Sixty-second General Assembly

Plenary

33^rd & 34^th Meetings (AM & PM)

Increased, reliable aid flows, debt relief, trade protectionism among issues,

As General Assembly continues high-level dialogue on development financing

More than ever, developing countries were assuming primary responsibility for addressing their development challenges, and senior officials from the global South today said that it was time for donors to complement those efforts by meeting agreed financing targets laid out in the 2002 Monterrey Consensus –- a landmark partnership by which developed and developing countries would be mutually accountable for improving growth and reducing poverty.

With almost 50 speakers taking the floor, the General Assembly continued its High-level Dialogue, which sought at once to take stock of progress since the First International Conference on Financing for Development, held in Monterrey, Mexico in 2002, and lay the foundations for agreement at next year’s Review Conference in Doha, Qatar.

Throughout the day, delegates from developing countries said that considerable progress had been made in upholding their end of the Monterrey bargain, including through mobilizing domestic resources, improving growth, reforming economic and financial systems, and promoting economic stability.  Those measures, for some, had boosted private capital flows, improved trade competitiveness and increased exports.  However, poor countries most in need of capital had been bypassed by investors and heavily impacted by new trade protections and shortfalls in official development assistance.

Highlighting the severity of the situation, Cuba’s representative said that, despite past promises to increase stable and predictable capital flows to developing countries, development assistance had plummeted, while military expenditures had reached $1 trillion annually.  Moreover, developing countries continued to transfer resources to the developed world, raising questions of “who financed whom”.

Cuba supported the use of Special Drawing Rights, an international reserve asset created by the International Monetary Fund that permits countries in temporary deficit to draw supplies of foreign currency according to pre-determined quotas.  He also said a financial speculation tax and a carbon emissions tax would benefit developing countries.  Furthermore, to end the vicious cycle of indebtedness, developing countries needed more than just “shy initiatives and relief measures”.  Official development assistance should be unconditional, and developed countries must show the political will to honour their commitments.

To address nagging financing gaps, the representative of Benin, speaking on behalf of the African Group, urged action from donors, specifically through targeted institutional capacity-building and human resources development.  Post-conflict countries should take priority in that regard.  Moreover, African countries, in particular, needed to receive aid flows that were reliable, predictable, and capable of providing financing.  To make aid “better”, resources and delivery mechanisms should be targeted and harmonized with the needs of development partners.  Such coordination could also lower transaction costs.

Echoing those calls, the representative of China stressed that the most difficult part of development financing was mobilizing funds for developing countries.  The global community must, on one hand, provide financial assistance to developing countries and, on the other, create a favourable external environment for them to build their own capacity for mobilizing funds.  “There is no short-cut to the settlement of these problems,” he said.

Taking up the issue of development assistance, the representative of Qatar urged developed nations to honour their obligations, particularly in the provision of aid on a predictable basis and in a more equalized manner.  He expressed concern that the size of official development assistance had declined in 2006 and, while noting the efforts of some countries to develop new and innovative methods of development financing, emphasized that those methods be seen as additional assistance, rather than a substitute for fundamental commitments made by States.

Bringing a donor perspective, the representative of Canada, who spoke also for Australia and New Zealand, said that meeting the objectives agreed at Monterrey required an integrated approach that mobilized all development financing resources:  trade liberalization, official development assistance, debt relief and foreign direct investment, among them.  The Assembly must remember, however, that an enabling domestic environment was crucial for mobilizing development financing.  Developing countries should aim to attract, retain and effectively use all sources of financing, including taxes, official development assistance and remittances.

To that point, the United States representative said many countries had not done enough to foster domestic resource mobilization or attract private capital.  To recapture the “spirit of Monterrey” and ensure success at the upcoming Doha conference, it was important to move forward on elements of the 2002 agreement that had generated the widest consensus.  Donors had substantially raised the volume of development assistance from about $58 billion in 2002 to $104 billion in 2006, he said.  The United States alone had more than doubled its assistance since 2002 to some $23.5 billion, far exceeding its pledge.

For its part, the United Arab Emirates was contributing 3.5 per cent of its gross domestic product to official development assistance, well exceeding what was stipulated at Monterrey, the country’s representative said.  His Government had also joined bilateral and multilateral agreements through the Dubai Fund for Development, which had overseen loans and grants totalling $70 billion.

Development was not just a matter of financing, said Axel Poniatowski, the Chairman of the National Assembly Foreign Affairs Committee of France.  The partnership between the North and South implied an approach of shared interests in which co-development had its place.  United Nations reform would provide more effective intergovernmental support to common sense measures, as would reform of the Bretton Woods institutions.

Referring to France’s recent proposal that the Group of Eight industrialized countries continue its transformation into a “Group of 13” to ensure closer cooperation between major emerging countries and the most industrialized, he said:  

“The promotion of a more equitable international order with greater solidarity justifies a high degree of ambition.”

Also speaking today were senior ministers from Zambia, Nepal, Turkey, Austria, Ecuador and Belgium, as well as Members of Parliament from Malaysia and India.

Representatives of Chile (on behalf of the Rio Group), Japan, Kuwait, Djibouti, Luxembourg, Saudi Arabia, Monaco, El Salvador, Peru, Angola, Malawi, Tunisia, Spain, Italy, Colombia, Honduras, South Africa, Brazil, Nicaragua, Belarus, Yemen, Morocco, San Marino, Jordan, Algeria, Uganda, Libya, Costa Rica, Israel, Mexico, Mauritania, Venezuela and the Solomon Islands also spoke.

The General Assembly will reconvene at 10 a.m. Thursday, 25 October, to conclude its High-level Dialogue on Financing for Development.

Background

The General Assembly convened this morning to continue and conclude its High-level Dialogue on Financing for Development.

Statements

J.S. MULUNGUSHI, Permanent Secretary, Planning and Economic Management Division, Ministry of Finance and National Planning of Zambia, fully aligning himself with Pakistan’s statement on behalf of the Group of 77 and China, and Bangladesh, on behalf of the least developed countries, said his country had made considerable progress in implementing decisions taken at Monterrey.  He urged others to do the same.

Indeed, he said, Zambia had made progress in mobilizing resources, achieving a 5 per cent gross domestic product growth rate for the past five years, and decreasing inflation.  Domestic revenues as a percentage of gross domestic product had averaged 18 per cent.  Macroeconomic stability had also resulted in increased foreign direct investment, especially in the mining sector.  External sector performance had also been strong, with growth in non-traditional exports surpassing 25 per cent in the last five years.  In the area of external debt, he appreciated the debt relief provided under the Heavily Indebted Poor Countries (HIPC) Initiative.

The country was indeed poised for growth, he explained.  However, despite national efforts, poverty remained high, growth was fragile, and the impact of HIV/AIDS was still taking a toll on the population.  Zambia, therefore, needed assistance as it integrated into the global economy, particularly in the areas of:  scaling up aid to Africa in line with agreed commitments, concluding the Doha trade round; improving public-private partnerships; and financing the negative impacts of climate change.

GYAN CHANDRA ACHARYA, Foreign Secretary of Nepal, said since the establishment of, and the international commitment to, the Millennium Development Goals, the development agenda had occupied centre stage at the United Nations.  While some countries had made progress, the least developed countries were lagging behind, constrained by the lack of sustainable financing.

He continued, saying least developed countries remained “at the bottom of the development ladder”, despite revolutionary changes in science and technology and an unprecedented level of globalization.  The development efforts in the least developed countries were further hampered by climate change, environmental degradation, conflicts, humanitarian crises and natural disasters.  As countries reached the halfway point in meeting their Millennium Development Goals, it had become clear the least developed countries could potentially not achieve their own.  Their accomplishment required enhanced investment in improving the physical and economic infrastructure, as well as the technological base in order to boost productivity, foster entrepreneurship, attract investment and encourage competitiveness.

Nepal called for the full implementation of the Brussels Programme of Action for least developed countries, he said, and urged the developed countries to meet the official development assistance target of .20 per cent of gross national product for the least developed countries.  Furthermore, Member States agreed trade could provide an engine of growth, and therefore the Doha round of talks needed to facilitate development by enhancing market access for least developed countries products, removing trade barriers, implementing an aide-for-trade initiative and swiftly disbursing resources for an integrated framework of support.

AXEL PONIATOWSKI, Chairman of the National Assembly Foreign Affairs Committee of France, said globalization was a concern that forced developed countries to question themselves.  Too many developing countries, particularly in Africa, were subject to globalization, yet excluded from its benefits.  To prevent globalization from leading to a destabilized, fragmented world with an ever-increasing marginalization of the poorest and most vulnerable, developed countries needed to respond to the concerns and expectations of those less fortunate.  On a national level, his Government was committed to fulfilling its promises of official development assistance and campaigning for other innovative forms of financing for development.  On a global level, the international community should fulfil their past pledges and work towards international consensus at the Doha Conference to help create new mechanisms to deal with the challenges of health and climate.

Development was not just a matter of financing, he said.  It was up to developing countries to act, individually or collectively, to end the “infernal cycle” of violence and ensure peace.  The partnership between North and South implied an approach of shared interests in which co-development had its place.  The quality of aid and its effectiveness should be improved, and the Accra Conference on the effectiveness of aid would be a good opportunity for open and transparent dialogue on that fundamental issue.  United Nations reform would help the Organization to provide more effective intergovernmental support to common sense measures, and reforms at the Bretton Woods institutions would do the same.  In conclusion, he referred to his Government’s recent proposal to enlarge the Group of Eight to a Group of 13, and said the process of dialogue launched by Germany at the Heiligendamm summit was an important test.  “As you can see, the task before all of us is immense,” he said.  “The importance of what is at stake –- the promotion of a more equitable international order with greater solidarity –- justifies a high degree of ambition.”

LOH SENG KOK, Member of Parliament from Malaysia, said that progress was slow in most areas of the Monterrey Consensus, but especially in the provision of official development assistance.  While there had been a small increase in assistance between 2002 and 2005, it was clear that much of that increase came from debt relief, technical and emergency assistance, in addition to which assistance had declined last year.  He juxtaposed global spending for 2005 on official development assistance ($106.5 billion) with a number of other global expenditures, such as the $1.118 trillion –- 2.5 per cent of global gross domestic product, or $173 per capita worldwide –- spent on the military.

Volatility in international markets and lack of progress in World Trade Organization negotiations also hampered the efforts of developing countries, he said.  Foreign direct investment flowed to only a limited number of countries.  While the debt situation had improved, he feared that the shift from official to private debt could increase vulnerability.  The international financial architecture must respond to fundamental changes in the global agenda.  He called on the Doha Conference to assess the reasons for non-implementation of the goals of the Monterrey Consensus; to study the complex relationships between finance and such emerging aspects of development as climate change; and to evaluate recent innovative financing initiatives.

The burden of responsibility fell to the developed world to strengthen financing for development.  It must not be passed on to the so-called “emerging donor nations”.  Concluding, he said his country was committed to making the Doha Conference a success -– success being strides made to construct an international financial structure that works for, not against, the aspirations of the poorest.

SANTOSH BAGRODIA ( India) said the effective implementation of commitments made at Monterrey remained the weakest link in moving forward.  Real progress must involve a fundamental and comprehensive reform of the international financial and monetary architecture in order to address its democratic deficit, with more voice and participation of developing countries in decision-making and norm-setting.  Ensuring enhanced and predictable finance resource flows for developing countries to assist them in pursuing their development agenda remained at the core of the Monterrey consensus, with current resource flows lagging behind the kind of assistance needed by developing countries to achieve the Millennium Goals.

Pointing to sinking official development assistance levels, he suggested establishing a monitoring mechanism to track both official development assistance flows and the implementation of Millennium Development Goal 8, which called for a global partnership for development.  Enhancing trade was also crucial, and he was happy to report that, by the end of 2007, imports to India from least developed countries would face a zero-tariff regime.  Reforms of the international financial architecture should include trade financing, so that export credit agencies and multilateral development banks acted in a counter-cyclical manner.  Debt continued to pose a significant challenge, and hopes of releasing resources for development through debt cancellation had been marginal.  Moreover, debt relief measures had not addressed holistically the underlying problems.  India believed that new measures for debt restructuring, and mechanisms such as an international debt commission overseen by the United Nations through the Economic and Social Council, were required urgently to address the issue of external debt of developing countries.

JEAN-MARIE EHOUZOU (Benin), speaking on behalf of the African Group, said that while Africa had recognized the need to assume primary responsibility for addressing its development challenges, and had taken practical steps to that end with the adoption of the New Partnership for Africa’s Development (NEPAD), the continent’s subsequent adoption of sound economic policies needed to be complemented by adequate assistance from the international community.  To that end, the African Group considered that the “business as usual” attitude of the donor community had not helped African States meet their broader trade and development concerns.

Urgent action should be taken to address gaps, including through, among others, targeted institutional capacity-building and human resources development, with post-conflict countries taking priority in that regard.  He said that it was important to ensure that Africa countries received aid flows that were reliable and predictable, and capable of providing financing for investment programmes, particularly in the area of infrastructure development.  The African Group believed that aid could be made “better” by ensuring resources and delivery mechanisms were targeted and harmonized with the needs of development partners.  He added that such coordination was also a way to lower transaction costs.

In addition, developed countries must also live up to their pledges, particularly to reach the long-standing target of 0.7 per cent of gross domestic product for official development assistance.  At the same time, recipient countries should continue their efforts to establish effective, fair and stable institutional, legal and regulatory frameworks in order to strengthen the rule of law and foster effective participation and closer cooperation among all relevant stakeholders.  Finally, he said that the African Group remained very concerned that there had been little movement on efforts to increase the participation of developing countries in the decision-making processes of the Bretton Woods institutions. Africa could be a dedicated and active partner in such processes and would call for stepped up efforts to that end.

JOHN MCNEE (Canada) speaking also on behalf of Australia and New Zealand, said that meeting the objectives of the Monterrey Consensus required an integrated approach that mobilized all development financing resources, including trade liberalization, official development assistance, debt relief, foreign direct investment, remittances and domestic financing.  Since Monterrey, the countries for which he spoke had joined other complementary efforts to examine improving the coherence of overall aid effectiveness, including through its endorsement of the Paris Declaration.  With all that in mind, he said that the Assembly must remember that an enabling domestic environment was crucial for mobilizing development financing.  Such an environment should aim to attract, retain and effectively use all sources of financing, including taxes, official development assistance and remittances, among others.

Moreover, good governance and concrete efforts to reduce corruption were required to ensure that scare financial resources were used effectively and appropriately to fight hunger, disease and poverty.  He said that trade liberalization was an important driver of development, and stressed the need to achieve an ambitious, balanced and comprehensive agreement on the Doha development agenda, which would significantly enhance global trade, especially among and between developed and developing countries.  Promoting progressive trade liberalization would reinforce multilateral trade rules and, among other things, better integrate the developing countries into the multilateral trading system and provide support to the world’s poorest countries, thereby enabling them to benefit from the significant opportunities offered by globalization.

EDUARDO GALVEZ, Director of Multilateral Policy, Ministry of Foreign Affairs of Chile, speaking in his capacity as Coordinator of the Rio Group’s Working Group on Financing for Development, said that his delegation considered that the preparatory process leading up to the 2002 Doha Review Conference should be open to the participation of all stakeholders directly or indirectly involved in the development financing processes, including States and regional bodies, as well as international agencies and representatives of civil society groups.  The Rio Group also believed that the components of the Monterrey Consensus related to mobilizing domestic and international resources and systemic issues, with the possibility of including important new questions.

While the Group recognized that each country was responsible for its own development, it also believed that national development initiatives must be complemented by multilateral support programme, measures and policies designed to expand development opportunities, as well as to strengthen global cooperation.  He also emphasized the need for continued support for the poverty relief efforts of middle-income countries, including landlocked developing countries.  Recalling the “spirit of Monterrey” as an example of the international community’s willingness to work together in the quest for development for all, The Rio Group stressed that any other high-level events and international initiatives related to the topics of development and poverty eradication be coordinated with the preparatory processes for the 2002 Doha Conference.

ALEJANDRO D. WOLFF ( United States) said that, at Monterrey, President George W. Bush had spoken forcefully about the United States’ commitment to bringing hope and opportunity to the world’s poorest people.  The President had called for a “new compact for development defined by greater accountability for rich and poor nations alike”, and had pledged to increase the core development assistance of the United States by 50 per cent over three years.  Now, after five years, it was important to consider whether nations had delivered on that compact and how they could improve their cooperation and assistance.  He added that the “power of the ideas” in the Monterrey Consensus had sparked a wave of initiatives and reforms, both domestic and international, aimed at tapping all the potential sources of finances needed to spur development.

Touching on a few of those initiatives, he said that donors were working together to improve the effectiveness of aid under the Paris Declaration process, and donors had had substantially raised the volume of development assistance from approximately $58 billion in 2002 to $104 billion in 2006.  Under President Bush’s leadership, the United States had more than doubled its assistance since 2002, to some $23.5 billion –- far exceeding its pledge.  Other positive changes had included the Economic and Social Council’s launching of two new important discussion forums –- the annual Ministerial Review and the Development Cooperation Forum, and the overall increase in debt relief under the HIPC Initiative.

Still, he stressed that those and other successes did not mean that the job was finished.  Some of the world’s poorest countries had not kept pace and might not meet the shared commitment to globally-agreed development objectives.  Indeed, many countries had not done enough to foster domestic resource mobilization or attract private capital flow.  At the same time, donors needed to do more to improve the effectiveness of aid.  In order to recapture the “spirit of Monterrey” so that the Doha Conference could be a success, it was necessary to, among other things, find ways to move forward on elements of the 2002 agreement that had generated the widest consensus, and “avoid being distracted by peripheral debates or issues being negotiated in other fora”.  Further, more attention should be devoted to how the United Nations could assist those countries that, for whatever reason, had not been able to take advantage of the promise of Monterrey.

MEMDUH ASLAN AKCAY, Director General, Foreign Economic Relations, Undersecretariat of the Treasury, Turkey, aligning his country with the statement made by Portugal on behalf of the European Union, said the upcoming Doha Conference would provide a good opportunity to re-evaluate the global response to the challenges of financing for development.  While tangible progress had been made in fulfilling the commitments set out in the Monterrey Consensus documents, much remained to be done.  Experience had taught that relying solely on development aid did not bring about sustainable development in the long-term.  Thus, in the short-term, developed and developing countries should focus their efforts on fulfilling the commitments related to aid and also keep the development engine running by contributing to capacity-building.  But, in the long-run, consolidating the existing efforts towards a more representative system of global economic architecture and creating a more accessible international trade regime would be increasingly significant. 

Official development assistance was a primary tool in reinforcing development efforts of developing countries, he said.  The official development assistance Turkey provided had been steadily increasing over recent years, and the country had become an “emerging donor” to Africa.  The Turkish International Cooperation and Development Agency had 22 field offices and was carrying out projects in a range of countries around the world.  Turkey had also become a global provider of significant humanitarian and technical aid.  His Government believed that improving the living conditions of over 600 million people residing in the least developed countries was a litmus test for “making poverty history”.  To that end, Turkey had hosted the annual ministerial conference on globalization and the least developed countries, where it had pledged additional financing for small and medium scale regional projects in those countries.  It was also funnelling Turkish investment to the least developed countries.

IRENE FREUDENSCHUSS-REICHL, Director General for Development Cooperation, Federal Ministry for European and International Affairs, Austria, said that since the 2002 International Conference on Financing for Development in Monterrey, Mexico, a number important developments had occurred.  First, the European Union had committed to a significant increase in official development assistance.  Austria shared that commitment, and had brought its official development assistance to .48 percent of gross national income in 2006, surpassing the set target of at least .33 per cent of gross national income.  Second, she said it had become apparent how severely dependent many partner countries’ budgets had become on external financing, which reduced the scope for national ownership.  Member States, therefore, needed to place more emphasis on strengthening the public finances of partner countries. 

Turning to trade, she said the hope placed in the Doha development round had not come to fruition, despite the negotiations in finalizing Economic Partnership Agreements.  Also, she said, the nexus of development and security was increasingly seen as crucial for securing sustainable gains, both in terms of freedom from fear and freedom from want.  The reform summit of 2005 acknowledged the importance of the nexis by establishing the Peacebuilding Commission.  Member States were directing significant financing towards developing countries via complex missions and were concerned with State fragility.  The International Commission must study how to maximize the developmental impact of such missions.  Further, the Monterrey Consensus had not been explicit on gender mainstreaming; yet how financing was generated and what opportunities were there for women -– from access to microcredits to insight on poverty reduction –- could have a significant impact on the results achieved.

CARLOS JAVITA, Director-General of the Institute for International Cooperation for Ecuador, said that while there had been some progress on some of the objectives of the Monterrey Consensus, many other commitments had not been met.  The same was true of the Millennium Development Goals.  Implementation of both of those frameworks had been hampered by lagging and unpredictable aid delivery.  Ecuador was concerned that official development assistance delivery mechanisms were not being adequately realigned with the needs of the twenty-first century, especially the development requirements of middle-income countries.  There was also a need for multilateral partners to support South-South cooperation.

He said that Ecuador was actively putting in place a truly democratic order that would provide benefits for all its citizens.  The Government was undertaking many reforms, in active partnership with civil society, and with an eye to addressing the needs of the most vulnerable communities and peoples.  Among other innovative initiatives, he said that Ecuador, one of the most biologically diverse countries on earth, had proposed during the Assembly’s general debate that it was prepared to make the tremendous sacrifice of not receiving nearly $720 million a year in revenue from oil extraction enterprises.

In return, Ecuador was expecting minimum compensation -- particularly from developed countries -- for environmental protection of the tracts of land being preserved.  That would be an extraordinary example of collective action at the global level, and would also mean a new model of economics that focused on issues other than compensation for “productive goods”.  Ecuador would call on all nations to consider such innovative ideas.

YUKIO TAKASU ( Japan) noted that sub-Saharan Africa still lagged behind in reaching their development targets.  Next May, Japan would host the fourth Tokyo International Conference on African Development, in conjunction with the United Nations, the United Nations Development Programme (UNDP) and the World Bank, where topics such as economic growth, security, environmental issues and climate change would be highlighted.  Japan was also raising its total of development assistance by $10 billion between 2005 and 2009, and would double its assistance to Africa in 2007 compared to 2003 levels.

Japan had also launched in 2005 an assistance programme aimed at building developing countries’ capacity for trade, he said.  As part of that programme, the Government expanded duty-free and quota-free market access for products from least developed countries, as well as promoted the “One Village, One Product” campaign that boosted exports in Ghana, Thailand and Malawi.  Believing capacity-building measures to be important, Japan’s approach towards foreign direct investment often included assistance in infrastructure development.  In view of the dramatic rise in trade and investment among countries of the South, Japan would continue to promote South-South cooperation.  During its presidency of the Group of Eight next year, Japan would ensure that outcomes from the May conference were reflected in that bloc’s July summit.

ABDALLAH AHMAD AL MURAD ( Kuwait) called on the World Trade Organization and the Bretton Woods institutions to establish a more equitable trade system, which took the needs of the poorest countries into consideration.  Kuwait itself, he said, had established the Kuwait Fund for Arab Economic Development in 1961, financed infrastructure projects in over 100 countries, and contributed to international and regional organizations for humanitarian relief.  He called on developed countries to provide adequate financial and technological assistance and meet their commitment to spend 0.7 per cent of gross national product on official development assistance.  He commended the efforts of developing countries towards good governance, rule of law, overcoming corruption, and the establishment of democracy.

He expressed appreciation to the Group of Eight countries and the European Union for their initiatives on debt forgiveness, and called for a paradigm shift for debt restructuring that would lead to self-regenerating growth in debt distressed countries.  Without such restructuring and the release of resources for poverty alleviation, many countries would struggle to meet the Millennium Development Goals.  The Kuwait Fund for Arab Economic Development contributed to debt relief in 14 heavily-indebted countries of Africa by rescheduling their debts over a 40-year period, with a significant grace period and low interest rates.  Further, the time had come to fulfil the promises made at international conferences, in order to save lives and improve the standard of living for millions of people.

ROBLE OLHAYE ( Djibouti) said that, while there had been some progress on implementing the goals of Monterrey, particularly towards addressing the special needs of Africa, much remained to be done, especially in the area of improving the effectiveness and predictability of aid delivery.  There also needed to be enhanced efforts to ensure a more equitable global trading system.  The issue of concentration of aid flows also needed to be addressed.

Djibouti had been encouraged that the international financial institutions had pledged to work more closely with developing countries.  At the same time, those institutions needed to step up their reform efforts, particularly towards increasing the voice, participation and voting power of developing countries in their work.  He went on to acknowledge the importance of foreign direct investment, recalling that many Gulf countries were currently pouring billions of dollars into all regions of Africa, thus helping the respective countries improve their chances of reaching the Millennium Development Goals.

PIERRE CHELVALIER, Special Envoy of the Minister of Foreign Affairs of Belgium, said in many respects the consensus reached at Monterrey in 2002 had been the basis of substantive progress.  A growing number of countries had used international trade as an engine for strong economic growth, country ownership was generally accepted, nations recognized the importance of good governance, and a number of new actors had joined in new efforts for technical and financial cooperation.

He continued, saying today the large majority of people in the so-called “third world” lived in countries that had experienced remarkable growth rates and substantial improvements in living standards.  Yet, the real challenge was the dreadful condition of countries that have not benefited from that evolution –- most of which were in Africa.  The Monterrey review process leading to Doha needed to focus on that group of countries.

Finally, he said, the first pillar of the Monterrey consensus was the mobilization of domestic resources, and an effective resource mobilization strategy could not be implemented without a good resource allocation mechanism.  Efforts to increase the efficiency of public sector management must be strengthened.  Further, it was true that all too often, natural resources had fuelled armed conflict.  Yet, if well managed, the revenues from natural resources could result in a massive source of developmental finance.  Member States should work together to increase the transparency of contracts related to natural resources, work for global codes of conduct, and establish a binding set of international standards.

LIU ZHENMIN (China), associating himself with Pakistan’s statement on behalf of the Group of 77 and China, recalled that, at Monterrey, developing and developed countries had agreed to establish a “new partnership”, enhance policy continuity, and mobilize resources from all channels to promote common development.  Developing countries had made progress in reforming economic and financial systems, increasing investment in human resources development and infrastructure, and promoting economic stability –- all measures that had boosted private capital flows, improved trade competitiveness and increased exports.  However, many poor countries had been bypassed by investors.  Official development assistance dropped last year, and new trade protections had emerged.

“There is no short-cut to the settlement of these problems,” he said, adding that the most difficult part of financing for development was mobilizing funds for developing countries.  The global community must, on the one hand, provide financial assistance to developing countries and, on the other, create a favourable external environment for them to build their own capacity for mobilizing funds.

In that regard, several factors were important, he explained.  Capacity-building should be supported.  International institutions and donor countries should take into account recipient country needs when providing technical assistance in various areas.  Second, official development assistance should be increased, as it was “an important symbol of partnership” and gave the best expression to the theme of development.  Trade should also play its role as the engine of development.  Effective measures must be taken to increase developing countries’ competitiveness and give full play to their comparative advantages.  Moreover, new problems must be addressed to ward off financial risk, and international organizations should make concerted efforts to better manage the flow of international capital.  Finally, reform of the international financial architecture should be promoted, and take full account of developing country needs.

For its part, China would continue to improve its macroeconomic regulation and create an environment conducive to foreign investment, he said, noting that his country had also provided assistance to other developing countries.  He hoped that at next year’s meeting at Doha, parties would conduct pragmatic discussions and push for substantive progress in international cooperation in order to help eradicate poverty and promote common development.

JEAN-MARC HOSCHEIT ( Luxembourg) said the coming year was crucial for the United Nations development agenda, and no effort should be spared to push ahead with reaching a fair and equitable agreement in the World Trade Organization (WTO) Doha negotiations and towards implementation of the landmark Monterrey Consensus.  On that partnership, he said that, despite some progress, there had been some stagnation and even reversals in some cases.  It would take bold and innovative ideas and actions to achieve broader success in the six priority areas of the Consensus.

He stressed the importance of good governance, sound domestic polices and positive internal political dialogues on human rights, to not only provide an enabling environment for attracting investment, but also to spur home-grown development activities.  On international trade as an engine for development, he said developing countries must integrate effectively and intelligently into the world economy.  That would require efforts by all States to help boost developing country capacities and to promote relevant enabling environments.

ABDULRAHMAN AL MUFADHI ( Saudi Arabia) said that while there had been considerable advances in eradicating poverty and promoting sustained development, overall outcomes were mixed, as successes in Asia were accompanied by only modest growth, stagnation or decline in Africa.  Countries in conflict were seeing increases in poverty and inequality, while such better-performing countries as China and India still needed to address large-scale poverty.

He said that there had been widespread macroeconomic improvements and structural reforms conducive to private and public investment, and that there was a need to develop physical, institutional and financial infrastructure towards enhancing competitiveness.  He expressed disappointment in the state of negotiations on the Doha round, as trade was essential to progress, and called for the dismantling of trade distorting subsidies in developed countries.  Success of the Doha round was critical to ensuring orderly global economic integration.  While Saudi Arabia had consistently exceeded goals for official development assistance, it was disappointing that such assistance was generally declining.  He called for greater ambition from the donor community, and for assistance to be predictable, stable and aligned with recipient country strategies.

Orderly debt relief should be accompanied by coordinated debt management and financing for development, he said.  He welcomed ongoing efforts promoting the coherence of global monetary, financial and trading systems, and supported greater participation of developing countries in decision-making at the International Monetary Fund and the World Bank.  Further, he drew attention to the special needs of the least developed countries emerging from conflict, stressing the need for pre-emptive rather than reactive action in that area.  Poverty reduction would help avoid conflict.  Containment of geopolitical tensions was crucial for sustained poverty reduction and growth.

GILLES NOGHES ( Monaco) said that since the adoption of the Monterrey Consensus, Monaco’s contributions to development assistance had grown continuously, more than 25 per cent annually since 2003, with the goal of attaining 0.7 per cent of gross national income in contributions.  Whether technical or financial, Monaco’s contributions aimed at achieving the Millennium Development Goals in the fight against poverty, promoting education and health systems, fighting pandemic disease and protecting the environment.

Monaco aimed to provide assistance to the most vulnerable, he said, particularly through efforts to improve conditions for women and children.  Working with non-governmental organizations domestically and in recipient countries, Monaco was able to measure the success of its programmes.  In addition to making financial contributions to the United Nations and many of its agencies, Monaco had decided to open a line of credit, starting in 2008, of €250,000 for microcredit in Africa.

MARISOL ARGUETA DE BARILLAS ( El Salvador) said countries were undoubtedly responsible for their own social and economic development through investment in education, science and technology, democratic institutions and transparent public administration.  It was necessary to reduce the costs of remittances sent home by migrants working abroad, in order to ensure that such private funds were used for national projects fostering development and social well-being.  She called for increasing international financing for developing countries to help them boost exports and investment in commercial, technological and institutional infrastructure. 

Further, she called for swiftly and successfully concluding the Doha Development Round by creating a predictable, sustainable international trading system that would benefit all.  In recent years, middle-income countries had experienced a drop in official development assistance.  More than 41 per cent of the people in the 92 countries classified by the World Bank as middle-income lived in poverty.  Middle-income countries were having a tough time fighting poverty and making progress towards achieving the Millennium Development Goals.  They needed greater support from the international community.

South-South cooperation, as a complement to North-South cooperation, was important in helping middle-income countries achieve their development objectives, as was alleviating the external debt burden of developing countries, she said.  Debt-relief proposals made by the Paris Club and others should be implemented in such a way that the financial assistance given to developing countries did not replace official development assistance.  At the Second International Conference for Development Cooperation for Middle-income Countries, held in El Salvador a few weeks ago, countries formed the El Salvador Consensus, which aimed to generate international awareness about the importance of supporting middle-income nations’ development efforts.  The conference sponsors had asked the Secretary-General to circulate the El Salvador Consensus as an official document of the General Assembly and Economic and Social Council, she said, noting with satisfaction the reference to the document in the Secretary-General’s report on financing for development.  The preparatory process for the 2008 Review Conference on Financing for Development was a good opportunity for the Secretary-General to highlight the importance of middle-income countries’ development, and to ensure inclusion of that issue in the Review Conference’s work programme. 

JORGE VOTO-BERNALES ( Peru) said that there was a need to ensure greater official development assistance, on top of the commitments made at Monterrey, particularly to middle-income countries, to enhance their capacities in environmental protection and science and technology.  He said that such funds should also be targeted to domestic business opportunities and training.  There should also be fewer conditions placed on such funds, and transaction costs should be kept low.

He said that the international community should not pit middle-income and lower-income countries against each other.  The specific needs of each category should be equitably addressed.  All developing countries should have equal access to official development assistance as well as to technical assistance, trade support and social development-targeted funding.  In the long-agreed effort to ensure an equitable global trading system, the international community should also support strengthened South-South cooperation and regional trade schemes.

RODRIGO MALMIERCA DIAZ ( Cuba) said that five years after the Monterrey Consensus was adopted, long-lasting solutions to the issues discussed were still not being realized.  Financing for development was the outstanding item on that agenda.  It was agreed at Monterrey that increasing stable and predictable financial flows to developing countries was key to their economic growth.  Yet, despite promises made, official development assistance had actually decreased by 5.1 per cent when compared to 2005, while military expenditures had now reached $1 trillion annually.  With only 10 per cent of the military resources, the Millennium Development Goals could be reached.  Further, he said, developing countries continued to transfer resources to the developed world, raising the question of who financed whom.  He called for a mechanism to follow up commitments made for official development assistance.

Also, he said that, while it was important to seek innovative sources to finance development, they should not be used to replace official development assistance.  He supported the innovations of special drawing rights, a financial speculation tax and a carbon emission tax as of particular benefit to developing countries.  Further, he noted that, although there had been a slight increase in foreign direct investment, only a limited number of countries were benefiting from it.  He called for “special and differentiated” treatment, in keeping with a country’s level of development, to create equitable international trade.  The vicious cycle of indebtedness could not be relieved by “shy initiatives and relief measures”, he said.  Official development assistance should be unconditional.  Developed countries must show the political will to honour their commitments.

NASSIR ABDULAZIZ AL-NASSER ( Qatar) said that five years after the Monterrey Conference was held, the balance sheet reflected mixed results on the six topics that underpinned the Monterrey Consensus.  Many developing nations had made progress on the introduction of rational economic policies that ensured resources were provided, used effectively and improved local efforts to finance development.  But, despite efforts by developing countries to attract flows of direct foreign investment, inflows had remained uneven, and few developing countries had received a large share of those investments.  The world still awaited the successful completion of the Doha round negotiations in a manner that met the development needs of developing countries. 

Turning to official development assistance, he commended the efforts of many developing countries to implement the decisions of Monterrey and urged developed nations to honour their obligations, particularly the provision of aid on a predictable basis and in a more equalized manner.  He expressed concern that the size of official development assistance had declined in 2006 and, while noting the efforts of some countries to develop new and innovative methods of financing development, emphasized that those methods should be seen as additional assistance, rather than a substitute for the fundamental commitments that had been made by States -– particularly the agreement to give 0.7 per cent of their gross national income. 

Despite the positive results that had been achieved through the HIPC Initiative, there was still an urgent need for more donations and exemptions, he continued.  On systemic issues, action to strengthen and support the voice of developing countries in economic decision-making at the international level was urgently needed.  Qatar was looking forward to hosting the first Review Conference of the International Conference on Financing for Development in December 2008, he added.

VIRGILIO MARQUES FARIA, Director of International Organizations, Ministry of External Affairs, Angola, said the implementation of the Monterrey Consensus was critical to achieving internationally agreed development goals, including the Millennium Goals, and much needed to be done to ensure that financing for development was adequate enough to enable developing countries, particularly in Africa, to reach their development aspirations.  Angola supported the need to strengthen multilateral consultations on aspects of the international system, especially on the issue of a greater voice and increased participation of developing countries in global economic decision-making.

International trade was another important engine for development, and with the future of the multilateral trading system at a crossroads, it was critical that WTO negotiations on the Doha round make progress on agricultural issues, specifically relating to the persistence of price distorting subsidies and other tariff and non-tariff measures, he said.  External debt crises also erected obstacles to advancing the Millennium Goals, and he called for additional measures to ensure long-term debt sustainability through, among other things, increased grant-based financing and the cancellation of 100 per cent of official multilateral and bilateral debt of heavily indebted poor countries.  For its part, Angola had committed to accelerating economic growth and diversity in domestic financial sectors, adopting national macroeconomic policies that promoted sustained economic growth and a supportive investment climate.  Those, among other initiatives, had already led to significant progress in economic terms and in efforts towards achieving the Millennium Goals.

STEVE D. MATENJE ( Malawi) said whatever the level of resources available or additional resources that might be raised, countries like Malawi had limited access to those resources due to the allocation frameworks used by the international community, as well as the weak capacities of the countries to meet funding conditions.  Thus, those countries did not have the external resources needed to complement their own resources in achieving the Millennium Development Goals or to finance their own capital infrastructure to spur growth and reduce poverty on a sustainable basis.

Decisions on resource disbursement, he said, were based on Debt Sustainability Frameworks, Country Performance and Institutional Assessments, and localized Performance Assessment Frameworks.  These criteria had built in flaws, such as the “traffic light system” of the Debt Sustainability Frameworks that prevented least developed countries, such as Malawi, from accessing resources over and above the multilateral relief initiative and new financing facilities.  Further, the calculations of the scores using those criteria and subsequent decisions took significant time.

Malawi, he said, recommended that Member States revise allocation frameworks and calculation of indicators so that:  a premium could be given for recent strong progress in reforms; variables representing “need” could be Millennium Development Goals-oriented, rather than gross domestic product per capita; and finally, low scores could be seen as both indicators of performance, as well as justification of assistance. 

JALEL SNOUSSI ( Tunisia) said the international community had not done enough to follow up on the plan of action developed in Monterrey.  Nations were today making the same appeals they had made many times before regarding debt relief, trade, official development assistance and a more just international financing framework.  Implementation of the agreed upon objectives of the Monterrey Consensus would resolve those outstanding issues.  For example, the link between trade, development and financing had already been clearly defined.  Following up on that framework in the Doha round of talks would lead to progress and help overcome the current impasse.  Efforts to fulfil commitments on debt relief and official development assistance were also necessary to achieve progress.

Climate change was intrinsically linked to development, he said.  The effects of climate change were symptomatic of the economic world order and handicapped countries that were already suffering from a lack of financial and development resources.  The international community should focus its efforts to ensure that those countries received the help they needed.  Middle-income countries played an important role in development and the stabilization of the world economy.  Those countries should be better supported in their efforts.  Finally, he said the United Nations should create a mechanism to ensure proper follow-up on the commitments made in the Monterrey Consensus.  Without follow-up and implementation, poverty would continue to reign in the world and the Millennium Development Goals would never be fully achieved.

JUAN ANTONIO YANEZ-BARNUEVO ( Spain) said his Government had doubled its official development assistance since 2004 and was firmly committed to reaching the goal of 0.7 per cent by 2012.  The bulk of its aid had focused mainly on sub-Saharan Africa, but did not exclude other regions or least developing countries where the need was great.  A multilateral approach was important in development and, as such, his Government had strengthened its contribution to multilateral banks and organizations such as the United Nations.  An example of that was the United Nations-Spain Millennium Development Goals Achievement Fund launched at the end of 2006.

International financial organizations played a prominent role in development issues, he said, and his country remained committed to increasing contributions to funds allocated to least developed countries.  The international community should not neglect the issue of foreign debt relief and should continue to explore possibilities of exchange of debt for development.  Mechanisms to create innovative sources of development should also be supported, such as the International Finance Facility for Immunization, the Global Alliance for Vaccines and Immunization, and the Fast Track Initiative for Education for All.  He closed by calling on the international community to “act with urgency and ambition” to improve the instruments for development and widen the horizons in the fight against poverty.

ALDO MANTOVANI ( Italy) said that resources for development assistance were insufficient.  Italy was improving its ratio of official development assistance to gross national income, having more than doubled funds allocated to development, and contributed to the support of peacekeeping missions, the fight against AIDS and other diseases.  Innovative funding sources, such as tax levies for development and migrant remittances, must also be explored as additional financial resources, not replacements for official development assistance.  Other innovative financing possibilities focused on the health sector, including pharmaceutical company research into affordable vaccines and up-front financing for vaccine purchase by tapping into capital markets.

Italy had focused on assistance to the health sector last year, he said.  There was no way out of poverty without a hygienic environment, so that children could grow to adulthood.  Italy was increasing its contribution to the fight against the three great pandemics through the Global Fund.  All Italian initiatives were linked by the concept of ownership.  The five principles of the Declaration on Aid Effectiveness were crucial to improving the impact of aid in recipient countries.  Italy also supported the fostering of fair and sustainable trade.  The global aid for trade agenda should be studied and revised, giving proper weight to ethical considerations.

CLAUDIA BLUM ( Colombia) said five years after the Monterrey Consensus was adopted, many developing countries had expanded efforts to meet the financial challenges of development.  But, not enough had been done in the multilateral arena to help them.  Distortions and protectionist measures, as well as the use of non-tariff barriers, on international markets had thwarted developing countries’ efforts to make their economies more liberal and international.  In order to enable developing countries to achieve the Monterrey goals, it was necessary to promote coherence and consistency of international monetary, financial and trading systems; promote greater transparency in financial markets; restructure the international financial architecture to ensure greater involvement and participation of developing countries; and design and implement mechanisms to track progress in implementing the global partnership for development, as listed in Millennium Development Goal number eight.  It was also important to scale up financial and technical cooperation to middle-income countries to help them eradicate poverty and not risk reversing the development gains made thus far.

In recent years, Colombia had instituted social, macroeconomic and sustainable development policies that had put the country on track to achieve the Millennium targets, she said.  It had mobilized domestic resources for development, especially for education, housing, social welfare, environmental protection and energy; expanded its international trade; consolidated a clear and integrated financial framework; set up sound fiscal policies; and promoted an economic environment conducive to employment generation, domestic and foreign investment, and corporate social responsibility.

AHMED ABDULRAHMAN AL-JARMAN ( United Arab Emirates) said the United Arab Emirates had pursued a foreign policy based on mutual respect and constructive cooperation towards international development long before the 2002 Monterrey Conference.  Therefore, the recommendations out of Monterrey came in harmony with the goals of the United Arab Emirates, which was keen on mobilizing local resources -– particularly the reasonable use of oil revenue -– towards developing its own economy and that of friendly nations.

Continuing, he said the United Arab Emirates had created the appropriate environment for investment on the foreign level in its own country, and believed in giving the private sector a big role in development, making contribution accessible for all.  His country had joined bilateral and multilateral agreements in economic development through the Dubai Fund for Development, an organization that had overseen loans and grants of more than $70 billion to foreign aid.  The United Arab Emirate’s official development assistance was 3.5 per cent of the gross domestic product, which exceeded that stipulated by Monterrey, and the country contributed in kind to other United Nations programmes.  Additionally, the United Arab Emirates had reached out to participate in the reconstruction of countries emerging from armed conflicts and assimilated a large number of the poor coming from those areas into the working force, as part of its effort to eliminate poverty.  Finally, he said the United Arab Emirates reiterated its commitment to Monterrey and called for a broad and clearer vision in its implementation.

IVAN ROMERO MARTINEZ ( Honduras) said five years after Monterrey there had been some progress made, but at the same time there were many objectives that had not yet been achieved, especially related to financing for development.

Earlier in the morning, he said, a delegate indicated that official development assistance stood at 0.3 per cent of developed countries’ gross domestic product, which in real terms, was actually a decrease of 5.1 per cent.  Member States needed to find innovative forms to promote further development, and take a new approach towards mobilization of national financial resources.  Furthermore, the Millennium Development Goals were not viable unless the international community provided developing countries markets for exports with just prices, and eliminated unjust trade barriers.

Finally, he said, Honduras stood ready to participate in all international forums leading to better societies and better living standards.  If Member States created an atmosphere of confidence with clear goals regarding Doha, then they were moving in the right direction.

HENRI RAUBENHEIMER, Director, Economic Development, Department of Foreign Affairs, South Africa, associating himself with the statements made on behalf of the African Group and the Group of 77 and China, noted that the half-way point to achievement of the Millennium Development Goals had arrived.  With the rapid progress of globalization and the uncertain prospects of the global economy, the global economic, financial and social architecture had shifted even further in favour of developed countries.  He stressed that the impact of the monetary policies of developed countries, trade distorting subsidies and non-tariff barriers remained unresolved.  All economic indications were that globalization had yet to deliver the poor from dehumanizing poverty and hunger.  As stated at the 2005 World Summit, there needed to be a dramatic and urgent increase in resource flows to achieve the timely implementation of the Millennium Development Goals, especially in Africa.

Calling attention to United Nations conferences and summits, he said such substantive meetings had laid the necessary foundations to enhance development.  Because of these meetings, commitments had been made and systematic issues had been agreed upon.  For example, he said in Monterrey, Mexico in 2002, Heads of State and Government resolved to address the challenges of financing for development by ensuring that the twenty-first century was geared towards mobilizing and increasing the effective use of financial resources and achieving economic conditions needed to fulfil internationally agreed development goals, including those contained in the Millennium Declaration.  That demanded a new partnership between developed and developing countries.

However, he added, five years post-Monterrey, the full and timely implementation of the Monterrey Consensus, including all the outcomes of major conferences and summits, had yet to be achieved.  He called for a follow-up to the International Conference on Financing for Development, which would require decisive action on commitments made at summits and conferences.  In that regard, he said he could not overemphasize the need for the United Nations to promote international cooperation for development and the coherence, coordination and implementation of internationally agreed upon actions.  He also stressed the need for strengthening coordination within the United Nations system, including with the Bretton Woods institutions, to support sustained economic growth, the eradication of poverty and hunger and sustainable development in developing countries.  He said next year’s conference in Qatar would provide an opportunity for the United Nations to monitor, track progress and review implementation of the Monterrey Consensus and establish a mechanism for doing the same for its follow-up.  Concluding, he reiterated the call to developed countries for the full and timely implementation of the global partnership for development.

MARIA LUIZA RIBEIRO VIOTTI ( Brazil) said her country fully concurred with the notion that all nations were responsible for their own development, and that international cooperation should support those efforts.  To that end, Brazil’s economic policy had been successful in reconciling macroeconomic stability and growth with income distribution.  One key achievement had been the significant reduction of poverty, with Brazil having achieved that specific objective of the Millennium Declaration 10 years ahead of the 2015 target date.  Some 40 million Brazilians had been lifted above the poverty line.

Brazil was hardly alone in its efforts, she continued.  Throughout the developing world, sound economic policies coupled with an enhanced investment climate had mobilized domestic resources, and it was clear that developing countries were fulfilling their commitments.  However, a global economic environment conducive to growth remained critical.  On trade matters, she urged developed countries to honour their Monterrey commitments to place developing country needs at the heart of the Doha trade round.  Meaningful progress on agriculture issues would greatly contribute to poverty reduction.

Also, South-South trade had become increasingly important, she explained, and the completion of current negotiations could strengthen commercial ties in the developing world.  Developing countries would benefit from enhanced market access brought about by the Doha round only if they could overcome domestic obstacles to export growth.  As such, Brazil had offered technical assistance on aid for trade within the framework of South-South cooperation.  The Doha Conference should not only review the implementation of Monterrey, but also discuss the launch of innovative finance mechanisms, such as the “Action against Hunger and Poverty” initiative launched by Brazil and its partners in the fifty-ninth session of the General Assembly.  Those mechanisms should complement an increase in official development assistance.  She added that all efforts in financing for development should centre on the humane and ethical dimension of economic growth.

MARIA RUBIALES ( Nicaragua) said to go beyond the Doha talks; it was time for a real effective solidarity between developed countries and developing countries.  That sort of alignment would lead to new ideas and commitments, which would in turn increase the confidence of foreign investors -– a key aspect for achieving the Millennium Development Goals.  In addition to solidarity, Member States needed to create a mechanism to oversee the implementation of agreements made at Doha.

On the part of Nicaragua, she said the country had undertaken a plan to reduce the level of poverty and increase public-private investments, particularly as they related to energy infrastructure.  In that regard, Nicaragua had entered into an agreement with the International Monetary Fund (IMF) to set in motion initiatives to fight hunger, enhance national productivity and create wealth among the country’s citizens.

Finally, she said, looking to Doha, there were six objectives needing accomplishment:  increasing the percentage of developed countries’ assistance contribution to 0.7 per cent of gross domestic product; ensuring that direct foreign investment played a role in development, especially in infrastructure; establishing more comprehensive external debt relief and multilateral debt relief initiatives; putting in place assistance from the international financial system to make sure liquid resources get to those countries most in need; and creating better conditions for trade.  Before anything, however, countries needed solidarity.

ANDREI DAPKIUNAS ( Belarus) said that there must be comprehensive use of all methods to ensure the flow of development resources.  Development assistance should be targeted, so that those countries in greater need would receive greater assistance.  He stressed the importance of creating fair conditions for international trade.  He said that the obstinacy of industrial countries was short-sighted in the face of an ever more globalized world, and that protectionism led to such disastrous consequences as increased flow of migrants, increased mistrust between States and an upsurge in extremism and terrorism.  He called for fair conditions for accession to the World Trade Organization, and the elimination of coercive economic measures as an instrument of policy.

He called for improving the international financial system and bridging the technological gap, proposing a thematic debate for the sixty-third session of the General Assembly on technologies of alternative and renewable energy resources as the common property of humankind.  He also asked for greater support for South-South cooperation, and expressed the hope that the Development Cooperation Forum would help to effectively monitor the implementation of prior agreements and promote the search for new opportunities to cooperate on financing for development.

ADULLAH ALSAIDI ( Yemen) said although Yemen was one of the countries that was least developed –- given the obstacles and lack of aid opportunities and services –- the effort towards achieving the Millennium Development Goals remained at the heart of the country’s policies and plans.

He continued, stating some statistics:  the average income per inhabitant of Yemen in 2005 was $600 a year; 36 per cent of the people lived below the poverty line; 10 million had no access to electricity and other amenities; and unemployment was at 37 per cent.  Yemen could not emphasize enough the importance of foreign assistance in the budgets of his and other least developed countries, but the volume of aid was not at a sufficient level.  The Secretary-General’s report indicated that aid had decreased significantly since 2002 –- 0.3 per cent of developed countries’ gross domestic product was far from sufficient for Millennium Development Goals projects.  All least developed countries needed their international partners to honour their commitments and allocate 0.7 per cent of their official development assistance.

Furthermore, he stressed the need for aid distribution to be equitable between all recipients.  Yemen’s share of official development assistance was much lower than that of other developing countries.  Member States needed to revise their policies and reconsider the money that was allocated to Yemen.  Additionally, the problem of extreme debt was a major obstacle for development, and it was crucial to examine the extension of the Debt Relief Initiative.  However, debt relief could not substitute for other development programmes.  Finally, regarding the Doha talks, the United Nations needed a mechanism to monitor and follow up on agreements made, especially with regard to opening up trade barriers.

S.E.M. EL MOSTAFA SAHEL ( Morocco) said today’s meeting constituted a key period for the Monterrey Consensus.  Indeed, the Consensus had given financing for development proper attention and underscored its diverse yet synergistic components:  internal and external resources, public and private resources, governance instruments and better allocation of resources.  Donors and developing countries alike had made efforts to realize commitments to meet the challenge of financing for development.

However, without the use of stable and predictable financing, many developing countries would be unable to attain the Millennium Development Goals, he continued.  At the mid-point for realizing the Goals, development indicators in many countries were lagging.  That was particularly true for African countries that had not seen poverty levels decrease over the years.  For African countries to attain their development objectives, combat poverty and address pandemics, mobilization of all development partners and methods was needed.

Developing countries had made considerable efforts in their reforms, and mobilized domestic resources in order to better satisfy development needs.  However, official development assistance had dropped and the debt burdens of developing countries continued to limit their ambitions.  It was urgent to reverse that trend.  Debt also continued to weigh on national budgets and destroy development efforts.  While he applauded commitments made recently under the HIPC Initiative, he said more must be done to alleviate the burden of heavily indebted countries.  Other measures must accompany those taken by middle-income developing countries for the sustainable management of external debt.

On trade matters, he said developing country expectations in the Doha round risked not being realized due to a lack of progress in negotiations.  Developing country products continued to confront tariff and non-tariff barriers in accessing developed country markets.  The Doha round represented one of the rare hopes in which developing countries could profit from opportunities offered by the international trading system.  Foreign direct investment was also an important source of financing.  However, he agreed that developing countries -– particularly the poorest among them –- had received the least amount of investment, and he called on States to support those countries in their efforts to attract foreign direct investment.  Aside from traditional financing sources, he expected the upcoming Doha conference to provide the best opportunity to consider other innovative sources.  In closing, he said Morocco was ready to contribute to a successful conference next year in Doha.

DANIELE D. BODINI ( San Marino) noted that many speakers had expressed mixed feelings regarding achievement of the Millennium Development Goals, due, in part, to donor unwillingness to fulfil commitments.  Expectations must be adjusted to take into account such factors as climate change, natural catastrophes, commodity price fluctuations, migration, epidemics, demographic explosions, financial turbulence and the man-made disasters of conflicts and terrorism.

Despite those challenges, he said, he believed that a great collective effort had been made so far and that a further good faith, sustained effort would lead to the achievement of the Millennium Development Goals.  He expressed approval of the central role of the General Assembly in monitoring, coordinating and planning the development process.

KHALID SHAWABKAH ( Jordan) said that poverty was worsening in the world.  International and regional policies must be synchronized to achieve the Millennium Development Goals.  The international economic order must be opened up.  Developing countries were trying to make use of local resources, but those resources must be complemented by external resources in order to implement national programmes.  National Governments must determine development priorities.  All countries must cooperate in providing modern technologies and know-how for development.

On domestic matters, he said that Jordan was one of 28 countries using taxes on airline tickets to fight disease.  It had developed bilateral and multilateral trade agreements, and was granting microcredits to small businesses so that they might contribute to the country’s development.  Last year, the Government invested $1 billion in programmes to generate employment and fight poverty.  Jobs were also generated in Government structures.  Loans were being made to women, and other projects dealing with agriculture, health and education were also under way.  He said that international assistance was necessary to achieving the Millennium Development Goals.

NOR-EDDINE BENFREHA ( Algeria) said the promises made in Monterrey were far from being fulfilled, and it was now time to redouble efforts to ensure full implementation.  Monterrey was the basis for a global partnership for development, and more efforts should be made to restructure the international financial architecture along the lines laid out in the Consensus.  Individual countries should do their utmost to mobilize resources for development and implement the Millennium Development Goals.  His country had already taken such initiatives and, as such, was on its way to achieving the Millennium Goals on time. 

National efforts were linked with international efforts, he said.  Currently, international efforts to mobilize resources for debt relief and official development assistance were uneven.  An increase in overall aid should be accompanied by a just schedule for repayment of debt, to allow aid to be most effective in improving development standards.  Monetary and financial crises could have serious effects on developing countries, and the United Nations, in cooperation with international financial institutions, should take the lead in developing a prudent approach to protect those countries.  Finally, he said developing countries should be better represented within those international financial institutions, since developing countries played the most crucial role in their own development.

FRANCIS K. BUTAGIRA ( Uganda) said that a clear consensus had emerged that if developing countries were to make any headway towards achieving the Millennium Goals, there was an urgent need for increased flow of development resources -- in a consistent and predictable manner -- through official development assistance, trade, debt relief and foreign direct investment.  While addressing that concern had been the objective of the Monterrey Consensus, many countries were concerned that such financial assistance flows were not being provided quickly enough.   Uganda shared the view that there was an urgent need to address this “implementation deficit”, while at the same time addressing issues that had not been adequately covered at Monterrey.

Like many developing countries, Uganda had tried to live up to its half of Monterrey’s shared objectives by adopting and transparently implementing national strategies for reaching the Millennium Development Goals.  The Government had put in place an “MDG-based” national development strategy that now guided the allocation of all development-targeted resources, whether domestically or externally mobilized.  To enhance the effectiveness of those resources, Uganda guaranteed private investors reasonable, just, transparent and stable market regulations.  Among other things, the Government was also trying to widen its tax base, including through progressive taxes, in an effort to develop the capacity to raise domestic resources for development.

Looking outward, he said that follow-up to the Monterrey Consensus was one of the crucial issues not covered at the First International Conference on Financing for Development.  Indeed, while there were no outstanding commitments from that Conference left to discuss, since 2002 much support had been pledged to developing countries and little of it had been delivered.  How soon and in what fashion those pledges would be met was a cause of great concern for developing countries, as was the projected estimate that official development assistance would fall far short of its targets between now and 2010.  With all that in mind, he called for the creation of concrete mechanisms to follow up on commitments made by development partners, with the possibility of holding them accountable for the shortfalls.  Developing countries should not be made to base their development plans on false expectations, he said, stressing that accountability should be required of both donors and recipients.

HINDI ABDULATIF ( Libya) said that the relevant reports of the Secretary-General had been quite clear that many of the commitments made in the framework of the Millennium Declaration and the Monterrey Consensus were not being met on the ground.  Developing countries were now being held hostage to market fluctuations and international trade schemes, even though they had not been active participants in setting up such schemes and had not benefited from them.  The interference of central banks was proving to be an inefficient solution to the development challenges facing developing countries.

There was a need, therefore, to reinvigorate the partnership struck at Monterrey, especially stabilizing official development assistance delivery and strengthening the relationship between developing countries and the Bretton Woods institutions, the World Trade Organization and United Nations Conference on Trade and Development (UNCTAD), among others.  There was also a need to develop a fair and equitable global trading system.  Turning to the situation in Africa, he said that the United Nations concentrated much of its development work towards ensuring better livelihoods for the people of the continent.

He applauded Secretary-General Ban Ki-moon’s recent establishment of an African Steering Group on the Millennium Development Goals, which aimed to improve the chances of all Africans to achieve long-term development.  Despite the international efforts, many African countries, especially in the sub-Saharan region, were not on track to meet the Millennium Goals.  With that in mind, he noted a recent United Nations report which had called for the World Bank and other global financing institutions to radically reform the methods by which they intervened in countries’ development efforts.  At the same time, he hoped that Africa would not acquiesce to ready-made plans, but would take greater efforts to promote national ownership of development activities.  He added that Libya was also a proponent of South-South cooperation as a tool to spur development at the regional and local levels.

JORGE URBINA ORTEGA ( Costa Rica) said Costa Rica, like other middle-income countries, was receiving less international cooperation and external debt-relief from international financial institutions than in the past.  The World Bank had recently stated that 70 per cent of the world’s poor lived in countries that were progressing economically.  It was important to transcend the gross domestic product criteria used to qualify for assistance and credit, since the criteria did not take into account factors affecting development, such as growing income inequality, large pockets of poverty, and social, financial and institutional vulnerabilities.  Instead, it should incorporate such variables as a country’s efforts to achieve the Millennium targets, as well as promote democratic governance, respect for human rights, environmental conservation, world peace and the efficient, transparent use of development aid.  Donors must also design more coherent policies in line with the specific level of assistance needed in the middle-income country in question.  He referred Member States to the outcome of the two international conferences held earlier this year on development cooperation for middle-income countries.

He also pointed to the Costa Rica Consensus, an innovative mechanism for financing for development intended to complement, not replace, official development assistance.  The Consensus called on all developing countries to make greater efforts to invest public resources in their most pressing social needs, including those identified in the Millennium Development Goals.  A “one-size-fits-all” solution was not viable, but countries could step up efforts in similar ways to fight poverty, violence and inequality.  The Consensus also called on donor countries to incorporate specific official development assistance incentives for developing countries that made headway in increasing social investments and reducing military expenditures.  In 2006, world military spending reached a record $1.2 trillion.  According to the Millennium Project, all the millennium targets could have been achieved by 2006 with one-tenth of that amount.  But last year, members of the Organization for Economic Cooperation and Development (OECD) on average spent $1 on official development assistance for every $7.50 spent on armaments.  He called on donor countries to incorporate the Consensus’ ethical criteria into official development assistance programmes and debt-reduction mechanisms.

DANIEL CARMON ( Israel) said that since development financing depended heavily on the mobilization of both domestic and international funds, the efficacy, coherence and consistency of sound macroeconomic policies in developing countries must remain a priority.  The resulting attractive, stable and predictable investment environment would enhance the inflow of productive capital.  He added that, at the local level, policies and mechanisms should be geared towards attracting private sector investment and the building of a market economy.  Along with its bilateral development initiatives, Israel, for its part, actively supported international efforts such as the World Bank’s International Development Association programmes and the HIPC Initiative.   Israel had supported such programmes for a number of African countries and would continue to consider additional debt relief, to the extent that its resources allowed. 

As a former emerging economy now on track to join OECD, Israel recognized the importance of broadened trade horizons for economic development.  As with OECD countries, Israel believed in the basic values of open markets and democratic pluralism.  He said that Israel would encourage OECD members to increase official development assistance disbursements, which were an important complement to domestic resources and other sources of development financing.  Finally, he added that Israel was carefully following the WTO’s Doha development round and would urge negotiators to wrap up those talks as soon as possible.  That round needed to conclude with agreement on a balanced outcome, since trade was the chief external source of financing for development, promoting economic growth, and employment in both developing and partner countries.

CLAUDE HELLER (Mexico), aligning himself with the statement made on behalf of the Rio Group, called for flexibility in discussions on financing for development, noting that it was half-way between the Millennium Summit and the year 2015, yet progress made towards development for all was uneven and insufficient.  He reminded the Assembly that the objective was not the realization of an event, but that efforts should achieve the deepest possible impact.  Future discussions would be enriched if preparation for the Doha Conference, and the Conference itself, were inclusive of all relevant financing for development actors.  Further, the date of the Conference should maximize its impact.

Given the high technical level of the discussion at the Monterrey Consensus, he said it was practically impossible to exhaust or discuss each one of the sections of the Consensus to its required extent.  He considered it indispensable to carry out consultations, including those at the expert level, on the path towards the Doha Conference.  That way, each section of the Consensus could be dealt with individually.  Since the document reflected the common will of the international community, its contents should not be renegotiated.

Continuing, he said revisiting the Consensus was only useful if it strengthened and renovated the common vision.  For that reason, it was important to revise what had been achieved on fulfilling the objectives and renewing commitments, as well as to include subjects that were of strategic relevance.  He considered it necessary to establish an adequate level of coordination among the different initiatives and meetings on development.  However, he noted that each area of development had its own specialized forums and follow-up mechanisms.  Nevertheless, given the holistic and transversal perspective of the Consensus, knowledge and experiences acquired since the subscription of the Consensus should contribute to international efforts towards development.  Furthermore, a follow-up mechanism to the Consensus should be strengthened.  Political interest in the Conference would depend on the perception created about its opportunity, long-term vision and usefulness, he said.

ABDERRAHIM OULD HADRAMI ( Mauritania) said the Monterrey Consensus demonstrated the growing concern of the international community over the gap between countries of the North and South.  Audacious, innovative measures must be undertaken immediately that would be felt in the daily lives of people.  He joined the Secretary-General’s appeal to donor countries to honour their commitments and increase the flow of assistance -- apart from debt relief and urgent technical assistance -- to achieve international development goals.

Mauritania had recently undergone a transition to democracy that put its democratic system on a healthy foundation.  The newly elected Government had undertaken urgent measures to establish a development plan for the next three years that would improve lives and lead to achievement of the Millennium Development Goals.  Priority was being given to national unity through refugee return; to investment in human resources through education, health and professional training; to building infrastructure to support growth, generate employment and improve transport; to improving access to basic services; and to balanced development of national infrastructure.  The Mauritanian Government had mobilized all internal resources towards those goals, as well as external resources currently available, and counted on the international community to provide assistance for the development plan which came to $1.3 billion.

AURA MAHUAMPI RODRIGUEZ DE ORTIZ ( Venezuela) said public-private partnerships were important for mobilizing financial resources for development.  It was important to have fair international prices for basic products and to foster productivity.  She stressed the importance of establishing national and international regulations that worked to expand social guarantees and stability, create decent jobs, and preserve the environment.  Developed countries must make good on their promise to channel 0.7 per cent of gross domestic product into official development assistance for developing countries without imposing conditions on the recipient nations.  International financial institutions must significantly reduce developing countries’ external debt burdens.  The Millennium Development Goals would not be achieved by 2015 if a truly democratic international financial system was not put into place.  Further, it was important to restart the stalled Doha Development Round and overcome the obstacles to its successful conclusion. 

She said Venezuela had developed South-South cooperation initiatives in financing, energy and humanitarian and social affairs in an effort to achieve national development.  It had devised integral financing mechanisms and socially responsible financial institutions such as the Bank of the South.  Further, it was participating in regional cooperation initiatives in energy such as Petrocaribe, Petrosur and Petroamerica, and had formed cooperation alliances with Latin American and Asian countries.  Initiatives with African countries were planned for the future.  ALBA, the Bolivarian Alternative for Our American Peoples, was an unprecedented effort to build free trade mechanisms among Latin American countries aimed at eradicating poverty.  She would have preferred greater emphasis in the report on the Monterrey follow-up (document A/62/217) on the progress made in achieving the Goals and the economic realities of developing countries struggling to implement national development plans.

COLLIN BECK ( Solomon Islands) said improvement was needed in enhancing ownership, and coordinating and harmonizing donor funds to the development needs of the recipient.  He called for reform of the Bretton Woods institutions to make them more representative, democratic and inclusive in decision-making processes, and also supported conversion of debt into equity financing for projects to achieve the Millennium Development Goals.

He said he hoped the Doha conference would lead to debt relief for the least developed countries; the Doha round of trade negotiations must be completed and lead to market access, a rule-based system, and assistance to States with developing markets in making necessary adjustments.  Special attention must be given to the least developed countries and small island developing States.

He expressed concern at the slow and uneven distribution of finances for development, noting that more United Nations resources went to peace and security than to development.  He called for “balancing the scale”, and asked the Secretary-General to study how best to support the Economic and Social Council and the Department of Economic and Social Affairs to strengthen their mandates in preparation for the Doha Conference.  He appealed for the simplification of access to financing without conditionality, faster turn-around time for proposals, and disbursement of complete rather than partial funding.  He also said that carbon credits for forest conservation would relieve the pressure from commercial logging, the principle source of income in the Solomon Islands.

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For information media • not an official record