VN-top over de gevolgen van de crisis voor ontwikkeling (Engels)
Gelegenheid: Conference on the World Financial and Economic Crisis and Its Impact on DevelopmentMr. President, Your Excellencies,
It is a great honor and pleasure to address this conference today.
This is the first opportunity for the UN membership as a whole to address the financial and economic crisis. As the world economy finds itself in the thick of the fog, this meeting comes in our opinion none too soon.
We are working against the clock. Every day, the crisis takes a staggering human toll on ordinary citizens all around the world, in particular in the developing world.
The depth and magnitude is such that no country is immune from it. We are experiencing the most severe economic pandemic since the Great Depression. Collective and drastic action is needed to find the right medicine and administer it.
This is clearly a moment in history where our national interests do converge. All countries are eager to feel the positive impact of immediate mitigation policies, including measures to stabilize financial markets, to get capital flowing again, and to put the economy back onto the path of growth. I sense broad agreement among the membership about the urgency and nature of such measures.
There is also a broad understanding of the main causes of the crisis, including an over-optimistic belief in the ability of markets to regulate themselves. This is prompting us to rethink, finally I would add, some of the basic assumptions of our economic policies.
The economic downturn has also made us more humble about the virtues of globalization. We know now that globalization can also have an ugly side if it is not managed responsibly.
The Group of Twenty in April agreed on an extraordinary package of far-reaching measures to fight this crisis and prevent future ones. The G20 deserves credit for having formulated the first concrete international and comprehensive response to the crisis.
This UN conference should build on the work that has already been initiated by the G20 and others. As the title of this conference indicates, the UN is well-positioned to focus in particular on helping developing countries cope with the effects of the crisis. They bear the brunt of this crisis that is not of their making; the financing gaps for reaching the MDG’s are now increasing exponentially, and they should be met!
It is widely recognized that the UN, by virtue of its universal membership, adds inclusiveness and thereby legitimacy to decision making on these types of issues. That may be true, but I would add that in the current circumstances that is hardly enough. The gravity of the crisis requires bold and effective action. Inclusiveness alone won’t restore jobs, growth or even confidence, if it is not backed up by such action.
That is why this conference is also, in a way, a test case for broad, inclusive multilateral decision-making in times of crisis. The question really is: can we prove the skeptics wrong who maintain that the UN, with its universal membership, is too unwieldy - let’s say too bureaucratic - to agree on meaningful solutions when they are most needed? That is the challenge of this conference within the broader challenge of this crisis.
I would not have accepted the kind invitation of the President of the General Assembly to be his special envoy for this conference had I had any doubt about the ability of the membership to deliver – to rally around the common cause of restoring global growth and address the imbalances in the global financial and economic system. I hope you share my optimism. At this moment, the UN cannot fail.
Mr. President,
While we focus on immediate measures to steer away from financial and economic disaster, we must not forget to address the longer-term systemic and macro-economic deficiencies and imbalances. For if we don’t, we might be setting ourselves up for a future crisis ‘eyes wide open’.
Therefore, I would like to commend you, Mr. President, for your initiative to convene the Commission of Experts on Reforms of the International Monetary and Financial System.
I would also like to pay tribute to the Commission itself, under the able leadership of Professor Joseph Stiglitz, for having produced a thought-provoking report. One does not have to agree to this report lock, stock and barrel to see how it provides us with an excellent working agenda for the future.
I fully endorse calls for rapid and effective steps to mitigate the effects of the crisis. Such steps should be taken in a coordinated way, and must focus, inter alia, on creating much-needed fiscal and policy space for developing countries, particularly least-developed countries. Protectionism should be avoided at all cost, and so should lending conditionalities that lead to counter-productive, pro-cyclical outcomes. It is imperative that the Doha trade round produces results that includes improved market access for products from developing countries. Financial supervision and regulation should be strengthened as a matter of priority. Urgent attention is also required to stem the illicit flow of capital, which leads to capital outflows from developing countries several times the volume of incoming official development assistance. Needless to say that developed countries must meet their ODA commitments, now more so than ever. The Netherlands continues to do so, also in times of economic crisis.
Looking at the medium and long-term, we can see a convergence of positions around the need to reform and modernize the mandates, scope and governance of the international financial institutions. The voice and representation of emerging and developing economies must be enhanced. I very much support the relevant provisions in the Outcome Document in this regard.
Effectiveness and legitimacy are, after all, closely related.
There are several issues in this debate that need further study and analysis. The analytical thinking about the evolution toward a more efficient reserve system should continue – and that is not an easy question.
There is a need for better coordination and coherence in the global financial and economic system, both within the UN and between the UN and the Bretton Woods Institutions. But the creation of a new institution alongside or above existing ones won’t do the trick. Stacking a new mandate upon existing ones might actually add to the confusion of which institution is responsible for what. What is important is that we strengthen, on an urgent basis that is, the capacity, effectiveness and efficiency of the United Nations, and enhance the coherence and coordination of policies and actions between the UN and the financial institutions. The 64th General Assembly now has a great chance to become very concrete and help solve our urgent problems. An ad hoc panel to reinforce this coherence is in my view urgently called for.
Mr. President,
Substantial follow-up is needed for the various measures and ideas set out at this conference and elsewhere. And all of this comes in addition to existing global challenges such as food security, climate change, and the Millennium Development Goals.
A further convergence of positions leading to sound collective action seems to offer the only plausible way forward. The working group will require a precise task so it can make a real difference for real people. The Netherlands is ready to support this endeavor.
Now is the time to grasp this important multilateral moment.
I thank you very much.