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Statement by the Honourable Mr.
Loh Seng Kok, Member of the Malaysian Parliament
at the Plenary Meeting of the
High Level Dialogue on Financing for Development,
62nd Session of
United Nations General Assembly at New York, USA
on Wednesday 24 October 2007
Mr. President,
I would first like to
thank you for convening this meeting. I would also like to thank the
distinguished Permanent Representatives of Egypt and Norway for their
excellent work as the Co-Facilitators of this process and to the
Secretary-General for his reports. I would also at this stage like to
associate myself with the statement made by Pakistan on behalf of the
G77 and China.
2.
This Dialogue is a valuable opportunity for us to not only take
stock of the present situation relating to Financing for Development,
but also to find ways to generate momentum on the subject as we approach
the Follow-up International Conference on Financing for Development to
Review the Implementation of the Monterrey Consensus in Doha next year.
In this connection, the theme for this High-Level dialogue namely `The
Monterrey Consensus: status of implementation and tasks ahead’, is both
timely and appropriate.
Mr. President,
3.
The Secretary-General’s report clearly indicates that progress is
slow in most, if not all areas of the Monterrey Consensus. But progress
is slowest in perhaps the most important area of them all, the provision
of Official Development Aid (ODA).
4.
The worth of each civilization is measured by how it treats its
weakest and most vulnerable members. In the present context, we must be
measured by our actions to help those in the poorest countries. In
practical terms, it means the level of financial assistance given.
Using this measure, it is clear that we have failed the test of
civilized behaviour, particularly when we compare the resources that we
possess against what is required to lift the poor out of their plight.
5.
If indeed we are to be thankful for small mercies, we should be
gratified that since 2002 when the ODA levels stood at 0.2 percent, the
figure has since risen to 0.33 percent in 2005, when it stood at US$
106.5 billion. Unfortunately however, we now know that much of the
increase is accounted for by debt relief, technical and emergency
assistance. Compounding the issue is the fact that the figure dropped to
0.30 percent last year.
6.
I believe that there is a need to put the whole issue of the
quantum of ODA in perspective. I would therefore like to juxtapose the
US$106.5 billion given as ODA in 2005 with other figures, by way of
comparison:
6.1
The Millennium Project estimates that at least US$150 billion is
required annually if the Millennium Development Goals (MDGs) are to be
achieved. As matters stand, it is unlikely that the MDGs will be
realized, due in part to the lack of finance;
6.2
In 2005, the net outward financial flows from the developing to
the developed world totaled US$ 533 billion;
6.3
Total global military spending during that year stood at US$
1.118 trillion or 2.5 percent of global GDP or US$173 for each global
inhabitant. The US alone accounted for 48 percent of military spending;
and
6.4
In 2005, agricultural export subsidies alone stood at close to
US$3 billion. (US$2.962 billion)
7.
While important, discussions should not be confined to ODA
alone. It is important to recall that the Monterrey Consensus embraced
six areas in all, which included all of the issues related to financing
and its relationship to development.
8.
For many developing countries, efforts to mobilize both domestic
and international financial resources for development have been hampered
to varying degrees by the continued volatility in the international
financial markets. With regard to mobilizing international financial
resources, the less developed economies in particular are doubly
disadvantaged. Not only is FDI flowing into a limited number of
countries, but the less developed countries whose economies are
dependent on extractive industries are finding it difficult to leverage
on these investments. As the report of the Secretary-General indicates,
the jury is still out on whether these investments will have a
significant impact on employment generation – the key to sustained
economic growth.
9.
While international trade continues to hold great potential as an
engine for development, this has been curtailed by the lack of progress
in the WTO negotiations. The debt situation is not as bad as it was
previously. However, there are persistent fears that given the change
in the conditions of debt associated with a shift from official to
private debt, the vulnerability of many countries is on the increase.
10.
In terms of addressing systemic issues, efforts to restructure
the international financial architecture to enable it to respond to
fundamental changes in the global agenda continue to be a work in
progress. Some may argue that the momentum for change has been lost.
Mr. President,
11.
Malaysia believes that the Conference must fundamentally assess
and recommend measures related to the following issues:
11.1
One,
the reasons for the non-implementation of the goals of the Monterrey
Consensus, particularly in fulfilling the ODA targets. We believe that
the establishment of a monitoring mechanism to assess the level of ODA
by the developed world will give impetus to these efforts. We note that
this issue has been raised by the G77 before and has failed to find
consensus. However, given the urgency of the situation, we believe that
further discussions on this are warranted. In essence, what is required
is for these issues which are presently being discussed in the OECD’s
Development Assistance Committee (DAC), to now also be taken up in the
UN, perhaps by the UN Economic & Social Council’s (ECOSOC’s) Annual
Ministerial Review or the Development Cooperation Forum;
11.2
Two,
the increasingly complex inter-linkages between finance and various new
and emerging aspects of development. For example, if climate change is
to be one of the main factors impacting developmental efforts in the
future, it is essential that the Review Conference devote its attention
to some of the key issues of this subject. Again as an example, it
could usefully discuss international assistance to address not only
adaptation issues, but also climate related reconstruction and
rehabilitation efforts; and
11.3
Three,
in terms of new and innovative sources of financing for development,
there is a need to evaluate various initiatives that have been launched
during the past few years, and use this as a basis for newer ones.
Having said that, it is essential to note that given the wealth that
they possess, the burden of responsibility for strengthening
international efforts at financing for development must fall on the
developed world. It must not be passed on to the so-called `emerging
donor nations’ which is itself a vague and ambiguous term. In this
connection, we believe that to the extent that the term is used, it
should be confined to the non-DAC members of the Organisation for
Economic Co-operation and Development (OECD) only.
12.
Having said that, Malaysia has and will not shy away from our
responsibilities to assist other developing countries. Within the
context of South-south cooperation, our Malaysian Technical Cooperation
Programme (MTCP) is a vehicle for sharing our development experience,
especially specific areas in which we have strengths and experience. To
date, 137 countries are beneficiaries, compared to 46 in 1991. This
demonstrates an increased demand from the programme countries as well as
Malaysia’s greater willingness to assist.
Mr. President,
13.
In conclusion, I would like to affirm Malaysia’s full support for
the objectives of the Monterrey Consensus. We therefore commit
ourselves to working with you and other delegations in ensuring that the
Review Conference is a success. We would define success as having made
strides in constructing an international financial structure that works
for, and not against, the developmental aspirations of the poorest.
Thank you.
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