Background Release

PREPARATORY COMMITTEE FOR FINANCING FOR DEVELOPMENT CONFERENCE

TO MEET FROM 2 TO 8 MAY

The Preparatory Committee for the International Conference on Financing for Development will begin its third session at United Nations Headquarters from 2 to 8 May. The third session has been split into two one-week sessions; the second one-week session will take place in October or November.

The General Assembly decided on 23 February that the Conference would be held in Mexico in the first quarter of 2002.  Representation would be at the highest political level, including a segment at the summit level (A/RES/55/245). It is expected that Mexico will announce the exact timing and location of the Conference during the first segment of the current session.

The Conference itself is designed to focus the attention of the international community on the challenges of financing for development. By actively involving all relevant stakeholders, the Conference, and the process leading up to it, hopes to create a unique opportunity to identify common concerns and to pursue win-win scenarios. It is expected to feature active and unprecedented participation by regional groups, intergovernmental organizations and world financial institutions.

During its third session, the Preparatory Committee will discuss possible initiatives or themes for the Conference. Thus far, the provisional agenda for the financing for development process has the following six main headings:  mobilizing domestic financial resources for development; mobilizing international resources for development; trade; increasing international financial cooperation for development; debt; and addressing systemic issues.

The Preparatory Committee was established by the terms of General Assembly resolution 54/196 in early 2000. Since its inception, it has undertaken regular intergovernmental interactions with the International Monetary Fund (IMF), the World Trade Organization (WTO) and the World Bank. The Committee has also been charged with presenting proposals for ministerial consideration at the Conference.

The Co-Chairs of the Committee are Jorge Bojer (Denmark) and Asda Jayanama (Thailand).

Documentation

The Committee will have before it the Third Report of the Bureau of the Preparatory Committee (document A/AC.257/22/Rev.2), which includes proposals on participation of all relevant stakeholders in both the substantive preparatory

process and the Conference. Since the submission of its second report on 30 May 2000, the bureau has met with the World Bank, the IMF and the WTO to discuss modalities of participation. It has also held business sector hearings, after which a special task force was set up by the bureau to identify future action. The report also discusses the Bureau’s interaction with regional stakeholders and civil society organizations.

Also before the Committee will be a note by the Secretary-General transmitting a compilation of initiatives and themes submitted by governments (document A/AC.257/23). In preparation for the third session of the Committee, governments were asked to send to the Financing for Development Secretariat, by 15 April, a concise identification of possible initiatives and themes. The document contains a compilation of the submissions received by the Secretariat from Member and observer States.

A working paper from the Facilitator will also be before the Committee (document A/AC.257/24). The working paper seeks to further focus the substantive preparatory work. The facilitator advises he benefited from informal consultations with delegates to the Committee, members of the Coordinating Secretariat and various stakeholders. The first section of the paper highlights the many interrelated issues related to financing for development. Subsequent sections correspond to the six main headings of the substantive agenda. 

In addition, the Committee will be considering General Assembly resolution 55/186 entitled towards a strengthened and stable international financial architecture responsive to the priorities of growth and development, especially in developing countries, and to the promotion of economic and social equity (document A/RES/55/186) in which the Assembly stresses the utmost importance of implementing the resolve expressed in the United Nations Millennium Declaration to create an environment conducive to development. 

The Preparatory Committee will also consider a list of NGOs seeking accreditation to the Conference (document A/AC.257/10/Add.3), and a joint statement of the Co-Chairmen at the conclusion of the second substantive session of the Preparatory Committee dated 23 February (document A/55/28/Add.1, annex1).

* *** *