Official Documents from the Paris Conference

PARIS CONFERENCE ON INNOVATIVE  FINANCING FOR DEVELOPMENT

Chair’s Summary

93 states met in Paris on 28 February and 1 March 2006 on the occasion of the ministerial conference on Innovative Financing for Development organised at the initiative of the President of the French Republic, Mr Jacques Chirac, with Mr Denis Sassou Ngesso, President of the Congo Republic, Chairman of the African Union,  Mr Toumani Toure, President of the Republic of Mali, Mr Kofi Annan, Secretary General of the Organisation of United Nations, and Mrs Graca Machel in attendance. International and non-governmental organisations were involved in this event and are listed in the annex. This conference marks a new step towards rallying the support of the international community for innovative financing for development. It follows the World Leaders’ Meeting for Action against Hunger and Poverty organised by the United Nations at the initiative of Brazilian President Luiz Inacio Lula da Silva in September 2004 and the subsequent signing of the Declaration on Innovative Sources of Financing for Development by 79 countries in September 2005. The idea of innovative financing for development is now an issue on the agenda of all major international forums and its principle has gained broad support on the part of the international community.  Substantive technical work has provided solid bases for action, as shown by the Report of the Technical Group on Innovative Financing Mechanism presented in New York in September 2004.

Participants recalled that the Millennium Development Goals (MDGs) cannot be achieved in 2015 unless globalisation becomes more equitable. In addition to the commitments that have already been made, official development assistance (ODA) must be increased and made more predictable. Innovative financing sources supplementing traditional ODA will help finance over the long term recurrent expenditure that is needed to achieve the MDGs.

Participants reviewed the different options for Innovative Financing for Development sources and noted that it was essential to continue discussions at an international level on several issues including international solidarity levies, the International Finance Facility (IFF) and its pilot applied to immunisation (IFFIm) in particular, contributing to reduce tax evasion and taxing financial transactions, facilitating and lowering remittance costs for migrant workers, a humanitarian lottery, initiatives on the part of local governments, and voluntary contributions from individuals and companies such as the recently announced “RED” initiative for combating HIV/AIDS. These issues were debated in workshops on March 1, 2006.

The intention expressed by Brazil, Chile, Congo, Cyprus, Ivory Coast, France, Jordan, Luxemburg, Madagascar, Mauritius, Nicaragua and Norway to implement the international air-ticket solidarity contribution was welcomed. Other countries are set to follow suit.

France and the United Kingdom, which have already implemented an air ticket solidarity levy, had the opportunity during the conference to publish a joint communiqué on innovative financing mechanisms.

Participants noted that several innovative sources were particularly well adapted to financing health-related development programmes, although this is not the only sector in which they can be applied. They stressed that the fight against HIV/AIDS, tuberculosis and malaria must be carried out via the strengthening of developing countries’ health systems. National authorities with the help of cooperation agencies must take strong and sustainable action to this end. However more efforts must be made at an international level to improve access to low-cost drugs if the goal of universal access to HIV/AIDS treatments is to be achieved by 2010. With this in mind, participants  reviewed the proposal to create an International Drug Purchase Facility (IDPF).

Participants would like innovative financing for development to remain on the agenda of the United Nations and other major international forums and will take an active part in future discussions on this issue. They agreed to meet again in 2007 at a “Forum on Innovative Financing for Development sources” to build on the momentum created in New York in September 2004, renewed in September 2005 and continued during this conference.

Participants have welcomed the creation of the Leading Group on Solidarity Levies to fund development which includes the following countries:


Algeria
Austria
Bangladesh
Belgium
Benin
Burundi
Brazil
Cambodia
Cameroon
Cape Verde
Chile
Congo
Cyprus
Djibouti
Ethiopia
France
Gabon
Germany
Guinea-Bissau
Guinea-Conakry
Haiti
India
Ivory Coast
Jordan
Lebanon
Luxemburg
Madagascar
Mali
Mauritania
Mauritius
Mexico
Morocco
Mozambique
Namibia
Nicaragua
Niger
Norway
Spain
South Africa
United Kingdom

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Leading Group on Solidarity Levies to fund development


We have decided to establish a Leading Group on Solidarity Levies to fund development in the framework of the Forum that was launched during the Conference on Innovative financing for development held on 28 February and 1 March 2006 in Paris.

In the framework of the Monterrey consensus, we are convinced that the Millennium Development Goals will not be achieved without substantial and sustainable additional long-term resources to foster economic and social development and that, in this regard, solidarity levies are a necessary supplement to conventional Official Development Assistance (ODA).
 
We welcome the intention expressed by Brazil, Chile, Congo, Cyprus, Ivory Coast, France, Jordan, Luxemburg, Madagascar, Mauritius, Nicaragua and Norway to introduce a levy of this type in the very near future. The UK has already such a levy and will use it according to the UK-France communiqué of 28 February 2006.

We  commit to working together in the Leading Group to:

- Contribute to the emergence and circulation of projects in the field of innovative financing for development;
- Promote the idea of solidarity levies among partners and international forums;
- Develop the international air-ticket solidarity contribution which is being implemented by a first group of countries with a view to extending to other countries according to their capacities. An impact study of this mechanism will be conducted by the end of 2006;
- Review methods of using revenues generated by the international air-ticket solidarity levy for coordinated and long-term action in the health and development sectors;
- Finalise the modalities of implementation of an International Drug Purchase Facility (IDPF) financed by solidarity levies by the UN General Assembly High-Level Meeting on HIV/AIDS on 1 June 2006 if possible or at the latest, before the United Nations General Assembly in September 2006. Some of us have already shown our commitment to participate in this mechanism.

    Emphasizing the need to involve all interested stakeholders, we have decided that the Leading Group will be chaired alternatively by a developed country and a developing country for six months, and that the first two chairs will be Brazil and then Norway. France will host the Group’s permanent secretariat. The Group will join efforts with interested international and non-governmental organisations.
List of the members countries of the Leading Group


Algeria
Austria
Bangladesh
Belgium
Benin
Burundi
Brazil
Cambodia
Cameroon
Cape Verde
Chile
Congo
Cyprus
Djibouti
Ethiopia
France
Gabon
Germany
Guinea-Bissau
Guinea-Conakry
Haiti
India
Ivory Coast
Jordan
Lebanon
Luxemburg
Madagascar
Mali
Mauritania
Mauritius
Mexico
Morocco
Mozambique
Namibia
Nicaragua
Niger
Norway
Spain
South Africa
United Kingdom

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UK/France communiqué on innovative financing mechanisms

France and the UK have now been working hand in hand for over two years in order to put forward the issue of innovative financing mechanisms on the international agenda and convince as many countries as possible to support these mechanisms.

In the context of the coming international conference on innovative financing mechanisms that will be held in Paris next week with almost 100 participating countries, we are committed to move forward together :

France will contribute to the IFFIm for an average of $100 million a year during 20 years, i.e. 35% of total donor pledges at present;

The UK will sign up to the Leading Group on solidarity levies. The UK is committed to  the achievement of the objectives set at Gleneagles regarding the fight against the three pandemics, in particular universal access to drugs against HIV/AIDS by 2010 and is committed to spend £1.5 billion on HIV/AIDS over the next three years, including for the purchase of drugs. It expects at least this level of spending to continue over the long-term. The UK recognises the importance of long-term predictable finance on a significant scale to meet the challenge of the purchase of drugs, supports the International Drug Purchase Facility (IDPF), agrees to work with France on the details as a co-sponsor of the initiative and is prepared to make a long-term financial contribution.

The UK will also hypothecate part of the revenue from its existing Air Passenger Duty to provide a long-term stream of finance to the IFFIm and the IFF.

France and the UK will jointly establish a working group to consider the implementation of an IFF going to health and education and funded by an air ticket levy as well as by other revenues from the Landau report. This working group should report back in advance of the September IMF/WB meetings. France and the UK will use their best efforts to persuade others to join this group.


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Liste des pays ayant l’intention de mettre en œuvre une contribution de
solidarité sur les billets au 13 mars 2006
 
Burkina Faso
Brésil
Chili
Chypre
Congo
Côte d'Ivoire
France
Gabon
Jordanie
Luxembourg
Madagascar
Maurice
Nicaragua
Norvège
Royaume-Uni