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The Earth Times | Posted March 18, 2002

FINANCING FOR DEVELOPMENT
Modest commitments but changed political debate

> BY DEVIKA SAHDEV
Copyright © 2002 by The Earth Times. All rights reserved


MONTERREY, Mexico -- The Monterrey Conference on Financing for Development (FfD) is a crucial middle act in a three-act drama of international and multi-lateral conferences according to Mark Malloch Brown, Administrator of the United Nations Development Program (UNDP). "For us in the United Nations this is a critical middle step in a three-conference story line," he said at the first official event as the conference started Monday morning. "The first was the Millennium Assembly where world leaders adopted the Millennium Declaration." The Monterrey conference is the second important meeting, and the final meeting in this 'three-act drama' will be the World Summit on Sustainable Development in Johannesburg in August.

The Millennium Declaration signed in May 2001 by the then 189 member countries of the United Nations lists eight development goals including the halving of global poverty by the year 2015. The most critical aspect of the Millennium agreement, said Malloch Brown, is that it seeks to secure adequate Western support to achieve these goals so "the burden is not left solely on developing countries.

"Here in Monterrey this week is where the rubber hits the road," he added. "If we're successful this week, it gives us the momentum to go to Johannesburg some months from now and actually start to present action plans around the development goals and secure the partnerships of developing countries' own contributions, the contributions of the private sector, of nongovernmental organizations [NGOs] and of others." While the conference is about financing mechanisms and assessing how money should be disbursed for development needs, Malloch Brown stressed that a high level of political commitment is an equally, if not more, important part of the meeting. "Our expectation for this conference is not to, in an accountant's way, add up how much closer we get to this much discussed 0.7 percent of development assistance," he said. "While that remains an enormously important long-term target for everybody, we are much more interested here in getting the kind of political will and commitment that President Bush demonstrated in his speech last week and that the Europeans demonstrated at the Barcelona Summit."

President Bush announced last week that the US would increase its development assistance by five billion dollars over the next three years. Critics have pointed out that this amounts to a tiny increase in official development assistance (ODA), taking the US to 0.12 percent of GDP from its current level of 0.1 percent. Malloch Brown countered this view, stressing that donor countries were showing a change in attitude by committing to increase development assistance.

"Yes, the financial commitments are quite modest and do not come close to the needs," he said, "but the key point is that the political debate has changed. It's now about getting results for increased resources rather than what it was in the past-a constant cut, cut, cut, cut of development assistance. I want to treat this glass as half-full rather than half-empty. It's a dramatic change to re-engage in development cooperation in a post Sept. 11 world and thereby reverse a decade of withdrawal that had left regions like Africa with 40 percent reductions in development assistance."

Nearly 60 heads of state and government will attend the Monterrey conference, most arriving on Thursday. In the meantime more than 300 ministers are already at the meeting along with the heads of international financial institutions including the World Bank and the International Monetary Fund. Despite the high-level commitments there have been some concerns, mainly voiced by NGOs, about the fact that the outcome document for the conference does not have room for new opinions and amendments as it is a consensus document that in all likelihood will not be changed.

"As a veteran of UN conferences let me tell you about the power of having a consensus document weeks before the conference," said Malloch Brown. "It liberates world leaders to focus on brainstorming and moving the agenda forward and being able to rise above the terrible battles over minor details which so often consume these conferences. The document, we think, has all the elements of the 'big global bargain'-better performance by developing countries rewarded with more support by the North, and benchmarked and kept honest by the monitoring of the MDG [Millennium Development Goals]."

Jorge Castañeda, Foreign Minister of Mexico, added that the consensus was essential, but that it did not preclude further discussion and input. "We need to strike the right balance between the indispensable consensus that we had to-and did-achieve at the PrepComs through the adoption of the Monterrey document, and at the same time being able to have the participants of the conference engage in discussions and debates on other issues that go beyond the consensus of Monterrey," he said.

"All the ideas and goals of civil society were not included in the final consensus," he added. "But neither were all those of Mexico, of Peru, of any of the other countries." In the meantime, NGOs, especially many Mexican organizations, are planning protests in the coming week. Castañeda said that the Mexican government welcomes demonstrations, but hopes there will be no violence.

"Although there will be demonstrations, protests, debates, alternative fora in the city of the Monterrey-and there will be absolute complete freedom granted by the Mexican government to Mexicans and foreigners to come to Monterrey," he said, "we hope, and are almost certain, that we will be able to avoid any of the type of confrontations in the streets that mar many of these kinds of conferences in other countries."

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