Экономические
науки/3.Финансовые отношения.
Kryvyi Rih Institute of Economics, Ukraine
UN Policy
in the Field of Development
Financing : the Stages
of Evolution
The issue of funding has
been being on the agenda of the UN for many years. Although special attention
to the issues of international development financing began to be paid in the
1950's, the problem is still urgent. Due to the fact that the financial
policies of the UN contributes to the maximum possible amount of internal and
external resources to meet the needs of development, the study of its evolution
is important for understanding the changes in the goals and objectives, in the
use of financial resources and the creation of necessary conditions for their mobilization
to further develop appropriate measures to improve the efficiency of the
functioning of the global finance system. Considering the fact that the
UN financial policies is determined by the needs of developing countries and
developing strategic goals in development, the following stages of its
evolution are given:
- Stage 1 - Funding as part of the Expanded Program of Technical
Assistance for Economic Development of Underdeveloped Countries (UDC) (1948 -
1959) - focus on addressing the problem of the international funding of
socio-economic development of UDC (inflow of private foreign investment;
establishing an international system of subsidies and development operations;
providing the low-interest loans; rapid industrialization and agricultural development,
expanding international trade);
- Stage 2 - Financing under the international economic cooperation program
- UN Development Decade (1960s.) - UDC economic development funding through
proceeds in foreign currency; providing the developing countries with fair
share of income from foreign capital market sales and production of natural
resources; incentives for private investment capital; industrialization and the
creation of high-performance agriculture; use of the resources released as a
result of disarmament), setting the benchmark for international assistance
amounting to about 1% of the total national income of developed countries;
solve the problem of repayment of external debt of countries;
- Stage 3 - Financing within the framework of the International
Development Strategy for the Second UN Development Decade (1970s.) - Expansion
of international trade, economic cooperation and regional integration among
developing countries, the implementation of special measures in favor of the
landlocked countries, human resource development, expansion and diversification
of production, a full mobilization of domestic financial resources, effective
use of internal and external resources, increasing of RMS to reach the target
of 0.7% of GDP of developed countries;
- Stage 4 - Implementation of the Vienna Programme of Action on Science
and Technology for Development (1980s.) - Regular and guaranteed financial resources allocation
in adequate volume for capacity-building in science and technology for
development according to countries` priorities;
- Stage 5 - Financing within the framework of the International
Development Strategy for the Fourth United Nations Development Decade (1990s.)
- A sharp increase in economic growth in developing countries; software development
process, taking into account social needs, reduction of poverty, promote
development and use of human resources and skills, environmental safety;
improvement of the international monetary and trading systems; ensure the
sustainability and stability of the world economy and effective macroeconomic
management at the national and international levels; strengthening
international cooperation; mobilizing efforts to solve problems of least
developed countries;
- Stage 6 - Financing within the framework of
the decisions of the International Conference on Financing for Development
(2000s gg.) - Implementation of the Monterrey Consensus (2002) [1], Doha
Declaration (2009) [2], Addis Ababa Action Agenda (2015) [3] – mobilizing of
national and international financial resources, international trade, the
intensification of international financial cooperation, external debt
management, increase of the coherence and consistency of the international
monetary, financial and trading systems in the interest of development.
Thus, the tasks of the UN financial policy in the field of development have been
aimed at ensuring conditions for developing the best possible financial
resources, the organization of regulation of social-economic processes through
financial methods and instruments according to changing goals of international
policies.
From the
end of the 1940s to the 1960s the tasks of financial policy were determined by
the acceleration of economic and social development of UDC (industrialization and the creation of
highly productive agriculture), decreasing the cost of repayment of external
debt with the help of mobilizing of international financial resources. From the
1970s main attention is focused on promoting economic growth, human resource
development, poverty reduction through more active use of domestic sources of
developing countries. Currently, global financial policy objective of the UN is
to eliminate poverty and hunger, the ensuring of sustainable development
through promoting economic growth, environmental protection and promote social
integration.
References:
1.
Monterrey Consensus of the International Conference on Financing for Development Mexico, 18-22 March 2002 http://www.un.org/.
2.
Doha Declaration on Financing for Development http://daccess-dds-ny.un.org/
3.
Addis Ababa Action Agenda of the Third International Conference on Financing for Development: http://www.un.org
4.
Resolutions adopted by the General Assembly http://www.un.org/