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The Earth Times | Posted March 19, 2002




FINANCING FOR DEVELOPMENT

Annan arrives; more leaders to follow

> BY ROMAN ROLLNICK
Copyright © 2002 by The Earth Times. All rights reserved


MONTERREY, Mexico -- UN Secretary General Kofi A. Annan arrived in Mexico Tuesday saying a global deal on development assistance was on the table at the UN's International Conference on Financing for Development in Monterrey. A UN spokeswoman said Annan had arrived in the country on Tuesday and was scheduled in the city of Monterrey on Wednesday. Annan, who will address heads of government and other representatives from an estimated 170 nations around the world, said in a message that over 1 billion people making up one fifth of humankind currently live on less than $1 a day.

They are people who go to bed hungry and who do not even have water to drink without grave risk of disease.

Eighteen months ago, he said, the political leaders of the world agreed at the Millennium summit that they should use the first 15 years of the 21st century to begin major onslaught on poverty. This was why President George W. Bush, other leaders and ministers, business leaders, foundation executives and nongovernmental organizations were meeting in Monterrey this week.

"Leaders from the developing world will also be there," Annan said. "They are not asking for handouts. They know that they themselves must adopt the right policies to mobilize private investment from their own citizens and from abroad. They have to embrace the market, ensure economic stability, collect taxes in a transparent and accountable way, fight corruption, uphold the rule of law and protect property rights. "What they do ask is a fair chance to trade their way out of poverty, without having to face tariffs and quotas or to compete against subsidized products from rich countries. Many are also asking for relief from unsustainable debts. And many are saying that, in order to do without handouts, they need a helping hand up, in the form of increased aid from wealthier countries," he said.

Praising the announcements by the European Union and the United States that they will allocate billions of extra dollars to help alleviate poverty, Annan said the amounts pledged would, however, still not be sufficient. "All economic studies agree that, to achieve the Millennium Development Goals, we need an increase of at least $50 billion a year in worldwide official aid-a doubling of present levels," he noted. Annan's announcements suggested that the argument, in principle, had been won. All governments accepted that official aid was only one element in the mix, but an essential one. Aid today, he said, was much more effective than it was 20 years ago, for a number of reasons. More of it was focused on building up the capacity of recipient countries to run their own economies, and less was tied to the business or geopolitical interests of the donor countries.

"If that global deal is clinched in Monterrey this week, many more girls in Africa, Asia, and Latin America will go to school," Annan said.

"Millions of children will grow up to be productive members of their societies, instead of falling victim to AIDS, tuberculosis or malaria, and the world as a whole will be much, much better off."

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