Statement by Ambassador Vicente Vallenilla, Deputy Permanent Representative of Venezuela to the United Nations, on behalf of the Group of 77 and China, on Financing for Development

New York, 8th November 2002

Mr. Chairman,

In 1944, the basis of an international financial system known as the Bretton Woods institutions were laid. In 1947 the mechanism for international trade, in its time GATT and now WTO, was established. Since then, in this global forum, we have tried on many occasions to establish a political dialogue on the interrelated areas of trade, finance and economic development.

At the beginning of this year, we were able to reach an unprecedented agreement, by consensus, on a series of measures that will allow us, in a process that has already begun, to examine in a holistic and continuous manner the progress and shortcomings of the international trade and financial systems, at all levels.

In the sector of financial institutions, whose natural role is to channel financial resources, we note the beginning of the process established in the International Conference on Financing for Development. We are particularly pleased by this year’s Ministerial Communiqué of the IMF-World Bank, which recognizes the need to broaden and strengthen the participation of developing countries in decision-making and norm setting. We have also taken note with interest of the importance given to the Goals of the Millennium Declaration. All of this is now part of the process of financing for development. Regarding international trade sector, we hope for progress in the post-Doha negotiations, which need to take on development as a central issue. It will be most welcome if the WTO begins to promote the approach made by Heads of State and Government in Monterrey regarding trade’s relationship with development.

This process new has the virtue of incorporating, not only Member States, but also all relevant institutions, as well as the expressions of civil society, including the business sector.

The follow-up to this important Conference is now the matter at hand. It is the Assembly’s responsibility to establish the basis of a true process, as envisioned in the negotiations at the Conference. On the one hand, this follow-up lies with the Member States and their individual and global responsibilities. On the other hand, it has to do with the role that must be played by the different institutions, within their individual mandates with and the dynamics of their interaction. It also involves the General Assembly, as the focal point for the follow-up to the Consensus and, therefore as for the setting of guidelines. It also involves the Economic and Social Council in its annual role of monitoring and promotion of an in inter-institutional dialogue. Finally, it involves the Secretariat and the support required for the monumental task of implementation.

The Group of 77 and China, conscious of that responsibility, has decided to present ideas to this forum in the form of three resolutions, which tackle all the elements that we have described. One draft deals with the follow-up in all its aspects, according to the decisions adopted at Monterrey. The second focuses on the High-level dialogue established every two years to review the fulfillment of commitments. The third draft, addresses the secretarial support, indispensable to enable the Organization to count upon the necessary inputs. This is particularly useful for us, the developing countries.

The follow-up of financing for development is a central issue that requires the highest level of deliberations, according to the requirements set by the highest hierarchical levels of our governments. This follow-up must not be distracted. Financing for development must be seen within its own particularities, though this should not be an obstacle for the necessary coordination with the follow-up to other conferences’ outcomes.

The train is in motion. The voyage we have embarked upon may result short or long. It will depend on the speed, on our political will, to advance. The United Nations has had a leadership role that must be maintained. Though we are at the beginning of this process, we see the first signs of an international community responding to the challenges of the Consensus. We must maintain momentum in order to guarantee the leadership and guidance of the United Nations. This is the beginning of a phase which will culminate in 2005, when the achievements of the Monterrey Consensus will be reviewed.