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13 October 2008 - Macroeconomic Policy Questions & Financing for development - Item 47 b-d & 48

Statement delivered by Mr. Philippe DELACROIX European Union Presidency Coordinator in New York

UNOFFICIAL TRANSLATION

Madam Chairperson,

I am honoured to speak on behalf of the European Union.

In this statement, our comments will focus on themes covered by the 47 on macroeconomic policy questions and 48 on the monitoring and implementation of the Monterrey International Conference on Financing for Development.

Our discussions on these items on the agenda take place in a particular context this year. They are part of the general debates ahead of the Doha Conference on Financing for Development. In 2002, the Monterrey Conference had to consider how to maximize the resources mobilized to achieve the Millennium Development in partner countries. It led to the Monterrey Consensus, which is today the most comprehensive reference in terms of development funding and policies that are linked.

The EU reaffirms its strong commitment to the implementation of the Monterrey Consensus. It sees it as the foundation for the global partnership in which the international community has to work to promote sustainable development and achieving the internationally agreed development goals (IADGs), including the Millennium Development Goals (MDGs ). Only through a genuine spirit of partnership, joint responsibilities can the goals and objectives of the Monterrey Consensus be achieved. We reiterate our commitment to the Consensus, which must remain our reference text and not be renegotiated nor rewritten.

The document to be adopted at Doha and that we are currently negotiating will be the achievement of the review process that the co-facilitators conducted during the year. The European Union thanks them for having led this process effectively. Further meetings have also been able to nurture the discussions and should be taken into account : the spring meeting of ECOSOC with the Bretton Woods Institutions, WTO and UNCTAD, the Forum for development cooperation during the session substantive ECOSOC in July, the High-Level Forum on Aid Effectiveness held in Accra in September, which stressed the need to improve the architecture of aid and its effectiveness; high-level meetings concerning the development needs of Africa and the Millennium Development Goals that have lead to concrete results.

Our work must be in the light of today. New opportunities emerged for financing development such as new donors, state or private. However, at the same time, new challenges raised such as the food crisis, the energy crisis, the financial crisis, increasing inequality, amplification of migration, damage to our environment and climate change. All these phenomena, may call into question the undeniable progress made since 2002 in terms of economic growth, achieving the MDGs and ultimately, improved living conditions individuals and strike the poorest preople most.

We must also take into account the profound changes in the global context and accelerating the pace of changes that globalization causes. In this regard, our multilateral system, set up in the middle of last century, no longer seems able to make the regulations required by our globalized world, which is composed by many states with very different realities, and faced with problems that fall under the concept of global public goods, for which only a concerted response can be made. The European Union hopes that the outcome of the Doha Conference are up to these challenges.

Madam Chairperson, the European Union will make an ambitious and constructive contribution to the Doha conference. Please allow me to draw your attention to some challenges that appear to be of particular concern, both in terms of monitoring of development financing as the main macroeconomic issues:

- As enshrined in the Monterrey Consensus, each country, developed and developing, has primary responsibility for its own development, the role of policies and national development strategies is essential for mobilizing resources for development. In this regard, this requires a conducive environment. This includes sound macroeconomic policies and stable financial markets, measures to strengthen good governance in all its dimensions, transparency, accountability, creating favorable conditions for the development of a productive private sector creating jobs, etc.. It also means to fight against corruption, tax evasion, and strengthen national tax systems so that the state can collect the revenues needed to finance development. Action by the international community can support these efforts, in addition to the actions undertaken by the States themselves.

- Direct investment abroad are an important complement to public investment. To maintain and strengthen sustainable flow of direct investment, efforts should continue to be made to achieve a transparent, stable and predictable investment climate. Public investment in basic infrastructure, human capital development and institutional capacity are all factors essential factors to achieve sustained and inclusive economic growth. Regional cooperation can also play a significant role in this area.

- With respect to international trade, which will be discussed by our committee later, let me reiterate that the EU is committed to reaching an successful, ambitious, balanced and comprehensive development-oriented and for a universal multilateral trading system Based on rules open our discriminatory and equitable. To succeed on the Doha Round, a commitment by all will be necessary. Two points also seem important: increasing Aid for Trade and support development of regional trade, including South-South cooperation, with a focus on the specific needs of the Least Developed Countries.

- The EU reaffirms all its commitments on ODA. The latter plays a unique role, particularly to leverage other financial flows. It should also take into account the new architecture of aid: new donors, public and private development of the South / South cooperation. The quality of aid is another important component, for which the EU is firmly committed. In this regard, the results obtained in Accra must move forward to improve its effectiveness. In addition, the pilot phase of innovative financing mechanisms has yielded positive results and the EU calls for a change of scale in this area and new partnerships to mobilize more resources for development.

- Significant advances have been made in implementing the Monterrey Consensus in terms of the debt. Debt relief, together with other factors, contributed to release national resources for additional public spending in areas crucial for development and poverty reduction. Efforts must be consolidated to face the challenge of debt sustainability, to deepen dialogue with emerging donors and deal with procedural creditors.

- The current food crisis demonstrates the complexity of factors contributing to food security (agricultural production but also income) and the need multidimensional and coordinated approach that must guide the response to this challenge, in the short, medium and long term. A global partnership for agriculture and food must open a space for dialogue, coordination and mobilization of all stakeholders: food security depends on public policies and private sector action, players from the North and the South, governments and professionals first and foremost farmers. The efforts of coordination among agencies led by the high-level task force on food security are welcome. They must continue. Bilateral agencies should follow the example also by improving their coordination.

Madam President,

The current financial crisis affecting many countries shows the interdependence of economies and stresses the need to rethink the modes of collective regulation. The European Union is fully mobilized to ensure security and stability of the financial system. In the longer term, the question of a renewal of global economic governance is therefore posed more appropriate to deal with new realities of the world.

The European Union is fully committed to address new and emerging issues and the funding needed to meet those needs, including through innovative financing mechanisms, particularly in the field of climate change, food security and energy.

The European Union is strongly committed to make Doha a success. It will spare no effort to reach a consensus document, with all partners.

Thank you.



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Organisation des Nations Unies Présidence de la République France Diplomatie La France à l'Office des Nations Unies à Genève Union Européenne Première réunion de l'ONU