Mr. Franz Morak 
Secretary of State at the Austrian Federal Chancellery

at the International Conference on Financing for Development

Monterrey, Mexico
18th-22th March 2002

Mr. Secretary General, Mr. President,
Heads of State and Government, Excellencies,
Distinguished Ladies and Gentlemen

Austria takes particular pleasure in the fact that this historic conference takes place in Monterrey in Mexico.

We recall that it was under co-chairmanship of Mexico and Austria that the first North - South conference was prepared and took place in Cancun in 1981.

It is interesting to note that many of the Mexican protagonists of Cancun are still around, and we might also point out that Mexico has a particular position and talent to play the role of bridge between the North and the South.

Austria welcomes the EU Commitment to reach an average of 0,39 percent of Official development Aid (ODA) of Gross National Income (GNI) by 2006 as a concrete step forward to achieving the internationally recognized goal of 0,7 percent. Austria is committed to that goal.

However, the improvement of the economic and social situation in developing countries does not solely depend on the amount of external financial inflows. In pursuance of true ownership, the developing countries must be enabled to create and extend their basic political, economic and social structures. This is a precondition to target development assistance effectively and more efficiently.

Therefore the Austrian Development Co-operation puts high priority on capacity-building, including democracy building, the improvement of public administration, programs for conflict prevention, education and basic health.

Good governance, the rule of law, respect for human rights, development, peace and democracy do not exist in isolation. They are also indispensable requirements for economic and social development. Governments have to create the conditions for economic growth through investment, for social justice and for offering the entire population education, health and other social services.

Good governance is led by the State, but transcends it by collaborating with the private sector and civil society. All three domains are critical for sustaining human development.

The state is to create a conducive political, economic and legal environment while the private sector is to generate jobs and income.

The civil society facilitates political and social interaction and mobilizes groups to participate in economic, social and political activities.

All this would not be sufficient without economic growth, without the private sector. Much has been said after Doha about the role of trade and the necessity for better market access.

But even before trade, goods have to be produced and it is in this area where we believe that particular efforts are required.

All this needs to be done. We are aware, money is not everything. However, it is equally true that we can not succeed without money.

In Cancun only 22 countries were present. Today in Monterrey over 160 countries, countless NGOs, private sector representatives and the whole 
UN and Worldbank system are taking part. This is a truly global conference and therefore it points the way forward.

Let us therefore combine our strenghts, cooperate in our efforts and commit ourselves to the pursuit of the millenium goals. This will be the challenge of Johannesburg and the road leading there.

The International Conference for Financing for Development in Monterrey has put us on the right track. Now let us get going and put words into actions and ideas into reality.

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