Financing for development: a progress report on the implementation of the Monoterrey Consensus

Abstract

For the purpose of this assessment, the approach used consists in monitoring average annual values of key macroeconomic and financial variables. Two different periods are considered and the sets of data refer to the period before and after the adoption of the Monterrey Consensus so as to measure the evolution of the six core areas over the two periods under consideration. The analysis considers averages for the periods 1995-2001 and 2002-2008 respectively, to compare the pre- and post-Monterrey situation. Where available, more recent figures are used to reflect current performance and indicate trends since the Consensus on financing for development. The key message emanating from the report is that progress has been limited in realizing the objectives of the Monterrey Consensus. Whereas substantial progress was recorded in the areas of international resources mobilization and debt relief, performance in domestic resource mobilization, foreign aid and international trade has been disappointing. The global financial and economic crisis threatens to reverse the progress that has been made hitherto as African countries are experiencing weaker export revenues, lower investment and growth rates, and shrinking remittances and foreign direct investment (FDI) flows, which constrain their capacity to meet the Monterrey commitments.