Background Release

PREPARATORY COMMITTEE FOR HIGH-LEVEL FINANCING FOR DEVELOPMENT EVENT TO HOLD

SECOND SUBSTANTIVE SESSION AT HEADQUARTERS, 12 - 23 FEBRUARY

The Preparatory Committee for the High-level International Intergovernmental Event on Financing for Development will hold its second session at United Nations Headquarters from 12 to 23 February.

The high-level meeting of financial policy-makers, now scheduled for the first quarter of 2002, is designed to set an agenda on national, international and systemic issues relating to financing for development, in order to meet the long-term imperatives of eradicating poverty and fulfilling the social and humanitarian goals set by global conferences of the 1990s.  The event, as well as the preparatory process, will feature active and unprecedented participation by regional groups, intergovernmental organizations and world financial institutions.

The Committee's objective is to lay the groundwork for the High-level Event by undertaking a thorough assessment of how the world's financial development needs can be met.  This session will address the broad development concerns expressed by world leaders at the Millennium Summit, particularly the obstacles developing countries face in mobilizing the resources needed to finance their sustained development.  To that end, the Committee will review the inputs to the substantive process and the High-level Event thus far, as well as begin initial preparation of the outcome of the event.  It is also expected to adopt the draft provisional agenda for its third session, which is scheduled for 30 April-11 May.

At its first session, the Preparatory Committee, among other things, approved a draft decision on preparations for the substantive preparatory process and the Event.  That decision contained a draft resolution, by which the Assembly subsequently decided that the High-level Event should be scheduled for the first quarter of 2002, at a date to be agreed upon, and extended its invitation to interested countries to consider hosting or confirming existing offers to host the Event. The Assembly also requested the Secretary-General to address a letter to all governments to further sensitize them to the high-level nature of participation that the substantive preparatory process and the event deserved.

Documentation

For primary consideration during its second session, the Preparatory Committee will have before it the report of the Secretary-General (document A/AC.257/12), issued 18 December 2000.  In the report, he expresses the concern that globally endorsed plans to reduce the sway of poverty, ignorance and disease would be frustrated unless resources -- both market-led investment and public

funds -- were available in sufficient amount and deployed where needed.  He, therefore, charged the Committee to look at development through the perspective of finance, addressing relevant national and international issues and to seek the means to ensure sufficient financing for vigorous global development.

The six issues that will comprise the bulk of the Committee's work mirror the six main themes described in the Secretary-General's report.  According to its provisional agenda and organization of work (document A/AC.257/20), the Committee is expected to examine, in detail:  mobilizing domestic financial resources for development; mobilizing international resources for development, including foreign direct investment and other private flows; enhancing trade for financing development; increasing international cooperation for development; confronting external debt challenges; and addressing systemic issues.

Along with the report of the Secretary-General, the Preparatory Committee will also consider the reports of the regional consultations on financing for development held in 2000 by the five regional commissions:  Asia and the Pacific (document A/AC/257/13); Africa (document A/AC/257/14); Europe (document A/AC/257/15); Western Asia (document A/AC/257/16), and Latin America and the Caribbean (document A/AC/257/17).

The Committee will also have before it the summary of panel presentations and discussions on financing for development with civil society (document A/AC/257/18) and the business community (document A/AC.257/19).

The Preparatory Committee was established by the General Assembly early in 2000.  Under the auspices of the Committee's 15-country Bureau, regular intergovernmental interactions with the International Monetary Fund (IMF), the World Trade Organization (WTO) and the World Bank have been implemented.  The Committee is charged with presenting proposals for ministerial consideration at the final High-level Event.

The co-chairs of the Committee and the Bureau are Jorgen Bojer (Denmark) and Asda Jayanama (Thailand).

* *** *