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ARTICLE 20 -- FINANCIAL RESOURCES:

This Article was the subject of intensive consultations throughout INCD-5. Both Articles 20 and 21 were first addressed in an informal working group co-chaired by Pierre-Marc Johnson and Bolong Sonko. This group first met on Wednesday, 8 June 1994, and continued on Thursday and Friday. The initial basis for discussion was a draft text prepared by Johnson and Sonko (A/AC.241/L.19), based on consultations held in Geneva and during the intersessional period. After consultations in the extended bureau over the weekend, it was decided that after one more meeting in the large working group, a smaller contact group, consisting of approximately eight developed countries and eight developing countries would begin negotiating the text Monday evening. This group met late into the night throughout the second week and did not reach agreement on all of the financial provisions in the text until early Saturday morning.

With regard to Article 20, most delegations were in agreement early in the session that the Article should be developed based on three main principles: partnership; differentiated responsibilities; and flexibility. Many developing countries expressed concern about the use of the phrase "as mutually agreed." Others noted that while the text outlined how available resources would be spent, there was no indication of how to mobilize new and additional resources. Furthermore, there was concern that no provision was made for concessional loans, although it was clear that grants would not resolve current desertification problems. Since much of the negotiation of this Article took place behind closed doors, it is not certain how the final agreement was reached.

The first paragraph of the final text states that Parties shall make every effort to ensure that adequate financial resources are available for programmes to combat desertification and mitigate the effects of drought. Paragraph 2 says that developed country Parties undertake to: mobilize substantial financial resources, including grants and concessional loans; promote the mobilization of adequate, timely and predictable financial resources, including new and additional funding from the Global Environment Facility; facilitate the transfer of knowledge, know-how and technologies; and explore innovative methods and incentives for mobilizing and channeling resources.

Paragraph 3 states that affected developing country Parties, taking into account their capabilities, undertake to mobilize adequate financial resources for the implementation of the Convention. Paragraph 4 says that the Parties shall seek full use and continued qualitative improvement of all national, bilateral and multilateral funding sources and mechanisms. In paragraph 5, the Parties shall: rationalize and strengthen the management of resources already allocated for combatting desertification and mitigating the effects of drought; give due priority and attention within the governing bodies of multilateral financial institutions, facilities and funds, to supporting affected developing country Parties in activities to implement the Convention; and examine ways in which regional and subregional cooperation can be strengthened. Paragraph 6 says that other country Parties are encouraged to provide, on a voluntary basis, knowledge, know-how and techniques related to desertification and/or financial resources to affected developing country Parties.

At the final Plenary meeting, Saudi Arabia, supported by India, Ethiopia, Brazil, Malaysia, Sudan and Bolivia, said they had problems with paragraph 3, since it would, in effect, turn developing country Parties into donors. Saudi Arabia proposed that instead of "for the implementation of this Convention," it should read "for their national action programmes." This was accepted and the Article was adopted. [Return to start of article]