The Doha Conference injected fresh momentum into innovative financing mechanism following the pilot phase begun in Monterrey. Although the Monterrey Conference briefly mentioned innovative financing mechanisms, the final declaration of the Doha Conference devotes a specific paragraph to them.
The high-level side-event on innovative financing
The Leading Group, the United Nations and France organized a high-level meeting on 29 November 2008. The meeting led by Djigui Camara representing the presidency of the Leading Group was opened by the United Nations Secretary-General Ban Ki-moon. Alain Joyandet, Minister of State for Cooperation and Francophony, Philippe Douste-Blazy, Special Adviser to the United Nations Secretary-General on Innovative Financing for Development and Chairman of the Executive Board of UNITAID, many ministers and other personalities were in attendance.
The side event was very successful with over 160 participants. The main protagonists in the area attended the meeting and called for innovative financing to expand its scale.
The United Nations Secretary-General, Ban Ki-moon recalled in his opening speech his commitment to such sources of development and their usefulness in the current context.
Many were given the opportunity to contribute including ministers from the main interested countries, leaders of institutions implementing the funds (UNITAID, IFFIm, AMCs, Global Fund), international organizations and NGOs under the aegis of the OECD’s DAC Chair, Eckhard Deutscher, and the Special Representative of the President of Chile, Ricardo Ffrench-Davis.
Other proposals were also outlined concerning earmarking carbon auction proceeds to development, introducing a very low tax on currency transactions (0.005%) which would not be perceivable in financial markets, promises of a possible voluntary solidarity contribution and significant capital flight from developing countries due to tax avoidance and illicit capital flows.
The French Minister of State, Alain Joyandet, recalled in his speech the wealth of the proposals and insisted on the fact that innovative financing includes diverse mechanisms with three common features: additionality, predictability, correction of negative effects of globalization.
Considering that “the financial crisis the world is experiencing today can but reinforce our determination”, he urged the international community to “complement traditional aid with innovative mechanisms, while exploring ways to better regulate globalization”. For his part, Philippe Douste-Blazy indicated that “innovative financing mechanisms can provide resources for national solidarity when national budgets of donors are being used to resolve their own problems”.
27 March 2009