ODA, innovative sources of financing and debt. It was recognized that a nationally formulated and owned development strategy, adequate policy space, greater overall coherence and coordination, employment creation, and greater support for private sector-led growth were critical elements in attaining the agreed development goals. Good governance, particularly enhancing transparency and combating corruption, was recognized as central to the effective implementation of national strategies. At the international level, the need to strengthen the voice and participation of developing countries in international financial institutions was viewed as an important factor for good global governance.

The Council discussion, he said, generally supported recent initiatives on innovative sources of financing. Those sources should be additional to the existing ODA commitments and targets. On the implementation of innovative financing, there was a general preferenceas addressed in Monterrey was comprehensive, including -- but extending well beyond -- the achievement of the Millennium Goals. As the deficit had been in all six areas identified in the Monterrey Consensus, urgent action was needed in each area.

Regarding the mobilizing of domestic financial resources for development, he proposed that emphasis be given to providing developing countries with the required policy space to innovate, depending on national circumstances. He suggested also that the international community devise strategies to reverse and eliminate the net negative flow of resources from developing countries and that coordinated effort be directed to enhancing the capacity of the local business sector to better compete globally. Regarding trade, he noted that no progress had been made on the substantive issues of interest to developing