EU - Speaking points: High-Level Policy Dialogue on current developments in the world economy and international economic cooperation

Summary: Speaking Points on behalf of the European Union by Ms. Marjatta Rasi, Under-Secretary of State: Development Policy and at the Ministry for Foreign Affairs. High-Level Policy Dialogue on current developments in the world economy and international economic cooperation. ECOSOC 2006 - High Level Segment. (Geneva: 2 July 2006)

Mr. President,

Today's High-Level Policy Dialogue on current developments in the world economy and international economic cooperation is an important part of the dialogue between Bretton Woods institutions, World Trade Organization, UNCTAD and ECOSOC. This opportunity has an important role in enhancing partnership in the spirit of the Monterrey Consensus and in fostering exchange of views among key stakeholders. The EU is looking forward to participating actively and constructively in this dialogue.
When it comes to the development challenges of the global economy in today's world, the Monterrey Consensus on Financing for Development creates a framework for our work to achieve the MDGs, in the light of shared responsibility for development. As agreed in the Consensus, each country has primary responsibility for its own economic and social development, and the role of good governance, national policies and development strategies cannot be overemphasized.
However, in an increasingly interdependent world economy, a collaborative approach to interconnected national, regional, international and systemic challenges in all parts of the globe is essential.
A particular challenge in today's world economy is that of development in the least developed countries and that of Africa. As an international community, we need to find ways to promote economic growth processes in these countries, and these processes should be strongly connected to poverty reduction. The promotion of equality between men and women must be an integral part of efforts to combat poverty. In today's world economy, development challenges can only be dealt with a strong shared strategic vision between the governments, the private sector and the civil society in the developing countries.
From this perspective, the focus of the international community on promoting national poverty reduction - and development strategies - is the right one, and needs to continue. It is only through strong national ownership and domestic policies that progress in terms of pro-poor economic growth and productive employment can be achieved in the developing countries.
At this moment, the ongoing WTO Doha trade negotiations are of a particular importance. In this regard, as outlined in the "European Consensus on Development Policy", the EU strongly supports a rapid and ambitious completion of the Doha Development Round.
International development cooperation also has an important role in supporting the national development and economic growth efforts of the developing countries. The EU has, for its part, adopted a timetable for the member states to achieve the ODA-target of 0, 7% of GNI by 2015. The EU has also committed itself to provide 50 % out of the aid increases to Africa. In addition to the quantitative target, the EU is also committed to implementing the quality objectives and targets set out in the Paris Declaration on Aid Effectiveness. The EU will therefore align its support to the national development strategies and other planning systems of developing countries. It is also to be considered how development cooperation can best be used to create employment and decent work for all. In addition to ODA, the Multilateral Debt Relief Initiative is a tool for national development efforts.
In terms of supporting preconditions for economic growth and employment, the current aid agenda is broad and the issues are many. I do want to mention one issue, the "Aid for Trade" -initiative, in particular, currently discussed by WTO Aid for Trade Task Force. It should be seen as an important opportunity to increase the effectiveness of aid efforts, in order to support the strengthening of productive and employment creating capacities of the economies in the developing world.
Finally, a word about the importance of building stronger social cohesion in developing countries, a theme that the UN 2006 Survey rightly highlights. The process of promoting economic growth is not only about building better markets, but also about creating employment opportunities and other livelihood opportunities that help to strengthen social cohesion among the populations in the developing countries. Or, in other words, to build more sustainable societies. This objective is very much linked to the primary and overarching objective of EU development policy; that is, to eradicate poverty in the context of sustainable development.

Ref: PRES06-209EN
EU source: EU Presidency
UN forum: ECOSOC (Economic and Social Council), (including functional Commissions)
Date: 2/7/2006

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