Statement on the negotiations about the outcome of the UN Conference on the World Financial and Economic Crisis and its Impact on Development

May 20, 2009

1. The global financial crisis is biting hard. The crisis affects billions of people all over the world, pushing many millions of them into unemployment and poverty, and violating their economic, social and cultural rights. While at first it was rich countries that felt it most, middle income and poor countries have now begun to feel the crunch, and it is likely to have an even greater disproportionate impact on them in the months and years to come.

2. The response of the G20 was not sufficient to address the root causes of these multiple crises of food, climate, financial markets and sustainable development.

3. The global crisis needs a global response involving all societies that are affected by the crisis. Therefore, the United Nations is the only legitimate forum through which the crisis can be resolved. This is the reason why we highly welcomed the decision of governments in Doha to hold a UN Conference on the world economic and financial crisis and its impact on development.

4. Civil Society Organizations and Networks have produced comprehensive statements listing their recommendations and demands on how to address the current crisis, starting with the "Civil Society Benchmark Paper" in the run-up to the Doha Conference 2008.

5. Many of our demands are reflected in the recommendations presented by the "Stiglitz Commission" in March 2009. For this reason we regard these recommendations as a good basis on which to build a new global economic and financial system.

6. We believe that the UN conference in June must put forward immediate responses to the crisis and simultaneously decide on an intergovernmental time-bound process towards the long-term reforms.

7. Many of our positions are also reflected in the first draft outcome document presented by the President of the General Assembly (PGA) on 8 May 2009. We understand that the recommendations in this document contain short-term measures that have to be implemented immediately as a response to the current crisis, such as the sufficient funding for a global stimulus package, and long-term measures, such as the establishment of a new Global
Reserve System or the proposal for a Global Tax Authority. We agree that the UN conference in June has to come up with immediate responses to the crisis and simultaneously decide on an intergovernmental time-bound process towards the long term reforms.

8. We understand that under the current time pressure it will be difficult for governments to agree on a comprehensive set of radical reforms. But, a consensus on many concrete reform proposals that are on the table can still be reached. Among the decisions that are of high priority and could be taken at the UN Conference without any further delay are the following:

- The initiative to establish a Global Panel on Systemic Risks in the World Economy, following the model of the Intergovernmental Panel on Climate Change, bringing together academics, civil society and policy makers.

- The decision to upgrade the Committee of Experts on International Cooperation on

Tax Matters to an intergovernmental Commission on Tax Matters as a functional commission of ECOSOC by the end of 2009.

- The political commitment to introduce an internationally coordinated Financial Transaction Tax in order to mobilize additional resources for a short-term Global Stimulus Fund and the longer-term implementation of the Internationally Agreed Development Goals, including the MDGs.

- The establishment of an Intergovernmental Working Group with a clear and time-bound mandate to define the modalities and terms of reference for a Global Economic Coordination Council within the UN system. This working group should act in a transparent manner and should be open to NGO participation.

- The decision to review the Agreement between the UN and the Bretton-Woods-Institutions (BWIs) in order to enhance coordination and policy coherence by integrating the BWIs as specialized agencies completely into the UN system.

9. VIVAT urges all governments to quickly resume the substantive negotiations on the urgently needed global policy responses to the current crisis.

Felix Jones, SVD and Zelia Cordeiro, SSpS – VIVAT International