"Southern governments opposed pro-development goals of Monterrey Consensus". 

By Ann Pettifor
Monterrey, March 21st 2002

In an extraordinary outburst today, a UN official, "from the south" told a meeting of NGOs that he was " not to say ashamed, but embarrassed to admit that it was southern governments that opposed the pro-development proposals put forward for the Monterrey Consensus. The global forum of taxation was opposed by developing countries; as were many other progressive proposals that would have strengthened the hands of these governments. It was not the developed governments that opposed these proposals; it was the governments of developing countries". 

The outburst came after NGO representatives at the Financing for Development Summit had expressed frustration to Ms Brochette, deputy secretary general of the UN, that their proposals and points of view had not found expression in the final consensus document. 

Many at the Summit describe the experience as "weird", as, unlike previous UN Summits, there are no negotiations over a text, as this was agreed in advance of the Summit, to placate the US, and ensure a US presence. There are no opportunities for further progress. "Instead" said one delegate, "we are all standing around, waiting for the United States and other rich countries to drop the odd loaf of manna from heaven". 

Today Paul O'Neill arrived at the conference to offer such a "loaf". Asked why the United states, to which people were looking to set the pace for increased assistance, was still spending one fourth of what the European Union was spending on development aid and could not do better, Mr. O Neill said: "we need to demonstrate that we know what we're doing" and that had not meant spending more money, but getting results from money spent. 

The US Treasury issued a statement indicating that the additional aid to be offered by the US would not come on stream until 2004 (when a new President and a new budget might be in place). The additional sums would be disbursed as follows: 

2004 $1.66 billion 
2005 $3.33 billion 
2006 $5.0 billion
2007 and beyond, $5 billion. 

In the meantime, in another part of the UN forest, Prof Jeff Sachs said at a UNDP press conference that "consensus had been reached to spend vastly more money ($27 billion) on health". 

Markika Fahlen, Director of UNAIDS (Social Mobilisation and Strategic Information) warned that "AIDS is on track to single-handedly wipe out 50 years of development gains in the most affected countries….. Countries that fail to bring the epidemic under control risk becoming locked in a vicious cycle - the adverse impact on tax revenues is already affecting national budgets. In one of the worst-affected countries, Botswana, for example, it is estimated that the government will lose twenty percent of public revenue by 2010 due to the economic impact of AIDS".