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Section
F of the Monterrey Consensus
This set of multi-stakeholder consultations are
part of the follow-up process to the United Nations International Conference on
Financing for Development, which was held in Monterrey, Mexico in March, 2002.
This series relates to section F of the
Monterrey Consensus: Addressing systemic issues: enhancing the coherence and
consistency of the international monetary, financial and trading systems in
support of development.
52. In order to complement national development
efforts, we recognize the urgent need to enhance coherence, governance, and
consistency of the international monetary, financial and trading systems. To
contribute to that end, we underline the importance of continuing to improve
global economic governance and to strengthen the United Nations leadership role
in promoting development. With the same purpose, efforts should be strengthened
at the national level to enhance coordination among all relevant ministries and
institutions. Similarly, we should encourage policy and programme coordination
of international institutions and coherence at the operational and international
levels to meet the Millennium Declaration development goals of sustained
economic growth, poverty eradication and sustainable development.
53. Important international efforts are under way
to reform the international financial architecture. Those efforts need to be
sustained with greater transparency and the effective participation of
developing countries and countries with economies in transition. One major
objective of the reform is to enhance financing for development and poverty
eradication. We also underscore our commitment to sound domestic financial
sectors, which make a vital contribution to national development efforts, as an
important component of an international financial architecture that is
supportive of development.
54. Strong coordination of macroeconomic policies
among the leading industrial countries is critical to greater global stability
and reduced exchange rate volatility, which are essential to economic growth as
well as for enhanced and predictable financial flows to developing countries and
countries with economies in transition.
55. The multilateral financial institutions, in
particular the International Monetary Fund, need to continue to give high
priority to the identification and prevention of potential crises and to
strengthening the underpinnings of international financial stability. In that
regard, we stress the need for the Fund to further strengthen its surveillance
activities of all economies, with particular attention to short-term capital
flows and their impact. We encourage the International Monetary Fund to
facilitate the timely detection of external vulnerability through well designed
surveillance and early warning systems and to coordinate closely with relevant
regional institutions or organizations, including the regional commissions.
56. We stress the need for multilateral financial
institutions, in providing policy advice and financial support, to work on the
basis of sound, nationally owned paths of reform that take into account the
needs of the poor and efforts to reduce poverty, and to pay due regard to the
special needs and implementing capacities of developing countries and countries
with economies in transition, aiming at economic growth and sustainable
development. The advice should take into account social costs of adjustment
programmes, which should be designed to minimize negative impact on the
vulnerable segments of society.
57. It is essential to ensure the effective and
equitable participation of developing countries in the formulation of financial
standards and codes. It is also essential to ensure implementation, on a
voluntary and progressive basis, as a contribution to reducing vulnerability to
financial crisis and contagion.
58. Sovereign risk assessments made by the private
sector should maximize the use of strict, objective and transparent parameters,
which can be facilitated by high quality data and analysis.
59. Noting the impact of financial crisis or risk
of contagion in developing countries and countries with economies in transition,
regardless of their size, we underline the need to ensure that the international
financial institutions, including the International Monetary Fund, have a
suitable array of financial facilities and resources to respond in a timely and
appropriate way in accordance with their policies. The International Monetary
Fund has a range of instruments available and its current financial position is
strong. The contingent credit line is an important signal of the strength of
countries’ policies and a safeguard against contagion in financial markets. The
need for special drawing rights allocations should be kept under review. In that
regard, we also underline the need to enhance the stabilizing role of regional
and subregional reserve funds, swap arrangements and similar mechanisms that
complement the efforts of international financial institutions.
60. To promote fair burden-sharing and minimize
moral hazard, we would welcome consideration by all relevant stakeholders of an
international debt workout mechanism, in the appropriate forums, that will
engage debtors and creditors to come together to restructure unsustainable debts
in a timely and efficient manner. Adoption of such a mechanism should not
preclude emergency financing in times of crisis.
61. Good governance at all levels is also essential
for sustained economic growth, poverty eradication and sustainable development
worldwide. To better reflect the growth of interdependence and enhance
legitimacy, economic governance needs to develop in two areas: broadening the
base for decision-making on issues of development concern and filling
organizational gaps. To complement and consolidate advances in those two areas,
we must strengthen the United Nations system and other multilateral
institutions. We encourage all international organizations to seek to
continually improve their operations and interactions.
62. We stress the need to broaden and strengthen
the participation of developing countries and countries with economies in
transition in international economic decision-making and norm-setting. To those
ends, we also welcome further actions to help developing countries and countries
with economies in transition to build their capacity to participate effectively
in multilateral forums.
63. A first priority is to find pragmatic and
innovative ways to further enhance the effective participation of developing
countries and countries with economies in transition in international dialogues
and decision-making processes. Within the mandates and means of the respective
institutions and forums, we encourage the following actions:
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International Monetary Fund and World Bank: to
continue to enhance participation of all developing countries and countries
with economies in transition in their decision-making, and thereby to
strengthen the international dialogue and the work of those institutions as
they address the development needs and concerns of these countries;
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World Trade Organization: to ensure that any
consultation is representative of its full membership and that participation
is based on clear, simple and objective criteria;
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Bank for International Settlements, Basel
Committees and Financial Stability Forum: to continue enhancing their
outreach and consultation efforts with developing countries and countries
with economies in transition at the regional level, and to review their
membership, as appropriate, to allow for adequate participation;
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Ad hoc groupings that make policy
recommendations with global implications: to continue to improve their
outreach to non-member countries, and to enhance collaboration with the
multilateral institutions with clearly defined and broadbased
intergovernmental mandates.
64. To strengthen the effectiveness of the global
economic system’s support for development, we encourage the following actions:
-
Improve the relationship between the United
Nations and the World Trade Organization for development, and strengthen
their capacity to provide technical assistance to all countries in need of
such assistance;
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Support the International Labour Organization
and encourage its ongoing work on the social dimension of globalization;
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Strengthen the coordination of the United
Nations system and all other multilateral financial, trade and development
institutions to support economic growth, poverty eradication and sustainable
development worldwide;
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Mainstream the gender perspective into
development policies at all levels and in all sectors;
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Strengthen international tax cooperation,
through enhanced dialogue among national tax authorities and greater
coordination of the work of the concerned multilateral bodies and relevant
regional organizations, giving special attention to the needs of developing
countries and countries with economies in transition;
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Promote the role of the regional commissions
and the regional development banks in supporting policy dialogue among
countries at the regional level on macroeconomic, financial, trade and
development issues.
65. We commit ourselves to negotiating and
finalizing as soon as possible a United Nations convention against corruption in
all its aspects, including the question of repatriation of funds illicitly
acquired to countries of origin, and also to promoting stronger cooperation to
eliminate money-laundering. We encourage States that have not yet done so to
consider signature and ratification of the United Nations Convention against
Transnational Organized Crime.
66. We urge as a matter of priority all States that
have not yet done so to consider becoming parties to the International
Convention for the Suppression of the Financing of Terrorism, and call for
increased cooperation with the same objective.
67. We attach
priority to reinvigorating the United Nations system as fundamental to the
promotion of international cooperation for development and to a global economic
system that works for all. We reaffirm our commitment to enabling the General
Assembly to play effectively its central role as the chief deliberative,
policy-making and representative organ of the United Nations, and to further
strengthening the Economic and Social Council to enable it to fulfil the role
ascribed to it in the Charter of the United Nations
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