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P 140122Z FEB 08
FM SECSTATE WASHDC
TO ALL DIPLOMATIC AND CONSULAR POSTS COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 03 STATE 015117 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
FOR ECONOMIC/COMMERCIAL AND AID/EG OFFICERS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN ETRD ECIN EINV PGOV UN
SUBJECT: MONTERREY CONSENSUS: BACKGROUND AND 2008 REVIEW 
PROCESS 
 
REF: USUN NEW YORK 001173 
 
¶1. (U) This is an action request.  Please see paragraph 10. 
 
¶2. (SBU) Summary.  The 2002 Monterrey Consensus on 
Financing for Development (FfD) was a marked 
accomplishment for the U.S. and other donor countries as 
it recognizes the importance of a balanced approach to 
development. It emphasizes the key elements of the 
President's development agenda, which he elaborated at the 
FfD Conference in Monterrey: the need for developing 
countries to promote good governance and implement sound 
economic policies, and the value of alternatives to aid 
such as trade, debt instruments, and private sector 
investment.  As the international community undertakes a 
review of the Monterrey Consensus in 2008, the USG goal is 
to insure that the whole story, including the numerous 
development successes, is reflected and to prevent the 
consensus from being rewritten.  Developing countries 
negotiating as the G-77 block in the UN may try to use the 
review process to create a new outcome.  Washington will 
look to our overseas Posts for support and encourage 
economic, commercial, and AID officers to tap their 
network of host-country contacts involved in FfD issues to 
shape the debate and urge support for U.S. positions. 
Washington agencies welcome post reporting on host country 
views on the FfD review process.  End Summary. 
 
------------------------------------- 
Background on the Monterrey Consensus 
------------------------------------- 
 
¶3. (SBU) The United Nations Conference on Financing for 
Development (FfD) took place in Monterrey, Mexico in March 
¶2002.  Over 50 heads of state and more than 200 ministers 
from around the world attended.  President Bush's 
attendance and announcement of a "New Development Compact" 
in advance of the conference demonstrated U.S. commitment 
to fighting poverty through a new model for development 
assistance, one based on partnership with countries that 
govern justly, invest in their peoples, encourage economic 
freedom, and undertake needed economic reforms. (Note. The 
terms "Monterrey Consensus" and "FfD" are used 
interchangeably. End Note.) 
 
¶4. (U) The Monterrey Conference broke new ground as a UN 
development conference in which world leaders; 
representatives of the private sector; civil society; and 
major international economic, trade, financial, and 
monetary organizations engaged in serious dialogue to 
build a new approach to development work.  The discussions 
emphasized outcomes rather than inputs.  The leaders 
reached broad agreement on the need to increase the volume 
and effectiveness of all available domestic and 
international, but particularly private, resources for 
development. 
 
¶5. (U) The Monterrey Consensus stresses the primary 
responsibility of countries to advance their own 
development, coupled with international support for 
developing countries to: 
 
--Practice good governance and establish sound 
institutions and market-oriented economic policies; 
 
--Create investment-friendly environments, increase trade, 
and improve productivity; 
 
--Encourage private enterprise as an important means to 
generate economic growth and development 
 
--Increase human capacity by improving the health and 
educational achievements of people; 
 
--Use substantial increases in official development 
assistance (ODA) effectively; 
 
--Build capacity for trade and to attract investment 
 
¶6. (U) The Monterrey Consensus represented an innovative 
and practical framework to pursue development that will 
help sustain growth and eliminate poverty.  Poorer 
countries accepted responsibility for good governance and 
sound policies.  Richer countries agreed to support that 
endeavor. Countries agreed that ODA is just one of several 
forms of financing available to developing countries and 
 
STATE 00015117  002 OF 003 
 
 
not necessarily the most significant. 
 
-------------------------------------- 
2008 Review of the Monterrey Consensus 
-------------------------------------- 
 
¶7. (U) In December 2007 the UN General Assembly adopted a 
process to review the Monterrey Consensus (resolution 
62/187).  This will conclude with a high-level conference 
in Doha, Qatar, from November 29-December 2, 2008.  It 
includes a substantive review of progress under each 
chapter of the Consensus that will take place in a series 
of experts meetings held in New York through June 2008, as 
well as other major multilateral development meetings 
during the year.  Member States will then negotiate an 
outcome document for three months beginning in September 
¶2008. Both phases of this process offer opportunities for 
the U.S. to influence the tone of the global FfD policy 
debate and the content of the outcome document. 
 
¶8. (SBU) Protecting the integrity of the Monterrey 
Consensus and advancing its implementation by all 
development participants is a USG priority. Several USG 
agencies are actively involved in coordinating policy 
responses and USG participation in the review meetings. 
Our strategic approach to the review process is to insure 
that the whole story, including the numerous development 
successes, is included in the review and to prevent a 
G77-skewed approach to the process resulting in a 
re-writing of the Monterrey Consensus.  (Note.  The G77 is 
the UN voting bloc comprised of developing countries 
which, in the UN context, often takes on an adversarial 
role towards developed country policies. End Note.) The 
G77 may try to use the review process to rewrite the FfD 
Review agreement so that the focus is on increased ODA 
without reference to the principles of good governance, 
sound economic policies, or other potential drivers of 
development. 
 
----------------------------------------- 
U.S. Policy Objectives for the FfD Review 
----------------------------------------- 
 
¶9. (SBU)  Following are USG objectives for the Monterrey 
Consensus review process (for internal use only, not to be 
shared outside of the USG): 
 
--FfD Leadership:  Maintain U.S. leadership in the global 
FfD debate by participating actively in the conference 
preparation process, and, if appropriate, by sending a 
senior USG representative to the Doha Conference. 
 
--Total Economic Engagement Approach to Development: 
Maintain public global support for promoting economic 
development and poverty alleviation through a combination 
of harnessing private domestic and foreign capital, 
participating in the international trading system, and 
targeted development assistance with measurable results. 
 
--Showcase New U.S. Assistance:  Underscore to 
participants in the FfD review and the broader public that 
the U.S. has fulfilled its Monterrey commitments, more 
than doubling ODA between 2002 and 2006. 
 
--Highlight Developing Countries' Role: Protect and 
advance the balanced approach to financing for development 
captured in the Monterrey Consensus.  This agreement 
acknowledges a State's primary responsibility for its own 
development and recognizes that official development 
assistance is only one of many other equally important and 
often financially larger sources of financing. 
 
--Fill ODA Gaps through Alliances:  Identify concrete 
steps to assist states that are committed to economic 
reform and growth but have been unable to tap all sources 
of development financing identified in the Monterrey 
Consensus.  A special focus is needed to increase 
opportunities for private capital, private sector led 
growth, and capacity building support provided by the UN 
system, international financial institutions, and the 
WTO.  Leverage ODA by promoting public-private 
partnerships, entrepreneurship, and SME/micro-finance. 
 
--Bring in Emerging Creditors/Donors: Secure agreement by 
participants in the FfD process on the importance of 
securing the cooperation of emerging creditors/donors 
(e.g., China, India, Brazil, South Africa, and others) in 
appropriate global FfD policy deliberations, and have this 
agreement reflected in the outcome document.  Secure 
commitment to responsible debt management practices by 
both creditors and debtors so that official and private 
 
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debt incurred by developing countries is sustainable. 
Reaffirm importance of international cooperation in 
sustainable debt policies and shared responsibility of all 
creditors. 
 
--Promote Aid Effectiveness: Secure agreement by 
participants in the FfD process on the importance of 
universal adoption and implementation of the ODA best 
practices embodied in the Paris Declaration on Aid 
Effectiveness (host country ownership, ODA alignment with 
host country development priorities, harmonization of ODA 
from different donors, managing for results, and mutual 
accountability).  Reflect this agreement in the outcome 
document. 
 
--Appropriate Follow-up: Secure agreement by participants 
in the FfD process on an appropriate role for the UN in 
the follow-up to the Monterrey Consensus that preserves 
the independence of non-UN forums. 
 
-------------------------------------- 
Embassy Role in the FfD Review Process 
-------------------------------------- 
 
¶10. (SBU)  Embassy involvement is critical to achieving 
the objectives outlined above.  Washington will rely on 
our Missions, as USG experts on the ground, to engage with 
host-country stakeholders, incorporating FfD into 
conversations with your host-country contacts and 
reporting on host country involvement, interest, and goals 
in the FfD process.  Washington is also interested in 
identifying the main FfD policy drivers in capitals. In 
discussions with host-country officials, Washington 
requests officers to relay USG strong support and 
involvement in the FfD review process and our commitment 
to working with developing countries as partners toward a 
successful outcome. 
 
--------------------------------- 
The Consensus and Resolution Text 
--------------------------------- 
 
¶11. (U) The full text of the 2002 Monterrey Consensus on 
Financing for Development can be found at 
http//www.un.org/esa/ffd/monterrey/MonterreyC onsensus.pdf. 
The full text of the UNGA 62 resolution (62/187) 
outlining the modalities of the 2008 review process can be 
found at: 
http://daccessdds.un.org/doc/UNDOC/LTD/N07/63 0/06/PDF/N0763 
006.PDF?OPENELEMENT> 
RICE