The Monterrey Consensus – securing funding

At the 2002 UN Conference on Financing for Development in Monterrey, Mexico, the international community discussed how to make available the funding needed to achieve the MDGs. For the first time, developing and industrialised countries together looked into all the possible funding sources for development cooperation. They came to the following conclusions, among others:

  • More domestic financial resources should be mobilised in developing countries.
  • Foreign direct investment should be used to boost the economies of the developing countries.
  • International trade should be promoted as a driver of development. The industrialised countries should open up their markets for products from developing countries to that end.
  • The international community should increase its funding for development cooperation.
  • Highly indebted developing countries should be relieved of some of their debts within the framework of the HIPC Initiative and offered sustainable debt financing.
  • Greater account should be taken of developing countries' interests when reforming the international trade and financial architecture.
  • International development cooperation should be better coordinated and more closely aligned with developing countries' own strategies.

The Follow-up International Conference on Financing for Development was held in Doha, Qatar, in late 2008. At the conference, achievements were reviewed and new challenges examined.

The final document reaffirmed the Monterrey Consensus as a whole and emphasised a number of new aspects. The international community again undertook to mobilise all financial resources needed to achieve the agreed development goals and to reduce global poverty. That includes innovative sources of finance as well as better aid effectiveness.

Addis Agenda

In July 2015, the third UN Conference on Financing for Development (FfD) was held in Addis Ababa, the capital of Ethiopia. The Addis Ababa Action Agenda adopted there takes the international FfD architecture forward from the earlier conferences in Monterrey and Doha.

The Addis Agenda represents a move away from the outdated donor-recipient dichotomy to a new global partnership for sustainable development. The document establishes a closer link between the international development and climate agendas. It underlines the importance of domestic and private resources for financing sustainable development.

The document also looks closely at non-financial issues that are crucial to sustainable development. This includes, for example, technology transfer and international trade. The Addis Ababa Action Agenda thus forms a solid framework for the implementation of the new global development goals that were adopted in September 2015 as part of the 2030 Agenda for Sustainable Development.

The document confirmed the complementary and catalytic role played by official development assistance (ODA) and the outstanding importance of ODA for the world's poorest countries in particular.

In the margins of the Addis conference, Germany and other international partners launched the Addis Tax Initiative. Its purpose is to support developing countries in enhancing their tax and customs systems so that they are able to increase their tax-to-GDP ratios in the long term.

The German government has considerably increased its international cooperation on public finance and taxes, just one example of its efforts to help successfully implement the Addis Ababa Action Agenda.

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