Action against Hunger and Poverty - World Leaders Meeting
New York / United Nations, September 20th, 2004

An Invitation by Brazil

Background. The Millennium Development Goals and Monterrey

The Monterrey Consensus reinforced the objectives established by the MDGs and emphasized the role of all parties involved in the process of financing for development. On one hand, developing countries are requested to improve their own policies and overall governance conditions; on the other hand, developed countries are called upon to support the efforts of developing countries, especially by providing increased aid flows, foreign direct investment, debt relief and more open access to their markets.

Despite the widespread consensus on the goals to be pursued, governments so far have failed to find concrete ways to effectively implement the MDGs. According to the World Monitoring Report, economic growth in many countries remains below the level considered to be necessary to reach those goals. In the period 1998-2002, per capita growth reached less than 2% in 60% of low-income countries; in 32%, growth rates were negative. Estimates indicate that a 3% sustained growth is the minimum rate required to achieve the development objectives. If the current pace prevails, the MDGs would only be attained by 2147! While special attention should be given to the pressing needs of low-income countries, it should not be forgotten that middle-income countries host 280 million people living on less than one dollar per day and 870 million people living on less than two dollars per day.

The Brazilian stance

The Brazilian government recalls the fact that many Latin American countries, as well as other developing nations, have implemented sound macroeconomic policies, consolidated democracy and adopted measures to increase the transparency of public administration and combat corruption. Notwithstanding their domestic efforts, these countries remain by and large deprived of the benefits of globalization. In many countries, insufficient growth rates have been contributing to generate a sense of frustration and exclusion in large segments of the population.

Brazil also notes that aid flows to developing countries have marginally increased over the past two years. Although this represents a reversal of the declining trend observed in the 90´s, there is a consensus that much more remains to be done if the MDGs are to be achieved. Estimates by the UN and the World Bank show that an additional US$ 50 billion per year in aid resources would be necessary if the goals are to be achieved by 2015. In other words, there is a compelling case for scaling up current efforts.

Since President Lula took office in 2003, the fight against poverty and hunger has become the Government's top priority. At the domestic level, Brazil launched the "Zero Hunger" and other social programs, which combine emergency and structural measures, food distribution and income transfer, and reach out to partners in civil society and the private sector. In less than two years the "Zero Hunger" has been experiencing encouraging results, with more than 1400 private companies already engaged in the program.

International efforts to combat poverty and hunger

Needless to say, Brazil does not envisage the campaign against poverty and hunger as end in itself, nor as a mere stopgap measure, but rather as part of an integrated development process that encompasses efforts towards a fair and equitable multilateral trading system, increased investment flows and adequate schemes of debt sustainability for highly indebted countries. At the heart of that process lies the need to identify innovative financial mechanisms capable of promoting development and ridding the world of hunger.

During the World Economic Forum in Davos and the enlarged G-8 Summit in Evian, President Lula argued in favor of a new world order to reconcile economic growth and social justice. On those occasions, Brazil proposed the creation of an international fund specifically designed to combat poverty and hunger and referred to alternative sources of financing for development.

At the opening debate of the 58th UNGA, Brazil, alongside India and South Africa created that fund, the IBSA Facility for Hunger and Poverty Alleviation, within the UNDP. The IBSA initiative was devised as a means of replicating successful social projects in the areas of health, education, sanitation and food security, among others. This fund is not conceived to compete, but to complement existing initiatives of the kind, including the World Solidarity Fund. The execution of projects will be carried out by agencies of the United Nations System, according to their areas of competence.

On January 2004, in Geneva, the Presidents of Brazil, France, Chile, together with the UNSG, started an action program aimed at identifying innovative sources of financing. A technical group was set up to explore new sources of finance, such as taxation on certain sales of arms, taxes on financial transactions, voluntary and socially responsible investments and environmental taxation. The British proposal to establish an International Financial Facility is also under consideration by the Group.

The work of the technical group is expected to contribute to multilateral efforts geared towards the mobilization of additional resources for development, in line with General Assembly resolutions. In this regard, it is important to mention that the UNGA, at its 24th special session, requested the international community to "conduct a rigorous analysis of the advantages, disadvantages and other implications of proposals for developing new and innovative sources of funding, both public and private, for dedication to social development and poverty eradication programs." Also, at its 58th plenary meeting, the UNGA decided to "consider at its 59th session possible innovative sources of financing for development."

Next Steps: The world Leaders Meeting and its objective

The outcome of the meeting, in the form of a Declaration, should encourage further work on innovative sources of finance and give political impetus and concrete suggestions to the high level event on the implementation of the Millennium Declaration in 2005.

The meeting of September 20th would thereby energize a partnership that, in line with the spirit of the Millenium Declaration and the Monterrey Consensus, should mobilize governments, the UN system, regional and international institutions, the private sector and non-governmental organizations in taking concrete actions for hunger and poverty alleviation through a development process that assures sustained economic growth in the developing countries.

In this regard, President Lula expects world leaders to join him, in New York, on 20th September, to generate high-level political momentum in favor of social and economic development and hunger and poverty eradication.