Overview of the Financing for Development process

OMOYEMEN LUCIA ODIGIE-EMMANUELGENDER JUSTICE & SUSTAINABLE DEVELOPMENT

NETWORK/CENTRE FOR HUMAN RIGHTS AND CLIMATE CHANGE

RESEARCH African Feminist Meeting on FfD & Post-2015, May 6-8 2015

BACKGROUND TO FFDThe origin of the Financing for

Development (FfD) process can be linked to the Asian/global financial crisis of 1990s which raised fears of a worldwide economic meltdown.

In response, the UN General Assembly agreed to convene an International Conference on Financing for Development which was finally held in March 2002 in Monterrey, Mexico.

Monterrey Conference The main purpose of the Conference was to strategize

on how to half world poverty by 2015 AND to find ways to finance programmes and policies that would radically change the lives of the 1.2 billion people living on less than a dollar a day.

The formal outcome of the Conference was the “Monterrey Consensus” consisting of commitments designed to “eradicate poverty, achieve sustained economic growth and promote sustainable development” in the world’s poorest countries.

Monterrey Consensus The document embraces six areas of Financing for Development: Mobilizing domestic financial resources for development. Mobilizing international resources for development: foreign

direct investment and other private flows. International Trade as an engine for development. Increasing international financial and technical cooperation for

development. External Debt. Addressing systemic issues: enhancing the coherence and

consistency of the international monetary, financial and trading systems in support of development.

Subject of discussion by my co-presenter

Pre Doha Conference The Conference was preceded by a high-level

retreat on the global financial crisis. The retreat was attended by some 30 Heads of

State or Government and ministers from both developed and developing countries, as well as high-level representatives of the major institutional stakeholders.

The retreat was meant to serve as a “bridge” between the discussions on the financial crisis that had taken place among smaller groups of countries and the wider membership of the United Nations.

Doha Conference 2008 Follow-up Conference in Doha, Qatar to review the

Implementation of the Monterrey Consensus. The Doha Declaration on Financing for Development urged Governments to continue to innovate in development finance. The conference consisted of plenary meetings, Six interactive multi-stakeholder round tables focused on the six thematic areas of the Monterey Consensus and More than 50 side events.

Two key messages: A strong commitment by developed countries to maintain their Official

Development Assistance (ODA) targets irrespective of the current financial crisis.

A decision to hold a UN Conference at the highest level on the impact of the current financial and economic crisis on development.

Domestic resource mobilization: Mobilizing international resources for development: International trade as an engine for development: External debt: and Addressing systemic issues.

OTHER EVENTS In January 2004 in Geneva, the presidents of Brazil, Chile and France launched,

with the support of the United Nations Secretary-General, an initiative, which urged the international community to develop new sources of financing for development  in order to make progress towards achieving the MDGs.

At the 2005 World Summit, 79 countries approved theNew York Declaration on InnovativeSources of Financing for Development , co-sponsored by Algeria, Brazil, Chile, France,Germany and Spain.

The United Nations Conference on the World Financial and Economic Crisis and Its Impact on Development  (New York, 24-30 June 2009) acknowledged that innovative financing for development can contribute to addressing global problems

  On 20 December 2010, the General Assembly adopted resolution A/RES/65/146

on " Innovative mechanisms of financing for development " in which it recalls "the potential of innovative sources of financing to contribute to the achievement of the internationally agreed development goals, including the MDGs”.

The General Assembly held a series of substantive informal sessions, from October to December 2014.

The substantive sessions served to review the progress made in the implementation of the Monterrey Consensus and Doha Declaration on Financing for Development, and to discuss new and emerging issues to be addressed at the Addis Ababa Conference, notably in the context of the post-2015 development agenda.

The two rounds of substantive informal sessions were focused on: Mobilization and effective use of resources (10-13 November 2014) Enabling environment, systemic issues, follow-up process and

learning from partnerships (9-12 December 2014).

Preparatory Process to the Third International Conference Opening SessionThe first substantive informal session of the preparatory process for the third International Conference on Financing for Development was held on Friday 17 October 2014 in the ECOSOC Chamber. It marked the launch of the intergovernmental preparations for the Conference, in accordance with General Assembly resolution 68/279. First Round of Substantive Informal Sessions (10 – 13 November 2014)

Discussion Focus-on the Global context; Domestic public finance; International public finance and Private finance Second Round of Substantive Informal Sessions (9 – 12 December 2014) Discussion Focus-Enabling and conducive policy environment; International monetary

and financial system; International tax cooperation; Debt crisis prevention and resolution; Trade, investment, and technology; Governance; Closing data gaps and strengthening statistical capabilities; Enabling and conducive governance, including global economic governance; Learning from partnerships and follow-up process

Drafting Sessions Zero draft of the Outcome document of the Third International Conference on Financing

for Development , 15 March 2015 and now the revised draft of yesterday, 6 May 2015 The Addis Ababa Accord of the Third International Conference on Financing

for Development Drafting Sessions 27-29 January 2015First Drafting Session 13-17 April 2015Second Drafting Session 15-19 June 2015Third Drafting Session  Additional Consultations In support of continued progress on the Outcome Document, additional sessions for

consultations on the Draft Outcome Document have been scheduled. 11-15 May 2015Additional session 1 26-29 May 2015Additional session 2 1-5 June 2015(Provisional) Additional session 3

Regional Consultation on FFDThe Regional Consultation on “Financing for Development” was organized by the United Nations Economic Commission for Africa on the 23 – 24 March 2015 Addis Ababa, Ethiopia.The Africa Group Perspective on Financing for Development (The Common Africa Position) was adopted.There is an upcoming UNECA Africa Women’s Consultation on FFD in June

Africa Group Perspective on Financing for Development

Introduction Domestic Public Financing International Public Finance Mobilizing International resources for development: Foreign

Direct Investment and other private flows Trade External debt Systematic Issues Science, Technology, Innovation and Capacity Building Monitoring, Data and Follow-up

Upcoming Events

Additional sessions for consultations on the Draft Outcome Document 11-15 May 2015

Additional sessions for consultations on the Draft Outcome Document 26-29 May 2015

(Provisional) Additional sessions for consultations on the Draft Outcome Document 1-5 June 2015

Third Drafting Session 15-19 June 2015

Africa Women’s Consultation on Financing for Sustainable Development, June 2015

CIVIL SOCIETY INVOLVEMENTWHY CSO INTEREST? We need an ambitious SDGs backed by finances to be able to achieve actual

sustainable Development. More financial resources are needed to finance development goals and

strategies globally A paradigm shift on how development will be financed is required.

CIVIL SOCIETY INVOLVEMENT Civil Society Parallel Event in Monterrey Doha Civil Society Forum: Investing in people-centered development Women’s Working Group On FFD since Doha, went silent for some years,

reactivated recently and actively involved in engaging the process Africa’s working Group on post 2015

Doha Civil Society Forum: Investing in people-centered development

More than 250 civil society organizations and networks participated in the meeting in preparation for the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus.The declaration put forward a number of key recommendations, organized around the six thematic areas of the Monterrey Consensus.I. On domestic resource mobilization, the Declaration affirms that in order to achieve the international development goals and overcome dependence on external sources, developing countries need to substantially increase revenue from national resources, and channel them towards meeting the needs of the people living in poverty.

II. With respect to foreign direct investment the Declaration calls for a holistic approach that includes, among others, the social development aspects, sustainable technology transfer and elimination of tax havens that deny poor countries much needed financial resources for development.

III. Concerning trade, it concludes that the impact of the global financial crisis in

developing countries is exposing vulnerabilities that stem from too much emphasis on the liberalization of trade, without looking at mechanisms for ensuring that trade

provides a stable source of development finance.

IV. On the question of aid, civil society organizations called for binding timetables for donor countries to reach the 0.7% ODA/GNI target by 2015 at the latest. Innovative sources of finance, such as a small currency transaction tax, can provide much needed additional resources for development.

V. As for external debt, the Declaration calls for a new debt architecture that is inclusive, participatory and democratically accountable to the peoples it aims to serve. The United Nations should play a key role in its development, and the institutions and mechanisms should be subject to international human rights norms and treaties.

VI. With regard to systemic issues, the Declaration calls for a new mechanism within the UN, which ensures implementation of the internationally agreed development goals and brings together all institutional stakeholders. The UN should hold a major international Summit level conference in order to comprehensively review the international financial architecture and global economic governance structures.

WOMEN’S WORKING GROUP ON FFD

Despite the upward trend in aid focused on gender equality since the MDGs, significant funding gaps remain in priority areas for the post-2015 framework - women’s economic empowerment, family planning, women, peace and security, and women’s participation and leadership. It is time to close these gaps.

OECD Development Assistance CommitteeThe Women’s Working Group on Financing for Development (WWG on FfD) was formed in October 2007 as an alliance of women's organizations and networks to advocate for the advancement of gender equality, women's empowerment and human rights in the Financing for Development (FfD) related UN processes. The WWG is part of the Global Social Economic Group (GSEG) and is one of the

NGO Facilitators in the Financing for Development Process.

WOMEN’S WORKING GROUP ON FFD Pre-Doha Review Conference on FFD Nov, 2008

MAIN DEMANDS: A demand policy action. concrete steps to increase resources for gender equality to fulfil women's

rights and empowerment. A commitment to eliminate gender-based discrimination acknowledging

women's full and equal access to economic resources and the importance of gender responsive public management.

A demand for stronger gender equality policy commitments and actions throughout the document on development, trade, finance, debt, aid and systemic issues.

A demand for effective spaces in all follow-up mechanisms with consistent and regular inputs on gender equality ensuring the participation of women's rights organizations and networks, and gender equality advocates.

Follow-up to the implementation of the Monterrey Consensus the general commitment to gender equality, analysis and monitoring tools and indicators.

A demand for open transparent and inclusive multi-stakeholder process providing institutional spaces for women's rights organizations and gender equality advocates in the follow-up to the implementation of the Monterrey Consensus

full and gender sensitive analysis of the structural issues that underpin international economic and financial

Other Intervention by WWG on FFD Includes A call for rights based responses to the global financial and

economic crisis; Repositioning of the UN's leadership role in a new global development, economic and financial architecture that fully integrates gender equality and women’s rights; and immediate reform of the global financial architecture to effectively manage liquidity shortages and payments imbalances and ensure that policy responses do not shift the burden of adjustment to the care economy. June 2009.

Written input from the Women’s Working Group on Financing for Development to the 2nd round of Substantive Informal Sessions New York, 9 to 12 December 2014. Can be accessed at the following link:

http://www.un.org/esa/ffd/wp-content/uploads/2014/08/WWG-on-FFD_input-to-3rd-round-of-SISs.pdf WWG Response to the Addis Ababa Accord Zero Draft

EXTRACT FROM WWG RESPONSE TO ZERO DRAFT:ISSUES The Zero Draft does not go far enough in calling for the reduction and redistribution of care

work through quality care servicesThere is no mention of dedicated resources to advance gender equality and women’s human rights, as stated in both the Monterrey Consensus and Doha Declaration, so the language here is inadequate and regressive.  

the Zero Draft limits the call to mainstream gender into economic and finance policies, rather than development policies, in all facets and at all levels as stated in the Monterrey and Doha documents. 

The Zero Draft also fails to clearly address the specific challenges and special circumstances faced by Middle Income Countries (MICs), for which funding should be made available based on actual needs.

The Zero Draft does not give sufficient emphasis to the enormous, negative impacts of financial crises caused by instability in regional and international financial systems on development, equity and human rights, particularly women’s human rights.

It wrongly identifies Bretton Woods Institutions as important actors in the response to the financial crises, without considering their role in precipitating the crises, e.g. through creating obstacles to capital account management

SELECTED RECOMMENDATIONS Commitments on achieving women’s rights and gender equality must be matched by

dedicated resources and all countries need to establish robust systems to track allocations for women’s rights and gender equality through disaggregated data as well as to take action to reverse and address areas of underfunding in women’s rights, gender equality and women’s empowerment. The structure and integrity of the Monterrey Consensus and the Doha Declaration should be maintained

The Zero Draft should maintain the integrity of both the Monterrey and Doha mandates. Those agreements provided a holistic framework for the consideration of all different sources of finance, as well as systemic issues that relate to the stability and governance of the international financial system.

  The global partnership between developed and developing countries should remain the

foundation of FfD. The role of States as the principle duty-bearers of human rights obligations must not be eroded through the introduction of multi-stakeholder partnerships that delegate State duties to other actors, including the private sector.

solutions can be found through strengthening official finance, unlocking the transformative potential of people and the private sector while ensuring that investment patterns support sustainable development and the realisation of human rights and gender equality, and by strengthening national and international policy environments to support sustainable development objectives.

 

Zero Draft needs to mention the large financing gaps to promote gender equality and women’s empowerment to date, and the long-standing commitments to gender and women’s human rights agreements. Moreover, it needs to contain strong action-oriented measures to guarantee universal social services, including care services that reduce and redistribute unpaid care work, labor market regulation, decent work for women, and to eliminate discriminatory gender norms that underpin the vertical and horizontal gender-based segregation of all work.

  Instead of focusing on the need to increase the tax base through the formalization of the

informal sector (Para 20) in which women are over represented, it is important to promote progressive taxation systems including profitable economic and industrial sectors which are currently under taxed.

  The role of private business must be tempered by a recognition of the State as the principal

provider of public goods.  It is important to draw attention to the volatility of development assistance flows as well as the

new attempts to change the definition of ODA with the aim of inflating aid or leveraging the private sector in mega infrastructure projects (for instance para 58). As well, the increase in ODA should not lead to a cycle of debt for the recipient country.

A universal, rules-based, open, non-discriminatory and equitable multilateral trading system based on the principle of special and differential treatment as well as meaningful trade liberalization can serve as an engine of economic growth and promote sustainable development and be conducive to the promotion of gender equality and the human rights of women and girls.

This is a dangerous departure from recognizing the inherent entitlements of women as full and equal citizens and subjects of human rights. Achieving the full realization of human rights, including women’s rights, gender equality and women’s empowerment is central to any sustainable development agenda. This must be an end in itself.

  The Principle of International Cooperation and Common but

Differentiated Responsibilities is eroded when paragraphs to promote multi-stakeholders partnerships in specific areas such as health, education and food (Para 69, 70, 71) are included.

Recent Documents

Note by the Secretary-General on “Coherence, coordination and cooperation in the context of financing for sustainable development and the post-2015 development agenda” (E/2015/52) – 24 March 2015

  Zero draft of the outcome document of the third International

Conference on Financing for Development – 16 March 2015

Report of the Secretary-General on “Further strengthening the work of the Committee of Experts on International Cooperation in Tax Matters” (E/2015/51) – 11 March 2015

Useful Links

Official FFD Website http://www.un.org/esa/ffd/index.html

http://www.un.org/esa/ffd/wp-content/uploads/2014/08/WWG-on-FFD_input-to-3rd-round-of-SISs.pdf

ReflectionWe speak of financing for development, but we have to clarify what type of development we are talking about. We have to define it in the Johannesburg Summit because the development model of the North has often been the cause of the underdevelopment of the South. It has been demonstrated, for example, that if everybody acquired the standard of living of the most developed countries in the world, we would need ten similar planets to be able to maintain the people.

Hugo Chavez, President of Venezuala and of the Group of 77 and China

Its not just enough to talk of financing for development, To quote Hugo Chavez,” we have to clarify what type of development we are talking about. We have to define it in the Johannesburg Summit because the development model of the North has often been the cause of the underdevelopment of the South. It has been demonstrated, for example, that if everybody acquired the standard of living of the most developed countries in the world, we would need ten similar planets to be able to maintain the people”. WHY SHOULD WE BE INTEREST? We need an ambitious SDGs backed by finances to be able to

achieve actual sustainable Development. More financial resources are needed to finance development

goals and strategies globally A paradigm shift on how development will be financed is

required.

THANK YOU