FIFTH COMMITTEE HEARS DIFFERING VIEWS ON BUDGETS FOR REGIONAL COMMISSIONS

Press Release
GA/AB/3033

FIFTH COMMITTEE HEARS DIFFERING VIEWS ON BUDGETS FOR REGIONAL COMMISSIONS

The countries of each region should determine whether the work of its regional commission overlapped with those of other bodies, the representative of China said this afternoon, as the Fifth Committee (Administrative and Budgetary) concluded its first reading of three sections of the proposed budget for 1996-1997. The question of overlap could therefore not be used as an argument for reducing their budgets, he continued. The regional commissions had a positive influence on the economic and social development of their regions.

The United States said there was overlap and duplication in the budgets proposed for the regional commissions and called for savings by scaling back or eliminating programmes.

The sections the Committee reviewed fall under Part V of the budget, on regional cooperation for development. They are sections 18, Economic Commission for Latin America and the Caribbean (ECLAC); 19, Economic and Social Commission for Western Asia (ESCWA); and 20, Regular programme of technical cooperation.

The amounts proposed for them, after adjusting for factors such as inflation and exchange rate fluctuations, are: $90.7 million for ECLAC; $38.5 million for ESCWA; and $49.2 million for the regular programme of technical cooperation. The final budget would be cast in such adjusted dollar terms.

The constant shifting of ESCWA's headquarters had promoted instability, Egypt said. Nevertheless, its efforts were appreciated, particularly in addressing environmental protection following the Gulf War. "We depend on ESCWA", Yemen said; its resources should be increased.

Speaking for the Latin American and Caribbean Group, Bolivia reaffirmed ECLAC's importance to the reforms of the economies of that region and expressed concern at the dramatic decline in the total extrabudgetary

Fifth Committee - 1a - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

resources for regional commissions. The Group welcomed proposals to provide staff to follow up the activities related to the Global Conference on the Sustainable Development of Small Island Developing States. The call for the ECLAC budget to be cut seemed a selective move that would not be accepted, Brazil said.

Statements were also made by Tunisia, Cuba, Trinidad and Tobago, Uganda, the Dominican Republic, Algeria, Bangladesh, the United Republic of Tanzania, Iran and Canada.

The Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M Mselle, also spoke, as did United Nations Controller Yukio Takasu.

The Committee will meet again at 10 a.m., Friday, 3 November, to elect members to such bodies as the ACABQ, the Committee on Contributions and the Board of Auditors.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to continue its first reading of the United Nations proposed budget for the 1996- 1997 biennium, involving its section-by-section review.

The budget's first reading is meant to help the Committee identify difficult points in it that would eventually be resolved in informal consultations. At the end of the first reading and first round of informal consultations, the Committee would put together amounts approved for each section and those approved in respect of revised estimates and programme budget implications. That would lead to the second reading in which each section's total appropriation would be approved. The entire exercise is expected to produce a package deal, which would form the programme budget for 1996-1997.

For its first reading of the proposed budget, the Committee had before it the Secretary-General's proposals (document A/50/6/Rev.1 Vols. I and II) and the views of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/50/7) and the Committee for Programme and Coordination (CPC) (document A/50/16). The Secretary-General proposes a budget of $2.51 billion (in 1994-1995 dollars), before adjustments for inflation and exchange rate fluctuations. The ACABQ's recommendations are largely in 1996-1997 figures, adjusted for those factors. (For background on the proposed budget, see Press Release GA/AB/3017 of 4 October.)

The sections to be reviewed today fall under Part V of the budget, on regional cooperation for development. They are sections 18, Economic Commission for Latin America and the Caribbean (ECLAC); and 19, Economic and Social Commission for Western Asia (ESCWA) and 20, Regular programme of technical cooperation.

Section 18 Economic Commission for Latin America and the Caribbean:

For the ECLAC, the Secretary-General proposes a pre-adjusted $77.3 million after cutting $1.7 million. This comes mainly from a $2 million drop in office rent due to lease renegotiation and reduction of office space in Mexico City, offset by a proposal to establish a First Officer (P-4) post for the follow-up to the Conference on Small Island Developing States. The ACABQ recommends that this proposal be accepted. The CPC approves the programme narrative.

In 1996-1997, ECLAC will focus, among other items, on enhancing rural development; state-restructuring policies and their implications for strategic management for the allocation of public resources; supporting the region's Governments to gain and consolidate competitive advantages; and helping Member States to achieve the objectives of Agenda 21.

Fifth Committee - 3 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

Section 19 Economic and Social Commission for Western Asia:

For the ESCWA, the Secretary-General proposes a pre-adjusted $35.8 million after an increase of $545,300, reflecting the proposed reclassification of one post and biennial provisions for post changes approved in 1994-1995 but only partially funded.

The ACABQ does not object to the proposed reclassification and recommends the approval of the Secretary-General's estimates. The CPC approves the programme narrative.

In 1996-1997, ESCWA will focus, among other things, on improving social and economic information in the region and developing the capacities of Member States in those areas; assessing social and economic change in the region; and enhancing knowledge on the implications of the different economic measures being developed and implemented.

Section 20 Regular programme of technical cooperation:

The United Nations regular programme of technical cooperation complements assistance available to developing countries under other programmes. The three main types of technical cooperation are short-term advisory services, field projects and training. They include activities in development issues, human settlements, food and agriculture, industrial development and international trade and development finance. The Secretary- General requests $44.8 million, before adjustments.

The ACABQ transmits the proposals for the Assembly's action. The CPC approves the section's programme narrative.

Statements on the proposed budget for 1996-1997

C.S.M. MSELLE, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) introduced the comments of his Committee on section 20 on regular technical cooperation activities. He had made presentations on the regional commissions yesterday. The regular programme of technical cooperation complements help available to developing countries under other programmes. Annual reports on the programme are submitted as appropriate to the Executive Board of the United Nations Development Programme (UNDP). The ACABQ had recommended that monitoring, evaluation and control of resources should be strengthened in each implementing and executing entity responsible for a particular technical cooperation activity.

Statements on Section 18 -- ECLAC

MARTHA MONTANO (Bolivia), speaking for the Latin American and Caribbean Group, reaffirmed ECLAC's importance to the reforms of the economies of that

Fifth Committee - 4 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

region. The regional institutions that helped regional economies should be supported. ECLAC's analysis, forecasts and the other information it provided were very valuable. ECLAC had made efforts to work more efficiently. The Latin American and Caribbean Group was concerned, like the ACABQ, with the dramatic decline in the total extrabudgetary resources for all regional commissions. Adequate resources should be provided. It supported the proposals of the Secretary-General on the section in general.

The representative said that the Group regretted that no additional First Officer (P-4) post was proposed to help with drug control. It welcomed the proposal to set up a First Officer (P-4) post to follow up the activities related to the Global Conference on the Sustainable Development of Small Island Developing States.

JAMES GODLEY (United States) said that there were several areas of duplication and overlap in ECLAC activities. Some of them could be scaled back or eliminated without harming ECLAC's work programme. A cut in the commission's budget in the range of 25 per cent was a reasonable goal. The work of the food and agriculture programme appeared to duplicate some activities of other United Nations agencies, with too much emphasis on conducting meetings and sponsoring information-gathering trips.

Continuing, the representative said the economic and social planning programme and that for industrial, scientific and technological development seemed to overlap with or duplicate programmes of other agencies or those within ECLAC and should be abolished. Also, the costs for travel and consultants for the international trade and development finance programme seemed high, and some of the functions of those programmes were duplicated by other agencies, such as the World Trade Organization, which should permit their being scaled back. In addition, subregional activities in the Mexican and Central American programme and in the Caribbean seemed to duplicate those done elsewhere and could either be reduced or eliminated.

AMMAR AMARI (Tunisia) supported the strengthening of the regional commissions in general. There had been a considerable reduction in expenses as a result of the lease renegotiation and the reduction of office space in Mexico City. The proposed establishment of a First Officer (P-4) post for the follow-up on the Global Conference on the Sustainable Development of Small Island Developing States should be accepted. ECLAC was the only regional commission with limited conference facilities. It was only natural that it should have the Committee's support regarding the holding of its conferences.

DULCE BUERGO (Cuba) expressed appreciation for ECLAC's publications, which were very useful. Cuba was concerned about the reduction of resources for ECLAC. Resources for the programmes on environment, population, human settlements and development had decreased. Could the commission's mandates be carried out with such reduced resources? She said Cuba attached particular

Fifth Committee - 5 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

importance to the follow-up on the Conference on small island developing States. Consideration should also be given to any measures deemed to be appropriate in addressing the problems of drug abuse and control.

JU KUILIN (China) said his Government supported the work of ECLAC. The regional commissions had a positive influence on the economic and social development of their regions. On the question of overlap, he said the countries of a region knew what the commissions in their region needed to do. The question of overlap could not be used as an argument for reducing the budgets of the regional commissions.

RAJIV RAMLAL (Trinidad and Tobago) associated himself with the statement made this afternoon by Bolivia. While welcoming the resources allocated to ECLAC for the small island developing States, the overall reduction in resources was lamentable. His country was concerned about calls for reform which seemed merely to be calls for cost-cutting.

NESTER ODAGA-JALOMAYO (Uganda) said the views expressed by Tunisia were shared by a number of African countries especially on the issue of economic commissions, and in this case regarding ECLAC. While some delegations wanted the resources cut, what China had said was apt in the sense that countries in particular regions of the world knew best what should be done for the commissions. Savings from the use of modern technology should be used to support the commission.

MOHAMED FATTAH (Egypt) supported the views of the previous speaker, reiterating support for the commissions. ECLAC should be given the resources it needed. Egypt had welcomed decentralization and the commissions should be given the means to carry out their tasks. Since, unfortunately, their resources had declined, expected results might not be attained.

JOSE ANTONIO MARCONDES DE CARVALHO (Brazil) said he had been inspired to speak after the statement of another delegation. ECLAC had played a fundamental role in supporting economic development in the region. It had helped contribute to the existence of a school of progressive economic thought there, also. He expressed hope that the commission could accomplish its various tasks. There were problems in the social sphere, where people still awaited the benefits of economic growth and recovery. The commission had been a valuable partner in the region's development work. Some delegations seemed to forget that fact.

The representative said he would not agree with mere exercises of budget-cutting without seeing what impact they would have on mandates and programmes. There seemed to be a trend for grassroots work in many parts of the world and the commissions had important roles to play in that. The attempt to cut the ECLAC budget seemed to be a selective move that would not

Fifth Committee - 6 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

be accepted. ECLAC's work should be praised and it should be supported or the interests of the region might be harmed.

KEMIL DIPP (Dominican Republic) supported the strengthening of ECLAC, which had been doing very efficient work in the Caribbean. The First Officer (P-4) post for that commission should be maintained. ECLAC's publications programme and its visits to countries were very important in maintaining coordination and providing useful information to the countries of the region. Instead of having its budget cut, it should be given the resources necessary to carry out its useful campaign of public information and support.

YUKIO TAKASU, United Nations Controller, said the view had been expressed that too much was being spent for data collection, organizing meetings and gathering information. However, regional commissions were established for just those reasons -- to function as think tanks for the region.

He said the budget for ECLAC was prepared under the framework of the medium-term plan for 1992-1997, which was adopted by the General Assembly, under a programme of work which was also reviewed by ECLAC. The CPC had reviewed the budget section on ECLAC, and addressed such questions as duplication and overlapping. It unanimously recommended that the Assembly approve all the subprogrammes in the proposed budget.

There was no basis for the elimination of those activities in the absence of a clear decision by the Assembly, he said. The Secretary-General proposed this budget on a "minimum requirement" basis. Resources could not be significantly reduced without an adverse effect on programme delivery.

He said close coordination was required with all relevant United Nations agencies and programmes; ECLAC would continue to intensify such cooperation. Those bodies had distinctive roles to play. There was no basis to say ECLAC was duplicating the work of such bodies, when they were playing a mutually supportive role.

The drug programme was a global programme, he said. It was not considered to be a programme which each regional commission should implement separately.

The first reading of section 18 was concluded.

Statements on Section 19 -- ESCWA

Mr. FATTAH (Egypt) said ESCWA had been moved from Beirut to Baghdad to Amman, and might be moved out of Amman. All of that created disruption for staff members and a lack of stability. Nevertheless, the commission's efforts were appreciated and needed support, for example, in the protection of the

Fifth Committee - 7 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

environment. Following the Gulf War, environmental pollution had been significant. The tendency to reduce resources was a matter of concern.

MOHAMED AL-ASHBI (Yemen) expressed support for the comments made by Egypt, and support for the financing of the commission. It did not have enough resources to move to its new site, which was possibly Beirut. "We depend on ESCWA", he said. The commission supported development plans in Yemen and other countries of the region. Its resources should be increased.

Mr. GODLEY (United States) proposed a reduction in ESCWA's budget in a manner which would not adversely impact its work. While water resources were important to the region, the relevant subprogramme (No. 1) could be scaled back. Work on the regional power-generation network would be more appropriately conducted in the private sector. It was questionable whether the work of subprogramme 2, involving mostly analytic work on human development issues -- including those on shelter, women and poverty alleviation -- contributed to the ongoing work in other bodies of the Economic and Social Council; it should be eliminated.

Subprogramme 3, which devotes considerable resources to evaluating the prospects for various regional projects and developing statistical indicators, could be significantly scaled back, he said. Subprogramme 4 -- which focuses on evaluation and on providing macroeconomic policy recommendations -- duplicates the work of the United Nations Conference on Trade and Development (UNCTAD), the World Trade Organization (WTO) and other institutions, and should be eliminated.

He said the United States was concerned about the level of programme support for ESCWA. The proposed 1996-1997 budget was $18.5 million and 163 posts -- almost half of ESCWA's resources. By comparison, the ECE with a considerably larger membership, allocated only 8.8 per cent of its budget to programme support. "The programme support for ESCWA is grossly overstaffed and is unlikely to be using resources efficiently."

LARBI DJACTA (Algeria) said the commission was important and should be supported adequately to carry out its mandates. He would return to the issue of resources during informal consultations.

Mr. TAKASU said the ESCWA budget had been prepared on the basis of its programmes of work and in relation to the medium-term plan. The commission had tried to reorient its work, taking a more thematic approach and changing their previous fragmented nature. Subprogramme 2, on improving the quality of life, was a high-priority activity for ESCWA. The appearance of duplication did not mean that its activities were not useful. Subprogramme 4, on regional development and global changes, had received the unanimous endorsement of ESCWA members and was a high priority. The statement that ESCWA was inefficient because it used a large part of its budget on programme support

Fifth Committee - 8 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

was inaccurate. Such a simplistic analysis was damaging to the budgetary process. The ECE was based in Geneva and received some programme support from other entities there. ESCWA, on the other hand, had to get its own support for such items as security, conference service and finance. The ECE received support worth some $40 million from the United Nations Office in Geneva. If that amount was tallied, ECE would then be seen as spending more than $50 million on programme support. It was inaccurate to conclude that ESCWA was spending more on programme support.

The Committee then concluded its first reading of section 19 and referred it to informal consultations.

Statements on Section 20 -- regular programme of technical cooperation

SYED RAFIQUL ALOM (Bangladesh) said he had strong reservations about the merit of the programme. It had a lot of duplication and overlap. The United Nations Development Programme (UNDP) provided catalytic support to all Member States and there were also specialized agencies that had independent programmes. The programmes in section 20 should be clarified to enable the Committee to see whether the $44 million proposed was justified. Unless the short-term advisory services could be linked to regional, global or national issues, how could funds be allocated? he asked.

STANISLAUS MONGELLA (United Republic of Tanzania) said the section's activities were relevant to the development of some countries. As the ACABQ had stated, the Secretariat should provide information on how to streamline and adjust the effectiveness of the programme. When one looked at short-term advisory services, their impacts could have ripple effects. The programme for training could be supported because developing countries needed that kind of help. The proposals should be supported.

Mr. GODLEY (United States) encouraged continuation of the technical assistance activities of the United Nations system. However, the resources under the regular programme of technical cooperation represented unprogrammed funds which were allotted to various United Nations activities to implement unspecified technical cooperation activities. As the regular programme of technical cooperation was funded through assessed contributions, those expenditures should be clearly defined and justified. They should not be used to fund activities not specified in the regular budget. The United States concurred with the ACABQ regarding the monitoring, evaluation and control of those resources.

The regular programme of technical cooperation should be phased out of the regular budget, he said. It should be funded solely through voluntary contributions. As a first step, the basis for those resources should be specified and the levels allocated to that programme reduced.

Fifth Committee - 9 - Press Release GA/AB/3033 18th Meeting (PM) 2 November 1995

MORTEZA MIR MOHAMMAD (Iran) said that, despite the extreme importance of economic development for the developing countries, the share for human rights activities was many times that for other activities. He asked for clarification on that, and on the revised programme for human rights.

Mr. TAKASU, United Nations Controller, said Member States had agreed that the regular budget should be used for technical cooperation activities. All specialized agencies included provision for technical cooperation from assessed contributions in their regular budgets. Economic development was one of the main pillars of the objectives of the United Nations. All Member States were expected to make shared contributions according to the scale of assessments for such programmes.

The General Assembly decided, in 1969, that the Secretary-General would be given the authority to approve individual technical cooperation projects, he said. The Secretary-General had delegated that authority to the heads of the implementing offices.

In response to the point raised by the representative of Iran, Mr. Takasu said the revised programme for human rights had been approved by the General Assembly.

SAM HANSON (Canada) said his country was fully committed to technical cooperation for development. However, that left open the question of the most appropriate level of funding and the method of administering such funding. The time had come for a fundamental review. The expenses appropriated under that budget section existed only to be transferred to other entities, which were represented by other sections of the budget. That process was unnecessarily complex and did not provide for sufficient transparency and control by the General Assembly.

Little information had been provided on specific activities to be funded, he said. General indications were not sufficient when dealing with regular budget funds raised through assessed contributions. In other budget areas, Members rightly expected detailed information in advance on how funds were to be used. It would be better if the budget section for each agency specified the technical cooperation activities to be funded from the regular budget -- if, indeed, the regular budget was to be used.

The Committee thus completed its first reading of section 20 of the proposed programme budget.

* *** *