The Addis Ababa Conference on Financing for Development follows previous conferences and aims to address financial challenges faced by developing countries. Key actions proposed include mobilizing domestic resources, reforming international trade and investment policies, enhancing official development assistance, addressing external debt issues, and establishing better global governance structures. Emphasis is placed on inclusive governance, tackling systemic financial issues, and incorporating measures for social and environmental well-being beyond economic indicators.

1. Addis Ababa
conference
Financing for development

2. Introduction
• The Addis Ababa conference is a follow up of the first conference on
FfD (Financial for Development) convened in Monterrey in 2002.
• 'Monterrey Consensus' introduced six "major action" to the FfD.
• The second FfD conference in Doha in 2008 added a chapter on new
challenges and emerging issues that address the impacts of the
financial crisis and climate change.
• In 2009 the UNGA organized a conference about the global
economic and financial crisis and its impact on development in New
York.

3. Actions
1. Mobilizing domestic financial resources.
To solve the problem of illicit financial flows and combat international tax
evasion global cooperation is needed. The global tax standards are
developed in the Organization for Economic Cooperation and Development
(OECD), while excluding 80% of countries. Recommendations are:
- Establish a new intergovernmental body on international cooperation in
tax matters and allocate the necessary resources to enable it to function
effectively.
- Ensure a broad mandate for the new intergovernmental fiscal body,
including the erosion of the tax base and relocation of utilities; investment
treaties and tax arrangements; tax incentives; taxation of extractive
industries; transparency on the final beneficiaries; financial reporting
disaggregated country by country; and the automatic exchange of tax
information.

4. Actions
2. Foreign direct investment and other international private flows
A focus on more balanced international private financing, which recognizes the
risks and the need for developing countries to handle current needs.
There are two kinds of concerns are macroeconomic risks associated with these
currents, such as the volatility of short-term flows are no concerns regarding
the content and the terms of the long-term investment, particularly foreign
direct investment (FDI) . Recommendations are:
- Recognize that the regulation of the capital account is a fundamental
political tool for all countries and eliminating all trade and investment
treaties any obstacle to these important regulatory policies.
- Clearly explain the major drawbacks of using public institutions and
international resources to leverage private funding.

5. Actions
3. International Trade
Trade policy must allow developing countries to have policy space. International trade is
an important tool that developing countries can use to support the growth of national
industries with higher added value.
However, the current trade regime has pushed developing countries to open their
markets, both through the World Trade Organization (WTO) and through trade and
regional and bilateral investment treaties. Recommendations:
- A thorough review of all trade agreements and investment treaties to identify areas
that could limit the ability of developing countries to prevent and manage crises,
regulate capital flows, protect the right to livelihood and decent work, applying fair
taxation, providing essential public services and ensure sustainable development.
- A review of the regimes of intellectual property rights that have been introduced in
developing countries through free trade agreements (FTA), to identify any adverse
impact on public health, the environment and technological development.

6. Actions
4. Official Development Assistance (ODA) and other international public aid to
development
It is necessary to strengthen commitments to improve the quantity and quality
of ODA. ODA remains a vital resource for poorer countries but its value has
been seriously undermined by the failure of rich countries to meet the UN
target of 0.7% of Gross National Income (GNI) to ODA. Recommendations:
- Establish binding timetables to meet commitments to deliver 0.7% of GNI
on ODA.
- Ensure that ODA is a genuine transfer, including ending tied aid, eliminating
the costs incurred within donor countries and debt relief, delivering mostly
in the form of grants and concessional loans reformed to reflect your actual
costs for partner countries.
- Implement a tax on financial transactions conducted by financial institutions
and use the proceeds to fund sustainable development

7. Actions
5. External debt
The debt crisis threatens to annihilate global development progress has been
achieved over decades. Even in countries that do not suffer from a serious debt
crisis, the debt service competes with development costs for limited public
resources. Recommendations:
- Reaffirm the commitment to agree a multilateral legal framework for the
restructuring of sovereign debt in a neutral forum and ensure that: is broad;
an approach based on human needs; oblige creditors and debtors to
account for his irresponsible behavior; and give all parties the right to be
heard.
- Should undertake independent debt audit to review existing debts in
accordance with responsible financial rules, including by reviewing the
legitimacy of debt cancellation commitments with those that are considered
illegitimate.

8. Actions
6. Systemic issues: global education and inclusive governance reform and
monetary
It has an urgent need of repair, to grant developing countries a fair and
equitable place in the decision making processes of all international
organizations and financial institutions and addresses the key international
problems while respecting the policy space of countries developing.
Legitimate UN agencies do not have the mandate or the resources to
coordinate effectively in that area. Recommendations:
- Launch a process for the establishment of a Global Economic
Coordination Council at the United Nations to exercise leadership on
economic issues.
- Issue annually USD 250 billion in Special Drawing Rights (SDRs), most of
which go to developing countries.

9. Actions
7. Other important issues
- United Nations must take seriously the need for better approaches to measuring the
progress that transcend economic short-term indicators such as the Gross Domestic
Product (GDP), to include measures of social and environmental well-being and put
the emphasis on how significant it can being inequality, including gender inequality.
- Through the development of an initiative on responsible lending standards, the
United Nations could join forces and strengthen the many existing initiatives and
proposals, as well as helping to ensure that the rules are implemented properly.
- Due to the growing recognition that all forms of financing for development involve
specific threats and opportunities for women's rights, this vital agenda must be fully
included in the FfD.
- Develop the agenda, the conference started in 2009 UNGA to reform financial
regulation and the financial sector.