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Ministry Statements and Speeches 2013

High Level Dialogue on Financing for Development

Statement delivered by H.E. Mr Jim McLay, Permanent Representative of New Zealand 7 October 2013

New Zealand welcomes this opportunity to review efforts to achieve the objectives of the Monterrey Consensus and Doha Declaration –objectives that remain very relevant as work begins on the post-2015 development agenda.  Many have noted the need to address implementation issues from the outset particularly for the sustainable development goals (SDGs).  What is already very evident is that a “business as usual” approach will not be enough: we need to use all options for mobilising financing.  Most were recognised at Monterrey and Doha but have yet to fulfil their potential. 

Over the past decade, new actors and innovative financial instruments and modalities have transformed the global development landscape.  There have also been challenges not envisaged at Monterrey including those from the global financial crisis and its recovery, which remains fragile and uneven.

Official development assistance (ODA) has played a central role in financing development but its relative importance has diminished over time.  Despite the recent crisis, New Zealand’s own ODA levels remained fairly stable.  We now project some increase as the Government’s accounts move back into balance.

ODA will remain an important financing source particularly for the most vulnerable, including countries emerging from conflict and least developed countries.  However, the reality is that ODA is decreasing overall while demand is growing.  We only have to look at the many issues that states and stakeholders want covered in the post-2015 agenda, including as SDGs. 

Development effectiveness and donor coordination are key to getting value for each ODA dollar.  In our own region the Pacific Islands Forum Compact has improved effectiveness including through its peer review mechanism.

External financing from other sources, including south-south cooperation, private capital, and foundations, now provide much larger flows. Last week’s High Level Dialogue on migration highlighted the contribution migrants make to economic growth; something New Zealand knows very well just as we understand the importance of remittances for countries of origin.

New partnerships, including with the private sector, can supplement traditional financing mechanisms.  The Busan Forum on Aid Effectiveness recognised the need for more inclusive partnerships built on country ownership.  New Zealand has leveraged ODA to build different partnerships, including those for renewable energy projects which emerged from the recent Pacific Energy Summit.  A triangular partnership between New Zealand, China, and the Cook Islands will upgrade the water supply system on Rarotonga by 2015.  Against such a background we welcome the partnerships theme for the 2014 Conference on Small Island Developing States in Samoa and particularly note Samoa’s plans to launch a partnership to create jobs for youth.  However, no one size fits all; we must be open to a whole range of different ways of doing things that deliver results on the ground.

Effective domestic resource mobilisation is also critical including taxation and an environment that attracts foreign and domestic investment.  We also note that some countries face an ongoing challenge of combating illicit capital flows.

Trade remains central to economic growth and recovery.  One way to advance the position of the world’s disadvantaged is to create a framework within which they could trade more effectively.  We must intensify efforts to move the Doha Development Agenda process forward, including by achieving a successful outcome at the 9th WTO Ministerial Conference in Bali –an outcome that could act as a stepping stone towards efforts to conclude the wider DDA in the post-Bali period.

Over the next year we will set the scene for the post-2015 development agenda.  We have already seen the Secretary General’s High Level Panel report.  The SDG working group and the Expert group on sustainable development financing will report by September.  Other bodies and stakeholders can also contribute, such as the OECD’s Development Assistance Committee and next year’s Ministerial Level Meeting of the Global Partnership for Effective Development Cooperation.  In short, we should be open to ideas from all sources as we work for a better future for all.

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Page last updated: Friday, 11 October 2013 08:43 NZDT