Hearings of civil society on financing for development
June 24, 2008
Hearings of civil society on financing for development (FFD) took place on 18 June 2008 at the UN Headquarters. Various FFD related groups met prior to, and after the civil society hearings, culminating in an intense engagement by FFD NGOs from different parts of the world.
June 16, 2008: Three major events were taking place on June 16.
i) Women’s Working Group (WWG) on FFD had a Women’s Consultation on FFD 16-17, June. Women came from different parts of the world for the consultation. NGOs from the Philippines were in the forefront on women’s issues. They had concurrent workshops on the six chapters of Monterrey Consensus from the perspective of gender equality. The WWG views the Doha process as an important opportunity to place women’s rights organizations’ analysis and policy recommendations more into the forefront of global economic debates and national implementation strategies. At the end of 1 ½ day’s session they came up with a document for formal submission to the Doha preparatory process. The Women’s session was convened with the support of UNIFEM.
ii) Group of 77 Working Group on Financing for Development meeting:
As you are aware G 77 consists of 130 countries. The lead NGO in this meeting was the Center of Concern, a Jesuit Organization from Washington DC. Invited NGOs were allowed to attend this meeting, which normally is a closed meeting. Experts at this meeting made valuable presentations.
There were three workshops addressing:
a) Exchange Rate, Financial Instability and Trade Performance
b) The emergence of financial issues in Free Trade Agreements and their dispute settlement mechanisms
c) Capital accumulation as a framework for trade and investment policy-making
One of the speakers stated that Foreign Direct Investment is not a tool for development, as the profits are not re-invested in the host country but transferred to the developed countries.
iii) Second Consultation Session of the General Assembly on the Contents of the Outcome for the Follow-up International Conference on Financing for Development: This consultation, by the government delegates took place from 3 – 6 p.m. discussing on the contents and format for the Outcome document to be released middle of July 2008 for the Doha
Conference in November, in Qatar. Civil Society members made their input as well at this meeting. The two Co-Facilitators from Norway and Egypt are
gathering information and input from various stakeholders before drafting the Outcome document.
June 17, 2008: Two events took place:
i) The FFD Working Group on CTT (Currency Transaction Tax) met in the morning. This was a discussion on the input by Civil Society on CTT to the Benchmark document that was put together by FFD NGOs. Many civil society experts and NGOs worked on putting the benchmark document which governments can use while they draft the outcome document for Doha. Those of you who can, it is worth reading this document as it proposes solutions for many of the ailments affecting our world today. The CTT group is calling for an international political agreement to implement a currency transaction, which is intended as a source for FFD, the revenues of which could go to the UN multilateral funds for achieving the Millennium Development Goals by 2015. This initiative is being spearheaded by UBUNTU, a Barcelona-based NGO.
ii) FFD Civil Society Forum took place in the afternoon where the panelists selected for presentation for the Civil Society Hearing on June 18th interacted and exchanged views and ideas about their presentations. This year the gathering was large because the women’s group joined the civil society forum following their meetings. There was also a discussion on the benchmark document.
June 18, 2008: Hearing of civil society on financing for development
There were 8 panelists in all covering the six chapters of Monterrey Consensus and two emerging issues ‘Financing of climate change’ and ‘Gender perspectives’. Philo Morris' topic was ‘Financing of Climate Change Adaptation and Mitigation’.
The following was the presentation made:
Financing of climate change adaptation and mitigation
Climate change currently poses a significant challenge and is affecting millions around the world, especially the poor who have absolutely no part in contributing to green house gas emissions and are least equipped to adapt.
Many vulnerable economies would be hardest hit with the adverse effects of climate change. Given the miniscule contribution of green house gas by vulnerable countries equity calls the international community to contribute to their adaptation needs. In this context it is critically urgent to link the Doha process leading to the Review Conference in November 2008 to the UNFCCC process geared for agreement in Copenhagen in December 2009.
Failure to cut green house gas will render the task exponentially more difficult beyond 2020 without severe economic disruption. Costs of climate change threaten achieving of the MDGs. The enormous impact will wipe out all that has been achieved thus far.
The toll of climate change is already being felt in Africa and in many Small Island Developing States. Combating climate change demands that we place ecological imperatives at the heart of economics. It is the duty and responsibility of the international community to come forward and take all necessary measures.
Financing for adaptation
Financing is one of the four pillars of the last Climate Change Conference in Bali in December 2007, and mobilizing finance and innovation is vital to address the looming challenge. All countries, particularly those most affected by the adverse effects of climate change need to factor in adaptation into their development plans, including investment programs. Technologies for adaptation to climate change will be of benefit to many countries. International public finance is needed for technology development. Developed countries would need to demonstrate much greater commitment to the funding of adaptation measures if the UNFCCC were to cover a substantial part of the costs. The need is urgent to look for ways to finance key adaptation-related investments.
Financing for Mitigation
In the area of mitigation, financing is needed both, for research and development for new energy and other technologies. Technology transfer is of utmost importance to developing countries. Funds are also required for averting deforestation and degradation of land.
With these ends in view we make the following Proposals and Initiatives:
• We call for a holistic approach to development, one that does not endanger human lives and the environment. Prioritize long-term ecological sustainability and the stability of the climate, and protect and conserve the richness and diversity of the natural world.
• Ensure explicit reference in the Doha Outcome document of the need for Innovative Finance like levy on airline travel, an international fuel levy, etc. to generate additional revenue, most specifically because of the vast, unforeseen costs of climate change. The Doha Review Conference on FFD should come out with a clear mechanism for appropriate financing for mitigation of, and adaptation to, climate change.
• The UN Framework Convention on Climate Change should serve as the main framework in the response to climate change. Establish a new financial mechanism and “architecture” under the UN Framework Convention on Climate Change to take charge of the transfer of financial resources to assist the developing countries to address the climate change challenge.
• We call for the establishment of various funds: an adaptation fund, a mitigation fund, a technology fund and a risk insurance fund. There needs to be transparency, with an equitable and balanced representation of all Parties. Climate-related funds should be placed in the Convention and not in other institutions. Governance should be under UNFCCC.
• All industrialized nations and corporations to immediately find ways to transfer funds to help developing countries in measures both for adaptation and mitigation in line with “polluter pays principle”. The problem calls for scaling-up of additional sources of finance for vulnerable nations, including an increased emphasis on building capacity of developing nations to address this issue by themselves.
• Principle of ownership and alignment ought to be part of the global response to climate change.
• Targets for climate change mitigation and adaptation should not be part of the conventional ODA.
• To set realistic targets for CO2 reductions for both developed and developing countries on an urgent basis.
• We call for public and private investments into new technologies for mitigation of, and adaptation to, climate change, particularly in the area of renewable and alternative energy sources.
• Climate change policies ought to be balanced with poverty alleviation, employment creation and infrastructure development, which will call for looking into linkages between trade and finance measures.
• Call for an international trust fund for low-carbon technology research, development and deployment, including waste management and recycling of hazardous substances, particularly in developing countries.
• Call for sustainable consumption and production patterns that reduce green house gas emissions and create less waste material.
• To put necessary mechanisms in place to ensure that funds really reach to those affected by climate change adversely, and not be channeled elsewhere.
• The funds should be in the form of grants or resource transfer and not loans, especially for Small Island Developing Countries and Least Developed Countries.
• Call for a decisive climate deal that addresses all issues by Copenhagen in 2009.
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The Doha NGO group had an interactive discussion on key FFD themes with member states. All the panelists of the civil society hearings presented their main points. G77 and EU delegates were present for the session, which was very encouraging. G-77 supported the recommendations made on climate change and other topics. It was a very fruitful meeting. Copies of the benchmark documents were also presented to the delegates. On the whole the NGOs were pleased with participation for the 4-day events. Besides FFD Office, NGLS and UNCTAD were also present at the session.
Consultation Workshop on Avoiding the 2015 Debt Crisis
The United Nations Development Program (UNDP) organized a two-day event “AVOIDING THE 2015 DEBT CRISIS, what institutional reforms are required to ensure co-responsibility in sustainable sovereign debt management." The consultation took place on May 29 – 30, 2008. It was a consultation workshop with civil society on external debt. The outcome of this event will be the input into the deliberations leading up to the Doha Review Conference on Financing for Development scheduled to take place in November 2008. The event brought together civil society members working on debt all over the world. There were in all 63 participants including UN Officials, Jubilee South, Jubilee-USA, Center of Concern, Government delegates and others. One speaker pointed out that the international financial order established in 1944 and all of its institutions have become obsolete. A four page summary report will be ready soon from UNDP.
June 3, 2008
May 19-20,2008
Informal Review Session on
Chapter III of the Monterrey Consensus
“International trade as an engine for development”
FFD Trade Review Session Panelists
The Review session of “International trade”, chapter III of the Monterrey Consensus took place at the UN Headquarters on 19-20 May 2008. As was in previous chapter review sessions first there was a panel presentation by experts and Interactive Debate by member states and other stakeholders followed this. Monterrey Consensus had identified International trade as an engine for development.
Among the panelists were Ms. Lakshmi Puri, Director, Division of International Trade in Goods and Services, and Commodities, United Nations Conference on Trade and Development (UNCTAD) and Martin Khor, of Third World Network.
Martin Khor stated that, ‘Financing for Development (FFD) was a major achievement and now we are into the 5-year review and we are faced with food crisis and financial crisis as well’. He stated that the present world trading system has many inequities that need to be corrected. Governments are failing in their duty if they do not protect their farmers.
G-77 speaking on behalf of 130 countries stated that WTO in 2001 Doha Ministerial Meeting decided to place the needs and interests of developing countries at the heart of its work program and had committed themselves to the implementation of those decisions. However, after 7 years, they have not been delivered. G-77 also stated that Official Development Assistance (ODA) for development purposes has actually fallen.
Chapter III Review Session
Bangladesh speaking on behalf of Least Developed Countries (LDCs), which numbers around 50 countries stated that Doha round trade talks stands at a standstill…what is needed is international political leadership. The delegate asked that special needs and interests of the LDCs be placed at the heart of the Doha Round and its final outcome.
Center of Concern took the lead in drafting the NGO Statement along with other networks. It brought out the fact that after more then six year, the Doha Round of trade talks has broken down. Developing countries continue to face declining terms of trade for their main export products. It stated that while the World Trade Organization (WTO) was set up to sustain and enhance multilateral trade relationships and to carry out common actions, the institution and agreements negotiated under its auspices have been dominated by the interests of powerful economies. Medical Mission Sisters have endorsed this statement and this can be found on the FFD web site.
Many countries and NGOs stressed the need for “special and differential treatment” toward developing nations. For more information on the Review Session on International Trade please visit: http://www.un.org/esa/ffd/doha/chapter3/index.htm
15-16 April 2008, UN Headquarters, NY
Informal Review Session on Chapter IV of the Monterrey Consensus
“Increasing international financial and technical cooperation for development”
The Review Session on Chapter IV of the Monterrey Consensus, “Increasing international financial and technical cooperation for development” began with a panel presentation by 5 eminent speakers. Since a number of Civil Society organizations are actively engaged in the aid process there was wide input from different sectors by civil society participants.
Monterrey Consensus saw Official Development Assistance (ODA) as a potential for financing social infrastructure (education, health, public infrastructurel development, agriculture, rural development and food security) critical for sustainable production and for the achievement of the MDGs and other internationally agreed development goals. However, ODA has declined in 2006 and 2007 as well, which is a worrying sign and very few countries have met the target of 0.7% of Gross National Product (GNP).
The delegate from Mexico stated that it is important to remember that the Monterrey Consensus made evident the fundamental role of the United Nations System has in the international debate concerning development.
Five Civil Society members took the floor during the two-day session. Civil Society members asked for intensifying efforts to enable effective partnerships among donors and country recipients, based on the recognition of national leadership and ownership by developing countries. They called for broader international space for discussion among all relevant stakeholders including civil society. They also called for the UN Tax Committee to be strengthened and upgraded into an intergovernmental entity and that its agenda should include measure to combat capital flight and tax evasion, thus bringing about a World Tax Organization in the long run.
For a full report of all the presentations made, please visit www.un.org/esa/ffd and click on Review Session Chapter IV. There was a sense of satisfaction among NGOs with the process used for their engagement.
8-9 April 2008: Workshop on Debt, Finance and Emerging
Issues in Financial Integration, United Nations Headquarters, New York
The UN Financing for Development Office (FFD) organized a workshop in debt, finance and emerging issues in financial integration on 8 – 9 April 2008 in New York. The participants consisted of experts, bankers, academia, FFD Office staff and civil society. Presence of civil society was bare minimum. These kinds of workshops give birth to new ideas, which can be used for solving global problems. Perhaps, a lot of what was said was technical for civil society members but it is an education process.
The Under Secretary General opened the workshop along with ambassadors of Norway and Egypt, the Co-facilitators for the Doha Review Conference scheduled to take place in November 2008. The question addressed was, ‘what do we want to hear from the Doha Conference?’
There were five sessions covering the following topics:
i) Emerging Global Issues in Financial Integration
ii) Issues in Public Debt Sustainability and Debt Management
iii) Sovereign Debt Restructuring
iv) Issues in Low Income Countries, Access to Finance
v) Some Issues in Low Income Countries
Each of the session had two to three presenters and the paper they presented is available on www.un.org/esa/ffd
Jomo Sundaram in his concluding remarks mentioned about global imbalances and current financial crisis. ‘What we now face is a great deal of uncertainty as it unfolds’. He added that Doha conference should not be seen as a place for additional conditionalities, but one of sustainable development. He said that FFD Office of the UN would continue to contribute in the deliberations as we prepare for the Doha Conference.
Informal Review Session on Chapter VI of the
Monterrey Consensus: “Addressing systemic issues: enhancing the coherence and consistency of the international monetary, financial and trading systems
in support of development” March 11-12, 2008
The review session of chapter VI in preparation for the Follow-up International Conference on Financing for Development (FFD) began with a panel presentation, followed by interactive debates, as was the practice in the previous review sessions. The event did have a good attendance.
G-77 in their statement stated about the lack of progress on the Review Session in progress recommendations made in the Monterrey Consensus. G-77 proposed that the Doha Review Conference decide on a time-bound and structured process to make recommendations to improve the global economic, financial and monetary governance structures, including strengthening the leadership role of the United Nations in this area. Also, called for fundamental restructuring of the international financial architecture to enhance financing for development and poverty eradication, increase the voice and participation of developing countries, reflecting the changed global economic realities.
All the six civil society representatives who had signed up to speak got the opportunity to make their presentations. Since chapter VI deals with World Bank (WB) and International Monetary Fund (IMF) the civil society members had resorted to collective drafting with experts on WB and IMF. Four members made use of this draft and the inputs made were substantial. My piece was on macro-economic surveillance of IMF and I will be happy to send copy to any one interested. It is also posted on the web site of FFD – www.un.org/esa/ffd, click on Chapter VI Review.
The side event on Systemic Issues in Financing Development took place during the lunch break, which Philo was moderating. One of the speakers was Ambassador Byron Blake representing G-77 countries for the Doha Conference. The purpose of the event was to bring out the ongoing financial crisis showing the systemic problems in international financial architecture.