Annex IV - Paris Declaration and Monterrey Consensus

Paris Declaration on Aid Effectiveness

Paris, France, March 2, 2005

The Paris Declaration on Aid Effectiveness is presented in three sections, viz. the Statement of Resolve set out in Section I, the Partnership Commitments stated in Section II and twelve Indicators of Progress listed in Section III.

The Third High Level Forum on Aid Effectiveness met in Accra, Ghana in 2008 to review progress in implementing this Declaration.

Commitments from the Paris Declaration on Aid Effectiveness include:

• Developing countries will exercise effective leadership over their development policies, strategies, and to coordinate development actions;
• Donor countries will base their overall support on receiving countries' national development strategies, institutions, and procedures;
• Donor countries will work so that their actions are more harmonized, transparent, and collectively effective;
• All countries will manage resources and improve decision-making for results;
• Donor and developing countries pledge that they will be mutually accountable for development results.

The full text of the Paris Declaration can be accessed at: http://www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf

Monterrey Consensus

The Monterrey Consensus was the outcome of the 2002 Monterrey Conference, the United Nations International Conference on Financing for Development. It was adopted by Heads of State and Government on 22 March 2002. Over fifty Heads of State and two hundred Ministers of Finance, Foreign Affairs, Development and Trade participated in the event. Governments were joined by the Heads of the United Nations, the International Monetary Fund (IMF), the World Bank and the World Trade Organization (WTO), prominent business and civil society leaders and other stakeholders. New development aid commitments from the United States and the European Union and other countries were made at the conference. Countries also reached agreements on other issues, including debt relief, fighting corruption, and policy coherence.

Since its adoption the Monterrey Consensus has become a major reference point for international development cooperation. The document embraces six areas of Financing for Development:

1. Mobilizing domestic financial resources for development.
2. Mobilizing international resources for development: foreign direct investment and other private flows.
3. International Trade as an engine for development.
4. Increasing international financial and technical cooperation for development.
5. External Debt.
6. Addressing systemic issues: enhancing the coherence and consistency of the international monetary, financial and trading systems in support of development.

The full text of the Monterrey Consensus can be found at: http://www.un.org/esa/ffd/monterrey/MonterreyConsensus.pdf