Pillar 6: Finance and partnerships
Extracted from: Common African Position on the Post-2015 Development Agenda
68. T he priority strategies identified in this common position need to be financed. To this end, resource mobilization and innovative financing methods need to be implemented. In addition, implementation of the strategies will require the consolidation of existing partnerships and the forging of new ones.
69. REAFFIRMING that previous commitments by developed countries in financing development, including through Agenda 21 and its programme of implementation, the Johannesburg Plan of Implementation, the Monterrey Consensus of the International Conference on Financing for Development, and the Doha Declaration on Financing for Development, among others, are indispensable for achieving the full and effective translation of partners’ commitments into tangible sustainable development outcomes;
70. REITERATING that each country has primary responsibility for its own economic and social development, and that the role of national policies, domestic resources and development strategies is critical; REAFFIRMING that African countries need additional resources for sustainable development; and RECOGNIZING the need for significant mobilization of resources from a variety of sources and the effective use of financing;
71. ACKNOWLEDGING that a stable global financial architecture that supports global systemic economic risk management and that emphasizes the importance of financial and investment flows as opposed to aid as well as fair and inclusive multilateral trading systems is vital for financing development in Africa, we COMMIT to:
(a) Improving domestic resource mobilization
72. We must improve domestic resource mobilization by: ensuring financial deepening and inclusion (e.g. domestic savings and microfinance) and strengthening tax structures, coverage and administration; carrying out fiscal reforms; encouraging public private partnerships; and deepening capital markets.
73. It is imperative to curtail illicit financial flows and fight corruption in a way that ensures the efficient and effective use of resources and domestic long-term financing, such as insurance, pension schemes and capital market instruments.
(b) Maximizing innovative financing
74. To promote and enhance the efficiency of innovative financing mechanisms, we must: develop mechanisms to harness and invest remittances; reduce remittance transfer costs and enhance their effective management; and strengthen long-term, non-traditional financing mechanisms.
(c) Implementing existing commitments and promoting quality and predictability of external financing
75. The global commitments on financing development have not been fully met, which has been one of the reasons among others that several of the MDGs are not likely to be achieved by 2015 in many African countries. We therefore call upon development partners to fulfill their promises and commitments in the spirit of the Monterrey Consensus and G8 Gleneagles Summit. This will restore trust, confidence and mutual respect in global partnerships.
76. Enhancing the quality and predictability of external financing will require: encouraging reinvestment of the proceeds from foreign direct investment; promoting conducive policies to encourage capital in-flight; holding external partners accountable for their commitments including allocation of 0.7 per cent of gross national income (GNI) to international development; encouraging official development assistance (ODA ) in short, medium and long-term development; mobilizing external, non-traditional sources of financing, including from philanthropists and emerging partners; facilitating access to various global financing mechanisms without conditionalities, such as the Education For All-Fast Track Initiative (EFA -FTI) and Climate Finance; and accelerating the implementation of the global commitment to address issues of illicit financial flows. We urge an expeditious transition to a development-friendly, international financial architecture.
77. NOTING that the post-2015 framework will require a conducive, global environment to ensure effective implementation, which includes mutually beneficial partnerships that ensure ownership, coherence and alignment of international support with national and regional priorities; working with partners to develop a global framework that includes technology and skills transfer, and that takes into account Africa’s specific characteristics; promoting public-private partnerships; boosting intra-African trade; promoting Africa’s access to global markets and the fair trade system; and ensuring that the global governance architecture is inclusive, responsive, legitimate, democratic, equitable and accountable;
78. CALLING for a new spirit of solidarity, cooperation, and mutual accountability to underpin the post-2015 Development Agenda, and AFFIRMING our commitment to the achievement of a truly inclusive and transformative ‘Global Partnership’, we COMMIT to:
(a) Promoting mutually beneficial partnerships
79. F air and equitable partnerships will require: strengthening ownership, coherence and alignment of international support with national and regional priorities; working with partners to develop financing frameworks that take into account Africa’s specific characteristics and priorities; promoting public-private partnerships; strengthening South-South, North-South, triangular partnerships and Diaspora cooperation; enhancing the involvement of private sector and civil society stakeholders to ensure better ownership, implementation and accountability; supporting intra-African cooperation including solidarity; supporting countries in special situations, namely low-income, landlocked, small island and post-conflict countries; ensuring that the global governance architecture promotes ownership, reliability, equality of states, leadership and accountability; promoting partnerships for international peace and security; and promoting autonomy and independence of countries to advance alternative policies for development.
(b) Strengthening partnerships for trade
80. We must accelerate regional integration including by boosting intra-African trade and enhancing Africa’s participation in the global supply chains systems.
81. We reaffirm the critical role that an open, universal, rules-based, non-discriminatory and equitable multilateral trading and financial system as well as meaningful trade liberalization can play in stimulating economic growth and development worldwide, thereby benefitting African countries at all stages of development as they advance towards sustainable development. In this context, the post-2015 Development Agenda should urgently address a set of important issues such as, interalia, trade-distorting subsidies and trade in environmental goods and services.
82. We urge the members of the World Trade Organization (WTO) to redouble their efforts to achieve an ambitious, balanced and development-oriented conclusion to the Doha Round while respecting the principles of transparency, inclusiveness and consensual decision-making. These efforts aim to strengthen the multilateral trading system and promote trade initiatives (including Aid for Trade) in order to address key developmental concerns of the poorest and most vulnerable states, including countries in special situations.
83. We wish to reaffirm our full solidarity with all African countries in the process of accession to the WTO and urge all WTO members to facilitate and accelerate the accession in line with their level of development and the contours of the current WTO rules. We insist that acceding countries should not be asked to make commitments that go beyond their level of development and current WTO rules. In this context, the principle of Special and Differential Treatment and non-reciprocity should be applied. These processes should be accelerated and carried out without political impediment.
84. WTO members, the WTO Secretariat and relevant international organizations must provide technical assistance and capacity building prior to, during, and in the follow-up to the accession process in line with countries’ needs and development priorities.
(c) Establish partnerships for managing global commons
85. The experience from implementing the MDGs shows that Africa has not capitalized on the benefits of global commons including trade, finance and climate change, among others. We therefore believe in the need for sustainable management of global commons, which are important for development.
86. The international community must collectively address the sustainable management of global commons in the post-2015 Development Agenda. In this regard, we identify five areas of global commons that are vital to accelerating Africa’s development priorities: (i) creating and implementing strategies for managing environmental commons such as the prevention of climate change, climate change adaptation and the promotion of biodiversity; (ii) preventing and managing cross-border and communicable diseases (including HIV&AIDS, tuberculosis, malaria and avian influenza); (iii) promoting a fair, predictable, non-discriminatory and rule-based multilateral trading system including the completion of the Doha Round; (iv) ensuring international financial architecture that promotes access to concessional development finance, penalizes illicit financial flows, strengthens early warning systems for global financial fragility, and deepens responsive financial risk management; and (v) promoting a global knowledge for development system that encourages building, documenting and sharing good practices on pertinent development issues.