Statement by Mr. Andalib Elias, Counsellor, Permanent Mission of Bangladesh to UN on International Public Finance at the First Drafting Session of the Preparatory Process for Third International Conference on Financing for Development UNHQ, 29 January 2015
Thank you, Mr. Co-facilitator.
My delegation aligns itself with the statements delivered by Suriname and Benin on this topic. In addition, we would like to flag a few points:
- On international public finance, it is imperative that all developed countries disburse 0.70 percent of their GNI as ODA, and at least 0.15 to 0.20 percent of their GNI as ODA to LDCs. This commitment has been 2015 repeated in Monterrey and in Doha and should have been fulfilled long ago. As highlighted again and again, ODA should go to the countries who are most vulnerable, and who need the assistance most – the LDCs. The next step in allocation of ODA should be the target to provide at least 50 percent of the ODA from the developed countries to LDCs, provided that this 50 percent is not less than 0.20 percent of their GNI.
- The ODA to LDCs should be focused on the areas highlighted in the Istanbul Programme of Action, and as prioritized by the national governments of the LDCs. In addition to the quantity, the quality of aid also has to be monitored. Non-recurring, one-time-only, country specific actions like debt relief programmes can skew the trend of ODA to LDCs, and in fact may distort the real picture. As rightly pointed out in your elements paper, share of ODA to LDCs have been decreasing in real terms, although simplified tables and charts may tell us a different story.
- South-South cooperation has been gaining increased importance. However, we must remember that it is complementary, not substitute to North-South cooperation. Triangular cooperation is a more feasible approach, with North taking the lead in terms of financing.
- As the debate on financing strategy for climate change is evolving, we re-emphasize that assistance for climate change adaptation programmes should not be counted as part of ODA, rather these should be additional, and absolutely outside the computation of ODA. Otherwise, the scope for developing countries to use ODA for their development needs will be diminished.
- Finally, Mr. Co-facillitator, we fully endorse the view that individual countries should be responsible for their development efforts and initiatives. At the same time, without international support, that effort may not always yield the desired result. To ensure that we have development that is sustainable, international public finance has, and will continue to play an important role, may be even the most important role for some developing countries, particularly LDCs, for some time to come. I believe this is an issue where we need global consensus, and then we can act together to ensure that international public finance is used to maximum effectiveness, and synergy is created.
Thank you, Mr. Co-facilitator.