Statement by Mr Jeremy Adler, Representative of Canada on behalf of Canada, Australia and New Zealand to the United Nations Second Committee regarding Item 51: Macroeconomic Policy Questions, delivered on 12 October 2009.
(as delivered)
Thank you Mr. Chair,
As this is the first time Canada, Australia, and New Zealand will have taken the floor during this year’s deliberations, allow our delegations to add their voice in congratulating you on your election as Chair of Second Committee, as well as to other members of the Bureau. We look forward to working constructively with you as the Committee addresses the wide spectrum of important issues before us.
Mr. Chair, the global economic and financial crisis clearly underscored our interdependence and called for responses that were quick, substantial, and collective. International cooperation must be sustained to tackle the challenges head-on, particularly for vulnerable, developing countries. We need to ensure that the economic crisis does not further undermine their social and economic development and that we maintain progress towards achieving the Millennium Development Goals, in particular the first goal of halving extreme poverty and hunger by 2015.
Many countries undertook extraordinary measures in the wake of the financial and economic crisis. Collective action was also undertaken in various international fora, including the recent G20 Summit in Pittsburgh in September.
It is encouraging to see that some economies have already started to recover and that prospects are for a global recovery in 2009 and moderate growth next year. However, the recovery is still at an early stage and remains fragile. We must stay on course in addressing the challenges that remain. To this end, we have made economic recovery and growth a top priority, both domestically and internationally. In this respect, as Canada prepares to host the next G20 Leaders Summit in June 2010, as well as the G8, we will build on progress made to ensure a durable recovery and secure a future for sustainable and balanced growth.
As we continue to manage the global economic crisis and nurture the early signs of recovery, we must not lose sight of our financing for development commitments. More specifically, we must continue to mobilize resources for development, in order to achieve sustained economic growth, promote sustainable development, and eradicate poverty. An effective response must ensure complementary engagement of all actors, including, importantly, the UN and other multilateral institutions.
International financial systems
The International Financial Institutions have a critical role to play in response to the crisis. The G20 has made commitments to make available an additional $850 billion of resources through these institutions to support growth in emerging markets and developing countries. For our part, Canada, Australia, and New Zealand are increasing our support to these insitutions as well as to multilateral development banks.
Discussions on capital needs should be supported by institutional efforts towards more effective governance, a strong focus on the poorest and most vulnerable, and a clear division of labour. We support ongoing efforts to reform and modernize the international financial institutions, taking place within their respective mandates, to ensure they can assist members and shareholders effectively in the new challenges they face.
Canada, Australia, and New Zealand welcomed the opportunity provided by the UN Conference on the World Financial and Economic Crisis and its Impact on Development last June to discuss the risks faced as a result of the crisis, with particular focus on development. We welcomed the overall message of unity and common purpose in light of the crisis. One of the key strengths of the United Nations is its broad network of experts, making it uniquely placed to assess first-hand the impact of the crisis on the most vulnerable. We know that the United Nations alone cannot solve the economic crisis, nor can it alone mitigate the impact of the crisis on developing countries. All development actors must play to their strengths in working together to complement the multilateral responses to date.
Commodities
As the Secretary-General’s report notes, the last sixteen months have witnessed some of the most dramatic volatility in commodity prices as they rose to unprecedented levels in the first half of 2008, then fell sharply late last year and, more recently, have started to recover.
We are cognisant of the need for a concerted and collective response, and are encouraged by the actions to date. Canada recently announced the doubling of our support to sustainable agricultural development with an additional $600 million commitment over 3 years, part of the $20 billion announced at the recent L’Aquila Summit by G8 and other leaders and heads of international organizations. Australia has committed A$464 million over 4 years to play its part in this effort.
International Trade
The events of the last year have served as a strong reminder of the key and critical role that international trade plays as a catalyst to economic growth. With recent UNCTAD and WTO estimates of a drop in world goods trade now estimated at 9–10 per cent in 2009, and of corresponding drops in the world-wide flows of investment and services, we have all witnessed the effects of this calamitous drop in trade on our respective economies. We would be remiss then if we did not also take this opportunity to reiterate our continuing commitment to further trade liberalisation and combat protectionism, and call on all member states to commit to an ambitious and balanced conclusion to the current Doha Development Round in 2010. We recognise that this will take the determined and collective efforts of all WTO Members and are committed to doing our part.
Beyond our work in the WTO we also share the concerns with regard to the recent rise in protectionist actions. We have worked to keep our own markets open and free and have taken further measures to reduce our own barriers to trade. We call on others to refrain from raising barriers or imposing new barriers to trade in goods and services, imposing new export restrictions or taking WTO inconsistent measures to stimulate exports.
Debt
Turning our attention to debt, we recognize the added difficulties that both low income and middle income countries are facing in respect of debt sustainability, particularly in light of the financial crisis. We remain committed to continue helping countries manage their debt levels, including through the Heavily Indebted Poor Countries (HIPC) Initiative, the Multilateral Debt Relief Initiative (MDRI), capacity building, and technical assistance.
In light of the crisis, sustained lending to these countries through the international financial institutions is key to helping promote their economic recovery, while enabling pursuit of long-term poverty reduction goals.
Mr. Chair, in closing, let me reiterate our commitment to engaging constructively in these important issues over the course of our deliberations in the Second Committee. It is vital that we work efficiently and complement ongoing discussions in other multilateral fora as well as the UN.