VZCZCXRO6970
RR RUEHPOD
DE RUEHHE #0034/01 0281313
ZNR UUUUU ZZH
R 281313Z JAN 09 ZDK
FM AMEMBASSY HELSINKI
TO RUEHC/SECSTATE WASHDC 4781
INFO RUCNMEU/EU INTEREST COLLECTIVE

UNCLAS SECTION 01 OF 02 HELSINKI 000034 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ETRD EU FI PREL
SUBJECT: FINNISH MINISTER TO PRESENT NEW TRANSATLANTIC AID 
INITIATIVE AT UPCOMING PRAGUE MEETING 
 
HELSINKI 00000034  001.2 OF 002 
 
 
¶1.  At the upcoming Informal Council meeting in Prague 
January 29-30, Finnish Minister for Foreign Trade and 
Development Paavo Vayrynen will seek support from EU 
Development ministers for the creation of a U.S.- EU 
Transatlantic Partnership for Sustainable Development.  The 
purpose of the partnership would be to develop a coordinated 
approach to aiding Least Developed Countries (LDCs) by 
supporting poverty reduction strategies that are 
ecologically, economically and socially sustainable. 
Vayrynen briefed the Charge on the proposal January 27, 
noting that some emerging economies played an outsized role 
in drafting the Doha Declaration on Financing for Development 
because the EU and the U.S. did not have a unified position. 
 
¶2.  A more coordinated approach, Vayrynen believes, will 
strengthen common efforts to eliminate poverty and promote 
sustainable development.  Vayrynen said he had received a 
favorable reaction from EU Commissioner Louis Michel and he 
would "see what the reaction in Prague was."  He expected 
support from other Nordics, the British and the Dutch. 
Vayrynen hopes that the proposal will also represent a new 
constructive initiative from the EU to strengthen 
transatlantic cooperation in general.  He promised to brief 
the Embassy following the Prague meeting, and asks that the 
U.S. "sit back and watch" in the meantime. 
 
¶3.  Below is a copy of Minister Vayrynen's proposal sent by 
him to all EU Development Ministers: 
 
Begin text: 
 
Proposal on Transatlantic Partnership for Sustainable 
Development 
 
In the midst of the global financial and economic crisis, we 
are faced with great challenges in our development policy. 
We have a heavy task in meeting our existing ODA commitments 
while new financial obilgations are emerging in the Climate 
Change negotitations.  The global turmoil is creating 
increasing difficulties to our partner countries in the 
developing world.  In order to reach the MDGs and the new 
Climate Change goals we have to increase the overall 
effectiveness of our development policies.  We have to 
reestablish the holistic view on development and environment 
reached in Rio Conference 17 years ago.  All development in 
the world must be ecologically sustainable.  Poverty 
reduction can bring fast and lasting results only when our 
development policies are economically and socially 
sustainable. 
 
Thus, an effort should be made to creat a Transatlantic 
Partnership for Sustainable Development between the EU and 
the United States with the objective to support the Least 
Developed Countries (LDC) to reach a strong position in 
tackling their future challenges.  The enhanced cooperation 
would benefit both the EU and the US and, above all, 
strengthen our common efforts to eliminate poverty and 
promote sustainable development all over the world.  I think 
the new U.S. administration, while considering new policies, 
would welcome any new constructive initiatives from the side 
of the EU to strengthen transatlantic cooperation.  In my 
view we have just now a great opportunity to move forward. 
 
The common global agenda could be based on the following 
elements: 
 
Economic Sustainability 
 
Economic growth based on trade, investments in productive 
sectors and private sector development is the engine of 
sustainable development and poverty reduction.  The global 
negotiations on trade, development and environment are 
hampered by the imbalances amongst the developing countries 
and the lack of coordination between the developed countries. 
 The WTO negotiations have been dominated by hard talks 
between the industrialised countries and the emerging 
developing countries.  Still, Doha round is supposed to be 
based on a development agenda. 
 
The EU and some other developed countries have given the LDCs 
a full quota and tariff free access to their markets.  India 
and China have made modest steps to the same direction.  We 
should support their efforts and encourage other middle and 
high income level developing countries to do the same. 
 
Through the Aid for Trade policies the EU together with a 
number of other countries have taken steps to strengthen the 
trading capacity of the developing countries.  We encourage 
the Southern donors and the sovereign wealth funds to do the 
same. 
 
Ecological Sustainability 
 
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The comprehensive vision on environmental sustainability 
reached in Rio in 1992 has been split and negotiations on 
ecologically sustainable development are held in different 
fora.  At present, the most importan of them is the 
negotiation process on the Climate Change. 
 
As in the case of the WTO negotiations, also the Climate 
Change negotiations are dominated by the developed countries 
and the emerging developing countries.  A common basis is the 
prinicple of common but differentiated responsibility.  The 
industrialised countries are ready to accept deep cuts in 
their carbon emissions if the developing countries are ready 
to limit the growth of theirs.  A precondition for an 
agreement seems to be generous funding from the developed 
countries to the developing countries for mitigation and 
adaptation. 
 
Climate Change policies must be coordinated with other 
environmental policies, such as policies to protect the 
biodiversity, to prevent desertification and to promote 
sustainable forest management.  There must also be proper 
coordination with other development policies in order to 
safeguard the overall sustainability. 
 
Climate financing and development financing cannot be 
separated and therefore all funding for mitigation and 
adaptation in developing countries should be part of the ODA. 
 The funds should be administrated by the same institutions 
and following the same principles and rules. 
 
Social Sustainability 
 
Social sustainability is often understood narrowly as a 
satisfactory development of the social sector.  However, the 
foundation of social sustainability is formed by democracy, 
good governance, and respect for the human rights.  The 
principles of social sustainability have been agreed upon in 
numerous UN resolutions and declarations.  The increasing gap 
in income and wealth emerging in many developing countries 
undermines the basis for sustained economic and social 
development. 
 
We must also encourage the developing countries to pursue 
inclusive social policies and to implement effective poverty 
reduction programmes.  We must urge the donor community as a 
whole to promote social sustainability in all its forms. 
 
Finally, we must also strive for greater convergence in the 
development policies of all the donors and the partners. 
While Northern donors should do more in building 
infrastructure, developing productive sectors and supporting 
private sector development, Southern donors should be more 
active in pimrary education, health and other social sectors 
where they have, based on their own history, invaluable 
experience and expertise.  And we all should follow the 
principles of sustainable development. 
 
I propose that the EU would make an initiative to the US on 
the Partnership as soon as possible and start to discussion 
how to take it forward without delay. 
 
 
 
BUTLER