2-8 May 2001

Enhanced coherence in support of financing for development

• In order to achieve the international development targets and the goals set by the Millennium Declaration, enhanced coherence, co-ordination and co-operation among all relevant actors at the national and international level; and at the policy and operational level in finance/monetary, trade and development related areas will be required. It will also call for increased co-operation with civil society and the private sector in the development effort.
  
  
• At the national level this will require relevant ministries/government agencies and central banks to become more co-ordinated and to increase coherence among themselves when discussing and deciding upon common policy goals and approaches both domestically as well as in the governing bodies of the UN, the IFIs and other international and regional organisations.
  
  
• Equally, it will require closer co-ordination and co-operation between international/regional organisations to enhance complementarity and synergies to ensure the effective functioning of the international system and to avoid overlapping and duplication of task.
  
  
• Efforts at the policy/normative level to increase coherence need to be matched by corresponding efforts at the operational level when implementing policies and country strategies. This will contribute to a more effective use of resources, a decrease in transaction costs, increased ownership by recipient countries of the development process.

Participation and ownership

• National ownership of development policy is essential. Agree that in order for development co-operation to be as effective as possible, it is important for the whole society, men and women, to be engaged in the formulation and execution of a nationally owned poverty reduction strategy. This includes the government, private sector and representatives of the civil society.
  
  
• The CDF/PRSP and CCA/UNDAF are key instruments for achieving a locally owned and participatory development process at country level. These co-ordination processes should to largest extent possible be led by the recipient country. The important role of local authorities in this process should be emphasised. Capacity building to support national efforts in this area is important. Corresponding development strategies at the regional and bilateral level should also be taken into account.
  
  
• The EU supports the need for broadening and strengthening the participation of developing countries in international policymaking on matters of financing for development at the global level while respecting the existing mandates and governance structures of the relevant international organisations.

Technical and financial assistance for capacity building

• Agree that technical and financial assistance for enhanced capacity building is an important step to enable developing countries, in particular the least developed countries, to remove obstacles to development, strengthen their capacity to mobilise domestic resources, build and implement a nationally owned development policy, and to broaden and strengthen their participation in international policy making and in the international trading system. Capacity building needs and appropriate support will need to be defined on a case-by-case basis in the relevant policy areas and by the recipient countries in co-operation with relevant development actors. Agree that it is important to integrate in a mutually reinforcing manner national and international capacity building efforts. Will come back to this point under the relevant headings of the agenda.

Regional complementarity and synergies

• Regional co-operation can complement national and global efforts. Regional integration can constitute a step towards integration in the global economy and help attract investment for development, by increasing for example export opportunities and the stability of the market, and thus, contribute to effective and sustainable development.
  
  
• Regional co-operation may prove to be a solution in many areas for developing countries. A main challenge is to eliminate obstacles such as for example, conflict, inadequate infrastructure, etc., to such co-operation. Equally challenging is to identify areas where synergies can be found between countries and best practises. Regional trade, transboundary water management and peace and stability are important examples of what could be enhanced at the regional level.
  
  
• The EU supports an increased and enhanced role for regional and sub-regional organisations, including the regional development banks, in this area.

Public-private partnerships in support of financing for development

• Enhancing the catalysing role of ODA in leveraging private sector resources for development should be a key objective for FfD. It should be further explored where public resources can leverage private investments in an effective way. One important objective of public-private partnerships is to increase the development impact of private investments. Both the public and private sectors together need to explore ways and means to pool resources in partnership in areas and sectors to facilitate the attainment of development goals. It should be explored where public resources can leverage private investments in an effective way.
  
  
• The growing corporate citizenship trend in many large enterprises is a window of opportunity for the FfD process. Enlightened self-interest of the private sector opens up for co-operation on, for example, the provision of global and regional public goods. The SG's initiative on the Global Compact should continue to identify areas of convergence between the private and public sector.
  
  
• The FfD process can serve as a platform for dialogue between the private sector and [governments] the developing countries. There is a need to raise awareness among and commitment by donors and the private sector to the innovative mechanisms. At the same time, developing countries have a responsibility to put in place the appropriate enabling environment (enabling legislation, regulatory arrangements and utilities structures conducive to private sector investment) to maximise the gains from public-private partnerships.
  
  
• The EU welcomes a continuing discussion on new incentives and arrangements for increasing public-private partnership. Substantive participation of the private sector in the FfD process is a prerequisite for success.