Monterrey consensus

1. Objectives:

The international conference of development financing which has been held in Monterrey (Mexico) from March 18 to 20 allowed to "launch a global effort to finance the future and support the achievement of the Millennium Development Goals", namely poverty eradication, improvement of social conditions by raising living standards in developing countries and transition economies, and environmental protection.

The liberalization of trade, public development aid and the debt were in the focus of this event.

2. Monterrey Consensus:

In this paper concluding the Monterrey Conference, the State leaders and the government noted with concern that the mobile resources are insufficient to realize the Millennium Goals, particularly, poverty reduction.

They call for a new partnership among the developed and developing countries.

a. Strengthening the domestic financial sector:

Establishment of mechanisms of financial intermediation, transparent regulatory frameworks and supervisory mechanisms, supported by a strong central bank;
Facilitate the access of small and medium enterprises to local financing;
Take appropriate measures to integrate the informal sector into the formal sector;
Develop internal savings;
Eliminate corruption;
Encourage foreign direct investment by relief measures of taxation.

b. Mobilize international resources by;

Avoidance of double taxation;
Enhancement of human resources, corporate management, accounting standards and the promotion of competition;
Partnerships between public and private sectors;
Signing of investment agreements;
Transparency and reliability of financial flows;
Better management of the structure of foreign debts;
Control of currency risks and liquidity;
Strengthening prudential regulation and supervision of all financial institutions;
Liberalization of capital flows;
Application "a gradual and voluntary" codes and standards agreed internationally.

C. Liberalizing International Trade through;

Removal of trade barriers;
Removal of subsidies in trade-distorting nature;
Support projects to promote sub-regional integration and regional cooperation between developing countries and countries in transition.

d. Strengthening the international financial and technical cooperation:

Consensus urged developed countries to achieve the goals of 0.7% of GNP for development aid and allocating a share of 0.15% to 0.20% for the least developed countries
Harmonization of operational procedures to reduce transaction costs and ease the terms of disbursement and delivery of ODA;
Abandonment of tied aid;
Improving the absorptive capacity and financial management of recipient countries;
Improved capacity to use development frameworks;
Stimulation of other methods of financing for development as foreign investment, trade and national resources.

e. External Debt:

Reminder to debtors and creditors their equal responsibility to the prevention and resolution of a situation of unsustainable debt;
Rapid implementation and active mitigation of the debt;
Implementation of a set of clear principles for the management and resolution of financial crises (equitable distribution of costs between public and private sectors and between debtors, creditors and investors).

f. Addressing Systematic Issues:

Further increase the involvement of developing countries and transition process of dialogues and international decision-making.
Strengthen coordination between the UN system and other multilateral institutions active in the fields of finance, trade and development.
Strengthen international tax cooperation (fight against corruption and the repatriation of illegally acquired funds)

g. Suggestions:

The IMF called for increased efforts to improve surveillance of all economies (capital movements in the short term and their impact).
The multilateral financial institutions are asked to respect the ways of reforms set by countries and implementation capacity of these and take into account the social costs of adjustment programs.