UN agrees on action plan to blunt economic downturn impact
With the world facing the worst financial crisis since the Great Depression, Government leaders and senior ministers meeting at United Nations Headquarters in New York agreed on a sweeping action plan to help blunt the impact of the economic downturn, especially for developing counties, but "in the interest of all nations [...] to achieve more inclusive, equitable, balanced, development-oriented and sustainable economic development to help overcome poverty and inequality", the UN news center reported.
"We are all in this crisis together. While each country has primary responsibility for its own economic and social development, we will continue to work in solidarity on a vigorous, coordinated and comprehensive global response to the crisis, in accordance with our respective abilities and responsibilities", the political leaders pledge in the outcome of the Conference on the World Financial and Economic Crisis and Its Impact on Development, which was convened by the General Assembly President, Miguel d'Escoto Brockmann.
The nearly 60-paragraph text (document A/CONF.214/3), which will be forwarded to the Assembly for adoption during its current session, expresses world leaders' belief that the crisis, "which began in the world's major financial centers, has spread throughout the global economy [and is] negatively affecting all countries, particularly developing countries, threatening the livelihoods [and] development opportunities of millions of people".
On the way forward, the leaders pledged to combine their short-term responses to meet the immediate impact of the financial and economic crisis, particularly on the most vulnerable countries, with medium- and long-term responses that necessarily involve the pursuit of development and the review of the global economic system. In that context, they proposed a course of action that included, among others, strengthening the capacity, effectiveness and efficiency of the United Nations and its development system. They also request the Economic and Social Council to coordinate system-wide follow-up to the outcome document's recommendations, and consider setting up an ad hoc panel of experts on the crisis and its impact on development.
The wide-ranging text stresses that developing countries did not cause the crisis, but were nevertheless being affected by it, and the leaders said their endeavors must be guided by the need to address the human costs: an increase in the already unacceptable number of poor and vulnerable, particularly women and children, who suffer and die of hunger, malnutrition and preventable or curable disease; a rise in unemployment; the reduction in access to education and health services; and the current inadequacy of social protection in many countries.
The leaders were particularly concerned about the impact on countries in special situations, including least developed countries, small island developing States and landlocked developing countries, and on African countries and countries emerging from conflict. They were equally concerned about the specific development challenges of middle-income countries and low-income countries with vulnerable and poor populations.
They agreed that their collective responses to the crisis must, therefore, be made "with sensitivity to the specific needs of these [developing countries]", which included, among others: trade and market access; access to adequate financing and concessionary financing; debt sustainability; trade facilitation measures; the Millennium Development Goals; and previously agreed development commitments. Therefore, an adequate share of any additional resources - both short-term liquidity and long-term development financing - will need to be made available to developing countries, especially the least developed countries.
"Going forward, our response must focus on creating jobs, increasing prosperity, strengthening access to health and education, correcting imbalances, designing and implementing environmentally and socially sustainable development paths and having a strong gender perspective", the document says, adding that the collective response must also strengthen the foundation for a fair, inclusive and sustainable globalization supported by renewed multilateralism. "We are confident that we will emerge from this crisis stronger and more vigorous and more united."
Expressing their commitment to restoring confidence and economic growth and creating full and productive employment and decent work for all, the leaders also pledge to, among other things, make national stimulus packages work for all, help contain the effects of the crisis and improve future global resilience, and improve regulation and monitoring mechanisms. "We stress the urgent need for further reform of the governance of the Bretton Woods institutions, on the basis of a fair and equitable representation of developing countries, in order to increase the credibility and accountability of these institutions."
Citing a consensus on the need to modernize the global financial institutions, they said such reforms should enhance the perspective, voice and participation of developing countries, including the poorest. They specifically called for inclusive consultations on further reforms to improve the responsiveness of the World Bank. Looking forward to accelerated progress to increase the credibility and accountability of the International Monetary Fund (IMF), "we strongly support completion of the next quota review, which [...] is expected to result in an increase in the quota shares of dynamic economies, particularly in the share of emerging market and developing countries as a whole, to be completed no later than January 2011".
"We are all in this crisis together. While each country has primary responsibility for its own economic and social development, we will continue to work in solidarity on a vigorous, coordinated and comprehensive global response to the crisis, in accordance with our respective abilities and responsibilities", the political leaders pledge in the outcome of the Conference on the World Financial and Economic Crisis and Its Impact on Development, which was convened by the General Assembly President, Miguel d'Escoto Brockmann.
The nearly 60-paragraph text (document A/CONF.214/3), which will be forwarded to the Assembly for adoption during its current session, expresses world leaders' belief that the crisis, "which began in the world's major financial centers, has spread throughout the global economy [and is] negatively affecting all countries, particularly developing countries, threatening the livelihoods [and] development opportunities of millions of people".
On the way forward, the leaders pledged to combine their short-term responses to meet the immediate impact of the financial and economic crisis, particularly on the most vulnerable countries, with medium- and long-term responses that necessarily involve the pursuit of development and the review of the global economic system. In that context, they proposed a course of action that included, among others, strengthening the capacity, effectiveness and efficiency of the United Nations and its development system. They also request the Economic and Social Council to coordinate system-wide follow-up to the outcome document's recommendations, and consider setting up an ad hoc panel of experts on the crisis and its impact on development.
The wide-ranging text stresses that developing countries did not cause the crisis, but were nevertheless being affected by it, and the leaders said their endeavors must be guided by the need to address the human costs: an increase in the already unacceptable number of poor and vulnerable, particularly women and children, who suffer and die of hunger, malnutrition and preventable or curable disease; a rise in unemployment; the reduction in access to education and health services; and the current inadequacy of social protection in many countries.
The leaders were particularly concerned about the impact on countries in special situations, including least developed countries, small island developing States and landlocked developing countries, and on African countries and countries emerging from conflict. They were equally concerned about the specific development challenges of middle-income countries and low-income countries with vulnerable and poor populations.
They agreed that their collective responses to the crisis must, therefore, be made "with sensitivity to the specific needs of these [developing countries]", which included, among others: trade and market access; access to adequate financing and concessionary financing; debt sustainability; trade facilitation measures; the Millennium Development Goals; and previously agreed development commitments. Therefore, an adequate share of any additional resources - both short-term liquidity and long-term development financing - will need to be made available to developing countries, especially the least developed countries.
"Going forward, our response must focus on creating jobs, increasing prosperity, strengthening access to health and education, correcting imbalances, designing and implementing environmentally and socially sustainable development paths and having a strong gender perspective", the document says, adding that the collective response must also strengthen the foundation for a fair, inclusive and sustainable globalization supported by renewed multilateralism. "We are confident that we will emerge from this crisis stronger and more vigorous and more united."
Expressing their commitment to restoring confidence and economic growth and creating full and productive employment and decent work for all, the leaders also pledge to, among other things, make national stimulus packages work for all, help contain the effects of the crisis and improve future global resilience, and improve regulation and monitoring mechanisms. "We stress the urgent need for further reform of the governance of the Bretton Woods institutions, on the basis of a fair and equitable representation of developing countries, in order to increase the credibility and accountability of these institutions."
Citing a consensus on the need to modernize the global financial institutions, they said such reforms should enhance the perspective, voice and participation of developing countries, including the poorest. They specifically called for inclusive consultations on further reforms to improve the responsiveness of the World Bank. Looking forward to accelerated progress to increase the credibility and accountability of the International Monetary Fund (IMF), "we strongly support completion of the next quota review, which [...] is expected to result in an increase in the quota shares of dynamic economies, particularly in the share of emerging market and developing countries as a whole, to be completed no later than January 2011".
