22 March 2002
SUMMIT SEGMENT OF FINANCING FOR
Plenary adopts "Monterrey Consensus" by acclamation.
Plenary adopts "Monterrey
Consensus" by acclamation.
George W. Bush, President
of the United States, said when nations respected their people,
opened markets, invested in better health and education, aid
dollars, trade revenues and domestic capital were used more
effectively. "We must tie greater aid to political, legal
and economic reforms." He had proposed a 50 per cent increase
in core development assistance over the next three budget years,
or a $5 billion annual increase over current levels. When nations
adopted reform, each dollar of aid attracted $2 of investments.
More aid should be given in the form of grants rather than loans
that could never be repaid. The vast majority of financing for
development came, not from aid, but from trade and domestic
capital and foreign investment. Developing countries received
some $50 billion per year in aid, compared to foreign investment
of almost $200 billion and annual export revenue of $2.4 trillion.
"When trade advances, poverty retreats", he said.
The true source of economic progress was the creativity of human
Jacques Chirac, President
of France, wanted to see a new wind blowing in Monterrey, a
wind of generosity and hope. It was natural to consider drawing
on the wealth created by globalization to finance efforts to
humanize and control it. Therefore, it was necessary to ponder
more deeply the possibilities of international taxation. He
proposed that the international community work together over
the coming decade on five projects: allocating 0.7 per cent
of the wealth of the industrialized countries to the development
of the poor countries; agreement on new funding for development;
the creation of an economic and social security council; fulfilment
of the Kyoto objectives and the establishment of a world environment
organization; and the conclusion of a convention on cultural
Andranik Margaryan, Prime
Minister of Armenia, said his Government was working to stimulate
the private sector and foreign direct investment (FDI). Armenia
was in the last stage of acceding to the World Trade Organization
Ricardo Lagos, President
of Chile, said a recent study had shown that if trade barriers
were lifted, developing countries would be able to generate
over $300 billion. Capital flight was also a serious issue.
Alfonso Portillo Cabrera,
President of Guatemala, said he would have welcomed pledges
to create a fund for financing education, as well as redoubled
efforts to finance the eradication of HIV/AIDS.
Romano Prodi, President of
the European Commission, said the same determination shown in
fighting terrorism must be shown in tackling poverty. There
could not be peaceful globalization without respect for cultural
and religious diversity. It was necessary to substantially increase
aid and its effectiveness. European member States had set the
interim target of 0.39 per cent of GNP by 2006 -- an increase
of 8 billion euros by that year.
Vasile Tarlev, Prime Minister
of the Republic of Moldova, said with the burden of national
debt servicing amounting to 150 per cent of GDP, it was difficult
to mobilize domestic resources and meet the needs of the low-income
population. Calling for debt alleviation, he fully supported
the Monterrey Consensus.
Hubert A. Ingraham, Prime
Minister of the Bahamas, said his national experience had shown
that when economic policies encouraging foreign investment and
establishing strict and prudent fiscal management were introduced,
a favourable climate for increased investment inflows to the
Jan Kavan, Deputy Prime Minister
and Minister for Foreign Affairs of the Czech Republic, said
as a candidate for the presidency of the 57th General Assembly,
his country supported the deeper engagement of developing countries
in the multilateral trade system.
Jose Antonio Moreno Ruffineli,
Minister for Foreign Affairs of Paraguay, called for special
strategies for landlocked countries such as Paraguay.
Kumarsingh Gayan, Minister for Foreign Affairs and Regional
Cooperation of Mauritius, said there were too many conditionalities
attached to aid. He could not accept a situation whereby those
who preached fair trade and competition also practised protectionism
for short-term domestic political gain.
Mohammed Mahdi Salih, Minister
for Trade of Iraq, reiterated the proposal of Iraqi President
Saddam Hussein for the establishment of a long-term global fund
to assist developing countries. It was incumbent on countries
participating in the Conference to support the lifting of the
embargo on Iraq, so his country could support its development
with its own resources.
Soukanh Mahalath, Minister
for Finance of the Lao People's Democratic Republic, said that
the goals of his country included poverty eradication with sustained
economic growth and environmental protection. His Government
had encouraged the participation of the private sector in the
Matt Robson, Minister for
Disarmament and Arms Control and Associate Minister of Foreign
Affairs and Trade of New Zealand, said he would have welcomed
a reference in the Consensus to the global imbalance between
military and defence expenditure and expenditure on aid and
Azmi Khalid, Minister for
Development of Malaysia, said globalization alone did not lead
to growth and development, nor did it solve the problem of poverty.
There can still be globalization, but it should not be absolutely
free or purely market-driven.
Sergei Kolotukhin, Vice-Minister
for Finance of the Russian Federation, said ODA should play
a complimentary role and should not substitute for individual
efforts of national governments to reform the economy and provide
conditions for sustainable development.
Alfredo Mantica, Vice-Minister
for Foreign Affairs of Italy, said his Government would host
a conference in April in Palermo to promote the use of computer
technology to enhance transparency in the governance of developing
Barrie Ireton (United Kingdom)
endorsed the Consensus, and said the United Kingdom was committed
to increasing its aid volume in line with the target set by
the European Union.
Jean Bertrand Aristide, President
of Haiti, said the closer Haiti came to the end of crisis, the
more it wished to thank all those friends in the international
community who were helping it to emerge. Solidarity was exceptionally
important. Haiti was committed to promoting the market and preparing
a framework for private-public partnership.
Kessai Note, President of
the Marshall Islands, said the global community was undergoing
a transformation, with the twin processes of disintegration
and integration accelerating daily.
Christopher Obure, Minister
of Finance of Kenya, said conditionalities tied to the release
of aid should be realistic, achievable and sufficiently flexible
to take into account changing conditions and circumstances.
Cham Prasidh, Minister of
Commerce of Cambodia, said the least developed countries had
not performed well because they had not been able to build their
supply capacity or meet international standards. Why were the
rich countries unwilling to reward those that had tried hard
not to be heavily indebted? he asked.
Bruno Amoussou, Senior Minister
in Charge of the Coordination of Government Action, Planning
and Development of Benin, speaking for the least developed countries
(LDCs), said eliminating poverty in LDCs would increase the
purchasing power of millions and improve the standards of living
everywhere, which would strengthen security worldwide. Eliminating
disease in LDCs would promote the health of all.
Famara Jatta, Secretary of
State for Finance and Economic Affairs of the Gambia, said that
the developed partners had not fulfilled their commitments concerning
ODA. Doing so now would lead to an eventual phase-out of dependency
on aid. External debt was another serious problem.
Celso Lafer, Minister for
External Relations of Brazil, said poverty had become a catalyst
for international insecurity. It was self-deluding to believe
that the invisible hand of the market would solve the problem.
He said that although adequate national policies were part of
the solution, those were not enough. There must also be good
governance at the international level.
Shigeru Uetake, Senior Vice-Minister
for Foreign Affairs of Japan, speaking as the representative
of the world's largest donor, said to reduce poverty and achieve
development, it was essential to set clear goals, such as the
Millennium Development Goals. Particularly important for achieving
those goals were the areas of education, health care and the
environment. In 2000, Japan had disbursed $13.5 billion in international
Timothy Harris, Minister
of Foreign Affairs of St. Kitts and Nevis, said his country
had ventured into international financial services to diversify
its economy and supplement income, but the Organization for
Economic Cooperation and Development (OECD) had stifled growth
through its harmful tax competition initiative.
Gaton Browne, Minister of
planning of Antigua and Barbuda, said his country had played
by the rules of globalization, while the developed countries
had exempted themselves, particularly in the areas of agriculture
Richard D. McCormick, President,
International Chamber of Commerce, speaking on behalf of the
Business Interlocutors, said the only long-term and sustainable
source of development finance was private sector investment,
both domestic and international. More than 30 concrete proposals
had been launched at the Business Forum which included: financing
power, water and infrastructure projects; strengthening small
and medium-sized enterprises through private sector equity funds;
incubating local sources of venture capital; enhancing debt
and equity financing; using micro-credit to redevelop Afghanistan;
establishing a global information clearinghouse to strengthen
information, analytics and risk management for countries and
investors; enabling international debt work-outs and international
bankruptcy mechanisms; and producing investment guides to help
the poorest countries attract new investment.
The Conference had been a
huge success from the perspective of the European Union, Prime
Minister José María Aznar of Spain told correspondents
this morning. It had achieved consensus on three levels: an
internal consensus within the European Union on ODA, a Union
consensus with the United States on ODA, and a consensus between
donor and recipient countries.
Susan Markham, Spokeswoman
for the International Conference, said the Conference had revived
international interest in global economic issues and commitment
to provide the means to attack poverty worldwide. It had also
achieved an unprecedented level of international cooperation
by bringing together 51 presidents and prime ministers, as well
as finance and foreign ministers, business and civil society
The NGO Caucus was not part
of the Monterrey Consensus. At a press conference, the NGO Caucus
made it clear it did not consider the Consensus to be a basis
for combating poverty or advancing economic, social and cultural
Describing the retreat for
heads of State and government as a high point on the development
agenda, President Vicente Fox of Mexico said it was agreed there
that globalization was not a panacea and partnerships involved
certain consequences. It was important to end subsidies, especially
those supporting food and agricultural exports.
19 March 2002
20 March 2002
21 March 2002