STATEMENT BY SINGAPORE ON AGENDA ITEM 18(B) ON MACROECONOMIC POLICY QUESTIONS: INTERNATIONAL FINANCIAL SYSTEM AND DEVELOPMENT, SECOND COMMITTEE, 11 OCTOBER 2010

STATEMENT BY SINGAPORE ON AGENDA ITEM 18(B) ON MACROECONOMIC POLICY QUESTIONS: INTERNATIONAL FINANCIAL SYSTEM AND DEVELOPMENT, SECOND COMMITTEE, 11 OCTOBER 2010

Mdm Chair,

I would like to begin by aligning myself with the statements by Yemen, on behalf of the G77 and China, and Indonesia, on behalf of ASEAN, on this agenda item.

Introduction

2 Over the last year, we have had several useful discussions in the UN on its role in the international financial system. In these discussions, many countries have stated that the UN plays a central role in global economic governance. As such, let us look at three ways in which we can strengthen the UN so that it can better fulfil its role in the international financial system, particularly in global economic governance.

Strengthening the UN

3 First, for the UN to fulfil its role in the international financial system, it is critical that all Member States commit to the UN and its processes. The UN is very important to small and medium sized States as it provides them with a level playing field and a platform to participate in discussions that could affect them. Large States, on the other hand, may have the option of playing in other fields. It is therefore important that the big powers remember their status as UN Member States even when participating in other fora, such as the G20. Decisions taken in such fora should also seek to strengthen the UN and not undermine it.

4 As part of our commitment to the UN, we need to equip the organisation and its development system with the necessary resources and capabilities. Without adequate funding and trained staff, the UN will not be able to respond to global crises and other financial and economic situations in a timely and comprehensive manner.

5 Second, all Member States must work in a coordinated and efficient manner in order for the UN to better fulfil its role in the international financial system. Any delay in reaching agreement on a response to a global financial and economic crisis could result in billions of dollars being lost, millions left in poverty and the further erosion of our hard won development gains. If Member States are unable to agree at the UN on responses to urgent problems, solutions to these problems will be found elsewhere, resulting in the marginalisation of the UN.

6 Our working methods in the UN therefore have an impact on whether we are able to develop, in a timely fashion, effective global responses to global financial and economic problems. In this regard, Singapore welcomes the efforts of the Bureau of the Second Committee to improve the working methods of this Committee.

7 Third, the decisions taken at the UN must have some "bite". Mere rhetoric will not take us out of a global economic and financial crisis. Member States should therefore seek in our resolutions and declarations feasible and pragmatic solutions to the economic and financial questions that we face. We also have to reconsider our habit of finding agreement based on the lowest common denominator. Such tepid agreements will not suffice to address major financial and economic issues. We need to show flexibility in negotiations, in order to reach agreements that are practical and substantive.

8 Decisions have little weight if they are not implemented. As such, when discussing draft proposals in resolutions, Member States should focus on how these proposals could be implemented, by whom, and how we can ensure that they are being carried out. Further, Member States should fulfil all commitments made. Empty promises do not help in building trust between countries.

Role of the G20

9 At the same time, Singapore recognises that other fora, including the G20, have a role to play in the international financial system. In this regard, Singapore welcomes the efforts by the G20 to press ahead with policies needed for "strong, sustainable and balanced" global growth. Such efforts can contribute to a more stable international financial system and enhance the development prospects of developing countries. Singapore notes that some in the G20 are considering expanding its agenda beyond the financial and economic realm, yet it must be highlighted that much work is yet undone in encouraging global recovery and growth. As such, the G20 should continue to focus its efforts on achieving a sustained global economic recovery and growth.

Conclusion

10 In conclusion, Singapore believes that it is incumbent on Member States to strengthen the UN for it to better fulfil its role in the international financial system. At the same time, as a participant of the upcoming meeting of the G20 Working Group on Development and the G20 Summit in Seoul, Singapore appreciates the difficulty we will face in finding the balance between efficiency and inclusivity in decision-making processes. In this regard, Singapore, as part of the 3G and a staunch member of the UN, will continue to endeavour to build a bridge between the UN and the G20, while contributing to both processes.

11 Thank you.

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