EU Commission Statement - UN Conference on Financing for Development (Doha) to review implementation of Monterrey Consensus

Summary: 29 November 2008, Doha - Statement by the European Commission at the United Nations Conference on Financing for Development to review the implementation of the Monterrey Consensus, delivered by José Manuel Durão Barroso, President of the European Commission

Your Highness, Your Excellencies, Secretary General, Ladies and Gentlemen,

I fear I must begin on a sombre note, by offering my sincerest thoughts of solidarity and condolence to the government and people of India for the terrible attacks they have suffered in Mumbai, and of course in particular to the victims and their families. The terrorists have hit out at the biggest democracy in the world, and they must understand that we will always stand together to oppose terror. Those who act in such a barbarous manner must never prevail.

When we met in Monterrey in 2002, we agreed on a global partnership for development, enshrined in the Monterrey Consensus, which boosted our development efforts and which remains our landmark reference on financing for development.

As we now meet here in Doha, we confront:

- a financial crisis;

- hundreds of millions of people cannot afford basic foodstuffs and risk falling deeper into poverty;

- the challenge of climate change;

- global concerns about food and energy security;

- stalled WTO talks for a new trade round;

- and the reality that many major economies are falling into recession with certain yet unpredictable impact on the developing countries.

So we are facing a global and multi-dimensional crisis. This setting has changed the environment and political importance of our gathering here in Doha.

As I said in Washington at the G20 meeting, the G20 has to reach out to the rest of the world. We need human rescue as well as financial rescue. This is the first major international meeting since Washington, and I think, in Doha, that we need to try to build a bridge, a basis of understanding on what needs to be done between all economies, whether developed or developing.

As this crisis progresses, it becomes increasingly clear that none of us can deal with it on our own. This global crisis requires global answers and global alliances, based on shared responsibilities. Doha is not the place to fuel confrontations but to build for the future.

The European Union has been on the front line in tackling these challenges, addressing the symptoms, assuming our responsibility and reaching out to all partners, both developed and developing.

Addressing the financial crisis

The EU was able to take a clear, coherent position to the G20 summit in Washington on 15 November, agreed by all 27 EU countries. At the G20 meeting we agreed on principles that pave the way for a global response to the financial crisis. The aim is to increase the protection for consumers, savers and investors and to create a new global regulatory architecture.

The Commission has contributed in a major way to the global response in proposing the European Economic Recovery Programme, a 200 billion euro boost to the European economy.

Global governance

Doha also represents a historic opportunity to ensure a concrete follow up to the G 20 Washington meeting, to put on the table concrete proposals warranting that the global financial and economic governance that is now being re-defined is inclusive. Only strengthened, more inclusive multilateralism will allow for fast and coordinated action to tackle common threats.

It is equally important that the UN system and the Bretton Woods Institutions are fully involved and contribute. Global crises call for global solutions, and a global answer requires the presence of all regions of the world, representing the voice of the rich, the emerging and the poorest.

The development crisis

Multiple crises are no reason to weaken our global partnership for development and our commitment to reach the Millennium Development Goals and other development targets. And it is all the more necessary. 1.4 billion people are living in extreme poverty, this means with less than US $ 1.25 a day.

Therefore this conference will, of course, be about money and ensuring that the Monterrey commitments are respected. It is more important than ever that donors honour their aid volume and aid effectiveness pledges.

The European Union accounts for 60% of Official Development Assistance worldwide. The European Council has reaffirmed in June that the EU will deliver on the collective target of 0.56% of Gross National Income by 2010 and of 0.7% in 2015.

We also have to be very innovative about financing - financing development in all its forms, including adaptation for climate change, which is going to be crucial for developing countries. Doha and Poznan have to move forward together, hand in hand - indeed, Copenhagen will not succeed without a serious solution on adaptation.

New challenges require an extra effort

We must ensure that aid commitments are further enhanced to respond to new challenges: indeed, the European Union - a few days ago - adopted a one billion Euro Food Facility, in line with the proposals I made on behalf of the Commission earlier this year. This is additional assistance - above and beyond the 800 million euro that we pulled together earlier in the year to help poor farmers prepare for a better harvest. So the EU is contributing a total of 1.8 billion euros to help developing countries respond positively to the food crisis.

The EU calls on all donor countries to ensure that ODA commitments are not curtailed at a time when partners need our support more than ever. The EU will also actively take forward the aid effectiveness agenda as set out in the Accra Agenda for Action.

Of course, development assistance is not a one way street. Developing countries, too, need to respect their commitments, namely regarding the governance and promotion of national measures for inclusive growth.

The role of trade and development

Trade stimulates development to the potential benefit of all countries and is a vital component of any successful development strategy. At this time of uncertainty on prospects for the global economy and as we deal with the implications of the economic crisis, open markets and the rules-based trading system built on the World Trade Organisation are crucial bulwarks against a resort to protectionism and beggar-thy-neighbour policies.

The EU strongly rejects protectionism - indeed, perhaps the single most important single contribution we can make at this time is to ensure a successful conclusion of the Doha round of trade negotiations in the WTO. Success in this "other Doha" will be good for development, good for developing countries and will strengthen the insurance policy against protectionism that the WTO system provides. This is particularly important to preserve the interests of weaker members of the international trading system.

So we are fully committed to a successful, rapid and pro-development conclusion to the WTO Doha Round. The recent G20 meeting in Washington has given a very important boost to these efforts. I encourage this Conference to echo and reinforce the message to our trade negotiators.

The EU is also committed to improving both the quality and the volume of the Aid for Trade it provides to developing countries to reinforce their ability to exploit the potential of trade to support their own development. Aid for Trade is an important complement to trade agreements since it helps ensure that the benefits of trade are more widely shared.

For a useful Doha Financing for Development outcome

Failure to make further progress in financing for development agenda at this gathering will again have consequences mostly for the poorest countries, which already are the most vulnerable. A North-South clash would be disastrous: indeed it might only provide an excuse for some developed countries not to deliver on their commitments.

The reform is not only about the organisational structure of the Bretton Woods Institutions and about representation therein. It is also about substance. The reform is not only about financial supervision, but also about global economic and financial policy decision-making and the impact of globalisation on the economies of the world. This entails rethinking the current models of development cooperation; we need to be innovative and move towards a new development paradigm.

The European Union wants to take things forward at Doha: we hope we will adopt a useful, action-oriented outcome. It is crucial to maintain the integrity of the Monterrey Consensus which offers a comprehensive and balanced framework for the global partnership, building on shared and differentiated responsibilities of all actors. In the light of the current multiple crises the Monterrey Consensus proves its value: it reflects the core challenges and objectives of financing for development, i.e. to fight poverty and meet key internationally agreed targets such as the Millennium Development Goals, fostering economic growth and promoting sustainable development.

Therefore, we want to see implementation of all parts of the Monterrey Consensus, and are determined to see a positive and successful outcome to the Doha conference.

Thank you.

Ref: SP08-013EN
EU source: European Commission
UN forum: Other
Date: 29/11/2008

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