Preparatory Committee for the

International Conference

 on Financing for Development

4^th Meeting (PM)

CONFERENCE COMMITTEE IS TOLD LOCAL AUTHORITIES SHOULD BE CLOSELY

INVOLVED IN PLANS FOR DEVELOPMENT FINANCING

Preparatory Body for International Gathering Is Alerted to Issues

Of Taxation, Sources of Finance, Foreign Investment, Fight against Corruption

No strategy or policy addressing financing for development may come into practice if it was not implemented with the active support and cooperation of local government, the representative of the World Association of Cities and Local Authorities told the Preparatory Committee for next year’s International Conference on Financing for Development this afternoon. (The Conference takes place in Monterrey, Mexico, from 18 to 22 March 2002.)

Continuing, Eugene Zapata-Garesché expressed deep concern regarding the absence of any reference to local authorities and local government in the draft outcome document of the Conference.  He said the importance of civil society and business entities in the accomplishment of development was important, but the key role and responsibility of local authorities in the financing of local development was crucial.  That was particularly true on such questions as tax matters, international and local sources of finance, combating corruption, and policies for mobilization of foreign direct investment.

Mubarak Hussein Rahmtalla (Sudan) said the Monterrey meeting would be the first test of the international community to show that it could live up to the Millennium Declaration of the General Assembly and address the issue of poverty. It was true that the world economy was in difficulty.  However, in the eyes of the poor and the marginalized, that was not an acceptable excuse for not helping to improve their situation.

Summarizing the discussions of the Preparatory Committee over the last two days, the co-Chairman, Shamshad Ahmad (Pakistan), said that the Committee was standing at the “mouth of a dark tunnel”.  However, it should not be discouraged from entering it because there would be light at the end.  Everyone was striving to create an economic order based on equity, justice and equal opportunities.  For that, both developed and developing countries would need to be flexible and willing to find a common ground.

There were clearly two perspectives presented, he said.  The developed countries expected the developing countries to, among other things, make every effort to bring about economic reforms, improve governance and the rule of law, and invest in the social sector and poverty eradication programmes.

On the other hand, he continued, the developing countries expected their partners from the developed world to make the global trading system more equitable, provide market access to the products of developing countries, provide the targeted official development assistance, reduce the debt burden, and assist developing countries in capacity-building and technology transfer.  An overarching spirit of cooperation was needed to elaborate a new development paradigm.

The Committee is currently holding its resumed third session to discuss arrangements of the Monterrey Conference.  The Conference seeks to address broad development concerns, primarily obstacles faced by developing countries in mobilizing the resources needed to finance their development.

For their consideration, delegations had before them a draft final outcome prepared by the Facilitator, Mauricio Escanero (Mexico), contained in document A/AC.257/25.  (For a summary of the draft, see press release DEV/2345 issued on  15 October.)

The Committee will meet again at 10 a.m. tomorrow, Wednesday, to hear a statement from the President of the International Fund for Agricultural Development (IFAD).

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