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Statement by Mr. Wang Qun, the Chinese Delegate, at the Second Committee of the 64th GA on Agenda Item 52: Follow-up to and Implementation of the Outcome of the 2002 International Conference on Financing for Development and the 2008 Review Conference

2009-10-15 16:11

New York, 15 October 2009

Mr. Chairman,

I would like to begin by expressing my appreciation to the Secretary General for his report submitted under this agenda item. China associates itself with the statement made by the representative of the Sudan on behalf of the Group of 77 and China.

The 2002 International Conference on Financing for Development adopted the Monterey Consensus and reached broad understanding on the establishment of a global partnership for development in a joint effort to eradicate poverty and achieve sustainable development. In 2008, the Follow-up International Conference on Financing for Development was convened in Doha, Qatar. The conference acknowledged that since the adoption of the Monterey Consensus, financing for development has come across new challenges such as financial crisis, food and energy crises and climate change, and recognized the need for concerted action to meet these challenges.

Availability of financial resources is the prerequisite for achieving development. Neither economic and social development nor environmental protection can be achieved without financial resources. Securing adequate financial support for the economic and social development of developing countries is crucial to bridging the gap between the North and the South and achieving balanced development of all countries. Over the years, the implementation by the international community of the Monterey Consensus has been very uneven with some achievements but also many inadequacies, and the longstanding development deficit is yet to be effectively addressed. Since the outbreak of the financial crisis, the economies of developing countries, the least developing countries in particular, have suffered heavy blows. They find themselves faced with such problems as drop in export, capita outflow, lack of fulfillment of ODA commitment, increasing cost of external financing and growing rate of unemployment. The development achievements made so far through years of hard work are facing the risk of being negated by severe shortage of financial resources.

We believe that the primary responsibility of financing for development lies with governments. However, the support of the international community is of crucial importance. Against the backdrop of the current financial crisis, developing countries need more than ever before the assistance of the international community. In this connection, I would like to make the following points:

Developed countries should expeditiously set down feasible timetables for the achievement of the target of allocating 0.7% of their GNP for ODA and provide further debt relief to developing countries. To make aid more efficient, it is important to eliminate the pre-conditions for ODA and help recipient countries in all sincerity to implement their national development strategies and realize their development goals.

International financial institutions should put in place effective rapid responding financial rescue mechanisms oriented towards the need of developing countries, ensure significant increase of their input in long term development and provide financial support to developing countries on a priority basis and without stringent conditions. We welcome the initiative by the IMF of increasing the flexibility of providing non-concessional financing to low income countries. However, the serious shortage of funds for development in low income countries calls for the establishment of a more effective mechanism to solve the problem.

Trade is an essential engine driving the recovery of global economy; therefore, trade protectionism should be rejected by all countries. Since the outbreak of the current financial crisis, trade protectionism has been noticeably on the rise, which will gravely impede the process of global economic recovery and damage the interests of developing countries. The Doha Round negotiations are critical to the process of global trade liberalization. While locking in the gains and maintaining the Doha mandate, all parties should work hard to push for a successful conclusion of the Doha Round negotiations in 2010 with comprehensive and balanced results, thus reaching the goals of the development round.

Reform of the international financial architecture should be resolutely pursued. The current financial crisis has wreaked havoc in the existing financial system. The post-crisis international monetary and financial order will determine the future of the world economy. It is necessary to lay emphasis on increasing the voice and representation of developing countries in international financial institutions and revamping mechanisms for international financial monitoring and control so that cooperation in this field will be strengthened and the scope of monitoring and control expanded.

Mr. Chairman,

The Monterey Consensus has offered an integrated framework for addressing the issue of financing for development. All parties should further substantiate their relevant policies by building upon the experiences and lessons learned over the past seven years since its adoption so that international cooperation in financing for development can productive.

Thank you, Mr. Chairman.


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