STATEMENT ON BEHALF OF THE GROUP OF 77 AND CHINA BY AMBASSADOR BYRON BLAKE, DEPUTY-PERMANENT REPRESENTATIVE OF JAMAICA TO THE UNITED NATIONS, TO THE INTERGOVERNMENTAL PREPARATORY MEETING FOR THE 13TH SESSION OF THE COMMISSION ON SUSTAINABLE DEVELOPMENT, ON MOBILISING FINANCING (New York, 3 March 2005)

Mr. Chairman,

We are pleased to have you again in the Chair. The Group of 77 and China has already made a general statement on this issue. We now comment specifically on two of the issues/potential sources identified by you. We note that all the sources you have identified are local and recall that we have argued that these must be augmented by external sources.

The G-77 and China recognise the need to mobilise local resources.

1. Community Savings. There are many examples of community based savings mechanisms in developing countries. These include arrangements such as credit unions. There is a need for capacity building, institution building, training as these institutions increase in the size of resources and participant coverage.

2. Revolving Funds. There are also many examples of revolving funds. The seed funds in most cases are provided by Governments from a variety of sources. Some of these schemes have had good operational experiences.

Among the issues to be addressed in many cases in light of the number of houses needed to meet the target are:

a. Increasing the size of the seed or base capital in successful funds. Some of this could be provided from external sources.

b. Training and institutional capacity building/strengthening required for expansion. The required institutional strengthening includes the information and management systems.

The Group of 77 and China has indicated elsewhere that while private, market-based instruments have a complimentary role especially at the higher level of the market, they will be limited for the target populations being addressed - slum dwellers and low or no income homeless persons. The recommendations with respect to private provisions need to be analysed carefully therefore to ensure that they are practical.

I thank you.