Mr. Prayono Atiyanto
Member of the Delegation of the Republic of Indonesia
The Second Committee of the 60th Session
of the General Assembly
on Agenda Item 51:
Follow-up to and Implementation of
The Outcome of the International Conference
on Financing for Development
New York, 13 October 2005
First of all let me join other speakers in expressing appreciation to the Secretary-General for the reports related to the follow up to and implementation of the outcome of the International Conference on Financing for Development as contained in document A/60/289 and A/60/289/Add.1. In relation to the issues we are discussing, my delegation aligns itself with the statement made by the distinguished representative of Jamaica on behalf of the Group of 77 and China.
Development without financing is hopeless. Eradicating poverty, achieving sustained economic growth and promoting sustainable development all require financial investments.
This in fact has been the subject of repeated discussions in a series of important and major conferences and summits spanning from the 1990’s up to the 2005 World Summit last month. The repetitious nature of our discussions is an indication that we are still off mark from international commitments. Regardless of this pattern, until the scourge of poverty is history and global imbalances redressed, we cannot relent.
On that point, let me reiterate the distressful conditions of the Asia-Pacific region as highlighted during the Regional Ministerial Meeting on the Millennium Development Goals (MDGs): the Way Forward to 2015 in Jakarta last August. It is a fact that the region contains two-thirds of the over 1 billion world’s poor. Therefore, strong political will as well as bold and decisive action are needed for achieving sustainable development and eradicating poverty. On that basis, regional partnership and regional cooperation in the field of trade, investment, capacity building, technology support, infrastructure development, and promotion of environmental sustainability are crucial for countries with special needs in the region to meet the target of the MDGs.
With that in mind, my delegation has a couple of points to make for the Committee’s consideration, namely:
First, we have to continue finding the best ways and means of mobilizing domestic as well as international financial resources for development. In this regard, it is important to foster greater coherence between the multilateral development agencies and the multilateral financial and trading system to ensure the availability of resources.
Various innovative mechanisms for financing for development can be further explored. In principle, however, it must never replace ODA and it should always be in accordance with countries specific situation and national regulation.
Second, without doubt the main responsibility for development lies with developing countries. Still, it is obvious that domestic efforts must be complemented by a conducive and supportive international framework. On that basis, Indonesia’s national development strategy rests on a Triple Track Strategy based on three pro’s that is pro-growth, pro-employment, and pro-poor. We seek to attain a 6.6% annual growth rate for the next 5 years. With that growth rate, we aim by 2009 to reduce the unemployment rate from 9.5 percent to 5.1 percent, and to cut the poverty rate in half to 8.2 percent.
This will be accomplished by maintaining macro-economic stability, fiscal sustainability and financial sector reforms. Furthermore, the painstaking reduction of fuel subsidies has opened the way for Indonesia’s government to re-allocate state budgets on social programs.
Third, on official development assistance, the timetables set by donor countries to achieve the 0.7% of GNP is an encouraging development, and we hope that more developed countries will follow suit. In conjunction with reversing the decline of ODA, my delegation sees parallel benefits with improvements in aid effectiveness.
An increase of ODA should be complemented with an increase in the absorbing capacity of the receiving country based on a demand-driven approach in order to reach aid-effectiveness and donor harmonization. International aid should include efforts to enhance capacity building for ODA management in recipient countries. Surely, increased ODA and improving its effectiveness would have a significant bearing on development.
Fourth, the successful conclusion of the Doha round of multilateral trade negotiations will be a key input on development. It is important that developed countries uphold their commitment for the Doha Development Agenda through the application of special and differential treatment, increased market access for developing countries products, and reduced subsidies for agricultural products of developed countries.
Fifth, we need donors to do more to relieve the external debt burden of HIPCs and non-HIPCs. We understand different donors will respond differently, but responding positively they must. In this regard, our engagement must no longer be haunted by conditionalities.
Lastly, keeping engaged, nationally, regionally and internationally to ensure the follow-up of the implementation of commitments of the Monterrey Consensus, is very important. In that regard, we thank the Government of Qatar for offering to host the follow-up meeting to the 2002 International Conference on Financing for Development. On that basis and in line with paragraph 73 of the Monterrey Consensus, we look forward to consider its modalities in 2005.
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