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FINANCIAL MECHANISM:

The discussion on the financial mechanism presented much difficulty. Although delegates were asked to specify the characteristics of the desired financial mechanism, the debate focused more on why the GEF should or should not be this mechanism. Some delegates supported the use of the GEF as both an interim financial mechanism as well as the future permanent mechanism. Although the ICCBD recognized that the Convention stipulates that the COP shall have supreme authority over the mechanism, many developing countries acknowledged the difficulty of the GEF living up to such expectations, as it is also answerable to other bodies. The debate over the restructuring of the GEF and its relationship to the COP overshadowed any discussion of the methodologies for estimating funding needs. The matter was complicated further by the fact that some of the developing country delegates rejecting the GEF because it has not been satisfactorily restructured to be entrusted with such a task, have not discussed the matter adequately with other ministries within their own governments who are already receiving funding through the GEF.