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
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
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
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.
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
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. +