Mr. Chairman,

At the outset, I wish to thank the Secretary-General for his comprehensive report and his note on innovative sources of financing for development, which laid a good foundation for our discussion on this item. The Chinese delegation supports the speech of Qatar made on behalf of the Group of 77 and China. Now, I would like to share with you China's position on Item 84:

Mr. Chairman,

The formulation of the UN Millennium Development Goals has reflected the resolve and commitment of the international community to the question of development. However, judging from the present situation, the realization of MDGs is faced with enormous challenges, and it also proves to be very hard to make progress in some areas. Monterrey Consensus was adopted at the International Conference on Financing for Development in 2002, which has played a positive role in raising the awareness of the international community on development and enhancing the implementation of the MDGs. Regrettably, after more than two years after the ICFD, the "development deficit" remains climbing with financial resources in great shortage. This has gravely impeded the economic development of developing countries and slowed down the realization of the MDGs. This problem is more outstanding against the backdrop of ever expanding globalization. How to materialize the Monterrey Consensus and how to appropriately handle the question of financing for development constitutes an important precondition for the timely realization of the MDGs.

The Chinese government always holds that while financing for development is the primary responsibility of national governments, international support is also of vital importance. The two should complement and promote each other. The Secretary-General has raised similar views in his report and pointed out that if the lowest ceiling of MDGs is to be realized by 2015, the volume of ODA must be doubled based on that of 2001. This is a major precondition for international cooperation on financing for development. The Chinese Delegation therefore believes:

Firstly, the developed countries should take speedy and concrete actions to genuinely fulfill their commitments on increasing financial resources, so as to ensure the quality and quantity of ODA. The international community should also be aware of the fact that ODA is not a sort of handout or an act of mercy; it is a necessary means to change the unbalanced distribution of benefits at global level. At the same time, multilateral development agencies should further strengthen the role of transferring resources, and make poverty eradication and raising developing countries' productivity their core mission.

Secondly, it is necessary to change the inequitable world financial, monetary and trade systems, and to create an enabling international environment for developing countries in economic development and for attaining global sustainable economic growth. It is also important to expand the right of developing countries to participation and decision making in multilateral economic and financial institutions. The international community needs to encourage various economic factors to keep a sustained, stable and orderly flow at the global level. The developed countries should actively steer private financial flows to developing countries in an orderly manner, accelerate market access to developing countries, increase transnational flow of labor and transfer of technologies to developing countries, and expand the special drawing rights and its scope of use. Greater efforts should also be made in debt relief for HIPCs.

Thirdly, the relevant world institutions should cooperate closely, coordinate their actions, and improve policy coherence and coordination in international development cooperation. In this respect, the United Nations should play an active role, and strengthen cooperation and coordination with Bretton Woods Institutions and WTO as well as regional agencies, so as to meet, systematically, the needs of international development cooperation and common development.

Mr. Chairman,

2005 will see the convocation of high-level meeting on financing for development and high-level plenary meeting on MDGs. We hope that the two meetings will strengthen coordination and communication. And the two meetings should also actively promote the establishment of MDG evaluation framework so as to monitor the implementation of Monterrey Consensus.

Mr. Chairman,

The Chinese Delegation is glad to note that though there are different views on innovative ways of financing for development, the feasibility studies have not been stopped. The Chinese government appreciates the active efforts made by Brazil, France, Chile and Spain. We believe that innovative ways of financing for development will instill new vitality to financing for development, and bring in new ways of thinking. We welcome the studies made by parties concerned in this regard, and we are ready to exchange views with all parties on this subject. The Chinese government hopes that all parties will act in the "win-win" spirit, reinforce consultations, study on specific implementation methods, analyze the relevant costs and risks, and make concrete actions at an early date.

Thank you, Mr. Chairman.