UN AGREES ON ACTION PLAN TO BLUNT ECONOMIC DOWNTURN IMPACT

/PanARMENIAN.Net/
27.06.2009 13:54 GMT+04:00

/PanARMENIAN.Net/ With the world facing the worst financial
crisis since the Great Depression, Government leaders and senior
ministers meeting at United Nations Headquarters in New York agreed
on a sweeping action plan to help blunt the impact of the economic
downturn, especially for developing counties, but "in the interest
of all nations […] to achieve more inclusive, equitable, balanced,
development-oriented and sustainable economic development to help
overcome poverty and inequality", the UN news center reported.

"We are all in this crisis together. While each country has primary
responsibility for its own economic and social development, we
will continue to work in solidarity on a vigorous, coordinated and
comprehensive global response to the crisis, in accordance with our
respective abilities and responsibilities", the political leaders
pledge in the outcome of the Conference on the World Financial and
Economic Crisis and Its Impact on Development, which was convened by
the General Assembly President, Miguel d’Escoto Brockmann.

The nearly 60-paragraph text (document A/CONF.214/3), which will be
forwarded to the Assembly for adoption during its current session,
expresses world leaders’ belief that the crisis, "which began in the
world’s major financial centers, has spread throughout the global
economy [and is] negatively affecting all countries, particularly
developing countries, threatening the livelihoods [and] development
opportunities of millions of people".

On the way forward, the leaders pledged to combine their short-term
responses to meet the immediate impact of the financial and economic
crisis, particularly on the most vulnerable countries, with medium-
and long-term responses that necessarily involve the pursuit of
development and the review of the global economic system. In that
context, they proposed a course of action that included, among others,
strengthening the capacity, effectiveness and efficiency of the United
Nations and its development system. They also request the Economic
and Social Council to coordinate system-wide follow-up to the outcome
document’s recommendations, and consider setting up an ad hoc panel
of experts on the crisis and its impact on development.

The wide-ranging text stresses that developing countries did not
cause the crisis, but were nevertheless being affected by it, and the
leaders said their endeavors must be guided by the need to address the
human costs: an increase in the already unacceptable number of poor
and vulnerable, particularly women and children, who suffer and die
of hunger, malnutrition and preventable or curable disease; a rise in
unemployment; the reduction in access to education and health services;
and the current inadequacy of social protection in many countries.

The leaders were particularly concerned about the impact on countries
in special situations, including least developed countries, small
island developing States and landlocked developing countries, and
on African countries and countries emerging from conflict. They
were equally concerned about the specific development challenges of
middle-income countries and low-income countries with vulnerable and
poor populations.

They agreed that their collective responses to the crisis must,
therefore, be made "with sensitivity to the specific needs of these
[developing countries]", which included, among others: trade and market
access; access to adequate financing and concessionary financing; debt
sustainability; trade facilitation measures; the Millennium Development
Goals; and previously agreed development commitments. Therefore, an
adequate share of any additional resources — both short-term liquidity
and long-term development financing – will need to be made available
to developing countries, especially the least developed countries.

"Going forward, our response must focus on creating jobs, increasing
prosperity, strengthening access to health and education, correcting
imbalances, designing and implementing environmentally and socially
sustainable development paths and having a strong gender perspective",
the document says, adding that the collective response must also
strengthen the foundation for a fair, inclusive and sustainable
globalization supported by renewed multilateralism. "We are confident
that we will emerge from this crisis stronger and more vigorous and
more united."

Expressing their commitment to restoring confidence and economic
growth and creating full and productive employment and decent work
for all, the leaders also pledge to, among other things, make national
stimulus packages work for all, help contain the effects of the crisis
and improve future global resilience, and improve regulation and
monitoring mechanisms. "We stress the urgent need for further reform
of the governance of the Bretton Woods institutions, on the basis of
a fair and equitable representation of developing countries, in order
to increase the credibility and accountability of these institutions."

Citing a consensus on the need to modernize the global financial
institutions, they said such reforms should enhance the perspective,
voice and participation of developing countries, including the
poorest. They specifically called for inclusive consultations
on further reforms to improve the responsiveness of the World
Bank. Looking forward to accelerated progress to increase the
credibility and accountability of the International Monetary Fund
(IMF), "we strongly support completion of the next quota review,
which […] is expected to result in an increase in the quota shares
of dynamic economies, particularly in the share of emerging market
and developing countries as a whole, to be completed no later than
January 2011".