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Mr. Chairman:
It is an honour to
address the plenary today in my capacity as Chairman of the Development
Committee.
We meet in an
extraordinary time. One in which humanity is confronted with a wide
spectrum of challenges in the world economy, environment, and relations
between peoples and states. Of those many challenges, we meet here in
Monterrey to seek ways of ensuring that more people are lifted from
poverty and that more people share in the benefits associated with
globalisation and economic development.
At our meetings in Ottawa
last November, members of the IMFC and the Development Committee of the
IMF and World Bank had an opportunity to discuss issues related to this
Conference with Secretary-General Kofi Annan. They expressed strong
interest in the success of the Conference and offered views on a number
of points, which were reflected in their communiqué. As incoming
Chairman of the Development Committee, I am pleased that these have been
largely incorporated in the draft outcome document, which is before this
meeting.
In particular, I believe
both documents reflect a partnership compact between developing and
developed countries. The primary responsibility of each country for its
own economic and social development and the importance of sound national
policies and good governance as prerequisites for poverty reduction and
sustained growth is strongly underlined. Delivery of these policies
calls for co-operation by developed partners in ensuring that the
necessary finance to support development is available.
During 2000 our Heads of
State and Government made a commitment with the adoption of the
Millennium Declaration, which includes the Millennium Development Goals.
In that Declaration they stated "We are committed to making the
right to development a reality for everyone and to freeing the entire
human race from want".
To address these
challenges effectively there is a need to approach the issues of
development differently from how we have tended to approach them up to
now. I think it is important to highlight that during the preparatory
process on the Conference of Financing for Development, a consensus
emerged among participants that there was a need for an enhanced
partnership between developing and developed countries and that such a
partnership should be premised on clearly defined responsibilities.
The consensus is to be
heartily welcomed, but we cannot slip into complacency as a result of
this work. The risk of failing to implement the consensus is large, not
least because implementation may be undermined by a "business as
usual" attitude towards development.
In this regard,
developing countries have accepted the responsibility for their own
economic and social development. There is furthermore an acknowledgement
of the importance of sound national policies and good governance as
prerequisites for poverty reduction and sustained growth. These
principles form an integral part of the New Partnership for Africa's
Development (NEPAD), which sets out an example of how the commitment to
sound policies and good governance might be approached. For many
developing countries, however, innovative regional plans and sound
policies will not be enough. For that reason, the efforts of developing
countries should be complemented by action on the part of developed
countries and international financial institutions to ensure that the
necessary finance is made available to support development.
Domestic constraints
facing governments and civil society in developing countries mean that
economic growth, development and poverty alleviation will only be
effective if it is comprehensive and sustainable. Domestic efforts must,
therefore, be complemented by international action in areas such as
trade, market access, ODA, debt relief and capacity building. The
concessional resources made available by multilateral development
institutions also constitute an important source of financing to
developing countries that do not have access to other forms of
financing. In view of this, it is imperative that an agreement is
reached on the replenishment of the African Development Fund and the
International Development Association.
There is general
consensus that globalisation provides an opportunity for countries to
improve standards of living, but it is not an end in itself – there is
nothing inherent about the process of economic integration that leads to
poverty reduction. Therefore, while this is captured in the Monterrey
Consensus, it is critical to recognise that the architect designs and
the builder constructs foundations that can carry complex edifices many
times their size.
The key challenge is to
attempt to manage globalisation in such a way that it does lead to
poverty reduction. While domestic policy reforms and
institution-building are critical to ensuring that people are able to
benefit from greater openness to trade, capital flows, and technology,
an appropriate policy response by national governments must also
encompass the international arena. In other words, while national
governments must consider how international structures, institutions,
markets and relationships impact on their domestic policies,
international institutions must equally consider how their policies and
goals affect individual countries.
Trade, market access,
development assistance, innovative financial vehicles, and domestic
resources constitute those important policies. Indeed in an important
sense, the outcomes of Monterrey are crucial to ensuring that the Doha
agenda is truly developmental and that finance supports trade.
Moreover, they must do it
coherently, and this means, among other things, ensuring that
international institutions effectively consider the extent of
overlapping agendas and policies and how they may conflict. Why is this
important? Because, conflicting policies serve no one, especially not
the poor.
I would also like to add
a further element to this equation by including reform of international
financial governance. Reform of international financial governance is
critical to ensuring that developing countries benefit from
globalisation through participation.
The consensus on enhanced
partnership, which would entail clearly defined responsibilities for all
stakeholders, cannot be met by a reluctance to change the status quo
regarding international financial governance. The two need to go hand in
hand if partnership is to be meaningful.
One way of linking reform
of financial governance and partnerships for development is for the
parties to the Monterrey consensus to exercise the same political will
shown in the adoption of the Millennium Declaration with respect to
increasing developing country participation in international economic
decision-making and standard setting processes.
Our imagination and
political will are also needed to address further challenges, such as:
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The need for
increased flexibility, dialogue and technical assistance in the
implementation of codes and standards.
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The need for
increased market access.
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The need for stronger
commitments by developed countries on ODA to reach the agreed 0.7
percent target of GNP.
We also need to ask
ourselves the question: will the debt relief provided by the HIPC
Initiative lead to sustainable debt levels? If the answer is no we would
need to look at ways to address the areas of concern of the HIPC
framework.
Finally, this Monterrey
Consensus requires support. In the international arena too many fine
documents are produced that fail from the start for the simple reason
that the ways and means for ensuring their continuity as ‘living’
agendas are not conceptualised and implemented. Coherence requires that
we make a concerted effort, in partnership, to see that the poor reap
the benefits of international consensus on sustainable development as
embodied in the Monterrey Consensus.
In conclusion I can
assure you that the Development Committee stands ready to play its full
role. We will be meeting in Washington on April 21 and the follow-up to
this Conference and the issues it is addressing will be at the heart of
our discussions.
We must all, in our
respective spheres of responsibility, commit to taking the next steps.
The World Summit on Sustainable Development presents a unique
opportunity to carry the outcomes of the Monterrey Consensus on
financing development to a broader audience and to place it at the heart
of a dynamic and comprehensive agenda for sustainable development.
The Development Committee
welcomes the active collaboration of the multilateral agencies in this
long effort to turn multilateralism into an active and sustainable
vehicle for development and international co-operation.
We must recognise that
global governance, in the absence of global government, is a very
complex process and that progress will require a collaborative effort by
all. Only through co-operation will we advance.
Thank you
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