| Delegation from |
Represented by
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| The Republic of Finland |
Illinois State University
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The issues before the International Conference on Financing for Development are: Confronting debt challenges; Financial Sector Reform and Resource Mobilization; and Enhancing the Coherence and Consistency of the International Monetary, Financial and Trading Systems in Support of Development. Finland is strongly committed to achieving the goals laid out in the Millennium Summit, chief among them being the continuing effort by all relevant international bodies, as well as regional and local agencies, in creating a workable plan that will help alleviate the strain that has been placed upon developing economies. This strain has been characterized by the drastic increase in poverty in developing nations, the infiltration of widespread corruption, the suppression of basic human rights, and the indirect effect rampant poverty and debt has had upon the environments of these regions. It is the belief of Finland that any effort made in the way of financing for development must have the interests of the environment at its core. Development and the environment are integrally related to one another and it is vital for the conference to address this.
It is the firm belief of Finland
that alleviating external debt within the most heavily indebted nations is crucial
to the development of sustainable economies. Finland endorses the Monterey
Draft Consensus, citing continued debt relief as essential for freeing up vital
resources that could be used for development. Insurmountable debt incurred
by these nations has led to the destruction of funds that would be allocated
to social programs benefiting the poor and the sick, and has subsequently led
to further human rights violations. While Finland is firmly committed
to the goals laid out in the Monterey Consensus calling upon the IMF and World
Bank to allow countries easier access to debt relief through the HIPC Initiative,
this cannot come at the expense of sound economic reform, human rights, or the
environment. Policies must be put in place that ensure that all money
allocated for debt relief must be used to benefit the people within that country
and their environment, rather than public officials. Finland urges further
cooperation between the United Nations Conference on Trade and Development (UNCTAD),
and the United Nations Environment Programme (UNEP)- financing for development
and the environment are fundamentally linked.
Finland has been a strong proponent of the HIPC Initiative as a means of providing
debt relief for nations unable to payback loans. Finland is further pleased
with the work done by the IMF enhanced Structural Adjustment Facility (ESAF),
and the World Bank International Development Association (IDA), both of which
call upon HIPC’s to show that they have enacted programs of economic reform
before they are granted debt relief. While many have argued that the HIPC
Initiative and the newly expanded HIPC Initiative have standards that allow
for far too few countries to qualify for debt relief, or is too slow in providing
debt relief, it is Finland’s contention that there must be a standard put in
place that ensures that nations have taken appropriate steps at economic reform,
and there must be evidence presented that debt relief will be used to alleviate
poverty and strengthen human rights. For this reason, Finland calls upon
the relevant international organizations (including the Bretton Woods Institutions
and the United Nations) to expand the HIPC initiative to insure that debt relief
will be not merely be used to salvage the economy of these nations, but will
also salvage the dignity and freedom of the people debt relief should affect
the most.
For sustainable development to
occur, it is vital that the economies of the HIPC’s and other debtor nations
reform their internal financial markets. It is the belief of Finland that
while these nations must take the first initiative to reform, development can
only occur through the assistance of the international community. Appropriate
action must be taken both internally and through relevant international agencies
to combat corruption, one of the key roadblocks to sustainable development;
beyond that, international efforts such as capacity building, official development
assistance (ODA), and foreign direct investment must be used to insure sustainable
development, as well as Finland’s primary goal of poverty eradication and the
promotion of human rights.
Finland signed UN Resolution 51/191, condemning corruption and the bribing of
public officials during international commercial transactions. While Finland
welcomes the adoption of this resolution and subsequent resolutions that address
these issues, this is only the first step. Government corruption is a
problem that is steadily growing, resulting in the suppression of human rights
and the continued growth of poverty. Corrupt officials who seek to benefit
from the plight of their people often squander money that is invested into social
programs by foreign nations, NGO’s, and private firms. Finland calls upon
UNESCO and those who will be attending the Monterey Conference to come up with
a plan that will address corruption in terms of its humanitarian implications.
For sustainable development to occur, it is vital that the international community
and individual nations invest into the economy of developing nations.
Since 1995, Finland has increased its official development assistance each year,
with 63% of all money allocated to programs that stress poverty reduction and
capacity building. Capacity building is essential for the development
of a sound economic system in developing economies; without the necessary tools
to reform, ODA and other private investment will only be plundered. This
must come in the way of technology assistance, education, and the liberalization
of banking institutions. We strongly endorse the findings made by the
UN Economic Commission of Europe (UNECE), which stressed FDI as a vital means
of promoting capacity building through the growth of technology and the integration
of these economies into global markets, and cite the Monterey Draft Consensus
as further evidence of the role FDI will play in struggling economies.
Finland strongly supports the findings made at the Third United Nations
Conference in Belgium, calling upon major financial institutions, including
the IMF, World Bank, and WTO, to allow developing nations a greater voice on
trade issues and to help them fully integrate into the global economic system.
Transparency is essential for the continued growth and success of the major
financial institutions and for the success of our increasingly global economy.
Finland strongly endorses the recommendations made by the G-20 finance ministers
that transparency in the international financial institutions will greatly reduce
the threat of future economic crises; the activities of these organizations
must be open to scrutiny rather than be kept in secret.
Finland also adamantly agrees with the findings of the 64th meeting of the Development Committee,
which cites the collaboration of the IMF, World Bank, UNCTAD, the WTO, and regional
development banks as one of the most pressing issue facing development.
It is imperative, especially at the international level that these major financial
institutions and agencies communicate effectively with one another. Without
effective communication, the ability of developing economies to be integrated
into the global economic system will be substantially hindered. Finland
also supports the recommendations made by ministers of the Development Committee
citing the need of the WTO, IMF, and World Bank, to institute programs of capacity
building, chief among which being technological support. Finland is also
committed to the partnership created in the Rio Conference, citing the cooperation
of European Investment Bank and the financial institutions of Latin America
and the Caribbean; these sorts of arrangements between regional financial groups
have become increasingly important and must be addressed at the Monterey Conference.