ENB @ Financing for Development, 3rd Preparatory Committee Session

International Conference on Financing for Development

New York, USA; 15 - 19 October 2001

Tuesday, 16 October 2001
In the third and fourth sessions of the resumed Third PrepCom for the Financing for Development (FfD) process, delegates gathered at UN Headquarters for a day of formal and informal consultations. In the morning session, delegates heard two high-level presentations and then continued with general discussion.
Informal consultations on sections one and two of the Draft Outcome began in the afternoon

At 10:10 am, Co-Chair Jacoby convened the PrepCom and announced presentations from two speakers. UN High Commissioner for Human Rights Mary Robinson condemned the September 11th attacks as crimes against humanity and welcomed the UN's unprecedented spirit of cooperation in combating terrorism. Calling for increased resources for development, she contended that financing for development is the best investment to ensure security for all. She underscored the need for democracy, the rule of law, good governance and respect for human rights and expressed concern that a human rights framework is "currently absent" in the Draft Outcome

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	Angela King, Assistant-Secretary-General and Special Adviser on Gender Issues and the Advancement of Women, detailed links between gender issues and the FfD process and urged delegates to include gender perspectives. She emphasized the increasing number of economists demonstrating that macro-economic policies and institutions that lack a gender perspective do not make sound economic sense Listen to the RealAudio
Richard Terell Miller, United States, called the right to development an illusion, because development can only be earned and not given from outside. He stressed that basic resources must come from within countries, and outlined three fundamental prerequisites for development: peace, freedom, and capitalism. He commended the capitalist model, in its different forms, as the only model that works Listen to the RealAudio
	Ambassador Tuiloma Neroni Slade, Samoa, on behalf of the Association of Small Island States (AOSIS), defined the FfD process as an opportunity to address disparities of income and wealth and cure conditions of poverty Listen to the RealAudio

Jacqui De Lacy, Australia, expressed disappointment in the Draft Outcome's lack of focus on national policies. Calling for a new draft, she emphasized, inter alia: creating environments for sound domestic policies that attract international capital flows; an open trading system and multilateral trade negotiations; greater recognition of the role of ODA without unrealistic increases; and implementation of the HIPC initiative through World Bank and IMF processes

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Noureddine Bardad-Daidj, Algeria, asked the PrepCom to recognize responsibilities assumed by developing countries in promoting development. He stressed commitment to, inter alia, fulfilling ODA agreements; reducing special treatment for certain African countries; and gaining a better understanding of how "rich countries" assess the needs of LDCs. Belarus asked the PrepCom not to "sweep away all the good things" in the Draft Outcome

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Orlando Requeyo Gual, Cuba, pointed out that recent events have underlined "interdependence," however a "polarization of benefits" continues to exist. He called peace vital for development, and maintained the FfD process is an opportunity to spur the flow of international funds; create better access to markets; relieve external debt; bring developing countries into decision-making; address systemic issues; and combat poverty

In section one, China supported reforms in trade and monetary regimes, and proposed references to transparency and common but differentiated responsibilities. In section two, he emphasized, inter alia, that mobilization of domestic resources should be accompanied by an enabling environment and combined with efforts to establish a new economic order

Eduardo Tejera, Dominican Republic, stated that development is essentially a domestic task, and stressed national responsibilities in fighting corruption and tax evasion. He suggested the Draft Outcome include, inter alia: a chapter on the global economic recession and direct references to the WTO negotiating process

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Marco Balarezo, Peru, acknowledging that elements of the Draft Outcome are controversial, called upon the PrepCom to achieve balance. He proposed focus on human rights and poverty eradication; "meshing" the public and private sectors; and fostering FDI

Rebekah Riley, New Zealand, focused on five areas of the Draft Outcome needing further attention: more innovative use of ODA; international cooperation between development and financing agencies; improving conditions for developing country participation in global trade; meeting the needs of SIDS; and stakeholder-driven reforms of international institutions

In section one, on inclusive and equitable globalization, the G77/China proposed that the PrepCom substitute the phrase global economic system for the term globalization. In paragraph one, he proposed adding elements on social justice and poverty eradication along with general references to development and governance. He also suggested adding subparagraphs on transparency and predictability to paragraph four, on the principles of global economic and social governance. In section two, on leading actions for confronting FfD challenges, The G-77/CHINA highlighted linkages between domestic policies for mobilizing resources and the external environment, and the need to enhance global partnerships in order to support regional partnerships

Gert Rosenthal, Guatemala, remarked that the FfD process should be a "virtuous" rather than a "vicious circle." He hoped that the PrepCom would put something tangible into action soon; expressed hope that the UN not encroach on the jurisdictional mandate of the Bretton Woods Institutions; and specified that "financing" is merely a tool for achieving development