A/AC.257/22 ("Rev.2")
25 April 2001, 5:30 pm

Preparatory Committee for the International Conference on Financing for Development
Third Session (first part) – 2-8 May 2001

1. Since the submission of its second report on 30 May 2000 (A/AC/257/8), the Bureau of the Financing for Development Preparatory Committee has continued to carry out as best as possible the responsibilities given to it by the Preparatory Committee and General Assembly.

2. The General Assembly, in paragraph 10 of resolution 54/196, requested the Bureau to submit proposals on the modalities of participation of all relevant stakeholders in both the substantive preparatory process and the high-level intergovernmental event. This report supplements the recommendations in the Bureau's first and second reports (A/AC.257/6 and A/AC.257/8).

3. The General Assembly, in para 4 of resolution 54/279 requested the Bureau to continue consultations with the major institutional stakeholders on modalities of their participation and to report on proposals and recommendations thereon as well as possible proposals for additional modalities of participation of the private sector.

4. The General Assembly in para 7 of resolution 55/254 similarly requested the Bureau to explore ways and means to deepen the efforts of all relevant stakeholders, including at the regional level as well as by the civil society and the business sector, in support of the financing for development preparatory process, within the framework of its substantive agenda and to submit proposals for consideration and decision by the Preparatory Committee.

5. The Preparatory Committee, in its previous decisions, also requested the Bureau to make recommendations on the form, venue, timing, duration, and format of the final event and on the programme of work of the Preparatory Committee.

6. This report thus addresses modalities for participation of key institutional and non-institutional stakeholders, arrangements for the final Conference, and other organizational matters. As the International Conference on Financing for Development is less than one year away, the Bureau includes in this report a series of conference-related issues and suggestions for consideration by the Preparatory Committee.

 

I.  Modalities for the Participation of Key Stakeholders

Engagement with the World Bank and the IMF

7. The Preparatory Committee has already approved the modalities for participation of the World Bank, as agreed to with its Executive Board (G.A. Resolution 54/279).

8. On 5 February 2001, the Bureau met in Washington DC with the Executive Board of the World Bank, following up on its first meeting of this type last year. The co-chairs already reported orally to the second session of the Preparatory Committee on the issues covered in the meeting with the Executive Board of the Bank, which was hailed as very successful and useful by participants, on both sides.

9. On 6 February 2001, the Bureau met in Washington DC for the first time with the Executive Board of the IMF, on which a report was presented by the Co-chairs at the second session of the preparatory committee. Following a letter of appreciation by the co-chairs, the Managing Director of the IMF sent a reply on 15 March 2001 in which he shared a positive evaluation of the meeting held with the Bureau and suggests that a subsequent meeting should be considered. In his letter, the Managing Director also recalled that the IMF had been represented by senior staff members throughout the recent meetings of the Preparatory Committee and assured that IMF management and staff intend to continue to play an active role in the preparatory process of Financing for Development.

10. In light of the ongoing consultations with both the World Bank and the IMF, it has been suggested that future consultations of the Bureau with the respective Executive Boards might have a more flexible scope, going beyond mere aspects of the modality of participation, to include the possible discussion of selected substantive issues drawn from the FfD agenda. The Bureau is of the view that such an approach might be beneficial to maintaining the high quality of the dialogue with the Executive Boards of both the World Bank and the IMF.

11. The Bureau traveled to Geneva for a meeting with the WTO Committee on Trade and Development on 9 April. That Committee had earlier been designated by the WTO General Council to be the WTO interlocutor with the FfD process at the intergovernmental level.

12. At the meeting, the Co-Chair and other members of the Bureau of the Preparatory Committee expressed appreciation for the participation of WTO in the FfD process and underlined the high value accorded by the Preparatory Committee to further strengthening WTO engagement. Members of the Committee indicated that the Committee was not in a position at that time to make a definitive determination on the most appropriate modalities of its further engagement with the FfD process.

13. The Bureau was also informed that the Committee on Trade and Development had been working for some months on a statement to convey to the Prep Com as a contribution of the WTO membership to the preparations of the International Conference on FfD, but it had not yet been able to finalize the corresponding text. Members of the Committee suggested that once they completed the WTO statement, they would be better able to address questions of the modalities for enhanced WTO participation.

14. The Chairman of the Committee, in summing up, underlined that the Bureau had sent a strong message about its desire to deepen WTO engagement in the FfD process and that the message had been received.

15. Earlier the same day, the Bureau had met with the Director General of WTO, the Chairman of the General Council and other senior officials. They had a frank and forthcoming exchange on the importance of WTO involvement in FfD and more generally on the value of enhanced cooperation across multilateral institutions in order to strengthen international economic policy coherence and effectiveness. The Bureau was also informed about issues before WTO, later presented in more detail in a briefing segment during the meeting with the Trade and Development Committee.

Engagement with regional stakeholders

16. In the second half of 2000, the regional commissions with the support of UNCTAD and their respective regional development banks convened consultations on aspects contained in the FFD agenda. These reports of these regional meetings (A/AC.257/13-17) have made a positive contribution to the intergovernmental process. The Bureau recommends that the Preparatory Committee encourage continued participation of the regional commissions and the regional development banks in the International Conference and the remaining preparatory processes.

Engagement with the private sector

17. The business hearings in December 2000 provided a cross-section of views from business sector representatives relating to the substantive themes within the financing for development agenda (A/AC.257/19). This was helpful in that it provided an additional substantive input, and from a different angle, for delegates to consider in their preparations for the substantive session of the Preparatory Committee. Engaging the business sector beyond the hearings phase would ensure their integration in the process of considering in greater depth the substantive policy issues before the Preparatory Committee and create the conditions for their involvement in the implementation of the outcomes relating to the business community. To give this matter appropriate consideration, the Bureau set up a special taskforce whose interim report was circulated to missions on 21 March 2000 and which is subject to approval by the Preparatory Committee.

18. As indicated in the taskforce report, in order to engage the business sector in such a substantive manner, certain issues need to be addressed, including the substantive topics requiring business sector perspectives, the methods of identifying and approaching relevant representatives of the business community, the appropriate modalities for engagement, and the next practical steps forward.

19. Companies with significant business interests, and those considering investments, in developing countries (both multinationals and local companies, including small and medium sized enterprises) could be considered for engagement. The need to ensure geographical distribution as well as a gender perspective should be kept in mind so as to provide a diversity of perspectives. Where individuals from the business sector are invited to participate in round tables, workshops and panels, they should have hands-on expertise of the relevant issues – though they need not necessarily be the heads or chairpersons of companies, but rather professionals who are both influential and senior and able to provide an innovative input into our substantive deliberations.

20. Given the heterogeneity of the business sector and the difficulties involved in identifying the best representatives to engage with, it is useful to have appropriate interlocutors representative of different segments of the business community. Following this approach, suggested in the taskforce report, the Bureau has extended invitations to a first set of interlocutors (including representatives of international labour groupings) to participate in an informal dialogue with members of the Preparatory Committee on 2 May 2001, from 2 to 4 pm.

21. It seems that, based on previous experience, holding focused and interactive round table sessions, workshops and seminars (including those that bring together people from different backgrounds – business sector, civil society, academia and governments) offer a useful modality for engagement with the business community. Round tables could be held during inter-sessional periods as well as during the International Conference itself.

22. Panels, though less intensive than round table meetings and workshops, could also be appropriate as a forum, especially for presenting important business-community findings and ideas. Furthermore, entities like the World Economic Forum or the International Chamber of Commerce, from their internal deliberations, could produce papers containing their contributions on substantive issues (if required, these could then be presented at a panel). Similarly, surveys on business sector opinions conducted by the above interlocutors could be supplied to the Preparatory Committee and become an important substantive contribution.

23. The World Economic Forum and other such bodies should be encouraged to use their processes to generate outcomes related to substantive issues identified by the Preparatory Committee. During its visit to Geneva, the Bureau paid a visit to the headquarters of the W.E.F. and had a very fruitful meeting with its Director for Global Issues and other senior members of its Managing Board. The idea was raised, inter alia, of including Financing for Development as one of the agenda items for the 2002 annual Forum meeting in Davos.

24. Some business organizations, including the International Chamber of Commerce, have mentioned the possibility of organizing a meeting of business leaders from around the world that could take place in conjunction with the International Conference in Mexico next year. This idea should be further developed, in collaboration with the host country. Likewise, other business-sector organizations, including bodies linked with national U.N. Associations, have offered to help in the organization of workshops, seminars and side events during the remainder of the preparatory process.

25. The Bureau thus recommends that the Preparatory Committee, with the support of the Coordinating Secretariat, follow-up on the interaction with interlocutors scheduled for 2 May with respect to the engagement of the private sector with the Preparatory Committee and the International Conference. This follow-up should lead inter alia to the formulation of a work program from May to the date of the International Conference that may include include round tables, workshops, seminars and panels as indicated above.

26. With regard to acreditation modalities, the Bureau notes that the Preparatory Committee has already decided that the procedure for ad-hoc accreditation of business associations is the same as for non-ECOSOC accredited non-governmental organizations.

27. As far as individual companies, on the basis of the issues to be discussed and keeping in mind the need for balanced representation, the Bureau might propose to the Prep Com to invite individual businesses enterprises that express an interest to participate as observers in the FfD preparatory process. Once the detailed format of the Conference is decided, the Preparatory Committee may also wish to make recommendations on possible modalities for the attendance of individual corporate officials in the International Conference itself.

Engagement with civil society organizations

28. At the invitation of the Ecumenical Centre of the World Council of Churches, the Bureau took advantage of its recent presence in Geneva to meet with representatives of some religious and secular non-governmental organizations based in Geneva. Expressing substantial interest in the FfD process, NGO participants were grateful for the opportunity for direct, informal dialogue with representatives of Member States active in the FfD process. Among the concerns of NGO participants was to strengthen the opportunities for civil society to contribute to the consultative process.

29. While in Geneva, developing-country Bureau members also paid a visit to the headquarters of the South Centre.

30. As in the past, the Bureau recommends to the Preparatory Committee that it accord consultative status in the FfD process to 43 NGOs that have requested it. These latest requests for ad-hoc FfD accreditation are contained in A/AC.257/10 Add. 3.

 

II. The International Conference

31. The Government of Mexico has indicated that it anticipates announcing at the first segment of the third preparatory committee meeting the precise venue and dates for the International Conference on Financing for Development.

32. Within the next months the Preparatory Committee should thus address, in collaboration with the host country, and with the support of the Coordinating Secretariat, this and a wide range of other organizational and procedural issues related to the holding of the International Conference. Among these, are the following:

a. The nature of the final outcome of the Conference (which is, of course, related to the substantive aspects).

b. The Conference rules of procedure.

c. Arrangements for the participation of Ministers of Foreign Affairs, Finance, Trade, Development and any others.

d. The role, if any, of high level Roundtables and their potential composition

e. Special modalities for participation in the Conference of the major institutional stakeholders, other U.N. agencies, other IGOs and other intergovernmental organizations which do not have official observer status in the General Assembly, including relevant regional and sub-regional economic, financial, trade and monetary bodies.

f. Modalities for the participation in the Conference of representatives of the business community and civil society, including through special side-events.

33. Media Outreach. As recommended initially by the Ad Hoc Working Group, the Bureau considers that special efforts should be made to engage all forms of media, particularly from developing countries, in the preparatory process and the International Conference.

III. Other Organizational Matters

Engagement with national ministries of finance, trade, and development

34. The General Assembly has recognized the crucial importance to the International Conference on Financing for Development of the active participation in capitals and in official meetings of national ministries of finance, trade, and development. The Preparatory Committee was pleased at the diversity of ministries that participated in the second preparatory committee and stressed that the FfD process must continue to expand the engagement of all relevant ministries in the remaining preparatory committee meetings and in the International Conference. The FfD Coordinating Secretariat has been requested to provide regular on-line briefings to capitals and has begun to apply extra-budgetary resources to facilitate the participation of a greater range of officials from national ministries from developing and transition economy countries in the preparatory process.

The FfD Trust Fund

35. The Bureau joins the Secretary-General in extending its highest appreciation to the Governments of Israel, Italy, the Philippines, Thailand, Malaysia, United Kingdom, Norway, Finland, Sweden and Switzerland for their generous contributions to the FfD Trust Fund. As indicated above, the availability of these extrabudgetary resources has allowed the putting into place of a mechanism for supporting the travel of delegates from developing and transition-economy countries to participate in Prep Com sessions and to complement the limited budgetary resources available for many FfD-related programmes and activities.

The FfD Coordinating Secretariat

36. The Bureau expresses its appreciation to the Secretary-General, the U.N. Department of Economic and Social Affairs and the FfD Coordinating Secretariat for the support they have provided to the Bureau and the Preparatory Committee to date. As we approach the International Conference, the Secretary-General should be encouraged to ensure, as stipulated in Resolution 54/196, that the FfD Coordinating Secretariat is "commensurate with the level of the event" and to provide it with adequate staff and all other needed resources. Close collaboration should be implemented between the U.N. Secretariat and the authorities of the host country to ensure the successful realization of the Conference.

37. The major institutional stakeholders should be invited to continue to support the FfD preparatory process in every possible way, including technical and organizational support to the Secretariat and direct participation in the discussions of the Preparatory Committee.