Global Policy Forum

The First Financing for Development Summit

Monterrey, 2002

The first International Conference on Financing for Development took place in Monterrey, Mexico in March 2002, to consider new approaches to domestic and international finance to promote more equitable global development. Throughout the process, the UN collaborated with an unusually wide range of parties, including governments, the IMF, the World Bank, the WTO, NGOs and business associations and corporations. Given very strong pressures to sustain the status quo, it remains to be seen whether the UN will be able to stimulate a new agenda on global economic issues and lead future FfD summits toward a more just and sustainable path of international development.


Key Documents | General Analysis | Follow-Up Process | Monterrey Conference


Key Documents

Report of the International Conference on Financing for Development (2002)

This UN document contains the Monterrey Conference resolutions (the so-called "Monterrey Consensus") as well as reports on the work of various segments, forums and roundtables during the Conference. The document focuses on resource mobilization, trade, debt, and reforming the international trading and financial systems.

Follow-Up to the International Conference on Financing for Development (October 15, 2004)

This UN draft resolution welcomes the 2004 New York Declaration in which world leaders once again pledged to take action against poverty and hunger. The draft resolution stresses that the achievement of the Millennium Development Goals depends on fairer trade, increased official development assistance and debt relief.

Follow-up Efforts to the International Conference on Financing for Development (August 8, 2002)

This report initiates a series of reports on the follow-up efforts by all relevant stakeholders of the Financing for Development process. It covers measures taken by governments, institutions, and NGOs during the period of March to June 2002. (UN Document)

Outcome of the International Conference on Financing for Development (August 8, 2002)

This report by the UN Secretary General presents highlights of the "Monterrey Consensus", and describes key issues tackled during the conference. (UN Document)

The Zedillo Report (June 2001)

This report by a panel, lead by the former Mexican President Ernesto Zedillo, recommends strategies for the mobilization of resources required to fulfill the poverty and development commitments stated in the UN Millennium Declaration. (United Nations)


General Analysis

Resources for Social Development (2003)

The international community needs an estimated $30-70 billion above and beyond current aid pledges to meet the Millennium Development Goals by 2015. This detailed policy paper proposes several untapped, politically feasible sources of funding including taxes on carbon use and currency trades, ‘multisectoral global funds,' and community mobilization. (World Commission on the Social Dimensions of Globalization)

Financing for Sustainable Development and the Role of the UN (July 1998)

"The Coffers are Not Empty" - a policy paper by James Paul (GPF) and Jens Martens (WEED) that seeks to outline the recent trends of financing for development and to formulate a few recommendations for further studies and activities of the UN.

Financing Development through Redistribution (September 2001)

This paper argues that only a global redistribution of wealth and power can create the conditions for poverty reduction, and proposes ways of financing development. More specifically, the authors call for debt cancellation, the introduction of a currency transaction tax and increasing official development assistance to 0.7 % of GNP. (CIDSE and Caritas Internationalis)


Follow-Up Process

Rich Nations Fail Aid Pledge to Poor (November 7, 2003)

In March 2002, more than 50 political leaders from rich countries solemnly pledged to increase their development assistance. Yet, their rhetoric does not stand up to the facts. Compared to a $800-billion military budget worldwide and $200 billion in net financial transfers from Southern to Northern countries, the 2002 increase of aid to $57 billion looks absurd. (Inter Press Service)

International Financial System and Development (September 15, 2003)

This report by Secretary General Kofi Annan updates information on the net foreign transfer of financial resources by poor countries and on major reforms of the international financial system that aim to reduce the potential damage of international financial volatility.

Debt and the Millennium Development Goals (September 2003)

CAFOD, Christian Aid and Eurodad urge multilateral and bilateral donors to undertake policy actions to help achieve the Millennium Development Goals. The joint paper argues that without the requisite finance, low-income countries cannot meet the goals. It furthermore proposes specific aid and debt policy reforms.

Report on the Implementation of the Monterrey Consensus (August 2003)

Secretary General Kofi Annan reports on member state progress in implementing the Monterrey Consensus on Financing for Development. His report urges member states to increase the volume of aid as well as aid efficiency through more coordination between donors.

Finance Ministers Agree on Action Plan to 'Deliver Monterrey' (October 3, 2002)

Commonwealth finance ministers pledge to take concrete actions toward increasing development aid and enhancing aid effectiveness, based on agreements made at the Financing for Development Conference in Monterrey. (Commonwealth News and Information Service)

Not Just Aid, But Stronger International Coordination Needed to Defeat Poverty (September 28, 2002)

The UN asks the World Bank and the IMF to follow up on goals set at the Conference on Financing for Development in Monterrey, calling for an international framework "to mediate a stable, effective and adequate transfer of real resources to developing countries." (United Nations)


Monterrey Conference (March 18 - 22, 2002)

West Called Upon to Deliver On Aid Promises (April 12, 2002)

Reacting to the African Development Indicators 2002 report, the World Bank is encouraging rich countries to follow through with aid pledges made at the Monterrey Conference. The report indicates that foreign aid to most African countries has significantly decreased in recent years. (Zimbabwe Independent)

The Spirit of Monterrey (March 28, 2002)

Foreign Policy Association highlights the Monterrey Conference's major shortcomings. The article cites the conference's failure to address debt relief and criticizes the amount and conditionality of the US's foreign aid pledge.

Statement on the Monterrey Conference and the Bush Administration Proposal for Increased Aid to Poor Countries (March 20, 2002)

Africa Action criticizes the US foreign aid initiatives announced at the Monterrey Conference. International aid must focus on debt cancellation and AIDS as more immediate solutions to poverty in Africa.

Staying Engaged - For Justice (March 19, 2002)

The Ecumenical Team at the Monterrey Conference briefly outlines the tools necessary for just and sustainable development. The team asserts that international financial systems must be more democratic and involve civil society in the decision-making process.

Monterrey: A Turning Point (March 19, 2002)

President of Mexico Vicente Fox welcomes the Monterrey Conference as an opportunity to re-examine economic aid policies and institutions. (Washington Post)

World Leaders to Discuss Strategy for Aid to Poor (March 18, 2002)

"If [the Financing for Development Conference in Monterrey] succeeds, it will put development at the heart of global politics." If the negotiations fail, governments will have wasted a golden opportunity to tackle the "pre-eminent moral and humanitarian challenge of our age." (New York Times)

US-EU: A Major New Commitment (March 18, 2002)

On the first day of the Monterrey Conference, the US and EU clashed on the way to provide development aid. While the EU aims to meet the UN-endorsed goal of increasing ODA up to 0.7 percent, the US plans to increase its aid budget but will not agree to the UN target. (Earth Times)

Final Resolution of the Global Forum: Financing the Right to Sustainable and Equitable Development (March 16, 2002)

Fervently rejecting the Monterrey Consensus, a group of NGOs propose a new economic model in an alternative "Monterrey Document". The resolution demands more attention to human rights, debt cancellation, trade reform and major changes in the global economic institutions.

Development: "Berlin Wall" To Hide Poor From Heads of State (March 13, 2002)

A three-foot high structure dubbed the "Berlin Wall" will shelter delegates to the Monterrey Financing for Development conference from viewing a slum in the Mexican city. Civil society activists argue this "reveals the deceitfulness of the conference organizers, and their attempt to disguise reality." (Inter Press Service )

Where Is the International Coalition Against Poverty? (March 12, 2002)

"The Monterrey Consensus is a sham," assert European NGOs in advance of the Financing for Development Conference in Monterrey, Mexico. "Governments were able to build an international coalition against terrorism in less than a month. NGOs await the formation of an international coalition against poverty." Campaign to Reform the World Bank)

US Official Says No Aid Promises for UN Meeting (March 12, 2002)

A senior US official stated bluntly that the US would "not commit itself to an increase in development aid" at Monterrey. Instead, President Bush will attend the Financing for Development conference to promote the "US position on development," a statement likely to rile European leaders and development NGOs who support an increase in overseas aid. (Inter Press Service)

Britain, Nigeria, Others Take Debt Relief Campaign to Mexico (March 6, 2002)

Politicians and NGO representatives from Africa, Asia and Europe urge delegates to the up-coming Financing for Development conference to place the issue of debt relief at the center of the Overseas Development Assistance discussions. (Guardian, Nigeria)

Development Finance Summit a Fiasco, Say Campaigners (March/April 2002)

Around the world, civil society groups criticize the International Conference on Financing for Development held March 18-22. Skeptical about US and EU foreign aid, groups claim that the Monterrey Consensus fails to construct new methods for mobilizing international aid. (Bretton Woods Project)

Chasing Shadows: Re-imagining Finance for Development (March 2002)

Financing for development concerns more than just money, argues the New Economics Foundation. This paper discusses the human elements of global finance reform in terms of institutional changes, corporate responsibility and ecological debt.

Human Rights Hijacked by Market Forces (January 22, 2002)

This press statement argues that the focus on poverty reduction have become secondary in the process towards the Monterrey Consensus. The statement calls for a change of course and presents the basic commitments the conference should make. (NGO Caucus for Financing for Development)

Discontent as Former IMF Chief Named to UN Conference (January 22, 2002)

The UN's appointment of former International Monetary Fund chief Mr Camdessus to oversee the Financing for Development initiative generates disappointment and criticism. To a large part of the developing world, Mr Camdessus is also known as the leading apostle of structural adjustments programs. (Inter Press Service)

Critics Slam Proposed UN Tax Authority (January 8, 2002)

The debate over the creation of an International Tax Organization will heat the Financing for Development Conference in Monterrey. Opponents, who overstate the purpose of such an organization, do not want to realize the benefits of international cooperation and fairer economic globalization. (Fox News)

European NGOs Consensus Paper on Financing for Development (December 20, 2001)

This paper summarizes the priorities for the FfD conference in March 2002, according to a group of 40 European NGOs. They argue for increased and more effective aid, international cooperation on tax matters and an ongoing follow-up process where UN has a coordinating role. (NGO Caucus for Financing for Development)

European NGOs Consensus Paper on Financing for Development (December 20, 2001)

This paper summarizes the priorities for the FfD conference in March 2002, according to a group of 40 European NGOs. They argue for increased and more effective aid, international cooperation on tax matters and an ongoing follow-up process where UN has a coordinating role. (NGO Caucus for Financing for Development)

EU-Leaders Gathering at Laeken Must Seize Development Agenda for Peace (December 2001)

An appeal of 45 NGOs to the EU Summit of Heads of State in Belgium in December 2001. The NGOs want the EU to give a strong signal of support for the FfD conference in Monterrey, and give core questions that should be addressed during the summit. (NGO Caucus for Financing for Development)

UN Regional Conference Urges More Transparency in International Financing System (August 8, 2000)

During the first of five regional conferences in the run-up to the global summit on Financing for Development, Asian delegates were optimistic about future economic development. Concerns were expressed that foreign direct investment might only benefit developed countries in the region. (UN Newservice)

Regional Identity Important to Tackle Global Issues Says Indonesian President (August 2, 2000)

One of five regional consultations for next year's global summit on Financing for Development is being held in Jakarta. At its opening, Indonesian president Abdurrahman Wahid stressed the need for regional cooperation and solidarity.



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