The United Nations’ Response to the Financial Crisis

1. The United Nations’ Response to the Financial Crisis Hazem Fahmy Department of Economic and Social Affairs (DESA) Regional High-Level Consultative Forum on the Impact of the International Financial Crisis on the ESCWA Member Countries: the Way Forward Damascus: 5-7 May 2009

2. Two Main Tracks I.The UN System Response II. The Political Process (UNGA)

3. I. The UN System Response: • Addressing the immediate challenges as well as building a better future for all peoples of the world • The risk of falling behind on MDG’s Implementation • Building a fair and inclusive globalization It is time for inclusive multilateralism • The need for international coordination • The need for structural changes in critical areas of international, regional and national action

4. Key Areas for Policy Coherence • Finance • Trade • Employment, production and aggregate demand • Environment • Food Security • Social services, empowerment and protection of people • Humanitarian security and social stability • International cooperation for development

5. 1. Finance: 1. Stimulus packages (domestic) 2. Reforming the global financial architecture 3. Mobilizing resources for developing countries. 4. Exchange rate management 5. Rules and regulations

6. 2. Trade: Fighting protectionism through the conclusion of the Doha Round and strengthening aid for trade initiatives and finance for trade WTO and UNCTAD

7. 3. Employment, production and aggregate demand Boosting employment, investment and aggregate demand, and promoting decent work for all. ILO

8. 4. Environment: Launch a Green Economy Initiative to promote investment in long-term environmental sustainability as part of stimulus and recovery expenditure and to put the world on the climate friendly path UNEP

9. 5. Food Security Ensure food security by strengthening programs to feed the hungry and expanding support to farmers in developing countries FAO, UN, WFP, IFAD

10. 6. Social Services, empowerment and protection of people • Establish a social protection floor by ensuring access to basic social services and empowerment and protection of the poor and vulnerable • WHO and ILO

11. 7. Humanitarian and social stability • Emergency action to protect lives and livelihoods, meeting humanitarian needs and shoring up security and social stability • WFP

12. 8. International cooperation for development • Effective advocacy and establishment of frameworks for additional financing for the most vulnerable, including through the World Bank-proposed Vulnerability Fund • WORLD BANK and UNDP

13. MONITORING • Urgently establish an integrated monitoring and analysis system to track and provide information on critical trends building on the diverse statistical and early warning monitoring capacities of the UN organizations • UNDESA

14. II. The Political Process (UNGA) 1. The United Nations Conference at the Highest Level on the World Financial and Economic Crisis and its impact on Development (New York 1-3 June 2009)

15. The Political Process (UNGA) 2. Scope of the Conference: Conscious of the importance of examining and overcoming the deepening world financial and economic crisis and its impact on development, concerned about the present and future impacts of the crisis on, inter alia, employment, trade, investment, trade and development, including the achievement of the IADGs and MDGs, convinced of the urgency of undertaking coordinated and collaborative actions appropriate measures to mitigate the impact of the crisis on development, emphasizing the importance of the role of the UN and its Member States in the ongoing international discussions on reforming and strengthening of the international financial and economic system and architecture, and stressing the contributions of the United Nations development system in the response to the crisis;

16. The United Nations vs. BWIs: the Way Forward 1. Legitimacy vs. Effectiveness 2. Analytical Capacity (PGA Commission) 3. National, Regional and International Political Coherence

17. Thank You