|Department of Public Information • News and Media Division • New York|
Sixty-eighth General Assembly
10th & 11th Meetings (AM & PM)
New Global Economic Governance Must Address Debt Restructuring, Trade, Investment,
Delegates Say as Second Committee Considers Macroeconomic Policies
Free trade, increased investment, debt relief and efficient governance should lead the global response to development challenges, the representative of Saint Lucia said today as the Second Committee (Economic and Financial) took up macroeconomic policy.
Speaking on behalf of the Caribbean Community (CARICOM), she expressed concern at the lack of attention paid to small, vulnerable and highly indebted economies, many of which had a debt to gross domestic product (GDP) ratio of 100 per cent. Trade was the most important avenue of self-help for poor countries, and created a win-win situation. In that regard, increased access to open markets, reduced trade barriers and an informed dialogue on tax matters in the context of financing for development were imperative.
Fiji’s representative, speaking on behalf of the “Group of 77” developing countries and China, stressed the importance of debt relief. Its restructuring had to reflect the real payment capacity of indebted countries. He warned against allowing venture funds to paralyse the debt-restructuring efforts of developing countries. The global crises highlighted the fragilities in financing sovereign debt in some developed countries. The capacity of international financial institutions to provide liquidity in times of crisis was vital in ensuring global financial stability.
Many delegates spoke out against protectionist trade measures, with the representative of Bangladesh pointing out that least developed countries’ share in global trade stood at only around 1 per cent, and even that was concentrated to a few countries and a few products. In 1971, there were 25 least developed countries and their share in global trade was about 1 per cent. Now, 42 years later, despite the number of those countries having increased to 49 and their populations having doubled, their share in global trade remained stagnant at around 1 per cent. On top of that, the declining trend of official development assistance (ODA) was alarming as least developed countries were increasingly vulnerable and marginalised.
The representative of France said his country had worked hard to maintain ODA levels. However, each State must choose the process that worked best for itself. A new financial strategy must take into account the changes in the global financial system over the last decade. Independent development required domestic resources to be mobilized. Fiscal priorities must be defined and illicit outflows of money combated. The mobilization of the private sector was also vital and would allow for ODA to be a complementary source of funding. He also called for a transparent approach that linked poverty eradication and sustainable development.
Also on that note, Indonesia’s delegate, speaking on behalf of the Association of Southeast Asian Nations (ASEAN), said the overarching objective of the post-2015 agenda must be aimed at eradicating poverty, improving education and health care, creating jobs, and supporting persons with disabilities. Engagement in the poorest countries must come through trade and investment that enhanced private capital flow while boosting the capacity of small economies.
Essential to economic growth and food security were regional projects in line with the Millennium Development Goals, and the formulation of national development strategies. Like many other delegates today, he called for the full implementation of the Monterrey Consensus and the Doha Declaration. Those international instruments were vital in creating a stable and healthy global economy that was fair to all.
Many delegates called for reform of the International Monetary Fund (IMF) and the World Bank. Nigeria’s delegate, pointing out that poverty was on the rise and climate change was threatening millions of people, said efforts must be focused on including the voices of those marginalized in talks on global economic governance. The representative of Japan said given that a substantial part of IMF’s activities were funded by Member States, and its governance reforms must be geared towards ensuring fair representation.
Earlier, the Director of the Financing for Development Office in the Department of Economic and Social Affairs introduced documents up for the Committee’s consideration.
Also speaking were representatives of Ethiopia (on behalf of the African Group), Mexico, Belarus, Pakistan, United Arab Emirates, Norway, India, China, Senegal, Qatar, South Africa, Republic of Korea, Russian Federation, Nicaragua, Brazil, Botswana, Costa Rica, Bolivia, Ukraine and the European Union delegation.
Representatives of the International Monetary Fund and the International Labour Organization (ILO) also participated in the discussion.
The Committee will meet at 10 a.m. Thursday to consider its agenda item on eradication of poverty.
The Second Committee (Economic and Financial) met this morning to begin its consideration of macroeconomic policy questions. Before it were two reports of the Secretary-General on “International financial system and development” (document A/68/221) and “Follow-up to and implementation of the Monterrey Consensus and Doha Declaration on Financing for Development” (document A/68/357). Also under consideration was the “Summary by the President of the Economic and Social Council of the special high-level meeting of the Council with the Bretton Woods institutions, the World Trade Organization and the United Nations Conference on Trade and Development” (document A/68/78-E/2013/66).
Introduction of Reports
ALEXANDER TREPELKOV, Director, Financing for Development Office, Department of Economic and Social Affairs, introduced the report on the “Follow-up to and implementation of the Monterrey Consensus and Doha Declaration on Financing for Development”, saying it reiterated the need for domestic resources mobilization to meet the growing needs of sustainable development. Given a shift in the stock of savings from developed to developing countries, half of the global stock of capital would reside in the latter in less than a generation, he added. Foreign direct investment (FDI) decreased by around 18 per cent from 2011 to 2012, with flows to developed countries seeing the largest decline, flows to emerging markets remaining close to flat and flows to least developed countries rising by 20 per cent. Official development assistance (ODA) dropped in real terms for a second consecutive year in 2012, he said, adding that its growth was expected to stagnate from 2014 to 2016.
Mr. Trepelkov also introduced the report of the Secretary-General on the “International Financial System and Development” saying that while the estimated financing needs of sustainable development were extremely large, they represented a small portion of flows of global savings, amounting to around $17 trillion annually. Concerns about the volatility and short-term focus of private capital flows to developing countries persisted, as did unease about risky activities which could shift capital from the regulated banking system to shadow banking practices. An international mechanism for ensuring the swift and sufficient availability of substantial resources during a systemic liquidity crisis continued to be notably absent, while governance reforms for the IMF and the World Bank were met with scepticism from developing countries. He said the overarching goal remained establishing a stable financial system that successfully mobilized and allocated resources for sustainable development needs.
PETER THOMSON ( Fiji), speaking on behalf of the Group of 77 and China, said the ongoing financial and economic crisis underscored the importance of addressing the fragility inherit in international financial institutions. Emphasizing the need to resolve the structural problems of financial instability and the unavailability of liquidity for developing countries in need to generate sustained growth, he said the capacity of international financial institutions to provide liquidity in times of crisis was vital in ensuring global financial stability. Accordingly, the Group believed that efforts must be focused on enhancing the various layers of the global financial safety net and on strengthening coordination among the mechanisms at different levels.
He stressed the importance of flexible and regular interaction between the United Nations and intergovernmental groupings, namely the Group of 20 and the Group of 15. Also, developing countries must be equitably represented in such institutions and have a say in global governance. Reducing speculative investments was also critical towards achieving sustainable development. The economic crisis highlighted the structural fragilities in financing sovereign debt in some developed countries as a result of transferring private risk to the public sector, with contagion effects in developing countries. Stressing the importance of debt relief, he said that restructuring must reflect the real payment capacity of the indebted country. He underscored the importance of not allowing venture funds to paralyse the debt-restructuring efforts of developing countries. Those funds should not supersede a State’s right to protect its people under international law.
MENISSA RAMBALLY (Saint Lucia), speaking on behalf of the Caribbean Community (CARICOM), said that the challenges for development financing required a global response that allowed for free trade, increased investment, debt relief and more efficient governance. The international community needed to uphold the foundations of the Monterrey Consensus and Doha Declarations, while reinvigorating the sense of purpose that was born in Mexico all those years ago. We must not lose sight of the fact that despite significant progress in achieving the Millennium Development Goals, challenges remain. Action and focus on those Goals that are most off-track must be accelerated and countries that face unique challenges, including member States of CARICOM, should be given greater attention.
She expressed concern of the international communities’ insignificant recognition of the needs and concerns of small, vulnerable and high indebted economies, many of which had a high debt to GDP ratio of 100 per cent. The international community, including the United Nations system and global financial institutions, must take a more systemic approach to dealing with the needs of such countries. CARICOM was focused on increasing growth and development on both the national and regional levels. Regional integration posed great possibilities, and CARICOM was exploring innovative ways to expand inter-regional trade and collective engagement with global markets. However, this effort needed to be complemented by a global response rooted in a genuine and dynamic partnership with the international community. Trade was the most important avenue for self-help for poor countries, and created a win-win situation for all. CARICOM called for the conclusion of the Doha Round, increased access to open markets, reduced barriers to trade for developing countries and an informed conversation on tax matters in the context of financing for development.
TEKEDA ALEMU ( Ethiopia), speaking on behalf of the African Group, was concerned that foreign direct investment to Africa remained limited and concentrated in very few countries. This trend needed to be changed if foreign direct investment inflow was to contribute meaningfully to the development of the continent’s economy. It was important for the international community to support African countries’ efforts to develop their capacities to collect public revenues so as to effectively finance their development. The African Group also believed the conclusion of the Doha Round would significantly help poor countries benefit from the global trading system, and called on the international community to make progress during the upcoming Ministerial Conference in Bali in December. The Group also called on donors to fulfil their commitment to providing 0.7 per cent of GNI as ODA, with 0.15 per cent to 0.2 per cent to least developed countries. It repeated its call to mobilize the $100 billion for the Green Climate Fund by 2020, and its operation to begin by 2014. In the final stretch to 2015, it was necessary to lay down a strong mechanism of financing development to eradicate poverty.
YUSRA KHAN (Indonesia), speaking on behalf of the Association of Southeast Asian Nations (ASEAN) and associating himself with the Group of 77, expressed concern that the development efforts of poor countries were in jeopardy. The task of mobilizing aid resources must not be burdened on those countries alone, he said. The full implementation of the Monterrey Consensus and its follow‑up efforts were vital in creating a stable and healthy global economy that was fair to all. He underlined the importance of improved resource allocation, and supported holding open and transparent consultations that took into account the recommendations of the Secretary-General’s report.
The international community must listen to the needs of least developed countries, he stressed, emphasizing that the overarching objective of the post-2015 agenda is eradicating poverty, improving education and health care, creating jobs, and supporting persons with disabilities. He highlighted advancements made in the ASEAN region in the areas of economic growth and food security. Essential to that were regional projects in line with the Millennium Development Goals, and the formulation of national development strategies. Engagement in the region through trade and investment must enhance private trade investment and boost the capacity of small economies. He said that ASEAN Governments should explore green energy systems.
AMERICO BEVIGLIA ZAMPETTI, a representative of the European Union delegation, said that looking beyond 2015, it would be important to preserve the policy framework of the Monterrey Consensus and the Doha Declaration on financing for development, while adapting it to new challenges and circumstances. That framework should be policy-focused; comprehensive in terms of covering all financing sources and innovative mechanisms, as well as tackling illicit financial flows; integrated, so as to make the most out of synergies between different policy goals; flexible and focused on effective implementation at the country-level; and based on mutual accountability in order to reflect shared responsibilities. Effective use of all resources was also crucial and the European Union viewed positively a comprehensive monitoring system.
Regarding macroeconomic policy questions, the European Union continued to support all efforts to promote strong, sustainable and balanced growth, to resist protectionism and to strengthen the “universal, rules-based, open, non-discriminatory and equitable multilateral trading system” of the World Trade Organization (WTO), he said. The financial crisis had accelerated the speed of reforms to improve global economic governance and the functioning of the international financial architecture. He welcomed the recent decisions to strengthen the regulation, supervision and monitoring of the financial system, and supported the 2010 International Monetary Fund Quota and Governance Reform agreement. A key focus should remain on strengthening growth and creating jobs whilst maintaining fiscal sustainability. In that context, he strongly supported the top priority given by the G20 to those themes.
EMBAJADORA YANERIT MORGAN ( Mexico) said that the post-2015 agenda needed to be integrated and action-based. Although development was the primary responsibility of individual countries, the international community had the resources and responsibility to underpin those efforts. Donor countries must meet their ODA commitments and support the development of all countries. Many countries had maintained and even increased their support, despite their own domestic financial difficulties. Mexico supported South-South cooperation, pointing to recent growth, and noting that such cooperation should be promoted and a framework established to ensure that resources were maximized. However, Mexico stressed that South-South cooperation did not replace traditional cooperation, but rather, complimented it. Strengthening the international cooperation of countries in the South must take into account existing major domestic challenges, including efforts to combat poverty. ODA flows remained important even to middle income countries, as they often had a multiplier effect in such cases, given the inter-connected nature of the world.
ABDUL MOMEN (Bangladesh), associating himself with the Group of 77 and the Group of Least Developed Countries, pointed out that the latter Group’s share in global trade was very low, at only around 1 per cent, and even that was concentrated to a few countries, and a few products. In 1971, there were 25 least developed countries and their share in global trade was about 1 per cent. Now, 42 years later, despite the number of those countries having increased to 49 and their populations having doubled, their share in global trade remained stagnant at around 1 per cent. Calling for a regular mechanism for trade financing, he said such a facility could only be set up through the coordinated action of the International Monetary Fund (IMF), World Bank, and the World Trade Organization. He expressed concern with the declining trend of ODA to the most vulnerable and marginalised countries. Emphasizing the need to follow the guidance of Monterrey and Doha, he said ODA must be demand driven. Remittances were a key component for the development of poorer countries, and global leaders must work towards reducing their transfer costs.
VITALY MACKAY ( Belarus) said that the outlook for development financing was not optimistic, in part due to the decline of ODA over the last two years. Among the factors of concern were the slowing rate of so-called “aid for trade”, which had a negative impact on the ability to achieve the Millennium Development Goals. The commitments from Monterrey must be upheld without fail. Developing countries should not use their difficult financial situations to avoid development aid responsibilities, including those commitments made to medium income countries. Belarus welcomed international dialogue on financing for development and sought better cooperation between international institutions, such as the OECD, the Economic and Social Council and the G20. Belarus also believed that monitoring the fulfilment of financial commitments for development must take place, and support should be given to the creation an inter-governmental oversight body for financing for development.
AHMAD NASEEM WARRAICH ( Pakistan) said action was needed in building a stable and efficient financial system and that the representation of developing countries in the Bretton Woods institutions increased. The international financial system should mobilize and allocate resources for sustained economic growth and sustainable development. There should be better regulation and surveillance of the financial sector. While stressing the importance of domestic socioeconomic policies, domestic resource mobilization and good governance, he pointed out that ODA remained an important source of financing for many developing countries, and commitments should be fulfilled. The Doha Round of world trade negotiations should be concluded soon to unlock the development potential of trade. Real work to lay the foundation of a structured mechanism to address the issue of sovereign debt restructuring should begin at the earliest date. Foreign direct investment should be encouraged to reach a wider circle of developing countries and be attuned with long-term growth. Policies and measures that enabled the private sector to overcome its short-term horizon and risk aversion would help build partnerships between the public and private sectors in support of development.
ABDULLAH RASHID AL SUWAIDI (United Arab Emirates), associating himself with the Group of 77 and China, said that internationally agreed upon goals were a means of meeting challenges of the international community on the economic front. He emphasized the need to step-up international cooperation at all levels to find an innovative and effective means to financing development. The UAE maintained its ODA commitments to developing and least developed countries. The country was a major provider of ODA to low-income countries and countries emerging from conflict, ranging from projects in security, education, health, and the advancement of girls and women. The United Arab Emirates was also involved in Asian and African countries in ensuring food security and helping generate jobs. He added that his country had increased trade exponentially with Africa, and that this would continue.
GEIR O. PEDERSEN ( Norway) said that financing for development was a key element of the enhanced efforts to meet the Millennium Development Goals and shape a new set of goals for the post-2015 agenda. ODA would continue to be a critical financing source, and his country planned to provide a high level of funding, which was currently at about $5 billion. Increasing other sources of finance from abroad such as foreign investment and remittances could mobilize additional resources, and taxation was crucial to global partnership for sustained development. Through its Tax for Development and Oil for Development programmes, Norway cooperated with partner countries to strengthen the expertise and capacity of tax authorities, including collecting a fair share of the revenue from non-renewable resources. Progress was being made in reducing debt burdens of developing countries, but that problem needed to be handled in a more comprehensive manner. Realism and innovation would be needed to address the post-2015 sustainable development agenda.
M. KRISHNASSWAMY ( India), aligning his statement with the Group of 77 and China, said the post-2015 development goals would need to be matched up with funding sources. He noted the importance of an integrated financing strategy that included predictable and stable flows of funding. ODA would continue to play a central role in the post-2015 period, particularly for the poorest and most vulnerable countries. Some estimates indicate that more than half of all external financing available to least developed countries came from ODA flows. Issues of technology transfer, market access, capacity building and debt sustainability would remain as relevant as ever after 2015. The early completion of the Doha development round and elimination of trade distorting measures remained equally critical. A renewed global partnership must address systemic issues, including reform of the institutions of global economic governance and the international financial architecture. All sources of finance, including innovative ones, must be mobilized, while South-South cooperation should be enhanced to reach its full potential.
GORDON H. BRISTOL ( Nigeria) said it was a time of crisis not only for the world’s poorest, but also for donor countries as well. Poverty was on the rise and climate change was threatening the very existence of millions of people. Additional resources were needed to address all those challenges, he stressed, calling for developed countries to meet their ODA commitments. He called for debt relief to the poorest countries, and emphasized the need to explore innovative ways to deal with debt distress and restructuring. In that regard, coherence was needed between the United Nations system and international financial institutions. International efforts to reform the global financial architecture must be focused on increasing the voice of least developed countries in global economic governance. On trade, he called for duty-free and quota-free access to markets. Energy, food and commodity price volatility posed additional challenges that must be met with renewed and adequate policies. He emphasized the importance of domestic resource mobilization, and called on the global community to fight corruption at all levels. Expressing concern over trade protectionism measures, he called for the conclusion of the Doha Declaration and the Monterrey Consensus.
LU MEI ( China), aligning herself with the Group of 77 and China, called the world economic situation “very complex”. Impacts of the financial crisis lingered despite an upward trend. The difficulties facing finance for development had become “more pronounced”. Among other things, it was necessary for the international community to strengthen macro-economic policy coordination and to resist protectionism. Developed economies should adopt responsible economic policies. Developing countries should take proactive measures to guard against financial risks. Development and poverty reduction functions of the international financial institutions should be reinforced, to narrow the gap between North and South. Furthermore, more attention to South-South cooperation was needed. She proposed several actions the international community should take to reinforce the role of financing for development. China would speed up the transformation of its mode of economic development, aiming at “quality and efficacy” of growth. China’s economy was stable and its “fundamentals” were positive. It would continue to push for a shift towards domestic demand, and domestic consumption in particular, with a view to maintaining a “healthy” development of its economy. As the largest developing country, China had been working to enhance mutually beneficial cooperation with other countries, and would continue to take an active part in international financing for development.
ARNAUD PESCHEUX ( France) said there must be an ambitious strategy adopted to renew the development paradigm. France had worked hard to maintain ODA levels, although any new financial strategy must take into account the profound changes in the global financial system over the last decade. Independent development required domestic resources to be mobilized. Fiscal priorities must be defined and illicit outflows of money tackled. The mobilization of the private sector was also vital and would allow for ODA to be a complementary source of funding that could respond to local needs. The international community needed to change existing approaches to financing, with each State choosing the process that worked best for itself, particularly with regard to innovative finance. Sustainable poverty eradication was a huge challenge. He called for a transparent and less-fragmented approach, including a single agenda that linked poverty eradication and sustainable development.
MAMADOU MBODJ ( Senegal), aligning himself with the Group of 77 and China and Africa Group, said maintaining a stable macro-economic framework was crucial for growth. The lack of resources had far-reaching ramifications and resulted in a dramatic decrease in economic growth for many developing States. Although adopted in 2002, the Monterrey Consensus had yet to reach its outlined ambitions. Steps needed to be taken to guarantee better ODA predictability, while more efficient foreign-debt management and a more equitable trade environment were of great importance. Senegal strongly supported financing for sustainable development, particularly climate change financing. The global financial crisis had led to dysfunction in the international system, coupled by the lack of governance in the Bretton Woods institutions. The implementation of a more stable and equal financial system was key to rectifying this global imbalance, while the coordination of policies and the review of financial markets must be expanded.
HAJIME UEDA ( Japan) noted his country’s steady recovery. Deflation was coming to an end, and the focus now was to shift from a recovery model to a sustained growth model. In that regard, the Government had formulated an economic policy plan which had, among other things, introduced tax incentives. The international financial system, namely the International Monetary Fund and the World Bank, had played a substantive role in stabilizing the global economy. That had further enhanced their legitimacy and credibility. In the same vein, given that a substantial part of the IMF’s activities was funded by Member States, its governance reforms must be geared towards ensuring fair representation. As for the World Bank, he welcomed the loan introduction scheme, saying that it would not only increase loan availability, but would also provide resources to people living in extreme poverty.
MR. AL SADA (Qatar), aligning himself with the Group of 77 and China, said the Monterrey Consensus and Doha Declaration represented the commitments of developed countries to provide support to developing countries. Moreover, they outlined granting poor countries more say in the decision-making process. However, instability in the economies of developed countries threatened achievements made by developing countries. Although there were early signs of recovery in industrialized nations, least developed countries were still suffering from a decrease in financial flow and development assistance. Growth and economic infrastructure in those countries remained weak, he said, emphasizing that steps must be taken to improve the flow of private capital. While South-South cooperation had widened, it was not a substitute for formal sources of aid.
NOSISI POTELWA ( South Africa) said volatility of financial flows, commodity prices and external debt had constrained developing countries in their effort to achieve the Millennium Development Goals. It was important to address the systemic fragilities, imbalances and the reform of the international financial and monetary system. Such measures should be done with a focus on access to financial services for all, representation of developing countries in international financial regulatory bodies, responsible lending, and debt management. Further efforts were needed to ensure delivery on past commitments. She emphasized the importance of a stronger, more inclusive intergovernmental process on follow-up of financing for development. South Africa supported the need to hold a follow-up conference, and sought informal consultations. The 2010 governance reforms of IMF and the World Bank were important steps towards a more representative, responsive and accountable structure, she said, but fell short of achieving fully legitimate representation of all countries. Steps to reduce the volatility of private capital flows to developing countries should be taken in source countries, and international coordination of monetary policies and management of global liquidity should be improved. Mobilization of resources for poverty eradication should be an overarching goal of sustainable development, she concluded.
LEE YONGSOO ( Republic of Korea) said the mobilization of resources and their effective use should be a key priority. Of particular urgency were the mobilization of domestic resources as their financing needs far outstripped donations. New, innovative mechanisms for development financing, including climate change funding and the Green Climate Fund should be considered in the broader framework of sustainable development. A new development agenda required strengthened partnerships that brought together stakeholders from across the spectrum, while current partnerships could contribute to the design and implementation of the post-2015 by providing a monitoring framework and mutual accountability mechanism.
SERGEY VASILIEV (Russian Federation) said his delegation supported mechanisms for international financial control and considered the equitable and effective functioning of the international system as key to sustainable development, a significant contribution to reforming the system that was put forward this year by the Group of 20. G20 leaders were reached important collective solutions that addressed the downfalls of the current economic system. The “BRICS” countries (Brazil, Russia, India, China and South Africa) could play a critical role towards improving the global financial system, while new banking and financing measures implemented by those countries could help bring greater stability to the global financial system.
MARIA RUBIALES ( Nicaragua), associating herself with the Group of 77 and China, said the global economic crisis was the gravest threat to the well-being of all people. The crisis — systematic in nature, caused by a capitalist system that speculated with all assets — would only be resolved by seeking real alternatives to international order. Accordingly, Member States must work directly with all United Nations bodies and specialized institutions to uphold the principles enshrined in the Charter. The Bretton Woods institutions had functioned as corporations working against the Charter, she stated, calling for in-depth reform of the IMF and the World Bank to ensure the participation of all countries in global economic governance. The current system was hegemonic. The United Nations, particularly the General Assembly, had a role to play as a universal forum that legitimized decisions made by international financial institutions.
GUILHERME DE AGUIAR PATRIOTA (Brazil), associating himself with the Group of 77 and the Community of Latin American and Caribbean States (CELAC), recognized that while development is primarily a national endeavour, restoring sustainable growth to the world economy is the collective responsibility of the international community. Developed and developing countries needed to find the appropriate mix of fiscal adjustment and stimulus measures, including reinforcing sound macro and fiscal policies through strong social protection programmes. Countries needed to establish short‑term stimulus measures, while developed partners needed to recognize and take into account the spillover effects of their monetary policy decisions. Effective and legitimate capital control and macro-prudential measures must also be taken into consideration. Brazil noted there is an emerging consensus that the post-2015 development agenda must pursue the eradication of poverty and hunger as an overarching goal, while expressing serious concern about the reduction of ODA levels for the second consecutive year. Donor countries should promote “aid effectiveness” by scaling-up their existing bilateral and multilateral ODA, and setting clear and transparent timetables to reach agreed levels of ODA to developing countries.
PHOLOGO GAUMAKWE ( Botswana) said his country was all too familiar with the ripple effects of the 2008 financial crisis on the commodities market, which had seriously undermined its revenue streams and led to the scaling down of national development projects. Expressing concern over the ongoing uncertainties in the financial markets, he stressed that maximum efforts be made towards averting the risk of an economic meltdown. Despite the country’s efforts in attracting foreign direct investment (FDI), it continued to receive a lesser share of FDI flows due to the impediments associated with being a landlocked country and a small economy. Middle-income countries should not be punished but rather receive assistance to sustain progress in their development efforts. Financing in that regard should be expanded to address the specific challenges faced by those countries, including infrastructure development, capacity-building, industrialization, development and us of technology, as well as skills development. A mechanism that could facilitate financing for the development priorities of middle-income countries should be incorporated into the post-2015 global development agenda.
EMBAJADOR SAÚL WEISLEDER ( Costa Rica) said the international community had a responsibility to find a solution that would strengthen the basis of international development in future decades. His country would like to see meaningful dialogue between developed and developing countries that reflected shared aspirations but took into account differentiated responsibilities. At the national level, and considering local and global experiences, we must see how best to attract FDI and remittances. Inclusive and sustained economic growth through the formulation of efficient macroeconomic policies and a fair tax structure was needed, despite the difficult times economies around the world faced. Those financial challenges should not be an obstacle to formulating an ambitious development agenda. Costa Rica was very concerned by the declining trend of ODA, although ODA in and of itself could not meet the sustainable development needs of the less developed countries. ODA continued to be critical to middle income countries, and developed countries must make good on the agreements that came out of the Monterrey Consensus and Doha Declaration.
ADRIANA PACHECO ( Bolivia) said that as a result of the global financial crisis, developing countries had paid the price of capitalism. The concentration of capital in the hands of a few, financial speculation, and exploitative practices meant that the world’s poorest countries suffered the greatest. There was a lack of regulation and large investors often became the owners of others’ assets. Developed countries needed to fulfil their responsibilities to donate 0.7 per cent of GPA to ODA, and economic development should not be profit-driven, but rather for the well-being of all. In this vein, her country proposed a new way of living where people lived in harmony with man and nature, and where profit was not the primary objective. The post-2015 agenda should include the right to development, sovereignty, differentiated responsibilities and respect for different models of development. Profound and far‑reaching reforms were needed to create financial structures that respected developing countries and diverse points of view. All types of financial colonialism needed to be removed, and international financial organizations should be monitored and not permitted to bribe developing countries or impose policies that were not relevant to the realities.
DYMTRO KUSHNERUK (Ukraine), associating himself with the European Union, said that maintaining development aid to middle income countries remained as important as ever. Ukraine reaffirmed the importance of using all available resources for development financing - public and private, domestic and international – and believed the United Nations had a central role to play towards ensuring all Member States had a shared view of future work. Open, fair, non-discriminatory and transparent approaches to trade were essential. His country supported the creation of a comprehensive financial monitoring system. The trading capacities of Member States needed to be increased, and the investment environment needed to be improved through concrete, structural reforms. Foreign reserves and central banks were responsible for many economic imbalances; therefore, Ukraine supported direct financing for real economic sectors, such as infrastructure, as the primary means of achieving economic growth worldwide.
NRITYA SUBRAMANIAM (International Monetary Fund) reported on the Fund’s recently approved package of far‑reaching reforms, stating that once the package was approved and implemented, it would result in a 100 per cent increase of total quotas and a major realignment of quota shares. Accordingly, that would better reflect the changing relative weights of the Fund’s member countries in the global economy. The package builds on the 2008 reforms and shifted more than 6 per cent of quota shares to dynamic emerging market and developing countries. It also significantly realigned quota shares, while preserving the voting share of the poorest member countries. Another recent reform initiative included an unprecedented change in the composition of the IMF executive board. In the future, all executive directors will have to be elected. There was also a reduction of board members from Europe, as compared to board members from developing countries. Those reforms will go into effect as soon as the few remaining ratifications take place.
AMBER BARTH (International Labour Organization) said that, despite the global economy’s recovery from the depths of the crisis, growth remained below pre-crisis levels and was uneven across countries. While the global employment rate stood at 55.7 per cent, the IMF’s recent downward revision of the growth forecasts would worsen prospects. Moreover, statistics underscored that the quality and quantity of jobs mattered. The lack of employment opportunities for youth in particular would have an impact over generations in terms of economic losses, social unrest and political instability, she said. The fundamental post-2015 challenge was creating 600 million new jobs in the next 15 years. The international financial system must be able to support sustained, inclusive and equitable economic growth, sustainable development, job creation and efforts to eradicate poverty and hunger in developing countries. Policymakers must meet the challenge of integrating macroeconomic, financial and labour market policies that fostered a sound domestic investment and business climate. She emphasized delivering reforms that fostered growth and job creation while respecting workers’ rights and social protection. Labour market and social investment policies that supported aggregate demand and reduced inequality should be implemented. Policies that increased labour force participation and reduced structural unemployment, long-term joblessness, underemployment and job informality were needed. She stressed the need for well-targeted cost-effective and efficient labour market programmes and sustainable and effective social protection to increase economic resilience and promote inclusive and equitable economic growth.
* *** *For information media • not an official record