General Assembly Session 62 meeting 35

The President

I give the floor to Her Excellency Ms. Byrganym Aitimova, chairperson of the delegation of Kazakhstan.

Mrs. Aitimova (Kazakhstan)

I will try to be brief today because I know that we are so tired from trying to finalize our discussions yesterday.

Economic and social development is an issue that concerns humankind as a whole. Globalization is a contemporary phenomenon that, on the one hand, speeds up economic processes, offering opportunities for the economic and social development of all countries while, on the other, it highlights ever more strongly the divide between the rich and poor countries. That divide, if ignored or treated with indifference, may become an obstacle and a threat to the world's peace and stability.

The Monterrey Consensus outlined the comprehensive national and international policy actions required to achieve the internationally agreed development goals. It recognized that enhanced financial flows are critical to the realization of those development goals.

Kazakhstan fully agrees that nationally formulated and owned development strategies, adequate policy space, greater overall coherence and coordination, including donor-recipient coordination, employment creation and greater support for private-sector growth are all critical elements in attaining the agreed development goals. In that context, good governance, particularly enhancing transparency and combating corruption, also plays an important role.

We are convinced that strengthening international trade is also an important factor in the financing of development. The creation of a liberal multilateral trade system will considerably stimulate development and produce certain benefits that are available to all countries.

Kazakhstan is committed to its obligations to reach the Millennium Development Goals and is tirelessly implementing a long-term development strategy known as "Kazakhstan-2030". Kazakhstan's main objective in the area of economic policy is to ensure that our country joins the ranks of the most competitive economies. To that end, we are implementing innovative industrial programmes to diversify the economy, increase the production of value-added goods and services, and lay the foundation for a high-technology service economy.

Kazakhstan has significantly improved its macroeconomic and fiscal management. In our country, an economic financial environment has been created that corresponds to the standards of a developed market. Moreover, in recent years the Republic of Kazakhstan has been making considerable investments in the economies of other developing countries through bilateral and multilateral channels. Joining the World Trade Organization will help Kazakhstan in that endeavour. We deem it important that this should take place on equitable and non-discriminatory terms.

As a continental country, Kazakhstan strongly believes that it is important to take into account the interests of landlocked developing countries in the development of transit transport capabilities, the promotion of trade, and obtaining access to world markets. This year has significant importance for the Almaty Programme of Action. Now is the time to review the progress achieved in the implementation of the Programme.

Kazakhstan hopes that the success of this meeting will help to enable the achievement of the development-related objectives set out in the Millennium Declaration and contribute to the good preparation of the Doha Conference at the end of 2008.

In order to provide for the further implementation of the long-term commitments of the Monterrey Conference, there is a need to improve cooperation between Governments, international organizations, the private sector and the non-governmental organization sector within the framework of the agreed agenda for the Conference. In that context, the United Nations system and especially the Economic and Social Council have a very important role to play, not least in the monitoring and coordination of the implementation process.

The President

I thank the representatives of Albania, Suriname and Tajikistan and the observer of the Inter-Parliamentary Union for having graciously accepted not to take the floor this morning. I ask the Secretariat to distribute their statements at this meeting.

I now call on His Excellency Mr. Raymond Wolfe, chairman of the delegation of Jamaica.

Mr. Wolfe (Jamaica)

Let me at the outset indicate that Jamaica wishes to align itself with the statement made by Pakistan on behalf of the Group of 77 and China.

The reports of the Secretary-General before us speak to the overall improvement in the performance of developing countries and the mixed results in terms of the progress in implementing the Monterrey Consensus. It is therefore important that as we read the reports, we bear in mind the diverse needs of developing countries and their extreme vulnerability to global economic and financial instability, rising commodity prices and natural disasters.

In looking at the overall framework, we take the view that the starting point for our deliberations should be an acknowledgement that efforts at the domestic and global levels are mutually reinforcing. A broad framework of reference that encapsulates the rule of law, sound economic policies and effective, participatory democratic institutions includes objectives that are not confined to the activity at the country level. They permeate action at the global level and are central to the effective functioning of the global economy. We therefore expect that due regard will be given to the dynamic nature of this relationship during the course of our discussions, especially regarding the voice and effective participation of developing countries in global economic governance.

Commenting on national efforts, Jamaica accepts that each country has the primary responsibility for its own development. Jamaica remains fully committed to that objective. The Government also continues to pay special attention to the promotion of trade and investment as engines for growth and development in the context of job creation, poverty eradication and the overall improvement in the standard of living of our people.

We therefore see merit in the recommendations advanced in the report of the Secretary-General (A/62/217) related to mobilizing domestic financial resources for development to provide developing countries with the enabling environment to attract private investment. We also concur that the necessary regulatory framework has to be put in place, and we are convinced of the strong role that national development banks can play in the process, particularly in providing financing for small and medium-sized enterprises. With respect to the latter, and in keeping with our own experiences, we wish to underscore the urgent need for technical assistance and innovative public and private partnerships to strengthen access by small and medium-sized enterprises to financing.

The Government is also working with the Jamaican Diaspora to see how best we can build partnerships and support initiatives aimed at enhancing the welfare of local communities. We see this as important since it is not limited to a rather skewed focus on remittances, but encapsulates a much broader approach for the overall development of the country.

At the same time, our efforts can be successful only in a global economic environment conducive to growth and with the requisite support of developed partners. Such an approach is necessary if long-term development objectives, plans and strategies are to be realized. This is essential for countries like Jamaica that, notwithstanding our classification as a middle-income developing country, are especially susceptible to natural disasters, are highly indebted, have limited access to global capital markets and have limited resources, productive and export diversification capacities.

Against this background, we welcome the call made in the Secretary-General's report (A/62/217) for foreign direct investment (FDI) flows to be broadened to a wider range of countries, including least developed countries, landlocked developing countries and small island developing States. We further wish to reiterate that FDI flows should respond more commensurately with the reform efforts being undertaken in developing countries. We see merit in the recommendation of the Secretary-General that multilateral financial institutions should adapt the range of products and services they provide to meet the evolving needs of both low and middle-income countries.

There is also a need for predictable and stable flows of official development assistance (ODA), given that ODA continues to remain crucial for financing the internationally agreed development goals, including the Millennium Development Goals. We believe that the discussions in the context of the Development Cooperation Forum of the Economic and Social Council can enhance progress in this regard.

With respect to debt, we wish to underscore the need for a renewed and vigorous approach to resolving the external debt problem of developing countries, including middle-income developing countries.

On the issue of trade, I wish to reiterate my delegation's expectation that development will remain at the core of the Doha trade negotiations and that due regard will be given to the principles of special and differential treatment.

Finally, we remain firmly convinced of the crucial role that the United Nations can play in advancing the implementation of the Monterrey Consensus. We see this responsibility evolving through greater collaboration and cooperation with the Bretton Woods institutions as well as with the World Trade Organization, especially through the annual spring meeting of the Economic and Social Council with these organizations as well as the United Nations Conference on Trade and Development.

We also recognize and accept that more has to be done to strengthen the implementation of the Consensus and that the now strengthened Economic and Social Council, through the Development Cooperation Forum, is better poised to fulfil this responsibility. For this reason, Jamaica wishes to reiterate that our deliberations on how best to strengthen the review process should bear in mind the many existing forums that have been established for this purpose, in order to avoid any unintended duplication of efforts and mechanisms.

The President

I now call on His Excellency Mr. Ahmed Mekki Ahmed, chairman of the delegation of Sudan.

Mr. Ahmed (Sudan)

On behalf of my delegation, I would like to congratulate you for convening this timely High-level Dialogue on Financing for Development. We are confident that under your diligent and able leadership our deliberations will be steered to fruitful conclusions.

My delegation aligns its statement with that of the representative of Pakistan, speaking on behalf of the Group of 77 and China, and the statement of the representative of Benin on behalf of the African Group, as well as the statement of Bangladesh on behalf of the least developed countries.

I would like to express our appreciation to the Secretary-General for his comprehensive reports on the issue at hand. My delegation attaches special importance to this meeting and recognizes its vital role in paving the way to the follow up of the International Conference on Financing for Development to Review Implementation of the Monterrey Consensus, to be held in 2008 in Doha.

We are hopeful that the Conference, which will take stock of what has been achieved five years after the adoption of the Monterrey Consensus, will also address the best means to strengthen its implementation as we move ahead within a fluid global environment that carries both opportunities and challenges.

The Monterrey Consensus is predicated on the principle of partnership and a set of commitments to be carried out by both the developing countries and developed countries. The Secretary-General, in his analytical assessment, states that the picture is quite mixed and points to considerable advances in some areas and to modest progress, stagnation or retrogression in others.

We recall that, in 2002, members of the Development Assistance Committee made various promises before and at the Monterrey International Conference on Financing for Development to increase their aid by 2006 from the previous levels set in 2000. While some managed to do so, others failed to fulfil their promises, and total official development assistance (ODA) fell by 5.1 per cent to around $103.9 billion in 2006, which is 0.3 per cent of gross national income, way below the internationally agreed target of 0.7 per cent of gross national income in ODA.

Donors' promises to double aid to Africa, a continent that is off track in meeting the internationally agreed development goals, including the Millennium Development Goals (MDGs), remain unfulfilled. Despite the fact that preliminary data shows that bilateral net ODA to Africa rose by 23 per cent, most of the increase was due to debt relief grants for one or two countries, and in fact ODA is expected to further decline in 2007.

In my own country, the Sudan, ODA has been declining since the early 1990s. Over the period 1989-1995, ODA to the Sudan averaged about $22.2 per capita, while in 1982 it was $31. In 1990 it was $29 and has diminished since then due to the unfair unilateral sanctions imposed on the Sudan since the early 1990s. We also note that, while humanitarian aid to the Sudan increased per capita, ODA declined sharply over that period. The declining ODA is a major issue that needs to be underscored, as it constitutes a vital commitment on the part of the developed countries to assist the developing countries if the MDGs are ever to be achieved by 2015.

Despite serious challenges and constraints, the Sudan has continued to implement macroeconomic and microeconomic reform policy packages that have lowered inflation from the 130 per cent level of the 1990s to a single-digit figure since the year 2000. Greater attention is being devoted to the most vulnerable portion of the population so as to improve the quality of life of the poor. The Sudan has established a community development fund in order to facilitate easy access by the poor to microcredit loans to enable them to produce their food and virtually generate income.

A project aimed at the expansion of the microfinance sector in the Sudan, commissioned by the country's central bank, has been established in recognition of the important role that vibrant microfinance can play in mobilizing resources for the economic development of the country, particularly in terms of poverty eradication. The main aim of the strategy is to facilitate access to financial services by the poor in rural, semi-urban and urban areas by expanding and developing the microfinance sector in a cost-effective, gender-sensitive and sustainable manner.

As a result of favourable amendments to the country's Investment Act, and as an outcome of the peace agreements, an atmosphere conducive to investment has been created, and a considerable level of foreign direct investment is being attracted to many sectors, especially agriculture, animal resources, energy and light industries.

It must be pointed out that all of those efforts are being impeded by the country's huge external debt, which stands at more than $27 billion, of which more than 50 per cent constitutes accumulated arrears. The Sudan's external debt problem continues to limit the country's access to external development financing. The Government is concerned that, after seven years of successful implementation of successive staff-monitored programmes, it is not benefiting from any debt-relief initiatives.

On international trade, it is necessary to develop a strong global partnership for development in order to guarantee an open, rule-based, predictable and non-discriminatory trading and financial system. The special need of the least developed countries for duty-free and quota-free unhindered market access for all their products must be addressed.

On South-South cooperation, the Sudan strongly believes in the value of utilizing complementarity and geographical proximity in the face of rapid globalization, the benefits of which have not been equally shared, in order to forge strong and expanding economic relations between countries in Africa, Asia and Latin America.

Within the framework of strengthening South-South cooperation for enhancing economic partnerships and in the context of the Cotonou Agreement, the Sudan in December 2006 hosted the African, Caribbean and Pacific group summit to accelerate the process of finalizing the negotiations on economic partnership agreements as quickly as possible, and will pursue that effort throughout the term of its presidency up to December 2008.

In conclusion, while the Monterrey Consensus highlighted the role of internal conditions for mobilizing resources, the role of international assistance remains a key factor, and we look forward to further addressing those issues and to crafting our way forward in Doha next year.

The President

I give the floor to His Excellency Mr. Paul Badji, chairman of the delegation of Senegal.

Mr. Badji (Senegal)

My statement was to have been made two days ago by Mr. Cheikh Tidiane Gadio, Minister for Foreign Affairs of Senegal, who had other duties to attend to and was compelled to leave New York. He asked me to make this statement on his behalf. I shall deliver an abridged version.

"I wish to share some notes I made in reviewing the high-quality reports submitted to us by Secretary-General Ban Ki-moon in documents A/62/190 and A/62/217. My notes address the principal sources of financing for development: foreign direct investment, trade, official development assistance (ODA) and debt.

"The reports tell us that, for all developing countries, foreign direct investment increased from 18 per cent to 48 per cent of total financial outlay between 1970 and 2006. However, such investments are strongly concentrated in some regions and there is a great disparity between

countries in the same region. That is particularly true for sub-Saharan Africa.

"Turning to international trade, the reports stress that developing countries remain seriously hampered in gaining access to the markets of the developed countries and that commitments to services liberalization under the General Agreement on Trade in Services are of limited scope.

"With respect to ODA, the situation is hardly any better. According to the Secretary-General, despite an increase from $27 billion to $73 billion on average between 1980 and 2005, we are still far from achieving the goal of 0.7 per cent of gross national income. He goes on to say that, according to initial estimates, ODA flows have slightly dropped in 2006 and that they will stop practically increasing in 2007, according to projections. In the same vein, the Secretary-General indicates that, foreign debt relief has only had a limited effect because, for the most part, it has been applied to debt stocks that in any case would have been difficult, if not impossible, to pay back, in addition to the fact that debt relief measures, however salutary they may be, are not enough to ensure the viability of the debt stock.

"These are the rather eloquent reasons for the limits on the four main sources of financing for development, and they are the reason for the poor results that we have seen since 2002. The promises of Monterrey will be fulfilled only if, in addition to acting on those commitments, we strive to find instruments to mobilize additional resources -- instruments which would supplement the four main sources that I have just mentioned.

"The Leading Group on Solidarity Levies to Fund Development has been involved in this exercise since it was set up in 2006. This Group, which now includes 54 member countries, has set as its main goal to identify, test on a pilot basis and disseminate innovative projects to finance development. Among the potential new mechanisms identified by the Group, we might refer, among others, to the International Drug Purchase Facility as well as the air-ticket solidarity levy and the Global Digital Solidarity Fund.

"I would like to take this opportunity to recall that the Digital Solidarity Fund, an initiative of the New Partnership for Africa's Development is recognized as a special way to combat poverty and was endorsed by the community of nations during the World Summit on the Information Society. It proposed a "one per cent of digital solidarity..." initiative known as the Geneva Principle, the implementation of which seems to us crucial if we want to reduce the digital divide in developing countries, especially in Africa.

"This Principle consists of proposing to any company that awards public contracts to pay one per cent of the amount of the contract to the Digital Solidarity Fund as a contribution to deal with the digital divide. National administrations and local communities could also apply the Geneva Principle. Its flexibility of implementation and voluntary nature strongly advocate in favour of its dissemination.

"The Head of State of Senegal, Mr. Abdoulaye Wade, initiator of the Digital Solidarity Fund and of the Geneva Principle, has also proposed a formula to mitigate the terrible shocks that our fragile economies suffer because of the huge surge in oil prices that we have seen since 2003. By making it possible to identify the profits made by the oil companies operating in Africa because of the staggering increase in the price of crude oil as well as the surcharge imposed on African countries that import the black gold, this formula, better known as the Wade Formula is proof of the duty of solidarity of those companies towards those countries.

"Today, five years after Monterrey, economic and social well-being is still an elusive goal towards which many member countries of our Organization continue to strive. Indeed, the Millennium Development Goals appear increasingly unattainable, particularly in Africa, and poverty is gaining ground, thus increasing the gap between nations. Accordingly, no initiative at this crucial stage should be disregarded if we want to continue hoping for the successful implementation of the Monterrey Consensus.

"It is for this reason that the countries of the Leading Group on Solidarity Levies to Fund

Development, which include Senegal, solemnly call upon all States Members of our Organization to consider implementing innovative mechanisms to finance development that they have identified and started to implement."

The President

I now give the floor to His Excellency Mr. Zachary Muburi-Muita, chairman of the delegation of Kenya.

Mr. Muburi-Muita (Kenya)

Mr. President, I express my appreciation to you for organizing this High-level Dialogue on Financing for Development. My delegation associates itself with the statements delivered by the representatives of Pakistan and Benin on behalf of the Group of 77 and China, and the Group of African States, respectively. In the spirit of your address to this meeting yesterday, I will present a highly condensed version of my statement, the full text of which has already been submitted to the Secretariat for circulation.

The Monterrey Consensus provides a conceptual framework incidental to efforts aimed at dealing with issues of financing for development at all levels in a comprehensive and systematic manner. My delegation therefore calls on the international community, particularly the developed countries, to meet their commitments in order to keep the spirit of Monterrey alive. For Kenya and many developing countries, a number of wide-ranging reforms have been instituted since the Monterrey Conference as part of our commitments.

However, Kenya's capacity to raise resources domestically for development remains constrained, hence the need for development partners to move fast to meet their commitments in providing adequate support for development.

Countries, have been on a steady decline since the 1990s, particularly in Africa. There is a need to institute measures to reverse this negative and worrying trend. It has been established that fair trade is a vital tool and development catalyst for both developed and developing countries. We call for a fair, global, rule-based, open, non-discriminatory and equitable multilateral trading system that can stimulate development worldwide.

External debt is a key impediment to development in developing countries. A number of initiatives that have been formed -- for instance, the Heavily Indebted Poor Countries Initiative -- have not benefited us owing to the perception that Kenya's debt is sustainable. This is not realistic. The international community should put in place mechanisms within the financing for development framework that will expedite the process of securing unconditional debt relief for developing countries.

The Bretton Woods institutions have a particular and historically significant role in providing resources to finance development in needy countries. For a long time, developing countries have continued to call for the reform of the International Monetary Fund and the World Bank in order to make them responsive to their needs with little or no success. It will be appreciated if our collective call can be heard and acted upon.

Finally, my delegation looks forward to a successful forthcoming review of the Monterrey Consensus in 2008.

The President

I give the floor to His Excellency Mr. Camillo Gonsalves, chairman of the delegation of Saint Vincent and the Grenadines.

Mr. Gonsalves (Saint Vincent and the Grenadines)

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