CFTC in Danger Says Commonwealth Secretary-General

Over the years the CFTC programme has provided assistance to Commonwealth countries in such areas as debt management, trade development and investment promotion...

CFTC expenditure plans have declined from their 1991-1992 level of £43 million (in today's terms) to just £24 million in 2005-2006.

In the foreword to his biennial report to Commonwealth Heads of Government, Mr McKinnon says that, over the past two years, the Commonwealth Secretariat has continued through the CFTC to provide solutions tailor-made to the problems of member countries. However, this unique instrument, which delivers tangible progress and is in ever higher demand, has lost 40 per cent of its value in real terms over the past decade.

"We are constantly expected to do more with less. Without stronger financial commitment from governments, I am concerned that the CFTC will soon reach a level which is largely ineffectual and unsustainable.

"But whatever the CFTC can achieve, economic progress will be slow until developing countries have a real chance to trade their way out of poverty."

The Secretary-General's statement comes on the heels of comments made by Commonwealth Finance Ministers during their annual meeting held in Barbados in September 2005. In a joint Communiqué the ministers expressed concern at the progressive decline in the real resources of the CFTC, and noted that this was affecting its ability to assist member countries, especially small states and least developed countries, in attaining the Millennium Development Goals by supporting pro-poor policies for economic growth and sustainable development.

Over the years the CFTC programme has provided assistance to Commonwealth countries in such areas as debt management, trade development and investment promotion, good governance, public sector development, gender equality, human development and anti-money laundering.

At the Commonwealth Finance Ministers Meeting, member governments expressed their appreciation for the CFTC's programme of assistance, and there was wide support for the call by the Secretary-General for all member governments to increase contributions to the CFTC by 6 per cent per annum in real terms. To date, 26 countries have indicated their pledges for 2005/06 and already 10 countries have increased their pledge by 6 per cent or more in real terms. Those governments that have not yet made known their contributions to the CFTC are expected to do so by 31 December 2005.

 

CNIS - Commonwealth News and Information Service Issue 259, 2 November 2005

Key Links:

• Commonwealth Fund for Technical Co-operation (CFTC)
• Secretary-General