2005 will be a key year in the global fight against poverty. Five years after the UN Millennium Summit, the UN will meet in September 2005 to assess progress since 2000.

Even if we are making progress, we know that to achieve the MDGs, particularly in Sub- Saharan Africa, a substantial increase of the international effort is required. Achieveing the goals depends in the first instance on the quality of national governance and mobilization of domestic resources. However, the rich countries have to deliver and live up to their commitments from the Millennium Summit, Monterrey and Johannesburg. In striving to create a better world, we must take into account the complex relationship between peace, security and development.

In this context, the Ministers of Development of Denmark, Finland, Norway and Sweden met in Oslo December 14, 2004. The Ministers regard 2005 as a key opportunity to make a significant change in development and aid efforts, particularly in Sub-Saharan Africa. The international community needs to provide more aid, better aid, deeper debt relief, a prodevelopment outcome of the Doha Round and deal urgently with the HIV/AIDS challenge. We are committed to doing our part, but it is crucial that the G7 countries also deliver. Without substantial resources from the largest economies in the world, the MDGs will not be achieved. Substantial resources need to be delivered now.

It is estimated that an extra 50 billion USD – as a minimum - is required annually to meeting the MDGs by 2015. Five countries already provide more than the UN target of 0,7% of their GNI as ODA. Six other countries are committed and have set timetables to reach 0,7%. We urge all countries, and in particular the G7 countries, to deliver on the pledges made in Monterrey, commit themselves to a timetable to reach the 0,7% target, and deliver on that target as quickly as possible. Aid also needs to be more effective. To increase aid effectiveness, donors need to align their development assistance programs with partner countries’ own priorities, coordinate and harmonise their procedures. Together with developing countries’ enhanced national ownership and commitment to policy reforms, this ODA increase could enable us to deliver on the MDGs.

Recognising that some countries will take time to reach the UN 0,7 % target, we fully support that new financing modalities are explored. Yet we emphasise that these modalities should not be used to divert attention from previous commitments. An International Finance Facility (IFF) could be a relevant instrument for front-loading future aid flows for countries that have not yet reached the 0,7 % target but are prepared to make a legally binding pledge of future aid increases. Such an IFF must ensure additional funds, and result in a short-term increase followed by a steady and predictable flow of funds after 2015.

The enhanced HIPC initiative has done much to reduce the debt overhang of the world’s poorest countries. The Nordic countries have been amongst the strongest supporters of the HIPC, and we have placed particular emphasis on striving to secure the financing of the HIPC Trust Fund. It is crucial that commitment to full implementation and financing of HIPC is reaffirmed. Yet, even after HIPC debt relief, several countries may face a difficult debt situation. We therefore support new ideas and initiatives on debt-relief that maintain the financial integrity of multilateral financial institutions and strengthen the macro-economic reform processes in our partner countries. This is particularly important at a time when other proposals are being put forward that could in the long run weaken multilateral institutions and thus our common fight against poverty. We acknowledge the innovative debt-relief initiatives put forward by the UK and French governments. These initiatives constitute important input to the discussions on long term-debt sustainability in developing countries. We would be pleased to continue the dialogue on how the international community could move the debt relief agenda forward. Debt-relief measures must focus on reducing poverty in the most effective manner.

Trade has the potential to make a significant contribution to poverty reduction. While all WTO members must contribute, the major industrial countries carry a particular responsibility to engage constructively in order to bring the Doha Development Agenda forward towards an ambitious outcome that takes into account the interests and concerns of developing countries. It is of particular importance to ensure a satisfactory outcome for the LDCs. Improved market access needs to be accompanied by efforts to address supply side constraints that prevent countries from harvesting the benefits of trading opportunities, and the structural adjustment costs related to a transition towards more open markets.

In addition, there is a clear responsibility for the whole donor community to take action to address the social and human dimensions of development. Special attention to education and health is necessary for the poorest countries to reach the Millennium Development Goals. With malaria killing one million people and with AIDS killing almost three million people every year, diseases that disproportionately impact on poor countries need to be tackled. The feminisation of HIV/AIDS is particularly alarming. Much more should be done to step up the fight against these diseases, including the development of AIDS and malaria vaccines.

Press contact: Head of Information Espen Gullikstad, +47 91 70 81 22