The Millennium Development Goals (MDGs) constitute a shared vision of global partnership based on mutual accountability. Developing countries have the primary responsibility for achieving these Goals. But the international community acknowledges that for poor countries to achieve them, a reinforced partnership is critical, including scaled-up and more effective aid, more sustainable debt relief and fairer trade rules, as well as improved access to affordable drugs, addressing the special needs of landlocked and small island developing nations, and bridging the digital divide.
MDG 8 calls for stronger global partnerships for development. Its uniqueness arises from the fact that it is really less of a "goal" and more of a vehicle to facilitate the attainment of all the other MDGs; thus, failure to attain a true global partnership for development makes it unlikely to achieve any of the Goals.
We welcome the progress made on debt relief via the Heavily Indebted Poor Countries initiative (HIPC) and the Multilateral Debt Relief Initiative (MDRI). Through these two instruments, the stock of debt of poor countries is estimated to have been reduced by $96 billion in net present value (NPV) terms by the end of 2006. The decrease in debt-service has been accompanied by an increase in poverty-reducing expenditures, which have increased on average, from 7 per cent of gross domestic product (GDP) in 2000 to 9 per cent in 2006. In nominal terms, poverty-reducing expenditures amounted to $17 billion in 2006, which translates into an increase of $3 billion since 2005. These figures represent significant gains in HIPC.
We must work closely with low-income countries to build capacity for debt management to avoid unsustainable build-up of debt and encourage non-Paris Club (the Paris Club is an informal group of financial officials from 19 of the world's richest countries that provides financial services to indebted countries) and commercial creditors to respond adequately. There remains the issue of additionality; if it does not materialize it would simply imply that low-income countries, in effect, financed debt relief from future official development assistance (ODA) flows to themselves.
Progress on scaling up is mixed. Clearly, further efforts are needed. In 2006, the world's major donors provided $104 billion in aid, down by 5.1 per cent (0.3 per cent of GDP) from 2005, in constant 2005 dollars, including $19.2 billion of debt relief. If the latter is excluded, there has been a decline, the first in development assistance since 1997.
Over and above aid levels, there was a commitment to improve the quality of aid. It is encouraging that progress has been made towards establishing tangible indicators and targets for commitments made in the Paris Declaration on Aid Effectiveness. The Accra High-level Forum in 2008 will be an opportunity to assess progress. The ever more complex international aid architecture makes efforts at harmonization as urgent as ever.
Countries registering sustained growth are also making progress on the MDGs. Much of this growth has been trade-driven. A timely and ambitious outcome of the Doha Development Agenda is a prerequisite for low-income countries to be able to register the sustained rate of growth needed to meet the MDGs. Therefore, we look forward to the successful and timely conclusion of the Doha Round. Now is the time for action by all members of the World Trade Organization to move the negotiations forward. Research estimates that the Doha Round has the potential to yield gains of $250 billion per year, with 40 per cent of the gains going to developing countries. Global cotton-trade reform alone will benefit sub-Saharan Africa output by $2.2 billion until 2015.
Experience has taught us that in order to maximize the opportunities from trade, trading capacity must be built up. Many African countries lack the basic infrastructure and related logistics. Others lack the capacity to formulate effective trade strategies or to successfully negotiate trade agreements. Weak export sectors or high adjustment costs can also prevent many poorer countries from realizing gains from trade liberalization and taking advantage of global opportunities. This is the importance of the Aid for Trade agenda.
MDG 8 is premised on strong partnerships -- on strong ownership and mutual accountability. In this partnership, it is right that both sides be accountable for delivery. Since the 2000 Millennium Summit, millions of people have been lifted out of poverty, mainly in Asia, although challenges remain in parts of South and South East Asia. Sustained efforts will be required on the African scene, by the region itself, in domestic resource mobilization, and in consolidating stability, peace and governance. But it is patently evident that unless the international community delivers on its part of the deal, progress will be slower. Africa has today a large window of opportunity. Domestic, economic and political conditions in most countries are at their best in decades. It is time for international partnership to make the extra effort. The time is now. That is the importance of MDG 8.
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