848 (XL) Financing for Development

The Conference of Ministers,

          Recalling the outcome of the International Conference on Financing for Development held in Monterrey, Mexico, from 18 to 22 March 2002;

          Recalling the 2005 World Summit Outcome and High-Level Forum on Aid Effectiveness held in Paris, France, from 28 February to 2 March 2005;

          Recognizingthe critical role of finance in the development process and in enhancing prospects for achieving the Millennium Development Goals (MDGs) in Africa;

          Noting with appreciation, recent commitments by development partners to scale-up official development assistance (ODA), improve aid effectiveness, and reduce the external debt burden facing several African countries;

          Deeply concerned about the slow pace of progress by donors in honoring their pledges and commitments to African countries on scaling-up aid, improving the effectiveness of aid, and reducing the burden facing several African countries, and the implications for the region's ability to meet the MDGs;

          Taking note of the outcome of the Financing for Development Conference held by African Ministers of Finance, Planning and Economic Development, in Abuja, Nigeria, on 21 and 22 May 2006, as reflected in the Abuja Commitment to Action;

          Having examined and discussed the progress report on the implementation of the Monterrey Consensus prepared and presented by the Economic Commission for Africa (ECA);

  1. EncouragesAfrican countries to increase the mobilization of domestic resources through the design and  adoption of appropriate economic policies to boost domestic savings, increase domestic tax revenue, boost remittances, and stem capital flight;
  2. InvitesAfrican countries to improve the investment climate and to take appropriate measures to ensure that scaled-up of ODA does not have any adverse effects on national economies;
  3. Urges Africa's development partners to scale-up their efforts to fulfill their commitments and pledges made to African countries, including post-conflict countries, the middle-income countries on increasing the quantity of aid, improving aid effectiveness, and providing debt relief, as reflected in the Monterrey Consensus, the 2005 MDG Review Summit, the G-8 Africa Action Plan, the 2005 Paris Declaration and the Declaration of the 2005 G-8 Gleneagles Summit, and support innovative financing ideas and follow-up on their commitment to long-term funding plans to deliver universal access to treatment, prevention and care of HIV/AIDS;
  4. Calls for greater involvement of African countries in the decision-making organs and processes of international organizations such as the World Trade Organization, the World Bank, and the International Monetary Fund;
  5. RequestsECA, in collaboration with the African Union Commission, to organize a meeting to assess the status of implementation of the Monterrey Consensus in Africa and to prepare the region for the forthcoming Global Mid-Term Review of the Monterrey Consensus to be held in Qatar in the first quarter of 2008; and
  6. Commends ECA for the fundamental role that it continues to play in providing research and technical support to African countries on development financing issues and encourage the Commission to play an active role in monitoring and evaluating the extent to which Africa's development partners have met their international commitments to the region.