social Affairs, Nitin Desai, who, at the opening of the session, said that in order to market the upcoming high-level event successfully, the Committee needed to present a "clear product" to the international community. "We now have that product”, he said, "let us build on it and prepare to move forward."

Morning Session

At its meeting earlier in the morning, MATS KARLSSON, Vice President for External Relations of the World Bank, said the indicative agenda adopted by the Preparatory Committee provided a useful platform from which the secretariat and the consultative process that had been designed could work to develop a set of recommendations for the final event. The World Bank was committed to contributing to that process. The overriding objective of the World Bank’s work was a world free of poverty. The International Development Goals for 2015 that had emerged from United Nations conferences was perhaps the most powerful way to focus people’s minds on what the Bank’s work and the high-level event was about. He saw the financing for development event as an effort to ensure that the means to reach the 2015 goals were available.

The indicative agenda highlighted the right issues and strongly expressed commitment to an enabling domestic environment was decisive for the efficiency of aid and to long-term backing of a renewed commitment to development assistance and financing for development. The donor community needed to find a way to ensure that resources commensurate with the effort required to reach the International Development Goals were secured. That meant increasing the quantity of aid and assurances from donors that debt relief would not be crowding out regular aid flows.

Addressing systemic issues was a critical element. A new financial architecture should be complemented by a new development architecture as World Bank President James Wolfensohn had repeatedly called for, he said. United Nations conferences of the 1990s had laid an important groundwork. People expected action. Globalization demanded of the international community both visionary courage and pragmatic know-how, he stated.

REINHARD MUNZBERG, Special Representative of the IMF to the United Nations, said the agenda was an ambitious one that needed to be focused. There was also need for clarity. He welcomed the assertion that the agenda was indicative and that the views of other stakeholders would be adapted as the preparatory process continued. He noted that some of the issues were on the agenda of the IMF and the World Bank, and other institutions as well. It was important that there be no duplication of effort. He said note should be taken of the fact that other stakeholders would be taking decisions on those matters in their own forums. Efforts should be made to identify ways in which those activities were brought together.

He undertook to inform IMF management of the decisions taken at the Preparatory Committee session.

NIKHIL CHANDAVARKAR, Director of the Division for United Nations Affairs of UNDP, said the agency would be guided by the agenda adopted by the Preparatory Committee. Furthermore, the outcome of the event itself in 2001 would guide UNDP policy and operations in the future. The UNDP would continue to work with the preparatory process by sharing its substantive research and human resources on the subject of financing for development with the secretariat.

The UNDP worked with the financing for development process through its country-level operational activities for development. Those were guided by national priorities and were aimed at policy change through strategic upstream advice. Its operational activities helped build capacity at the country level in such areas as creating enabling domestic environments, strengthening public finances, facilitating private flows for development and enhancing official development assistance through better coordination. In response to requests, he said the UNDP would also help national delegations at the country level in their preparations for their participation in the high-level event.

Report of Facilitator

MAURICIO ESCANERO (Mexico) Chairman of the consultations on the agenda, reported on his efforts and appealed to delegations to allow the consensus achieved to remain. He praised the flexibility and the spirit of compromise which delegations had shown during the consultations. He said the agenda would be enriched by inputs of the regional preparatory processes and hearings.

AUSTIN PETER ETANOMARE OSIO (Nigeria) on behalf of the Group of 77 and China, accepted the agenda in a spirit of compromise. He was glad that the stage had been reached to move the process forward within the context of the General Assembly resolution that called for the high-level event. He hoped the adoption of the agenda would help maintain the momentum on reaching agreements on other issues, such as the timing and venue for the high-level event. He hoped the resumed substantive session of the Preparatory Committee would take place before the summer session of the Economic and Social Council.

LARRAINI VALDES (Chile) said there were moves afoot for a formal offer from Chile to host the high-level event. There was now the potential to move the process to a new stage in guiding the work of the forthcoming consultative meetings and those of institutional stakeholders, such as the World Bank and the IMF.

CATULINA SOARES GUERREIRO (Portugal) speaking on behalf of the European Union, welcomed the bringing on board of other relevant stakeholders, such as the IMF and the World Bank who could bring in new ideas. The European Union looked forward to the hearings with the private sector and civil society organizations as part of the preparatory process. She reiterated that the European Union would be a positive partner in the process and would continue to contribute towards a successful outcome of the event. She stressed that the agenda was a preliminary one and should benefit from inputs of other stakeholders.

MR. GORAN STEVCEVSKI (The former Yugoslav Republic of Macedonia) said the progress achieved so far was a good basis for the process to proceed. The agenda covered basically all the issues that had been discussed. The Preparatory Committee should start work on the outcome of the event, he said, adding that the forthcoming meetings of the regional consultative process, the Second Committee of the General Assembly and sessions of the IMF and the World Bank were all extremely important.

The representatives of the Republic of Korea and St.Lucia drew attention to ambiguities in the draft text on the agenda. The representatives of Iran said it was important that all ambiguities be removed. The representative of Nigeria proposed that the text have a footnote with the relevant provision (paragraph 3) of the General Assembly draft resolution. The representative of Cuba said her delegation agreed with the consensus. The representative of the Sudan supported the statement of the Group of 77 chairman.

MR. ESCANERO (Mexico), Coordinator for the item, said the language had been drafted with the greatest care. He said the text was a package and should be approved.

GERT ROSENTHAL (Guatemala) said the text should be adopted in its entirety.

The Preparatory Committee went on to adopt the text.

R.SONIA LEONCE-CARRYL (St.Lucia), speaking after the action, said the agenda was a step forward to give new impetus to the process. Like other delegations, hers was not completely satisfied but accepted the agenda as a necessary framework to evolve within the scope of paragraph 3 of General Assembly resolution A/54/196 encompassing national, international and systemic issues.

She reiterated that the agenda was an evolving part of the process and the final event. There was one agenda and her delegation anticipated no negotiation of a different agenda for the event. She welcomed the input of stakeholders like the World Bank. Her delegation looked forward to the involvement of other bodies, such as the WTO and UNCTAD at the second substantive session. A big step forward had been taken and her delegation expected the full support of the Secretary-General and all regions and stakeholders.

GEORGE W. TALBOT (Guyana) hoped the process would place development on a firm footing. His delegation took a holistic view of the agenda, which should be seen as a longer term process. It attached particular importance to the involvement of all stakeholders, particularly the institutional ones like the IMF, the World Bank, and the UNDP. The representative of Belarus also welcomed the references to the situation of the countries with economies in transition in the agenda.

ABDERRAHMANE MEROUANE (Algeria) expressed satisfaction at the adoption of the text, which should be seen as a preliminary document. His delegation hoped the specific problems of African States would be considered during the preparatory process to help improve development financing in the region.

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