Explanation of Vote by Courtney R. Nemroff, Counsellor, U.S. Mission to the United Nations, on Agenda Item 18(b): International Financial System and Development, in the Second Committee of the UN General Assembly

Courtney Nemroff, Counsellor, US Mission to the UN

New York, NY

November 22, 2010

FOR IMMEDIATE RELEASE

Mr. Chairman, the United States is pleased to join consensus today on this important resolution that underscores both the challenges that the global economic crisis poses and the progress that the international community has made in mitigating the impact of the crisis on developing countries.

We support closer consultation between the UN System and other international organizations, including the Bretton Woods Institutions, in order to advance the UN’s core development mandate. But the dialogue among these institutions must respect their differing mandates and responsibilities. My government does not interpret the language in this resolution as endorsing a formal United Nations role in decisions affecting the international financial institutions or international financial architecture.

The United States continues to believe that the United Nations is not the best forum for meaningful discussion on reform of the international monetary system, and we would hope that future resolutions refer in a more explicit and constructive way to the important work already being done at the IMF and in the G-20.

The G-20 Leaders, at their April 2009 Summit in London, supported a general SDR allocation of $250 billion to help stop a serious capital drain and contagion risk facing emerging market and developing countries. The action was an exceptional measure taken during the height of the global financial crisis. The role of the SDR in the international monetary system raises complex considerations, and there is very little consensus on its role. We wish to underscore decisions on the SDR are within the sole purview of the IMF.

As the United States has noted previously, regional reserve currency arrangements should be judged by whether they contribute to regional and global financial stability and promote adjustment when necessary.
Thank you.

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