Developing a global partnership for development

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One United Nations (Ch 2, para 63)

63. In the Millennium Declaration, world leaders resolved “to create an environment—at the national and global levels alike—which is conducive to development and to the elimination of poverty.” Towards this end, they committed to “an open, equitable, rulebased, predictable and non-discriminatory multilateral trading and financial system.” Subsequent UN conferences in Monterrey, Johannesburg and São Paulo have emphasized the link between trade and development. By one estimate, the successful conclusion of the Doha Development Agenda could bring 144 million people out of poverty by 2015, significantly contributing to the achievement of the Millennium Development Goals.⁽¹⁴⁾ The Bretton Woods institutions and all other UN agencies engaged in development are working closely with the World Trade Organization to help deliver on the promise of Doha.

Trade

64. Notwithstanding the great potential benefits that developing countries can expect from increased and improved participation in international trade and trade agreements, various constraints need to be overcome at the international and national levels so that trade can serve to address the most pressing human needs, enhancing opportunities for the poor and women, and to advance sustainable development. To support these priorities, UN organizations are actively supporting the efforts of developing countries to build supply capacities, enhance competitiveness and achieve diversification into the production of higher value and higher technological content. Of critical importance is the provision of trade-related technical and capacity building assistance that addresses both short-term needs of implementation and trade negotiations, and long-term needs of strengthening endogenous institutional, human and regulatory capacities.

Box 2.23 (One United Nations)

Box 2.23: The Doha Development Agenda

At the Fourth WTO Ministerial Conference in Doha, Qatar, in November 2001, Trade Ministers adopted a Ministerial Declaration setting out a broad work programme for the WTO for the coming years. Known as the Doha Development Agenda, the work programme incorporates negotiations and other activities to address the challenges facing the trading system and the needs and interests of the diverse WTO membership, particularly those of developing and least developed countries.

The extensive work programme which has evolved since 2001 includes negotiations in specific areas: agriculture, services, market access for non-agricultural products, trade-related aspects of intellectual property rights, trade facilitation, WTO rules, improvements to the Dispute Settlement Understanding and trade and environment. It also includes high-priority aspects that do not involve negotiations, such as: electronic commerce; small economies; trade; debt and finance; trade and transfer of technology; technical co-operation and capacity building; least developed countries; and special and differential treatment.

Progress on the Doha Development Agenda has been mixed, including the disappointment of the 2003 Cancun Ministerial Conference. And the negotiations have extended beyond the original time frame through January 2005. WTO members achieved a breakthrough in July 2004, when they took decisions on key issues to ensure continued momentum. Framework agreements are now in place for the negotiations on agriculture (including cotton) and non-agricultural market access. Negotiations have been launched on trade facilitation, and WTO Members have agreed that the Singapore issues-investment, competition policy and transparency in government procurement-will not be negotiated during the Doha Round. Recommendations have been adopted to advance the negotiations on services. WTO members have also agreed to a package on development issues and reaffirmed their commitment to fulfilling the development dimension of the Doha Agenda.

One United Nations (Ch 2, paras 65 - 66)

65. Many UN system organizations are collaborating to build trade-related capacities, particularly in the least-developed countries, better to integrate them into the global economy and to enable them to reap greater benefits from globalization. A notable example is the Integrated Framework for Trade-Related Technical Assistance, which combines the efforts of IMF, ITC, UNCTAD, UNDP, World Bank and WTO, in partnership with bilateral donors and recipient countries. The Integrated Framework supports nationaldevelopment plans with diagnostic studies to identify and respond to trade development needs. Its experience shows that reforming formal trade policies is not enough to stimulate growth. A need exists to address a range of obstacles, including weak institutions, deficient infrastructures and trade barriers in key markets.

66. In the area of commodities, which is the dominant sector in many developing countries, the UN system, with UNCTAD in the lead, has been focusing on constraints originating from the supply side and from difficult market entry conditions. Another focus of the work of UNCTAD, FAO and the International Financial Institutions (IFIs) has been to identify possibilities for increased financing in the commodity sector.

One United Nations (Box 2.24)

Box 2.24: Cooperation on commodities

The International Task Force on Commodities provides a comprehensive and systematic consultative framework, which enables the sharing of information and the use of complementary expertise among key actors involved in reviewing the commodity situation and in operating commodity markets. The efforts of all interested stakeholders are directed towards a pragmatic approach designed to bring both focus and priority to breaking the cycle of poverty which now traps many commodity producers and commodity-dependent countries. Such a consultative process addresses the wide spectrum of the commodity problématique.

In addition to Member States (both commodity-dependent developing countries and interested development partners), partners include: international organizations (FAO, IMF, ITC, UNDP and the World Bank); commodity-specific bodies (international commodity organizations and study groups); the private sector, in particular major corporations engaged in the production, marketing and distribution of commodities; nongovernmental organizations that promote action on commodity issues; and the academic community.

Aid

67. The goal of developing a global partnership for development provided one of the key platforms for the Monterrey Conference’s response to the concerns of Member States over the continuous trend of decline in official development assistance flows to developing countries, which remains their primary source of external funding. The outcome of the Conference, the Monterrey Consensus, derived from full and extensive collaboration among the United Nations, the Bretton Woods institutions and other major stakeholders, such as the WTO. It aims to create a broad-based partnership between developed and developing countries, in order to explore ways of generating additional public and private financial resources to complement national efforts to mobilize domestic resources. As part of that partnership, the Monterrey Consensus sought to reverse the decline in ODA and to affirm the commitment of developed countries to the 0.7 UN Development target.

68. Monterrey and the actions taken by donors in its aftermath have had a beneficial impact on the magnitude of official assistance flows.⁽¹⁵⁾ Even with recent progress, however, additional funds will be necessary. As a result, along with efforts to establish timetables to reach the ODA target of 0.7 percent reaffirmed at Monterrey, attention has turned increasingly to finding sources of financing in addition to traditional ODA—now referred to as “Innovative sources of financing for Development.” Since 2003, initiatives by Heads of State, studies from independent experts and technical groups have been reviewing the feasibility and implications of various proposals. Recent meetings of the International Monetary and Finance Committee⁽¹⁶⁾ and the Development Committee⁽¹⁷⁾ have pursued the matter, and the General Assembly⁽¹⁸⁾ has requested that possibilities in this regard be given further consideration.

One United Nations (Box 2.25)

Box 2.25: Financing the development goals

The Financing for Development Office of the UN Department of Economic and Social Affairs works in full and extensive collaboration with the major stakeholders to prepare analytical reports on the follow-up process to the International Conference on Financing for Development, as mandated by the General Assembly. In addition, the IMF, World Bank and WTO participate actively in the multistakeholder workshops and consultations requested by the General Assembly (A/58/230), as part of the follow-up process to Monterrey. These dialogues have taken place in New York and at various regional locations and have dealt with issues, such as: building an inclusive financial sector for development; sovereign debt for sustained development; public-private partnerships for improving the effectiveness of development assistance; improving the climate for private investment; and systemic issues. The International Monetary and Financial Committee (IMFC) and the Development Committee have been particularly involved in monitoring the financing requirements of the Millennium Goals, based on the "Global Monitoring reports" prepared by the staff of the two institutions. In this same context, both committees have given attention to the Assembly's request to follow up on the call in the Monterrey Consensus for further investigation of the potential for innovative sources of finance. Discussion of innovative sources of financing has been on the agenda of the Development Committee at its meetings since the spring of 2003,⁽¹⁹⁾ and on that of the International Monetary and Financial Committee since its annual meetings in 2003.⁽²⁰⁾

Partnerships

69. The Millennium Declaration reaffirmed the resolve of the international community to “give greater opportunities to the private sector, non-governmental organizations and civil society, in general, to contribute to the realization of the Organization’s goals and programmes.” Organizations of the UN system have forged strong partnerships with non- UN development actors on a wide range of issues and are working with the private sector and civil society organizations to help alleviate poverty and achieve the MDGs. An example is the UN’s Global Compact, an initiative of the Secretary-General to engage the business community in a common effort to support 10 internationally agreed principles in human rights, labour, environment and anticorruption. The Global Compact now involves nearly 2,000 companies and other stakeholders, operating in more than 70 countries.

One United Nations (Box 2.26)

Box 2.26: Partnerships with civil society

The United Nations System Network on Rural Development and Food Security, promoted by FAO, IFAD and WFP, combines the exchange of best practices among network members with countrylevel theme groups. The groups include civil society, governments, donors and UN system organizations.

National Cleaner Production Centres, promoted by UNEP and UNIDO, are working with the multinational chemical corporation BASF on eco-efficiency programmes for small and mediumsized enterprises to access methods of analysis and to introduce new production processes at the highest international standard.

The Cities Alliance, promoted by UN-HABITAT and the World Bank, is a global alliance of cities and their partners committed to improving the living conditions of the urban poor, by preparing city development strategies and large-scale slum upgrading programmes.

Least Developed Countries

70. In the Millennium Declaration, Heads of States pledged to address the special needs of the Least Developed Countries (LDCs); committed to ensuring the success of the Third United Nations Conference on the LDCs in May 2001; and, to this end, outlined the main support measures that industrialized countries should take to contribute to a successful outcome. Building on the mobilization of the system’s advocacy and analytical resources that characterized the Conference preparations, a strong, deliberate effort is now underway to ensure an effective coordination of the system’s support to the Conference’s follow-up.

One United Nations (Box 2.27)

Box 2.27: Working for the implementation of the Brussels Programme of Action

Following the Third United Nations Conference on the Least Developed Countries in Brussels (May 2001), CEB expressed the system's commitment to make an effective, concerted contribution to the implementation and monitoring of the Conference's outcome. The governing bodies of all concerned organizations within the system are actively engaged to integrate the outcome of the Brussels Conference into their respective programmes. In order to facilitate coordinated followup, implementation and monitoring of the Brussels Programme of Action, UN system organizations have designated focal points to work with the UN Office of the High Representative for Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS), which serves as the system's central coordinating body in this area.

Support programmes specifically aimed at assisting LDCs cover a wide range of activities, from human and institutional capacity-building, strengthening of governance systems, building productive capacities and trade-related assistance to environmental protection and reducing vulnerability to natural disasters. A number of collaborative inter-agency initiatives are underway. The Integrated Framework for Trade-Related Technical Assistance to LDCs, jointly managed by WTO, ITC, UNCTAD, UNDP, IMF and the World Bank, aims to assist LDCs in mainstreaming trade in their national poverty reduction strategies, expand and diversify their trade and become better integrated into the multilateral trading system. Various organizations are also working together to build capacity in LDCs to promote foreign investments and encourage the application of information and communications technology for development. Many UN organizations have also established special trust funds to mobilize resources for LDCs. Monitoring and reporting of progress in implementing the Brussels Plan of Action have proceeded through well-coordinated processes within the UN system.

Small Island Developing States

71. In the context of their ongoing work to help small Island Developing States to address their economic and environmental vulnerabilities and to confront the challenges they face in trade and development and in human and institutional capacity development, UN organizations have provided advisory services and substantive support for implementing the Barbados Programme of Action for the Sustainable Development of Small Island Developing States (SIDS). The Commission on Sustainable Development guides these activities, which have been complemented by a wide range of multi-stakeholder partnerships.

One United Nations (Box 2.28)

Box 2.28: Partnerships for sustainable development of Small Island Developing States

In preparation for the International Meeting to Review the Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States (SIDS) in Mauritius (10-14 January 2005), the United Nations compiled a list of multi-stakeholder initiatives and partnerships, including various UN system organizations, that support the sustainable development of SIDS. Sub-regional or global in scope, the partnerships cover tourism, energy, biodiversity, water, agriculture, waste management, marine resources, rural development and disaster management and vulnerability. Many involve capacity building and technology transfer as key elements in their implementation.

One United Nations (Ch 2, para 72)

72. Preparations for the Mauritius International Meeting, which undertook a ten-year review of the implementation of the Barbados Plan of Action, built on this collaborative work and received strong inter-agency support. The meeting itself included a number of agency-sponsored panels and events, which helped produce an outcome that addressed the most pertinent perspectives, policies and strategies to advance the SIDS’ multidisciplinary agenda, including further inter-agency collaboration, to be pursued on an ongoing basis, to help ensure the follow-up to the Mauritius Strategy of Implementation. Towards this end, UN-DESA is devising a plan for coordinated and coherent partnership among UN agencies to secure the effective implementation of the Programme of Action for the Sustainable Development of SIDS, within an interdisciplinary framework for collective action in research and analysis, technical advisory services and support for capacity building.

63FN

^14. Global Economic Prospects (2004): Realizing the Development Promise of the Doha Agenda, World Bank, 2005.

^15. As a result of commitments undertaken by member states at Monterrey, the decline in the share of ODA in developed-country GNI was reversed and reached 0.25 percent in 2003 and 2004. Moreover, if all commitments are met by the target date of 2006, total ODA is projected to reach $88 billion, an increase of almost 50 percent in nominal terms from the total recorded in 2002. If these pledges, together with additional commitments made by DAC member countries to increase ODA after 2006 are met, ODA is projected to reach $108 billion in 2010.

^16. The IMFC noted in its communiqué for the Spring 2005 meetings that “On innovative sources of development financing, such as the International Finance Facility (IFF) and its pilot—the IFF for immunization—global taxes which could also refinance the IFF, the Millennium Challenge Account, and other financing measures, it welcomes the joint IMF and World Bank note outlining progress that has been made. The Committee asks to be kept informed of the further work ahead of the U.N. Summit.”

^17. The Communiqué of the Development Committee for Spring 2005 “welcomed further work on innovative sources of development financing. We noted that negotiations among interested parties on the proposed pilot International Finance Facility (IFF) for Immunization are well advanced; and the analysis of technical feasibility of the IFF has created the conditions for the necessary political decisions on participation. We encourage interested donors to proceed with these proposals. Potential participants believe that global tax mechanisms to finance development may be feasible and desirable, while other members do not. We noted the analysis of the economic rationale, technical feasibility, and moderate coalition size needed for some of the global tax proposals. Building upon the existing political momentum in some countries, we invite the Bank and the Fund to deepen their analysis of the most promising nationally applied and internationally coordinated taxes for development for the Annual Meetings, as an input into the consideration of a pilot case for interested countries.”

^18. The General Assembly has now requested “further consideration to the subject of possible innovative and additional sources of financing for development from all sources, public and private, domestic and external, taking into account international efforts, contributions and discussions, within the overall inclusive framework of the follow-up to the International Conference on Financing for Development”

^19. References to Innovative Financing are found in the following communiqués, 4/17/05, para.11; 10/2/04, para. 9; 4/25/04, para. 8; 9/22/03, para. 3;and 4/13/03, para. 3.

^20. The item is discussed in the communiqués of 4/16/05, para.13; 10/2/04, para. 17; 4/24/04, para. 14; and 9/21/03, para. 17.

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