Statement on behalf of the African, Caribbean and Pacific Group of States presented by Hon. Steve William Abana Minister for National Planning and Aid Coordination of the Solomon Islands on the occasion of the United Nations High-level Conference on the Global Financial and Economic Crisis and its Impact on Development New York, 24 -26 June 2009
Mr Chairman, It is an honour for me to address you today on behalf of the 79 African, Caribbean and Pacific States which form the ACP Group. I do so in my capacity as Representative of the Solomon Islands, which currently hold the Presidency of the ACP Council of Ministers. First of all, on behalf of the ACP States, I would like to thank the United Nations (UN) for organising this conference on the impact of the financial crisis on development, and for the resources deployed to facilitate the conduct of the deliberations. I would also like to thank all those who were involved in organising this meeting, which is certainly timely.
Mr Chairman, The States comprising the ACP Group are members of several international, regional and sub-regional organisations which have already expressed their views here, or are scheduled to do so. However, the unique entity that the ACP States form is characterised by a number of specific features such as unity and solidarity which justify our addressing this assembly as a Group. The forum that has been offered to us does not allow me to address each and every one of the themes dealt with at this conference, in detail. However, given the severity of the impact of the economic and financial crisis on the ACP countries, I would like to highlight a few essential points that reflect the views of the ACP Group. At the onset of this crisis, several analysts believed that due to their low level of development and their limited integration into the global economy, low-income countries would not be affected by the crisis. That idea turned out to be completely off the mark. Indeed, recent studies clearly show that the current financial crisis is severely affecting low-income countries, and especially the countries of the ACP Group. In most of our countries, growth prospects have fallen sharply. The effects of the current economic and financial crisis have spread wide and deep within the ACP countries, and are mainly manifested in fours ways: i. Slow-down in trade and decrease in export earnings; i. Decline in economic growth; Consequently, unemployment is on the rise, more people are going hungry, more people are dying and younger, inequalities are enhanced, and the poor are getting poorer. As such, economic efforts and gains achieved, as well as progress towards attaining the Millennium Development Goals (MDGs) are being compromised. In fact, our countries, which are the least responsible for the financial crisis, will be the hardest hit by its effects. Mr Chairman, At this stage of the crisis, what is most urgent is to find solutions. Given the impact and underlying causes of the crisis, solutions must first focus on countering the effects of the crisis and, subsequently help to predict and avoid the recurrence of similar crises in the future. Given the extent and depth of this economic and financial crisis, we must react by taking immediate and effective action, based on a global approach. Everything must be done to:
But efforts must be focussed on areas where the need is most pressing – that is, in the poor and vulnerable countries, which are the real victims of the crisis. The effects of the economic and financial crisis on the ACP States, and the additional challenges that the crisis poses to the attainment of the MDGs are considerable. Our countries are, more than ever before, in need of financial resources to offset the decline in national earnings and to drive investments to maintain and stimulate economic growth. Our countries need substantial sums of additional resources to help them to regain the pre-crisis level of growth. Mr Chairman, At the national level, the ACP Member States, collectively and individually, are aware of the efforts required to contain the effects of the crisis. Various measures aimed at attenuating the impact of the crisis have been implemented. Regarding the mobilisation of resources, the ACP Group acknowledges and accepts the commitments incumbent upon it. Many ACP States have initiated reforms in an effort to ensure a more effective mobilisation of national financial resources. However, with rather limited room for manoeuvre, our Governments do not have the adequate capacity to react, and need additional resources from donors to be able to cope with the crisis. We are in dire need of international assistance. The ACP Group of States welcomes the decision taken by the G20 London Summit on 2 April 2009, to increase the resources of the International Monetary Fund (IMF) and the multilateral development banks, including the World Bank, to finance development worldwide, but especially in poor countries. Nonetheless, the Group appeals to the beneficiary international financial institutions to ensure effective and flexible allocation of the agreed resources with a view to equitable access for all. In the ACP’s view, those additional resources should be over and above the traditional Official Development Aid (ODA) provided. In that respect, the ACP Group calls on the developed countries to intensify their efforts to honour the commitments agreed with regard to Official Development Aid (ODA). With less than one year before the expiry of the Paris Declaration on Aid Effectiveness, there is need to speed up implementation of the Accra Action Programme. Mr Chairman, While swift and effective action must be taken to mitigate the effects of the crisis immediately, deep reflection on long-term structural reform to bring the international economic, financial and trade system in line with current global realities is also required. Indeed, the reform of the international financial architecture is now an urgent necessity. In that regard, the crisis should be viewed as an opportunity to address the inadequacies of the current international financial architecture. In a globalised world, where economies with varying levels of development are interdependent, the required reforms appear complex. This is why we support the idea that the United Nations must play a strong, enabling role in the reform process to be carried out on international public goods. Under the aegis of the UN, we must explore the possibility of creating an international mechanism to periodically assess the global economic situation and provide guidelines for conduct in the economic and financial spheres.
Mr Chairman, To conclude, let me just say that it is my firm belief that the world will quickly emerge from the crisis if the resources announced are swiftly and wisely utilised. The ACP Group would like to see a rescue package for the poor and vulnerable countries; we would like our development partners to honour their aid commitments and to establish procedures to render ODA predictable, including timely disbursements to the budgets of developing countries; we would like to see financial market regulations enforced; we call for the reform of the international financial institutions; we call for debt forgiveness to all LDCs and highly indebted poor countries (HIPCs); and we call for the creation of a global credit facility to mobilise additional resources to finance fiscal stimulus measures. The ACP Group feels that these are some of the measures that will lead to an early recovery from the crisis, and help contain the impact of the crisis on development, especially for poor and vulnerable countries like ours. In the medium and long term, MDG commitments and protecting the planet against climate change must remain major priorities. In that respect, I believe that a well-designed reform of the International Financial Institutions would enable more rapid progress towards attaining these goals. Thank you for your attention.
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