World Conference on Financing for Development Forges ‘New Financial Alliance’ as Global Leaders Conclude Summit with Adoption of Addis Ababa Action Agenda
ADDIS ABABA (16 July) — World leaders agreed that strengthening cooperation in technology, infrastructure and social protections to drive prosperity was key to realizing inclusive, sustainable development, as the Third International Conference on Financing for Development concluded this evening in Addis Ababa with the adoption of an outcome text — described by some as a “new financial alliance”.
Called a “a critical step forward” by United Nations Secretary-General Ban Ki-moon, the Addis Ababa Action Agenda provides a foundation for implementing the global sustainable development agenda that leaders are expected to adopt this September, speakers affirmed. Financing, many agreed, was the “linchpin” of the new agenda, which will be driven by the implementation of 17 sustainable development goals.
Under-Secretary-General for Economic Affairs Wu Hongbo said “this has been a historic conference”, delivering an outcome that met the high expectations of people around the world. To succeed, “we need all stakeholders on board” working together towards common goals: Governments, financial and trade institutions, civil society, the business sector, philanthropy and academia.
Most importantly, he said, the outcome was one of collective efforts by Member States. The new framework would help align finance flows — domestic and international, public and private — with economic, social and environmental priorities. Its policy actions drew upon all sources of finance, technology, innovation, trade and data, mobilizing the means for a global transformation towards sustainable development.
Through the text, countries agreed that domestic resource mobilization was central to the agenda, notably through measures that widened the revenue base, improved tax collection and combatted both tax evasion and illicit financial flows. At the same time, they reaffirmed their commitment to official development assistance (ODA), particularly for least developed countries, pledging to increase South-South cooperation.
Other commitments were made in matters crucial for sustainable development. In the area of technology, for example, countries agreed to establish a Technology Facilitation Mechanism to enhance collaboration among Governments, civil society, the private sector and others. A new Global Infrastructure Forum would identify and address infrastructure gaps and highlight opportunities for investment. Through a new “social compact”, Governments agreed to provide social protection systems for all, including social protection floors.
In the area of assistance, developed countries, through the text, committed to reversing declines in aid to the poorest countries, with the European Union committing to increase aid to least developed countries to 0.2 per cent of gross national income (GNI) by 2030. In the widely debated area of taxation, the agenda called for strengthening support to the United Nations Committee of Experts on International Cooperation in Tax Matters to improve its effectiveness.
Countries also stressed the importance of nationally owned sustainable development strategies, supported by integrated national financing frameworks. “We reiterate that each country has primary responsibility for its own economic and social development and that the role of national policies and development strategies cannot be overemphasized,” ministers stated in the agreement.
After the adoption, several delegations took the floor to express appreciation for the hard-won accord, while some explained their reservations to parts of the text, especially regarding the principle of common but differentiated responsibilities, which they said deserved explicit emphasis. Some speakers made the point that references to the United Nations Convention on the Law of the Sea should not be construed as a change in their established positions on that instrument, while others said the non-binding nature of the action agenda did not create rights or obligations under international law.
Giving voice to many of those concerns, South Africa’s representative, on behalf of the “Group of 77” developing countries and China, regretted certain omissions, such as the need to fully upgrade the Tax Committee into an intergovernmental body, to make an explicit reference to countries and people living under foreign occupation, to explicitly address the lifting of coercive measures and to clarify that climate financing did not count as ODA, nor could it be mixed with traditional development finance.
In his closing remarks, Sam Kahamba Kutesa, President of the General Assembly, expressing pride in the accomplishments of the Conference and thanking all those involved, said: “The Addis Ababa Agenda demonstrates our collective resolve to build a better future for all in a more equal and sustainable world.”
In other matters, delegates adopted a draft resolution approving the report of the Credentials Committee, introduced by its Chair, Abulkalam Abdul Momen (Bangladesh). They also adopted the draft report of the Conference, introduced by Rapporteur-General Andreas Mavroyiannis (Cyprus), with a view to submitting it to the General Assembly’s sixty-ninth session. The report of the Main Committee was introduced by its Chair, Tedros Adhanom Ghebreyesus.
Finally, it adopted a draft resolution titled “Expression of thanks to the people and Government of Ethiopia”, introduced by the representative of South Africa, on behalf of the “Group of 77” developing countries and China.
Speaking in the general debate earlier today were ministers and other senior officials from Guinea, Democratic Republic of the Congo, Guinea-Bissau, Tonga, Maldives (on behalf of the Alliance of Small Island States (AOSIS)), Pakistan, Uruguay, Argentina, Australia, New Zealand, Cyprus, Sri Lanka, Singapore, Peru, Syria, Solomon Islands, Monaco, Romania, Lebanon, Slovenia, Suriname, Portugal, Indonesia, Honduras, Palau, Brazil and Vanuatu.
Representatives of the following organizations also participated: Caribbean Community, International Anti-Corruption Academy, International Organization of La Francophonie, International Union for Conservation of Nature and Natural Resources (IUCN), OPEC Fund for International Development, Commonwealth Secretariat, South Centre, League of Arab States, International Labour Organization (ILO), Economic Commission for Asia and the Pacific (ESCAP), World Food Programme (WFP), and the United Nations Educational, Scientific and Cultural Organization (UNESCO).
Also, the Joint United Nations Programme on HIV/AIDS (UNAIDS), United Nations Entity for Gender Equality and the Empowerment of Women (UN-Women), United Nations Children’s Fund (UNICEF), Office of the United Nations High Commissioner for Human Rights (OHCHR), Organisation for Economic Cooperation and Development (OECD), United Nations Industrial Development Organization (UNIDO), International Telecommunication Union (ITU) and United Nations High Commissioner for Refugees.
Additional speakers in explanation of position were the representatives of Benin (on behalf of the least developed countries), Maldives (on behalf of AOSIS), United States, Turkey, Venezuela, Bolivia, Japan, Nigeria, Malawi, Nicaragua, Switzerland, Ecuador and Canada, as well as the representative of the European Union.
Statements
MOHAMED DIARE, Minister of State, Minister of Economy and Finance of Guinea, said that financing the upcoming agenda for sustainable development required cooperation of all sectors and all Governments. Efforts to defeat hunger and malnutrition must be stepped up, as well as the strengthening of infrastructure, industrialization, ecosystems, peace and basic services for all. Describing his country’s efforts in that area, he said that the disruptions of the Ebola crisis showed that the social elements of development had to be further prioritized. He reiterated the appeal, in that context, to cancel the debt of Ebola-effected countries, which would allow more space for sustainable development efforts. He hoped that the outcome of the Conference would lead to a better world and a better life for its citizens.
HENRI YAV MULAND, Minister of Finance of the Democratic Republic of Congo, associating with least developed countries and the “Group of 77” developing countries and China, affirmed the importance of common but differentiated responsibilities and emphasized the challenges that long-term conflict plagued his country. He appealed to all partners to respect the commitments made to assist his country. There had been vigorous growth and major reforms along with efforts to attract financing and protect its resources, critical to mitigating climate change. He further appealed for resources for sustainable energy projects. The Conference was a historic opportunity to improve conditions for the entire world.
DEGO MENDES, Secretary of State for Planning of Guinea-Bissau, thanked all donors and private-sector representatives for the new vision laid out by his Government, giving the country a chance to move out of conflict and poverty. He pledged his Government’s commitment to good governance and the preservation of biodiversity, while promoting economic growth. To face the great challenge of financing for those purposes, new strategies were needed to reduce the informal sector and broaden the tax base. Education and health sectors were also being enhanced. Help was needed to train more young people for opportunities, particularly women. He pledged that his country would do its part and he called for aid on the principle of common but differentiated responsibilities. South-South cooperation should be augmented and North-South cooperation should remain intact.
AISAKE VALUE EKE, Minister of Finance and Planning of Tonga, emphasized that financing from all sources, domestic and international, public and private, from transfer of technology and capacity-building assistance to enabling policy environments was critically important to advancing sustainable development. Having all the vulnerabilities of a small island developing State, Tonga called for increased partnership in all forms for countries in its situation, in line with the Samoa agreements. The strong outcome of this Conference would be a critical pillar to leaving no countries or individuals behind; however, it would not be the panacea to implementation of the post-2015 agenda.
MOHAMED JALEEL, Senior Advisor to the Minister of Finance and Treasury of Maldives, speaking on behalf of the Alliance of Small Island States (AOSIS), outlined the vulnerabilities of those countries: small economies and populations dispersed in vast areas of sea, and susceptibility to climate change and natural disasters. High levels of public debt were also characteristic. Yet, those States received just 5.7 per cent of total official development assistance (ODA). He appealed for enhanced partnerships so that the small islands were not left behind, particularly since they were on the “front lines” of climate change. It was important to revisit criteria for concessional finance so that vulnerabilities were taken into account and not just gross domestic product (GDP) per capita, as well as step up capacity-building, while increasing participation of small islands in an international norm setting. It was only through such measures that the promise of development for all could be realized.
TAJ HAIDER (Pakistan) said it was important to ensure accountability in the fulfilment of commitments for development financing. There had been progress since Monterrey, but implementation had been too little too late. Needs could not be postponed forever. He hoped that this Conference would spur adequate support to reach the sustainable development goals, under the principle of common but differentiated responsibility. Outlining the many challenges in his country, including poverty, extremism, conflict and resultant debt, he described recent policy transformations that enhanced effective use of international development assistance and established an environment conducive to investment. Public-private partnerships were expanding. Fair trade, adequate ODA, greater cooperation in tax matters, and access to climate change adaptation funds were needed for further progress in all developing countries. Turning to the outcome document, he expressed deep disappointment at the lack of debt relief provisions. He urged, however, that the promises of partnership expressed be built upon to create a better world, if not in his lifetime, then in that of future generations.
ENRIQUE LOEDEL, Deputy Director General for Political Affairs of Uruguay, associating with the Group of 77 and China, and the Community of Latin American and Caribbean States (CELAC), stressed the importance of common but differentiated responsibilities in the context of sustainable development. The Conference had a broad framework to assess and correct, and to start a new alliance for sustainable development. Commitments made in recent decades could not be overlooked. Outlining areas to be reflected in the action plan, he cited States’ primary role in developing sustainable development policies, maintenance of the holistic vision achieved at the Monterrey Conference, the need to ensure financing for development in the context of combating capital flight, while ensuring both transparency and accountability. Private finance must not replace public finance, and Uruguay had used public-private partnerships in the areas of renewable energy, penitentiaries and roads. New modes for trade and investment agreements must be reached. He supported new mechanisms, such as triangular cooperation, stressing the need for strong follow-up of the new agenda.
ADRIÁN ROBERTO NADOR, Undersecretary for International Economic Negotiations of Argentina, said concentration of resources in the hands of the few increased social instability and affected Governments the world over. The search for more inclusion was a main task. The mobilization of domestic resources was a key objective, and Argentina was working with others on international tax issues, welcoming gains in transparency and tax information exchange. “Vulture funds” targeted heavily indebted poor countries and it behoved the United Nations to end such blatant immorality. That was a political decision. “Are we going to just let the most vulnerable countries fall prey to the law of the jungle?” he asked. Recalling that Argentina had recently carried out sovereign debt restructuring, he said three years later, a vulture fund achieved a right to obtain 16 times its initial investment. All sovereign debt was vulnerable to attacks, he said, citing “anti-vulture” legislation in Belgium, and adding that investors buying a small amount of sovereign debt would not be able to obtain much more than their initial investment.
EWEN MCDONALD, Deputy Secretary, Department of Foreign Affairs and Trade of Australia, said “we need to do development, and development finance, differently”. The Addis agenda provided a new toolkit; clearly, future financing of development relied on domestic resource mobilization, access to finance and markets, and the “crowding-in” of private-sector investment. Governments must adopt policies that promoted growth, created fair tax regimes that mobilized domestic resources, invested in health and education, enabled business to grow, and ensured that people had essential services and productive work. ODA, a limited resource, should be used to both catalyse other financial flows and fill financing gaps in vulnerable countries. Australia prioritized women and girls, and it was part of the Addis Tax Initiative, launched yesterday. The country also was addressing gaps in infrastructure investment. It had increased the use of public-private partnerships and committed to increase the share of its aid budget spent on “aid for trade” to 20 per cent by 2020.
JONATHAN KINGS, Deputy Secretary, International Development, Ministry of Foreign Affairs and Trade of New Zealand, said the action agenda provided an effective financing framework for achieving the sustainable development goals. While embracing the need for focus on ODA, he welcomed the agenda’s recognition of the rich variety of sources to finance development aspirations. Also, it emphasized the unique financing needs of small island developing States, and he urged the international financial community to seek new mechanisms to support those States in accessing affordable development finance. Noting that remittances to developing countries reached $436 billion last year, he said efforts to reduce costs could have large benefits for people in those countries. Also, curbing illicit financial flows and enhancing domestic resource mobilization could save seven times as much as ODA currently provided, while removing harmful subsidies, such as those on fossil fuels, would free up other resources.
ANDREAS MAVROYIANNIS, Special Ministerial Envoy of Cyprus, advocated a holistic approach to sustainable development that factored in climate change, which would not only inhibit development but threaten human security. South-South cooperation, the private sector, philanthropic organizations and public-private partnerships were some of the new indispensable development players. At the same time, ODA would continue to play a crucial role, and Cyprus was committed to delivering its share from the European Union’s collective commitment. Cyprus was also committed to a new partnership encompassing all means of implementation. An enabling policy framework at national and global levels was crucial, and capacity-building, access to markets, technology and innovation were equally important. Given the importance of targeting aid to areas of greatest need, he urged greater focus on least developed countries, Africa and countries emerging from conflict.
V. KRISHNAMOORTHY, Chairman of Delegation of Sri Lanka, said that while financing and technology transfer were critical to the implementation of the Millennium Development Goals, they were seriously lacking, which limited implementation. They again would play a pivotal role in the realization of the new sustainable development agenda. The Conference should establish a revitalized global partnership, where developed nations honoured ODA commitments. Supporting the creation of a technology facilitation mechanism and ensuring follow-up to the development financing outcomes were also critical. The process would need vigorous, inclusive and transparent follow-up. Enabling environments were needed, he said, recognizing the link between sustainable development and good governance.
T. JASUDASEN, Special Representative of the Minister for Foreign Affairs of Singapore, said ODA would remain a key pillar of financing for development, with least developed countries and small island developing States in particular requiring increased support. In that context he welcomed that Denmark, Luxembourg, Norway, Sweden and the United Kingdom had met their ODA targets. At the same time, developing countries must come together to address sustainable development challenges, including through South-South cooperation in technical assistance in particular. Singapore’s push for economic development was accompanied by social development and environmental protection. It had benefitted from technical assistance from developed countries and was committed to giving back through the Singapore Cooperation Programme. It also announced in September a three-year technical cooperation package for small island developing States.
GUSTAVO MEZA-CUANDRA (Peru), welcoming the outcome of the Conference to be adopted today, said that there must be effective monitoring of all development efforts, as well as urgent action to combat the effects of climate change. His country had transformed its economy over one generation through macroeconomic restructuring, with great reductions in poverty. For further progress, social and financial inclusion was crucial. Public-private partnerships could play an important role in that regard. Middle-income countries such as his own had specific vulnerabilities that required consideration of new assistance addressed by the new agenda. He welcomed better access to new technologies in that context, adding the need for a new paradigm for cooperation to achieve current aspirations.
HABIB ABBAS (Syria), associating with the Group of 77 and China, said that his country had followed international guidelines for inclusive development, with investment mobilized for the education and health sectors and support for agriculture, among many other efforts. It had not built up debt and had aimed to integrate into the global economy. Legislation had promoted women’s empowerment. Affirming the need to increase assistance to the poorest countries, he stressed the need to end politicization of aid and illicit financial flows. He emphasized that terrorism was now responsible for destroying the infrastructure of several countries and was greatly hindering development. For that reason, he called for renewed international commitment to fight terrorism whatever its causes.
COLLIN BECK (Solomon Islands), associating with the Group of 77 and China and the groups representing vulnerable and small island States such as his own, said those countries’ vulnerability was exacerbated by climate change. Building a resilient economy in his country required significant international cooperation in constructing environmentally sound infrastructure, especially in the areas of energy, transportation, communication, agriculture and communications technology. He looked forward to the operationalization of the Technology Bank to be established in Turkey. Getting the trade system right was also essential. As international public finance remained his country’s major source of funding, he also looked forward to the new partnership promised by the Conference outcome that respected national sovereignty and priorities.
VALERIE S. BRUELL-MELCHIOR (Monaco) said that her country pursued people-centred development assistance, focusing on health, education, socio-economic development and the environment’s protection. Its assistance was solely in the form of grants, focused on the neediest countries. She reiterated her country’s interest in the establishment of development goals related to the health of the oceans due to their enormous economic and environmental importance. Technology transfers were critical for enabling sustainable and inclusive growth, she added.
GABRIEL CONSTANTIN BARTAS, Chairman of Delegation of Romania, associating with the European Union, said a single accountability, review and monitoring mechanism for the agenda must be established, avoiding duplication. The Addis outcome should address all means of implementation issues in a balanced and universal manner. Financial means of implementation should be given equal weight to good policies and other non-financial means. Each country faced different challenges and the world had enough resources to meet them if supported by appropriate policies. For some countries, the first priority might be tackling basic social services, while for others, it might be energy efficiency or public debt. The new global partnership should be based on human rights, equality, non-discrimination and good governance, among other things. A new donor as of 2007, Romania had worked to enhance its capacity and become more actively involved in the international dialogue on development.
NAWAF SALAM (Lebanon) said adequate financing — international and domestic, public and private — technology transfer and capacity-building were not enough to foster sustainable development. An enabling environment was needed. The biggest challenge facing his country was the growing displacement of refugees precipitated by the crisis in Syria. Lebanon was hosting more than 1.2 million registered Syrian refugees, and about 45,000 Palestinian refugees from Syria — one third of his country’s population. The crisis had had a devastating impact on Lebanon’s security, development, economic activity and social progress, over-stretching its social services. Humanitarian funding had fallen short of needs and the wider purse of development funds must be tapped. He called on donors, international financial institutions, United Nations agencies and others to help, welcoming recognition of that issue in the Addis action agenda.
ANDREJ LOGAR (Slovenia), underlining the importance of policy coherence in the implementation of a transformative post-2015 agenda, said it was crucial to address systemic issues such as trade and international financial marketing systems, in order to prevent crises such as the recent one through stricter regulations. Reform should also include enhancement of voting rights in international finance institutions and conclusion of the reform of quotas in the International Monetary Fund (IMF). Affirming the catalytic importance of ODA, he stated that his country was formulating plans to gradually increase such aid with special attention to improving quality. With the primary responsibility for development held by each country, such funds should be put to the best use based on principles of good governance and inclusion, in line with its own development path.
HENRY MAC-DONALD (Suriname), stressing that people-centred development should pursue an integrated path to implementation, described the priority of social development in his country’s domestic investment, made possible by restructuring of the economy. Developments in the global economy had slowed growth, however, and despite new strategic priorities, domestic resources would not be enough to realize all goals for sustainable development, particularly in light of climate change, for which he looked forward to a comprehensive global agreement.
MARCELO SCAPPINI RICCIARDI (Paraguay), affirming that the Addis action agenda strengthened the agreements reached in Monterrey, stressed the importance of international partnership. Global trade was particularly important to Paraguay, and it was important to acknowledge the specific needs of landlocked developing countries. Despite reducing poverty, people must be further trained; for that reason, communications technologies were critical. He maintained that the action agenda to be adopted had much in common with Paraguay’s national development plan, as it focused on the needs of the most vulnerable. For that reason, developed countries must bolster cooperation for landlocked and other countries, according to their specific needs. A new alliance between developed and developing countries must now be forged so that no one was left behind.
GONÇALO MARQUES, Vice-President, Development Agency of Portugal, associating with the European Union, said the world had changed, and countries, such as emerging economies, could now play an increasingly important role in the international sphere. There was a variety of actors with unquestionable intervention capacities and resources, which should be maximized. He advocated for a more pragmatic adoption of policies aimed at an effective combination of financial and non-financial, public and private means of implementation. ODA should not be seen as the main or single instrument of international cooperation. He supported the need to define a broader measurement, complementary to ODA, which better reflected the spectrum of efforts made to support sustainable development. Political commitment and promotion of an enabling environment were among the most important means of implementation for the agenda’s success.
IMAM SANTOSO (Indonesia), associating with the Group of 77 and China, stressed the importance of international stability, increasing representation of developing countries in global economic governance and international cooperation in dealing with tax-base erosion, profit-shifting and illicit financial flows. He said that disbursement of unmet ODA at the rate of 0.7 per cent of GNP remained imperative, while strengthening of South-South cooperation was also of importance, as was market access for developing countries. Calling for enhanced, multi-stakeholder partnership, he pledged Indonesia’s continued commitment to do its part in keeping a sound domestic macroeconomy with control of debt and inflation.
ALEJANDRO PALMA CERNA, Chairman of Delegation of Honduras, associating with Community of Latin American and Caribbean States, and the Group of 77 and China, said South-South and triangular cooperation allowed for sharing experiences. His Government was also interested in private investment, as well as opportunities for ODA. But innovative modalities for cooperation should not be a substitute for North-South cooperation, and he encouraged developed countries to meet the 0.7 per cent ODA target. There was no single formula for guaranteeing development, meaning that each country must assess its needs. To achieve the new goals, efforts from different actors must combine through shared but differentiated responsibilities. He supported the multidimensional poverty index as a way to ensure that no one was on the sidelines of poverty eradication efforts. In addition, a mechanism for the follow up of the financing process should be implemented.
CALEB OTTO, Chairman of Delegation of Palau, said reaching the common goal of sustainable development would depend on “who will be on the road and how well we walk together”. Political will would be needed to “help each other along the way”. Thus, the Addis action agenda indicated who needed help and who could render assistance, he said, welcoming that least developed countries, landlocked countries and small island developing States were reflected in the document. Partnership was an important means of implementation. The President had announced plans to declare Palau’s exclusive economic zone of nearly half a million square miles as a national marine sanctuary. Palau would need partners for finance, technology and capacity to address the challenges of that vision, as well as to help the country increase renewable energy.
CARLOS COZENDEY (Brazil) stressed that the Conference was not the end of a road, but the beginning of a common journey to deliver the means to implement the Rio+20 vision, especially for those most in need. In a world of colossal disparities and inequalities, each country must contribute its fair share, in accordance with its level of development, historical responsibility and respective capacity. In addition to development assistance, he highlighted the importance of cooperation in managing taxes and international financial flows and enhancing South-South cooperation, for which African countries were currently the main partners of Brazil. Welcoming the action agenda’s recognition of the complementary relationship of South-South cooperation to North-South cooperation, he nevertheless regretted the lack of new commitments on ODA and a failure to establish a better monitoring mechanism for such aid.
ODO TEVI (Vanuatu), associating with the Group of 77 and China, and AOSIS, said some countries faced high indebtedness and insufficient fiscal space continued to be a challenge. Also, there were more than 60 million refugees displaced by conflict and violence, a record since the Second World War. Incorporation of the post-2015 agenda into national sustainable development plans was paramount. Vanuatu’s vulnerability was a major obstacle to achieving its development efforts and climate change was an important issue to address. On development financing, he urged States to reform their tax systems, with a view to increasing their revenue base. There must be a stronger call for fulfilment of ODA commitments, as well as an accountability and review mechanism to ensure those targets were achieved. Major barriers to access to financing and savings also must be addressed.
IRWIN LAROCQUE, Secretary-General, Caribbean Community, said domestic and regional resource mobilization was necessary but insufficient to meet financing needs; external financial resources were critical. Continued access to multilateral and bilateral concessional financing was also crucial, the criteria for which must change to include the economic and environmental vulnerability of small island developing States. He welcomed proposals seeking to ease debt burdens, by converting multilateral and bilateral debt into special funds for external economic shocks.
MARTIN KREUTNER, Dean and Executive Secretary of the International Anti-Corruption Academy, advocated anti-corruption education and empowerment, as well as the exchange of best practices, noting that his organization’s activities would contribute to the achievement of the sustainable development goals in that regard. Highlighting the “let crime pay” principle, he said that by voluntarily allotting a percentage of the proceeds from crime or property confiscated, States could contribute to the sustainable development goals.
CECILE LEQUE-FOLCHINI, Deputy Head of Delegation, International Organization of La Francophonie, supported sustainable consumption and production. Mobilization of national resources based on strong partnership, transparency, and agreements between State and non-State actors was essential. She also supported a careful approach to debt and public-private partnership questions, to ensure they were in line with development objectives.
CYRIAQUE SENDASHONGA, Global Director, Policy and Programme Group, International Union for Conservation of Nature and Natural Resources (IUCN), said ODA was important, but not sufficient for implementing the post-2015 agenda. Other sources must be unlocked and innovative financial mechanism must be explored to fund global public goods, especially nature conservation. He welcomed the inclusion of a review mechanism for the sustainable development goals.
FUAD ALBASSAN, Assistant Director-General of the Public Sector Operations Department of the OPEC Fund for International Development, looking forward to an effective implementation of the Action Agenda, said that his Fund respected the aspirations of poor countries to better people’s lives. He highlighted the importance of providing energy to all those who needed it, and he pledged to support the new global partnership sparked by the Conference through close consultations with his Fund’s development partners.
DEODAT MAHARAJ, Deputy Secretary-General of the Commonwealth Secretariat, pledged support to domestic resource mobilization while recognizing the importance of ODA and innovative methods of financing. The Commonwealth was particularly concerned with building resilience in small States and countering their heavy debt burden, he said, calling on the new global partnership to better address such problems, as well as systemic bottlenecks at the international level and obstacles to remittances.
MANUEL MONTES, Special Advisor on Financing for Development of the South Centre, said critical tax norms should be determined by a broader intergovernmental process that included developing countries, and those countries must be empowered to better direct private investment towards development priorities. Unfortunately, the outcome document did not elaborate on that issue, nor did it address the need for a financial system that favoured developing countries, which did not issue reserve currencies. He hoped that both issues would be followed up.
SALEH SAHBOUN, League of Arab States, said that the group was fighting poverty in its region in the wake of financial crises through initiatives that included regional trade arrangements. He hoped the post-2015 development programme took into account Arab culture and that the Addis action agenda would lead to more effective use of available resources to reduce poverty. Any agreement at the Conference should be supported by the political will needed to follow through on commitments. Conflict and extremism must be stemmed and aid must be provided without discrimination or conditionalities, he stressed.
GUY RYDER, Director General of the International Labour Organization (ILO), said urgent action was needed to improve prospects for work that was productive and fairly rewarded worldwide, and to expand the formal job economy. A fully integrated approach to means and ends was needed. He welcomed the inclusion in the action agenda of many elements of the ILO decent work agenda. The organization would continue to promote job-rich economic growth.
SHAMSHAD AKHTAR, Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP), describing the focus of the body’s work in the region, said that over $2.1 billion was needed to foster sustainable development there. Additionally, the region’s high savings rates should be harnessed. She also called for better management of tax flows and regional integration of Asia’s stock markets.
AMIR ABDULLA, Deputy Executive Director of the World Food Programme (WFP), commended the inclusion of hunger and food security issues in the action agenda, as well as its call for greater coherence in financing for both humanitarian and development assistance through addressing conditions that created risk.
ENGIDA GETACHEW, Deputy Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO), said his Organization was concerned with harnessing education and science as drivers of sustainable development. Well-targeted financing in those areas would have a powerful effect, yet most related programmes were underfunded, he noted. Domestic resources were critical but insufficient, and more international funding was needed.
MIRIAM MALUWA, Country Director, Ethiopia, Joint United Nations Programme on HIV/AIDS (UNAIDS), said financing for HIV had been a success story. Since 2000, $186 billion had been invested in the AIDS response in low- and middle-income countries. More and better results had been achieved at lower unit costs. In fact, between 2011 and 2014, global resources available for the AIDS response in low- and middle-income countries had grown by 11 per cent. Civil society had played a critical role and that lesson must be applied to the new agenda, as diverse multi-stakeholder partnerships would ensure success.
LETTY CHIWARA, United Nations Entity for Gender Equality and the Empowerment of Women (UN-Women), said the Addis agreement reaffirmed that achieving gender equality, empowering all women and girls, and the full realization of their human rights were essential to achieving inclusive economic growth. The chronic under-investment in areas such as sexual and reproductive health and rights; violence against women and girls; participation and leadership had hindered the realization of gender equality. She called on States to implement the Addis action plan on transformative financing for gender equality and women’s empowerment.
IYORLUMUN UHAA, representative for the African Union and the United Nations Economic Commission for Africa, United Nations Children’s Fund (UNICEF), said each inequity sowed the seeds of tomorrow’s inequalities. Every child needed the opportunity to learn, grow and thrive. A 2010 UNICEF study showed that designing programmes around the most disadvantaged children was more cost effective than designing them around the easiest to reach. Inequities were not inevitable; the global community had narrowed a number of those gaps. He welcomed the action agenda’s recognition of the need for disaggregated data by age, gender and other factors.
IDRISSA KANE, Regional Representative, Eastern Africa Office, Office of the United Nations High Commissioner for Human Rights (OHCHR), said the means for realizing development consisted of a growing pool of resources freed by human ingenuity, innovation and scientific advancement. “We must not be remembered for failing to effectively mobilize and equitably distribute these resources”, he said, urging States to mobilize all resources for development, including through a debt workout mechanism, progressive tax systems and establishment of new and innovative finance sources that complemented ODA. Efforts to finance the new agenda must reflect peoples’ needs and fully integrate human rights commitments.
BRENDA KILLEN, Deputy Director, Development Cooperation Directorate, Organisation for Economic Cooperation and Development (OECD), said more and better aid and investments were crucial in the new agenda. ODA had reached an all-time high of $135 billion in 2013. OECD would hold its members to account to provide more — and more effective — aid. Its policy framework for investment had stimulated jobs and investment, while its profit shifting project aimed to curb tax avoidance, among other things. ODA must ensure that poverty reduction was not eroded by climate change. OECD hosted an array of partnerships, and its development centre continued to grow.
PAUL MASELI, Director and Representative of United Nations Industrial Development Organization (UNIDO) to the United Nations, said his organization would support States in delivering what the Addis action plan required. Industries could provide sustained national resources for development, and bring the investments, which were indispensable for success, to the development system. Industries would create goods and services that would serve as the engine for globalization. He welcomed the guidance in the outcome document indicating the need for mutually inclusive sustainable industrialization and infrastructure.
GARY FOWLIE, Director of the International Telecommunications Union (ITU), said that the Internet was arguably the first global shared utility and for that reason was valued by least developed countries as much as water and other necessities, according to the outcomes of recent conferences. The potential for facilitating financing through communications technology was infinite, as were the possibilities for raising employment and economic growth and monitoring progress. He looked forward to advancing a people-centred information society.
JOHAN CELS, Head of the Governance and Partnership Service of the Office of the United Nations High Commissioner for Refugees (UNHCR), said that effective development was integral to humanitarian concerns because it built resilience against crises that created displacement. As the gap between available resources and needs was as high as ever, he regretted that certain humanitarian assistance was not directly addressed in the Conference outcome. The linkage between financing humanitarian action and development must be recognized, through predictable, sustainable and adequate funding for both.
Explanations of Vote on Draft Outcome
KINGSLEY MAMABOLO (South Africa), speaking on behalf of the Group of 77 and China, recognized that progress had been achieved, with compromise outcomes in key areas such as the call for a global infrastructure forum, a more comprehensive treatment of the issue of debt sustainability in the context of the United Nations, provisions for capacity-building and a technology transfer mechanism and dedicated mechanisms for follow-up and review with intergovernmentally agreed conclusions and recommendations.
He regretted, however, certain omissions, such as the need to fully upgrade the Tax Committee into an intergovernmental body, to make an explicit reference to countries and people living under foreign occupation, to explicitly address the issue of lifting coercive measures and to clarify that climate financing did not count as ODA, nor could it be mixed with traditional development finance. On the other hand, references to fossil fuel subsidies and to carbon fuel subsidies that could prejudge the outcome of climate change talks were premature.
Those principles were fundamental to the livelihood of people in developing countries, but many more issues remained unresolved for individual members of the Group, he said. Its member States were firmly resolved to engage in a constructive manner on all such issues in other relevant forums and to not abandon its principled conditions, and to ensure that the global partnership for development was genuine and adequately resourced for future generations.
The representative of the European Union said the landmark action agenda provided the means to deliver on the upcoming sustainable development goals. It addressed the full spectrum of means of implementation and agreed that everyone would need to take action to achieve the post-2015 agenda. It brought together domestic resources, investments, international public finance, including ODA, showing that all actions would be needed to combat poverty and exclusion. Balancing the three dimensions of sustainable development, it paved the way towards a universal set of goals. He welcomed its strong language on peace and security, gender equality and democratic governance.
The European Union, said the speaker, was the most open market in the world for developing countries and the world’s largest donor. The Conference’s successful outcome symbolized Africa’s commitment to multilateralism. By mainstreaming sustainable development into the common agenda, it provided the momentum needed to achieve success in September and to conclude an ambitious climate agreement. The Union would continue to engage in preparations for the September summit. While there was still a way to go, “this agreement brings us a lot closer”, he said.
The representative of Benin, speaking on behalf of the least developed countries, said that, throughout the process, the group had requested States to consider their issues so they could free themselves from poverty. They had explained their problems and the harsh reality of their situation. He was pleased that the outcome had considerably captured several of their concerns. The Addis agenda was a “new financial alliance” for sustainable development which, if applied in good faith, would bring about inclusive economic growth and structural transformation. For that to happen, the entire international community must be involved. There was a need for sustainable industrialization in least developed countries, and it was important to invest in infrastructure and energy, improve manufacturing and participate in international trade, and adapt to climate change. He called for the consistent implementation of the Addis action plan.
The representative of Maldives, speaking on behalf of the AOSIS and aligning with the statement made on behalf of the Group of 77 and China, welcomed the adoption of the Action Agenda and said that the framework represented progress and, in particular, addressed the needs of small island States. “Let us now look to the remaining processes this year so that no country is left behind and our successes are fructified on the tree of our endeavours.”
The representative of the United States, thanking all delegations for their hard work on the Conference outcome, said that her country was pleased to join consensus on the Action Agenda, which forged a new global partnership. She made clear, however, that the non-binding document did not create rights or obligations under international law.
Regarding debt restructuring, she said the negotiations must take place within a framework where creditors and debtors could seek recourse to the courts to enforce contractual terms. Finally, all references to technology transfer were understood to be on mutually agreed terms and conditions, recognizing the importance of intellectual property rights.
The representative of Turkey said the Addis action plan set an important precedent for the United Nations summit in September and the twenty-first Conference of Parties meeting in December. She welcomed that the Addis Agenda captured different dimensions of the global development agenda. Its reference to the United Nations Convention on the Law of the Sea, to which Turkey was not a party, could not be construed as a change in her country’s established legal and political position with regard to that instrument.
Venezuela’s representative, associating with the Group of 77 and China, said his Government’s acceptance of the document was in no way an endorsement of its unbalanced content. He acknowledged the strategic importance of financing for development, on the understanding that it was an open process that did not conclude today. Developed countries were shirking their historic responsibility to nations of the global South.
The principle of common but differentiated responsibilities acknowledged various development models, he said, and the dominant model of a “predatory minority” had caused environmental damage and bent the will of the vulnerable through the exploitation of natural resources, with little added value, and the unbalanced norms of colonialism that continued today.
In paragraph 31, he expressed his reservation to the reference to the phasing out of fossil fuel subsidies, which was an intrusion in Venezuela’s public policies. He would not accept any reporting or review of his country’s energy policies, nor measures that carried an effect on its national sovereignty. It amended what had been agreed in 2002 in the Johannesburg Plan of Action. He did not accept the list of new innovative mechanisms, especially for carbon pricing.
In paragraph 49, he expressed a reservation on the concept of “modern energy for all”, as modern energy implied the use of new technologies without an evaluation of their implementation or effectiveness. He regretted that in paragraph 14, wording by the Group of 77 and China had been deleted, which related to the expansion of financing through multilateral development banks, such as the Alba Fund, to supplement existing institutions.
He also regretted that another topic by the Group of 77 and China was not included, related to concern about trade barriers, such as unilateral sanctions, which threatened productive investments. Venezuela was not a party to the Convention on the Law of the Sea. Its joining consensus on the action agenda could not be interpreted as a change in its position vis-à-vis that instrument.
The representative of Bolivia, associating with the statement made by the Group of 77 and China, supported the general consensus through solidarity, but had reservations on several issues regarding energy. He also had hoped for more explicit emphasis on the principle of common but differentiated responsibilities in the outcome document.
The representative of Japan said it was with great pleasure and a sense of relief that his delegation joined the consensus on what he called a good, balanced text that incorporated most of the relevant principles, good policies and measures that had been proposed by countries, as well as diverse groups of countries, in an inclusive manner. He hoped that the same sense diversity and universality would prevail in negotiations on the post-2015 development agenda.
The representative of Nigeria, associating with the Group of 77 and China, said that the Conference had given a “new lease on life to multilateralism” and refocused attention on key issues. With the agenda’s adoption, there was now an opportunity to go forward and at last overcome the challenges that overwhelmed humanity, including those of poverty and climate change; the most vulnerable countries could have a new lease on life. A message was also being sent to countries emerging from conflict that they would have partners in their recovery. Finally, the indispensability of the United Nations was reaffirmed.
The representative of Malawi, while welcoming the Addis Action Agenda, registered a strong reservation on paragraph 32, which did not consider the consequences on tobacco-producing countries like his, whose economies substantially depended on tobacco production. He would have liked it to read: “In order not to leave anyone behind, countries whose economies substantially depended on tobacco production, in parallel with consuming countries, must be supported and compensated for the loss of revenue within the framework of the United Nations and other international aid agencies as they diversify out of tobacco.”
Nicaragua’s representative, supporting the Group of 77 and China, welcomed the plan and progress towards realizing the global sustainable development agenda. Its adoption was “good news” for multilateralism. The principle of common but differentiated responsibilities, included in paragraph 5, meant that that principle was an integral part of the new consensus. Financing for development must be a separate process from the post-2015 agenda.
He said many delegations had sought an increase in ODA to reach the sustainable development goals, and the solution to their requests had been approved. If developed countries had agreed to articles 33 and 34 of resolution 2626 XXV (1970) and the implementation deadline in 1975, ODA would have more than doubled. He praised Norway, Sweden, Luxembourg, Denmark, United Kingdom and the Netherlands for living up to their ODA commitments, especially as underpayment had accounted for $6 trillion, representing a loss of income in eradicating poverty.
Noting that climate finance should not be considered ODA, he said there was no one-size-fits-all financing for development model. Countries should keep their political space to establish standards which they viewed as feasible in their circumstances. He advocated the lifting of coercive measures that violated international law, such as the embargo against Cuba, and expressed solidarity with the Palestinians.
The representative of Switzerland expressed hope that the spirit of the Addis process continued into negotiations on the post-2015 agenda and on climate change. Welcoming the outcome, he recognized however that it was just a step in the process and that the most important work lay ahead, in acting to implement the framework and the new development agenda. “The cost of not acting will be much higher than if we act,” he said.
The representative of Ecuador, associating with the statement made on behalf of the Group of 77 and China, welcomed the consensus, but said that any monitoring of national energy policies, as included in the document, would not be acceptable as they conflicted with national sovereignty. In addition, he stressed that the United Nations should be the organization following up on reform of the international financial architecture. He enumerated many other paragraphs with which his delegation had problems; those had been communicated in detail to the Bureau.
The representative of Canada said that there was great potential in the Agenda, but there was some inaccurate wording, including in passages on ocean law and indigenous people, the rights of which his country provided for domestically. Those passages, he made clear, did not have the force of international law.
Concluding Remarks
Conference President HAILEMARIAM DESALEGN said world leaders had risen to the challenge of changing the face of humanity for the better. They had gathered to agree on a document that would guide international efforts on sustainable development for the next decade and a half. Indeed, the world was clear in its resolve that no one would be left behind in making the sustainable development goals a reality. The commitment to a new social compact for health, education and other basic rights marked a crucial step forward. Of course, there was more to be done to resource those efforts, “but we have made the commitment”. Countries must be equally resolute in ensuring effective implementation and follow-up.
He said the action agenda sent a message that everyone had something to contribute. It recognized that ODA and other public finance was essential, as was the 0.7 per cent target. It also recognized the importance of domestic resource mobilization and made steps forward in scaling it up through the Addis Tax Initiative. It acknowledged that the only development worth having was sustainable development, an area that had been under-addressed in the Monterrey Consensus.
This week was significant for the many commitments that had been unveiled, he said, including that by international financial institutions to extend more than $400 billion in financing over the next three years to deliver on the sustainable development goals. Equally important as adopting the Action Agenda, he said, was the resolve to implement the commitments made.
SAM KAHAMBA KUTESA, President of the General Assembly, expressing pride in the accomplishments of the Conference and thanking all those involved, said: “The Addis Ababa Agenda demonstrates our collective resolve to build a better future for all in a more equal and sustainable world.” The reservations expressed by delegations and groups indicated that the necessary compromises had been made. Listing the elements of the document, he commented that they represented concrete deliverables to reduce poverty and protect the planet. “It is now incumbent upon us all to fully implement the Addis Ababa Action Agenda,” he concluded.
Under-Secretary-General for Economic Affairs WU HONGBO said “this has been a historic conference — and an historic success”, delivering an outcome that met the high expectations of people around the world. Substantive sessions last fall had provided the basis for negotiations on today’s outcome document. To succeed, “we need all stakeholders on board” working together towards common goals: Governments, financial and trade institutions, civil society, the business sector, philanthropy and academia.
Most importantly, he said, the outcome was one of collective efforts by Member States. The Addis Ababa Action Agenda established a strong foundation to support the implementation of the post-2015 agenda. “It demonstrates your strong commitment and determination in this regard,” he said. The new financing framework would help align all finance flows — domestic and international, public and private — with economic, social and environmental priorities. The policy actions in the framework drew upon all sources of finance, technology, innovation, trade and data, mobilizing the means for a global transformation towards sustainable development. The agenda would guide actions by all stakeholders and all contributions would be needed. Together, they would support a strengthened global partnership that could end extreme poverty and achieve sustainable development for all.