Ministry Statements & Speeches:
Thank you Mr. Chair,
I have the honour to speak on behalf of the delegations of Canada, Australia, and New Zealand on the topic of macroeconomic policy.
This is a significant year for the international community. The international development landscape is being reshaped with the successful conclusion of the Financing for Development Conference in July and the adoption of the Sustainable Development Goals in September. These historic achievements have been the result of our collective resolve to end poverty and improve the well-being of every citizen in the world.
We have set ourselves ambitious goals this year. An important prerequisite for success will be a strong platform for sustained and sustainable economic growth; however global growth remains modest and uneven. The forecast is clouded by a range of risks in different parts of the world, such as reduction in growth in key Asian economies, protracted commodity market rebalancing and capital flow reversals. The prospects for medium-term growth remain well short of our aspirations.
Advanced economies are achieving modest growth again. The effort to secure stronger and more sustainable growth in these economies is incomplete. Canada, Australia and New Zealand are well aware of the uncertainties in the global economy — growth in our own countries is projected to moderate from relatively robust rates in previous years. Although emerging market economies continue to make a significant contribution to global growth, downside risks have risen as a result of declining commodity prices and a transitioning Chinese economy.
We cannot afford to be complacent. Although countries that have put in place sound policies are benefiting as their economies are more resilient than they would be otherwise, more effort is needed to secure and strengthen the platform that will help us achieve the objectives we have set this year. Countries should use appropriate policy levers and reform opportunities to lift growth now and for the future, and continue to strengthen international frameworks and monitor risks in order to build resilience. This must happen without undermining medium-term fiscal positions and while preserving the environment for future generations.
Mr. Chair,
The Sustainable Development Goals represent a renewed commitment to the achievement of a better life for all. Sustained economic growth will be a key pre-condition for the achievement of these goals. At the same time, countries will need to ensure that the benefits of growth are well distributed to ensure that no one is left behind.
The breadth and ambition of the Sustainable Development Goals mean that many different sources of financing will be needed to achieve them. In addition to traditional bilateral and multilateral assistance, greater domestic resource mobilisation will be necessary to finance development outcomes. The private sector will also play a critical role through domestic and foreign direct investment, and new policies to promote blended financing. So it will be vital for countries to ensure they have the appropriate policy and regulatory frameworks to encourage private sector investment. Sound macroeconomic fundamentals are necessary to allow financing for sustainable development to continue to grow over time.
Even with our best efforts however, the achievement of the Sustainable Development Goals may be at risk from the impact of unexpected shocks and growing vulnerabilities. Climate change and natural disasters pose a major risk, in particular to developing countries and small-island developing states. The impact of natural disasters in those states will only increase as climate change accelerates. Canada, Australia and New Zealand welcome the international community’s renewed commitment this year to address these challenges and ensure that development financing frameworks respond appropriately to the challenges facing smaller and more vulnerable countries.
Mr. Chair,
Canada, Australia and New Zealand reaffirm their commitment to the Sustainable Development Goals, and to the important work that will be needed to achieve them. We look forward to engaging on these and other important issues in the coming weeks.
Thank you.