TWN Info Service on Finance and Development (May13/04)
7 May 2013
Third World Network
 
Systemic reforms, global economic partnership crucial, says South
Published in SUNS #7576 dated 30 April 2013
 
New York, 29 Apr (Bhumika Muchhala) -- Developing countries have called for an inter-governmental partnership to formulate a new development framework, emphasising the need for deep-set systemic financial reform and fulfilment of the development mandate of the Doha Round of trade negotiations.
 
This was contained in the statement of the Group of 77 and China, represented by the Prime Minster of Fiji, J. V. Bainimarama, at the annual high-level meeting of the United Nations Economic and Social Council (ECOSOC) with the Bretton Woods Institutions (which includes the World Bank Group and the International Monetary Fund), the World Trade Organisation and the United Nations Conference on Trade and Development (UNCTAD). The meeting was held on 22 April at the UN headquarters in New York.
 
DEVELOPMENT BEYOND 2015
 
The Group of 77 and China, represented by Prime Minster J. V. Bainimarama of Fiji, underscored that the challenges of our globalised world are becoming more complex and the global development agenda more cross-cutting in nature.
 
At the same time, multi-stakeholders including UN agencies, academia, the scientific community, and civil society are increasingly playing a more active role in the development process as we search for a sustainable, people-centred, and environment-sensitive, post-2015 development agenda. Nevertheless, it is crucial that national governments play a central role in framing the future global development agenda. In this regard, the formulation of a new development framework must be held through an intergovernmental process to allow the full participation of all States.
 
The Prime Minister of Fiji stressed that a renewed and strengthened global partnership for the post-2015 development agenda is imperative if the international community is to achieve a transformative, people-centred and planet-friendly development agenda.
 
In this regard, it is important that the United Nations builds on the strengths of the current global partnership for development and moves beyond its present framework. The Monterrey Conference marked the beginning of a new approach to dealing with issues relating to development finance and should therefore be a basis for the renewed and strengthened global partnership for development beyond 2015.
 
FINANCIAL REFORMS
 
The Fijian Prime Minister stated that five years after the eruption of the global financial crisis, the world economy is still struggling to recover. The current institutional arrangements have proved to be inadequate in addressing a range of pressing development issues, including reducing inequalities across and within countries.
 
He said that it is clear that the international financial and monetary systems in the context of global public authority need urgent deep-set systemic reform to make them more effective, transparent and legitimate. A viable model of international financial architecture, one that reflects the realities of the 21st century, and gives developing countries an increased voice in global economic governance, is of critical importance.
 
The current attempts to reform the IMF, for instance, address certain aspects of these challenges such as the needed changes in the distribution of voting rights that reflect new realities. However, he said, the redistribution of voting rights alone will not resolve the fundamental problems of financial instability and unavailability of liquidity for developing countries in need to generate the necessary sustainable growth and development.
 
Financial reform must therefore encompass liquidity creation, including improvements in the Special Drawing Rights for developing countries, setting up a framework for resolving debt distress, mobilising the private sector to invest in productive sectors, as well as ensuring the transfer of appropriate technology at concessional terms to developing countries. Also important is the transparency and proper regulation of the financial sector, in order to ensure that capital markets can be mobilised to achieve sustainable growth and play a constructive role in the global development agenda.
 
TRADE VITAL TOOL FOR EQUITABLE DEVELOPMENT
 
The Fijian Prime Minister said that the Group of 77 and China has stressed on numerous occasions that trade is a vital tool to provide long-term sustainable growth. However, in order to fully harness the potential of trade, it is important to uphold a universal, rules-based, open, non-discriminatory and equitable multilateral trading system that contributes to growth, sustainable development and employment creation, particularly for developing countries.
 
The timely conclusion of the Doha Round of multilateral trade negotiations, which must fully respect its development mandate and take into account the needs and priorities of developing countries, was also stressed. The successful outcome of the Doha Round will help to ensure growth in global trade and create new market access opportunities for developing countries.
 
Developed countries were called upon to provide effective trade-related technical assistance and capacity- building tailored to the specific needs and constraints of developing countries. Developed countries should also provide adequate support for the Enhanced Integrated Framework in order to address the supply side and trade-related infrastructure and productive capacity constraints of least developed countries (LDCs).
 
Moreover, the international financial and trading systems should adopt and implement appropriate policy measures to facilitate foreign direct investment to developing countries, including investment guarantee schemes targeting productive sectors.
 
Within the framework of such a renewed and strengthened global partnership, the Group of 77 and China firmly believes that Official Development Assistance remains essential as a catalyst for sustainable development.
 
The Fijian Prime Minister concluded by saying that in order to put the post-2015 development agenda on the right path, effective means of implementation, including adequate, predicable and stable financing for development, is necessary. +