11 October 2010

Statement by Mr. Mohammad Hassani-Nejad

Representative of the Islamic Republic of Iran before the Second Committee

on Macroeconomic Policy Questions (Agenda item 18)

(11 October 2010 – New York)

Mr. Chairman,

The Islamic Republic of Iran associates itself with the statement made by Yemen on behalf of G77 and China. We also appreciate DESA as well as UNCTAD for their rich reports and statements.

The inconsistency which exists between international economic, trade and financial system continues to put particularly developing countries at risk. Building coherence across trade, financial, aid and technology flows in an all-inclusive, equitable, rule-based and predictable manner at international level, in support of inclusive development policies at national level, is therefore crucial. Otherwise, developing countries will continue to face excessive vulnerabilities to external shocks and to destabilizing forces that they usually have nothing to do either with their creation or treatment. To serve this end, accession of all developing countries to the World Trade Organization needs to be unhindered and expedited.

Developing countries during recent decades have put in place right economic policies to develop their human resources and economic output. However, due to the above-mentioned incoherence at the international governance architecture they have in most cases failed to create adequate job for their educated population as well as market for their increased economic output. A coherent and supportive external environment, therefore, is essential in creating productive capacity and employment at national level.

Concerning the issue of ODA, which has direct link with agenda items 19 and 25 of the Committee, the current practice of matching national policies with priorities of donors to ensure availability of international assistance needs to be reconsidered. Against all the internationally agreed terms, recipient countries and UN development agencies will not get money unless they first match their projects with priorities of donors. No matter how critical the subject may be in view of the national authorities of the recipient countries, it will not be financially supported unless a match is being made in advance with the agenda and priorities of a donor. We therefore, call for true leadership and ownership of developing countries on their development plans in accordance with their national development strategies and priorities in place of the current match-making approach.

Untying aids to developing countries needs to be seriously considered on the international development discourse. In the same vain, development effectiveness of aids needs to be measured in respect of their contribution in reducing poverty and inequalities in developing countries through creating productive capacities and employment.

Furthermore, the cyclicality of aid needs to be addressed. There is already a $22 billion deficit on the Gleneagles goal with serious impact on efforts to accelerate achievement of development goals in poor countries. Aid flow is now subject to economic wellbeing and economic cycle of donors rather than needs of poor countries. Aid should have its own trends independent from financial or political situation in donor countries.

Thank you very much.

Bookmark and Share