“If the past were to be our guide, there has been no shortage of declarations of good intent. One merely has to consider as an example, that longstanding target of 0.7 percent of gross national product as official development assistance from developed to developing countries, an undertaking of the United Nations General Assembly that is four decades old next year, three and a half decades overdue, innumerable times reaffirmed, and still nowhere in sight of being realized. The same can be said of the worthy objectives of the Paris Declaration and the Accra Agenda for aid effectiveness.”

Addressing a United Nations (UN) Conference on the World Financial and Economic Crisis and its Impact on Development last Wednesday, Dr. Singh voiced his appreciation for the promises made by the G-20 countries to increase the resources available for relief to countries in distress through the International Monetary Fund (IMF) and the multilateral development banks (MDBs), noting that similar previous promises have gone unfulfilled.

“If the past were to be our guide, there has been no shortage of declarations of good intent. One merely has to consider as an example, that longstanding target of 0.7 percent of gross national product as official development assistance from developed to developing countries, an undertaking of the United Nations General Assembly that is four decades old next year, three and a half decades overdue, innumerable times reaffirmed, and still nowhere in sight of being realized. The same can be said of the worthy objectives of the Paris Declaration and the Accra Agenda for aid effectiveness,” the Guyanese Finance Minister declared.

Also, reforms to conditionality have been slow, aid continues to be fragmented and donors uncoordinated, Dr. Singh said.

He stressed that the success of efforts to restart the global economy will depend largely on the promptness with which the additional support promised by the G-20 countries is delivered to the MDBs, the comprehensiveness and depth of the reforms to the instruments for delivering assistance and ultimately, the actual receipt and effective utilization of the intended support by the countries most in need.

Dr. Singh noted that, at this time, one-sixth of the world’s population is undernourished, more persons than ever before in human history, and a situation exacerbated by the current crisis.

In the Caribbean, export prices for key commodities are affected, oil prices remain high and are climbing again, activity in the tourism sector which is the dominant employer in many countries is reduced, foreign direct investment is slowed, and remittance inflows are threatened.

Noting that the Guyana Government has been responding with policies aimed at implementing an accelerated public investment programme particularly in enabling physical infrastructure, promoting labour intensive economic activity, facilitating diversification and improving competitiveness in our productive sector, and expanding and deepening social programmes, Dr. Singh said:

“Our financial system remains strong and liquid, and Government policy continues to focus on maintaining a robust regulatory framework and promoting credit to the private sector within prudential norms. Nevertheless, the available policy space is limited, and the implications of current external events are pervasive,” he told the conference.

Also, he promoted the development of a new economic and financial architecture focused on avoiding similar crises in the future and promoting development.

“If we are to avoid the onset of future crises of similar proportions and promote development, we must be earnest in designing and implementing a post-crisis multilateral architecture that is informed by yesterday’s lessons, responsive to today’s realities, and relevant to tomorrow’s challenges,” Dr. Singh urged.

In this light he urged that the UN play a greater role, one sensitive to the concerns and needs of all member states, in particular efforts should be made ‘to strengthen the role and effectiveness of the Economic and Social Council. This will only be achieved if it becomes more politically meaningful.”

Speaking of international trade, Minister Singh said this can be an important vehicle for realizing development. However, small developing countries cannot compete with the global economic giants, especially in the face of persistent subsidies and non-tariff barriers that exist in such sectors as agriculture.

“For this reason, the concept of special and differential treatment has long become an established feature in the international trade lexicon. We must therefore be wary of trade arrangements that abandon the recognition of this principle, emphasise reciprocity among unequal partners, and are therefore devoid of an adequate development dimension. To this end, ways must be examined and means found to ensure that the World Trade Organisation (WTO) performs a role that is more conducive to development,” he explained.

The Finance Minister took the opportunity to highlight Guyana’s climate change interest based on its vulnerability to its effects, its carbon abatement solutions and a low carbon development strategy that seeks to preserve the country’s forests, while pursuing economically rational growth and development along a low carbon path.