ECLAC Urges Developed Countries to Forge an Agreement for Financial Stability

Santiago, January 15- The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, called on developed countries to forge a pact for global financial stability and diversify their investments in this region to contribute to its economic and social upswing.

Alicia Bárcena inaugurated yersterday at the regional organization's headquarters in Santiago, Chile, the Regional Meeting of the Committee of Experts on Sustainable Development Finance. It is being attended by several experts from Latin America and the Caribbean who are part of this working group, which consists of about thirty specialists worldwide.

"If this region is going to be part of the global pact for financing development, it's not because it is demanding official assistance. What we want is for developed countries to make a real pact for financial stability to avoid repeating the collapse of 2008, which was provoked by the self-regulated market and affected everyone, even those who did not cause the crisis," the Executive Secretary said.

Bárcena explained that Latin America and the Caribbean today have different experiences to contribute to this debate.

The first peculiarity is that the region is aiming to strengthen its own mechanisms to help finance development, counting on a broad network of regional and sub-regional banks that it is considering extending, Alicia Bárcena said. Additionally, it is analyzing the possibility of advancing in its financial integration by expanding the geographic coverage of the Latin American Reserve Fund (FLAR), with the intention of supporting small and medium economies.

The second characteristic, the Executive Secretary added, is that the majority of countries are of average income and therefore flows of official development assistance are diminishing. This help totals less than 12 billion dollars, while migrants' remittances amount to about 60 billion and foreign direct investment (FDI) in Latin America and the Caribbean reached approximately 170 billion dollars in 2012, although that was concentrated in only a few countries and economic sectors.

"This region is seeking a better global agreement, stronger regional financial institutions and more productive investments", emphasized the United Nations official.

At the event's opening session, the two co-presidents of the Committee of Experts participated: Mansur Muhtar, Executive Director of the World Bank Group, and Pertti Majanen, Ambassador for Global Matters at the Ministry of Foreign Affairs of Finland.

This Experts' Committee was formed in the framework of the UN General Assembly as part of the commitments adopted in 2012 during the United Nations conference on sustainable development in Rio de Janeiro, known as Rio+20.

According to Mansur Muhtar, the working group is dedicated to outlining a strategy to mobilize financing resources and ensure their efficient use to achieve the Sustainable Development Goals (SDGs), and in September the group must present a report on this to the UN General Assembly.

In this context, Pertti Majanen highlighted the relevance of seeking both public and private resources to boost development and warned that inaction on environmental issues is costing a lot of money.

The Deputy Director-General for Multilateral and Global Matters at the Ministry of Foreign Affairs of Chile, Pedro Oyarce, who also participated in the meeting's opening session, said that this event will serve to position the region's perspective within the global strategy and that this must promote inclusive economic development via economic growth and social and environmental sustainability.

The representatives that participated at this meeting will share tomorrow their ideas and visions with experts from the rest of the countries in the region and with members of non-governmental organizations during the Open meeting of Latin American and Caribbean countries about the work of the Committee of Experts on Sustainable Development Financing.

Also present at these debates is Shamshad Akhtar, who is currently the Assistant Secretary-General of the United Nations (Economic and Social Issues Department) and who on March 1 will take office as Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).