SECOND COMMITTEE DELEGATES AGREE ON NEED FOR BETTER MONITORING OF MONTERREY CONSENSUS IMPLEMENTATION AS DEBATE CONCLUDES

Fifty-seventh General Assembly

Second Committee

34^th Meeting (AM)

SECOND COMMITTEE DELEGATES AGREE ON NEED FOR BETTER MONITORING

OF MONTERREY CONSENSUS IMPLEMENTATION AS DEBATE CONCLUDES

While agreeing on the need to better monitor implementation of the Monterrey Consensus, delegates to the Second Committee (Economic and Financial) this morning proposed various courses of action for tracking and sustaining progress, as they concluded their discussion on Follow-up to the International Conference on Financing for Development.

Japan’s representative said that a monitoring mechanism should laud successful efforts and their concrete effects on development, as well as encourage further work, cautioning that neither the North nor the South should use it to point fingers over any lack of progress.  Many developing countries were working hard to create domestic environments that would be conducive to development, while slowly implementing the Monterrey Consensus.  The question now was, whether States could generate and sustain the political will to meet the Millennium Development Goals by 2015.

Iran’s representative, noting that the mid-term and long-term nature of the actions and recommendations contained in the Monterrey Consensus would not necessarily lead to immediate results, called for an assessment of current trends, approaches and activities undertaken by institutional stakeholders, governments and other participants to ensure that implementation was moving forward.  Permanent offices should be created in the secretariats of relevant institutions to coordinate follow-up and better coherence in the international monetary, financial and trading systems.

Canada’s representative said that all stakeholders must be full players in the financing for development process, in order to maintain the spirit of partnership that had emerged at Monterrey.  The international community must expand outreach and participation, in existing efforts concerning tax and sovereign debt, among other issues, rather than duplicate the work of the United Nations, in that regard.

Meanwhile, the representative of the Barbados, speaking on behalf of the Caribbean Community (CARICOM), welcomed the attention paid to the needs of small island developing States during the High-Level Dialogue on Financing for Development.  Small States were more easily hurt than others by globalization and trade liberalization and international standards, codes and norms should be based on the principle that all countries had the right – not the privilege – to participate, that all participants be treated equally, and that the monitoring of international standards be conducted through a mutual evaluation process or peer review.

Also this morning, representatives of Morocco introduced, on behalf of the “Group of 77” developing countries and China, eight draft resolutions on the promotion of new and renewable sources of energy, including implementation of the World Solar Programme 1996-2005; further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States; international trade and development; unilateral economic measures, as a means of political and economic coercion against developing countries; rules of procedure of the Governing Council of the United Nations Human Settlements Programme (UN-HABITAT); implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and the strengthening of the United Nations Human Settlements Programme (UN-HABITAT); international migration and development; and the Third United Nations Conference on the Least Developed Countries.

Others speaking this morning were representatives of Switzerland, Croatia, Indonesia and Tuvalu (on behalf of the Alliance of Small Island States).

The Second Committee will meet again at a time and date to be announced in the Journal.

Background

The Second Committee met this morning to conclude its discussion of follow-up to the International Conference on Financing for Development.  (For background information, see Press Release GA/EF/3065 of 11 November.)

Statements

OLIVIER CHAVE (Switzerland) said the follow-up to Monterrey must be integrated into national political agendas.  Domestic-resource mobilization and national ownership of development programmes were essential, and financial-sector reforms must take into account the specific needs and situations of each country.  Low-income countries did not automatically benefit from new trading opportunities; they depended on enhanced support for economic reform and technical assistance to ensure sustainable social development and environmental protection.  Therefore, the North must adopt a more flexible and “realistic” approach to the Doha Development Round to ensure its success.

Little progress had been achieved in shoring up development financing, he said, noting that the public sector had not matched proposals from private financial markets.  While, lauding the International Financial Facility, Switzerland opposed reliance on it for development finance, for reasons of accountability, time and uncertain borrowing costs.  Regarding sovereign debt restructuring, collective action clauses in international sovereign bonds and a proposed code of conduct were positive developments.  However, a sovereign debt restructuring mechanism was needed to solve the problem, comprehensively.

FUMIO IWAI (Japan) noted that many developing countries were now trying to create an enabling domestic environment for development, slowly implementing the Monterrey Consensus.  The question remaining was whether States could generate and sustain the political will to attain the Millennium Development Goals by 2015.

He expressed support for the idea of a monitoring mechanism to measure implementation of the Consensus, which would allow States to hear about achievements made.  That mechanism, however, should not be used by the North or the South to point fingers over any lack of progress.  Rather, it should be used to laud successful efforts and encourage further work.  The mechanism should measure efforts made, as well as their concrete effects on development.

IRENA ZUBCEVIC (Croatia) said that developing countries and economies in transition needed a greater say in the decision-making of key international financial and trade organizations.  The role of export banks and agencies in implementing the Monterrey Consensus should not be overlooked.  Croatia had initiated domestic reforms to drive sustainable development and economic growth, sound macroeconomic policies and an open investment climate.  According to the European Bank for Reconstruction and Development indicators, the country had made a more advanced transition to a market economy than other countries in the region.

Recognizing that regional integration was crucial to sustainable development, Croatia had fostered sound political and economic ties with neighbouring States, she said.  In March, it had signed a Stabilization and Association Agreement with the European Union and was in the process of harmonizing laws in line with European and international standards.  It had also joined the Central European Free Trade Agreement (CEFTA), opening its borders to millions of citizens and potential partners in the region.

DUPITO DARMA SIMAMORA (Indonesia) said the Committee should take advantage of the strong support shown at the High-level Dialogue for the most significant elements of the Monterrey Consensus.  Those included substantially increasing official development assistance (ODA) and foreign direct investment (FDI); reforming multilateral financial institutions; paying closer attention to trade issues; and forging partnerships between developed and developing countries.

He said that both developed and developing countries should monitor the progress made in implementing the Monterrey Consensus.  Other major stakeholders, especially the World Bank, International Monetary Fund (IMF) and the World Trade Organization (WTO), should also meet their responsibilities.  In addition, the United Nations General Assembly and the Economic and Social Council should be strengthened to perform special tasks assigned to them by the Monterrey Consensus.

KEVIN REX (Canada) said his country was committed to the core concepts of partnership, mutual accountability and better socio-economic governance that had emerged in the Monterrey Consensus.  Canada was doing its part, notably by increasing international assistance by 8 per cent through 2004/2005 and aimed to double its assistance budget by 2010.  It was also working to increase aid effectiveness and donor coordination and harmonization, as well as supporting debt relief and new methods to mobilize financing for development, particularly through partnerships with the private sector.

To maintain the spirit of partnership that had emerged in Monterrey, all stakeholders must be full players in the financing for development process, he stressed.  The international community must also focus on expanding existing outreach and participation in tax and sovereign debt issues, among others, rather than duplicating the work of the United Nations in that regard.

MOHAMMAD ALI ZARIE ZARE (Iran) said that the actions and recommendations contained in the Monterrey Consensus were mostly mid-term or long-term in nature, and would not necessarily lead to immediate results.  However, existing trends, approaches and activities by institutional stakeholders, governments and others should be assessed to ensure that implementation was moving forward.  At the same time, an attempt should be made to recognize and remove obstacles to implementation.

Enhancing coherence and consistency in the international monetary, financial and trading systems was vital to the successful implementation of the Consensus, he emphasized.  Permanent arrangements should be created within the secretariats of the relevant institutions to coordinate and follow-up implementation, within the institutions themselves.  At the intergovernmental level, a platform should be set up to support capacity-building within the secretariats of such stakeholders as the IMF, the World Bank and the WTO.

JUNE CLARKE (Barbados), speaking on behalf of the Caribbean Community (CARICOM), said that while the Monterrey Consensus was a useful and valuable framework for development, it had failed, thus far to adequately address the special needs of small-island developing States.  However, CARICOM welcomed the attention paid during the High-Level Dialogue on Financing for Development to their needs and unique circumstances, including differentiated support and targeted assistance.  The community also supported the creation of a working group to address debt comprehensively, from the perspective of middle-income developing countries, since the international community’s focus on per capita income in those countries often masked the true impact of the debt burden on their populations.

She said that although Caribbean States had played by the rules, strictly adhering to domestic policy, good governance, trade and investment policy, and socio-economic infrastructure prescriptions and norms set by international financial institutions, the FDI continued to decline, as Caribbean States became even more marginalized from the world economy.  That proved that small States were more easily hurt than others in the globalization and liberalization process.  The setting of international standard, codes and norms should comply with the principle that all countries had the right -- not the privilege -- to participate, that all participants be treated equally, and that the monitoring of international standards be conducted through a mutual evaluation process or peer review.

ENELE SOPOAGA (Tuvalu), speaking on behalf of the Alliance of Small Island States (AOSIS) said they faced peculiar constraints, within the international economic environment.  They included small and narrow resource bases that prohibited economies of scale; remoteness from main market access; fragile natural environments; vulnerability to natural disasters; and the exceedingly high costs of energy, infrastructure, transportation and communications.

In assisting small, vulnerable economies to integrate into the world economy, he said, the international community should consider harmonizing the frameworks used by international trade, development and financial institutions to assess small island developing States; providing those States with preferential market access in the short to medium term; and setting up an international fund to stabilize commodity export prices.  In addition, special and differential treatment should be tagged to sectors of specific interest to small island developing States, and they should be given financial and technical assistance to participate in trade negotiations and agreements.  Moreover, there was a need to examine the participation of small island developing States in international decision-making.

Introduction of Draft Resolutions

MOHAMMED ARROUCHI (Morocco), on behalf of the “Group of 77” developing countries and China, introduced a text on Promotion of new and renewable sources of energy, including the implementation of the World Solar Programme 1996-2005 (document A/C.2/58/L.26, saying that energy efficiency measures and renewable energy services were at the centre of sustainable development.  Renewable energy would generate income and ensure the well-being of environmental resources for all humanity.  Developing and developed countries alike must do their part in mobilization resources for renewable energy projects to prevent environmental degradation. 

He then introduced a draft on resolution the Further implementation of the Programme of Action for the Sustainable Development of Small Island Developing States (document A/C.2/58/L.30), saying the text aimed to reinforce steps needed to overcome the numerous and huge challenges faced by those States. 

ABDELLAH BENMELLOUK (Morocco), on behalf of the “Group of 77” developing countries and China, introduced four draft resolutions.  The first, on international trade and development (A/C.2/58/L.32), attempted to explain the failure of the WTO meeting at Cancun and stressed the need to open the international trading system, and follow through on Doha agenda commitments.

The second text, on unilateral economic measures as a means of political and economic coercion against developing countries (document A/C.2/58/L.33), urged the international community to limit unilateral economic measures that were inconsistent with international law.  It also requested the Secretary-General to continue monitoring that type of imposition, and to assess its impact on development.

A draft was on rules of procedure of the Governing Council of the United Nations Human Settlements Programme (UN-HABITAT)(document A/C.2/58/L.35), and the fourth on implementation of the outcome of the United Nations Conference on Human Settlements (Habit II) and the strengthening of the United Nations Human Settlements Programme (UN-HABITAT).  The latter draft document (A/C.2/58/L.31) asked governments to work the United Nations Human Settlements Programme into their national development strategies, stressing the need for investment in housing and sanitation, particularly in slums and squatter settlements.

MOULAY ABOUTAHIR (Morocco), on behalf of the “Group of 77” developing countries and China, introduced two draft resolutions.  The first, on international migration and development (document A/C.2/58/L.37), targeted the development aspect of international migration, referring to different initiatives that had been taken to address, analyse and assess it.  It also highlighted the positive and negative aspects of brain drain, and proposed holding a high-level dialogue on international migration and development.

The second text, on the Third United Nations Conference on the Least Developed Countries (document A/C.2/58/L.34), urged the international community to make more efforts to translate the Brussels Programme of Action into reality and help those countries that continued to suffer from marginalization, as they sought to diversify and export their products.

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