Preparatory Committee for the

International Conference

 on Financing for Development

6^th Meeting (AM)

CHALLENGES FACING MONTERREY CONFERENCE ON FINANCING FOR DEVELOPMENT

OUTLINED IN PREPARATORY COMMITTEE

Secretary-General of UNCTAD Addresses Delegates

There was still a great deal to be done to improve governance and coherence in order to promote real interdependence among countries, the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) told the Preparatory Committee for the International Conference on Financing for Development this morning.  (The Conference takes place in Monterrey, Mexico, from 18 to 22 March 2002.)

Continuing, Rubens Ricupero said that one of the lessons of the 11 September attacks was that the world was, for better or for worse, increasingly interdependent.  The same recipes should be available to all countries -- more liquidity, more fiscal stimulus and more targeted assistance –- to respond adequately to crises.  Unfortunately, many countries were unable to respond adequately due to a lack of necessary mechanisms and infrastructure.  Therefore, the question to be addressed was how the international community could improve the mechanisms and infrastructure to respond adequately to crises.

He highlighted the fact that many governments of industrial States had undertaken vigorous efforts to help the most seriously affected industries within their economies following the attacks.  However, while many developing countries were also affected, their governments, in some cases, were not capable of responding in the same way.  Where could they look for resources?  At present there were no mechanisms to help such countries, particularly the least developing countries.

Monterrey should set the general direction in which to move in order to make the necessary improvements, he added.  There must be assurances that the agenda was broad enough to address issues such as governance and policy coherence.  It was also necessary to ensure that all voices were heard throughout the process as well as after the Conference.

The Committee is currently holding its resumed third session to discuss arrangements for 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

6^th Meeting (AM)

A/AC.257/25.  (For a summary of the draft, see Press Release DEV/2345 issued on

15 October.)

The date of the next formal meeting of the Preparatory Committee will be announced.

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