By Holy See Mission
Statement by H.E. Archbishop Celestino MiglioreApostolic Nuncio,
Permanent Observer of the Holy See 64th session of the UN General
AssemblyFourth High-level Dialogue on Financing for DevelopmentThe
Monterrey Consensus andDoha Declaration on Financing for
Development:status of implementation and tasks aheadNew York, 24
March 2010
Mr. President,
The devastating impact of the recent financial crisis on the world’s most
vulnerable populations has been highlighted in almost all the interventions made
so far in this General Assembly because it really is a concern shared by
governments and citizens all over the world. Indeed, the dark shadow of this
crisis is likely to frustrate efforts made so far to help reduce poverty and
only add to the skyrocketing numbers living in extreme poverty.
At the same time, the current economic crisis has also
given rise to unprecedented international political cooperation, evident in the
three successive high-level G-20 meetings in Washington, London, and Pittsburgh
during 2009. These meetings were able to reach agreement on emergency measures
to reignite the world economy, including fiscal and monetary stimulus packages
that have prevented a global catastrophe. Overall, the G-20 deliberations have
received the moral support of most UN members, even recognizing the low ratio of
member participation in them.
Nevertheless, the stabilization of some economies, or the
recovery of others, does not mean that the crisis is over. Moreover, there is a
general perception about the lack of sound political and economic foundations
needed to ensure longer-term stability and sustainability of the global economy.
Indeed, the whole world economy, where countries are highly interdependent, will
never be able to function smoothly if the conditions that generated the crisis
persist, especially when fundamental inequalities in income and wealth among
individuals and between nations continue.
Against this background, my delegation underscores the view
that we cannot wait for a definitive and permanent recovery of the global
economy to take action. A significant reason is that the re-activation of the
economies of the world’s poorest people will surely help guarantee a universal
and sustainable recovery. But the most important reason is the moral imperative:
not to leave a whole generation, nearly a fifth of the world’s population, in
extreme poverty.
There is now an urgent need to reform, strengthen and
modernize the whole funding system for developing countries as well as UN
programs, including the specialized agencies and regional organizations, making
them more efficient, transparent, and well coordinated, both internationally and
locally. In the same vein, the crisis has highlighted the urgent need to proceed
with the reform of the International Monetary Fund (IMF) and World Bank, whose
structures and procedures must reflect the realities of today’s world and no
longer those of the post World War II period.
As pointed out in the Doha Declaration, of December 2008, a
reformed IMF should be able to accomplish fully its original mandate of
stabilizing currency fluctuations and ought to be provided with mechanisms for
preventing financial crises. The functions of the Financial Stability Forum
(FSF) would acquire greater legitimacy if they were developed in close
collaboration with the Fund and other relevant UN bodies, such as UNCTAD. The
international community, through its appropriate bodies, such as the IMF, the
FSF and others, should be able to make proposals to improve banking regulations.
It should be able to identify and define the capital requirements for banks,
liquidity requirements, transparency measures, and accountability standards for
the issuance and trading of securities. Equally important are the regulatory
norms for the para-banking activities and control of rating companies. We would
do well not to wait for consensus on all these issues but move ahead in areas
where there is already broad consensus, such as uniform international accounting
standards.
On the other hand, the international community, through the
World Bank and relevant multilateral agencies, should continue to give priority
to the fight against poverty, particularly in LDCs. In this context, as part of
the emergency measures of developed countries to address the crisis,
contributions to the World Bank destined to fight extreme poverty should have
highest priority. Although the financial crisis made it necessary to increase
aid to middle income countries through the International Bank for Reconstruction
and Development (IBRD), the World Bank must continue to give priority to loans
under the International Development Association (IDA), which assists low income
countries and provides resources for food security.
To this end, we must continue to review the distribution of
voting rights in both these financial institutions so that emerging economies
and developing countries, including LDCs, are duly represented. Similarly, it
may be desirable to introduce, at least for key decisions, ‘double majority’
approval, so that decisions are made not only according to quotas but also on
the basis of a numerical majority of countries.
Mr. President,
At the end of World War II, the international community was
able to adopt a comprehensive system that would ensure not only peace but also
avoid a repetition of global economic disruption. The institutions that emerged
from the Bretton Woods Conference in July 1944 had to ensure the launching of a
process of equitable economic development for all. The current global crisis
offers a similar opportunity requiring a comprehensive approach, based on
resources, knowledge transfer and on institutions. To achieve this, all nations,
without exception, need to commit themselves to a renewed multilateralism.
At the same time, the effectiveness of measures taken to
overcome the current crisis should always be assessed by their ability to solve
the primary problem. We should not forget that the same world that could find,
within a few weeks, trillions of dollars to rescue banks and financial
investment institutions, has not yet managed to find 1% of that amount for the
needs of the hungry - starting with the $3 billion needed to provide meals to
school children who are hungry or the $5 billion needed to support the emergency
food fund of the World Food Program.
Thank you, Mr. President.
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