SPEAKERS IN SECOND COMMITTEE DRAW ATTENTION TO OPPORTUNITIES, RISKS, UNCERTAINTIES IN GLOBALIZATION OF WORLD ECONOMY

Press Release
GA/EF/2704

SPEAKERS IN SECOND COMMITTEE DRAW ATTENTION TO OPPORTUNITIES, RISKS, UNCERTAINTIES IN GLOBALIZATION OF WORLD ECONOMY

Several speakers in the Second Committee (Economic and Financial) this morning drew attention to the opportunities, challenges, risks and uncertainties of the process of globalization of the world economy, as debate continued on trade and development, science and technology for development and the Programme for least developed countries.

Some countries continued to ignore agreed rules of the multilateral trade system, bending to domestic pressures, the representative of Colombia warned. Negotiating practices which characterized the Uruguay Round were being repeated in the World Trade Organization, where groups of countries were taking decisions which were then presented to the participants as a fait accompli. Issues on the agenda of the new organization should not go beyond its mandate, he stressed.

The representative of China said his country was still being excluded from the World Trade Organization because of interference and obstruction by a few countries. That was a very regrettable state of affairs. China remained firm in its intention to join the new organization, he stated, adding that any unrealistic demands that did not reflect China's present economic reality were unacceptable. Regardless of whether, or when, China became a part of the organization, it would continue its reform process and its open policy.

The ninth session of the United Nations Conference on Trade and Development (UNCTAD) would provide a useful opportunity for an assessment of the impact of the Uruguay Round from a development perspective, the representative of India said. Some form of monitoring mechanism should be established to ensure that, in the implementation of the Round, interests of developing countries were adequately protected. Attempts to bypass and undermine multilaterally agreed frameworks through unilateral action and demands for concessions from the developing countries beyond those agreed to in the Uruguay Round should be resisted.

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Statements were also made by the representatives of Uganda, Tunisia, Benin, Kenya, Libya and Nepal.

At 3 p.m. today the Committee is scheduled to continue its consideration of trade and development-related matters and begin consideration of human settlements, including preparations for HABITAT II. It is also scheduled to hear the introduction of draft resolutions on international migration and development; financing of development; Israeli settlements in Palestinian territory, including Jerusalem, and other Arab territories occupied since 1967; and communication and development.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to continue consideration of trade and development; science and technology for development; and implementation of the Programme of Action for the Least Developed Countries for the 1990s. Those matters are being taken up as sub-items under the general heading "sustainable development and international economic cooperation".

Reports before the Committee address needs and problems of land-locked developing countries; the drafting of an international code of conduct on the transfer of technology; economic measures as a means of political and economic coercion against developing countries; translation of commitments made at the Uruguay Round into concrete actions; and United Nations support system for science and technology in Africa. (For background information, see Press Release GA/EF/2703, of 13 November.)

The Committee was also scheduled to hear introduction of draft resolutions on international migration and development; financing of development; Israeli settlements in the Palestinian territory, including Jerusalem, and other Arab territories occupied since 1967; and communication and development.

The draft resolution on international migration and development (document A/C.2/50/L.12) is sponsored by the Philippines on behalf of the "Group of 77" developing countries and China.

Under its provisions, the Assembly would invite the Commission on Population and Development to consider in 1997 the interrelationship between international migration and development, including aspects relating to the objectives and modalities for the convening of a United Nations conference on international migration and development. Organizations and bodies would be called upon to address the issue of international migration and development and to submit their views to the Secretary-General.

Also by the draft, the Economic and Social Council would be invited to consider at its 1997 organizational session the issue of international migration and development as a theme in the context of its agenda for that year. The Secretary-General would be requested to designate a clearly identifiable, qualified and competent focal point on that issue within the Department for Policy Coordination and Sustainable Development. He would be requested to submit a report containing concrete proposals on ways of addressing the issue of international migration and development, including aspects relating to objectives and modalities for the convening of a United Nations conference on the subject.

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By another draft (document A/C.2/50/L.13), the Assembly would reaffirm that Israeli settlements in the Palestinian territory, including Jerusalem, and other Arab territories occupied since 1967 are illegal and an obstacle to economic and social development. It would recognize the economic and social repercussions of the Israeli settlements on the Palestinian people in the Palestinian territory occupied by Israel since 1967, including Jerusalem, and on the Arab population of the occupied Syrian Golan. The inalienable right of the Palestinian people and the population of the occupied Syrian Golan to their natural and all other economic resources would be reaffirmed, and any infringement of it would be considered as illegal.

The draft is sponsored by Bangladesh, Cuba, Egypt (on behalf of the Group of Arab States) and Malaysia.

The draft resolution on communication and development (document A/C.2/50/L.14) is also sponsored by the Philippines on behalf of the Group of 77 and China. It would have the Assembly recognize the need to intensify work on development communication with a view to facilitating inter-agency cooperation and maximizing the impact of the development programmes of the entities concerned.

Also by the draft, the Assembly would regard the informal mechanism of the roundtable conferences as an appropriate forum for continuing to explore the appropriate use of communication in enhancing the role of the United Nations system as a development partner. That mechanism brings together communication experts for development and representatives of the entities of the United Nations, including the Department of Public Information (DPI). The Joint Inspection Unit (JIU) would be requested to include development communication requirements of developing countries in its study entitled "A review of telecommunications and related information technologies in the United Nations system".

In addition, the Assembly would emphasize the need for the organizations and bodies of the United Nations system to develop a systematic approach to capacity-building in development communication, particularly with respect to training of fieldworkers and development workers and technicians. The donor community would be called upon to provide adequate resources to support and expand development communication activities, and be encouraged to use appropriate funding modalities and mechanisms within the context of international cooperation.

By a further draft resolution sponsored by the Philippines on behalf of the Group of 77 and China (document A/C.2/50/L.15), the Assembly would decide to convene in 1998 an international conference on the financing of development to take stock of the implementation of internationally agreed commitments and recommendations relating to the financing of development and of follow-ups to various international conferences held since 1990.

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Under other provisions of the draft, the Assembly would affirm the urgent need to reverse the persistent decline in overall flow of official development assistance (ODA) and provide new and additional resources for financing the development of developing countries. Developed countries would be called upon to fulfil fully by the year 2000 the internationally agreed target of 0.7 per cent of gross national product (GNP) for such assistance and the target of 0.15 per cent for least developed countries. The complete fulfilment of the commitments under the International Development Association (IDA) tenth and eleventh replenishments would be called for. Also called for would be a substantial augmentation of the resources of the International Monetary Fund (IMF) to enable it to fulfil its functions better, including enabling the Enhanced Structural Adjustment Facility to become a permanent window.

The need for the international community to create a favourable international environment to reduce volatility in private capital flows to developing countries would be stressed. The developed countries would be urged to provide adequate support for expanding the resource base for operational activities of the United Nations system to ensure that the Organization becomes a credible and effective partner in development. In addition, developed countries would be invited to examine the possibility of utilizing resources released as a result of the end of the cold war and the decline of military expenditures in support of the efforts of the developing countries to achieve sustained economic growth and sustainable development. They would be further invited to explore the possibilities of reallocating resources from their subsidies, particularly those of agricultural production, to augment the sources of financing for development. The need to explore other additional and innovative sources for such financing would be underscored.

Statements

ARUN KUMAR SINGH (India) said UNCTAD IX could provide a useful opportunity for an assessment of the impact of the Uruguay Round from a development perspective. Some form of monitoring mechanism should be established to ensure that, in the implementation of the Round, interests of developing countries were adequately protected. Compensation should be provided to those developing countries that experienced difficulties. Attempts to bypass and undermine multilaterally agreed frameworks through unilateral action and demand for concessions from the developing countries beyond those agreed to in the Uruguay Round should be resisted. Attempts to use environmental and social concerns for protectionist purposes were not acceptable.

He called for the strengthening of UNCTAD to enable it to discharge its mandate fully in the area of trade and development. The UNCTAD had a useful role as a universal forum where international trade policy could be analyzed

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and discussed in the context of its complex interrelationship with finance, technology, investment, services and sustainable development. Much more needed to be done to strengthen the capability of the United Nations system to contribute to science and technology. Both the State and the private sectors had important roles to play in that regard. Measures should be taken to promote access of small and medium size enterprises to technology. Barriers to access to technology should be removed.

KONG DEYONG (China) expressed satisfaction that the substantive preparatory phase for UNCTAD IX had already begun. The recently adopted provisional agenda for the Conference should provide a good foundation for a successful meeting. He expressed the hope that the organizational arrangements for the session and the groundwork for the consideration of items made by all the parties concerned would be strictly guided by the provisional agenda. The Conference must in no way be distracted from its consideration of substantive items, and its intergovernmental nature must not be impaired, in order to ensure that the ninth session would have a positive influence on the world's economic growth and on the development of developing countries.

The outcome of the Uruguay Round and the establishment of the World Trade Organization indicated the emergence of a new multilateral world trade system, he said. However, China, a country that had already become a major player in world trade, was still being excluded from this new organization because of interference and obstruction by a few countries. That was a very regrettable state of affairs. China remained firm in its intention to join the World Trade Organization. "We are prepared to assume the obligations contained in the Uruguay Round Agreement for a developing country, but any unrealistically high demands that do not reflect China's present economic reality are unacceptable to us. It needs to the pointed out that regardless of whether, or when, China becomes a part of the organization, it will continue its reform process and its open policy, and will continue to enhance its own economic development, and the world's."

Commenting on the relationship between science and technology and development, he said that from a long-term, strategic point of view, what was indispensable for lasting peace and development was strengthened development aid, a fuller role for science and technology and efforts to overcome poverty. He expressed the hope that the United Nations in its future reform would make greater efforts in that area. China recognized the importance of science, technology and education for a country's development and was fully prepared to engage in extensive cooperation with the United Nations.

ODYEK AGONA (Uganda) said the long-term structural transformation necessary in the poor countries to enable them to cope with the competition they were exposed to in the post-Uruguay Round trade regime would not be accomplished without considerable financial and technical assistance from the international community. Uganda would continue to advocate far-reaching

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measures in the area of development finance, resource flows, trade and transfer of technology, among others, in favour of the least developed countries. He urged full implementation of the undertakings in the Global Framework for transit transport cooperation and requested UNCTAD to help identify measures in favour of land-locked and transit developing countries.

He said in the African region, efforts were being made to increase awareness and understanding of science and technology within limited means. Africa's efforts could be complemented by the United Nations system along the lines proposed in the report of the Joint Inspection Unit, which was before the Committee. That would be a pertinent contribution towards the implementation of the United Nations New Agenda for the Development of Africa. The Second Committee should adopt a resolution that would pave the way for tangible contributions towards the promotion of science and technology in Africa.

ABDERRAZAK AZAIEZ (Tunisia) stressed the importance of the debate on trade and development issues as they affected the prosperity of nations. The link between trade and development was a timely one as developing countries were still facing the results of upheavals that had shaken the world. The signing of the agreements of the Uruguay Round marked a new phase in the history of international trade which included more predictability but also more challenges for developing countries. Tunisia was implementing political reforms along with a broad programme of economic reform to strengthen its economy so as to compete internationally.

Among measures taken by his country he cited the creation of a free trade zone. He said the special treatment for least developed countries agreed on at the Uruguay Round would reduce imbalances and lead the Trade Organization to increased efficiency. He stressed the importance of universal adherence to the commitments of the Uruguay Round. Covered protectionist measures were no longer appropriate in a world market characterized by globalization and interdependence. The absence of a real commitment to do away with protectionist measures might challenge the existence of the new regime created by the World Trade Organization (WTO). The Organization would then not be able to play the role established for it unless balanced bodies were created with the appropriate specialized institutions. He welcomed the agreement reached on cooperation between UNCTAD and the World Trade Organization.

RENE VALERY MONGBE (Benin) speaking on the Programme of Action for the Least Developed Countries, said his delegation associated itself with the statement of the representative of the Philippines on behalf of the Group of 77 and China. He also expressed support for the statement of the representative of Bangladesh.

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He hoped the next five years would see an improvement in the situation of the least developed countries. For the Plan of Action to be successful, he said, a number of measures had to be undertaken, including compliance with the commitments made by the international community, particularly in the area of finance and technical assistance, as well as implementation of recommendations on measures to benefit the least developed countries.

He said the decisions and recommendations of the recent major international conferences were a useful addition to the Programme of Action adopted at the Second United Nations Conference on the Least Developed Countries held in Paris in 1990. He urged a write-off of the debts of the least developed countries as recommended at the World Summit on Social Development. He welcomed the decision of Norway to host a meeting on ways to implement the 20/20 initiative adopted by the Copenhagen summit. Actions could not be carried out without true political commitment and international partnership. All States were duty bound not to marginalize the least developed countries, and all should join together to offer a better tomorrow for future generations.

JAIRO MONTOYA (Colombia) said globalization of the economy continued to deepen, giving rise to new opportunities, but that risks and uncertainties had also arisen. Some countries continued to ignore agreed rules, bending to domestic pressures. Negotiating practices which characterized the Uruguay Round were being repeated in the WTO, and groups of countries were taking decisions which were then presented to the participants as a fait accompli. Issues on the agenda of the new organization should not go beyond its mandate. The tendency to overload the new organization with matters beyond its scope, such as the environment, might distract attention from some fundamental priorities, such as the improvement of decision-making processes in order to make them more transparent and democratic.

The UNCTAD IX would provide a unique opportunity to discuss the impact of the globalization of the world economy, he said, a process that had not yet been reflected throughout the world economy. Economic disparities were now greater than before and the number of least developed countries was increasing. Globalization had not led to better distribution of income and poverty continued to spread. The UNCTAD was the best place to address those issues, and UNCTAD IX would measure up to those challenges.

C.M. KANG'E (Kenya) called for the strengthening of UNCTAD and the United Nations Industrial Development Organization (UNIDO), including the provision of adequate resources to support efforts of developing countries to accelerate economic growth and to enhance their competitiveness in the market place. He urged resistance to protectionism and commitment to the Uruguay Round agreements. Assistance should be provided to developing countries, particularly those in Africa, to mitigate the negative effects of the

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weakening of the preferential schemes under the Lome Convention and the General System of Preferences.

He called for the enhancement of international cooperation in science and technology and facilitation of access to affordable new technologies for the developing countries. He expressed appreciation for United Nations efforts to strengthen the endogenous capacity of developing countries in science and technology, and also called for adequate resources to support the development of that capacity.

AMARA A. ELBATEL (Libya) said world economic prosperity had not followed international political events. He was concerned about new protectionist measures, in the form of environmental and social conditionalities, which were being implemented. Economic coercion was being applied by certain developed countries against some developing countries, which was contrary to the United Nations Charter and to international law. Those measures affected harmony among countries.

Many resolutions had been adopted by the international community in order to counter steps taken by those developed countries, he said, but they continued to impose coercive measures, which had been expanded to include the refusal to transfer technology. Libya was among the countries subjected to coercive measures imposed by the United States, which continued its stubborn refusal to find peaceful solutions to problems. The international community should adopt effective measures to counter those taken by developed countries against developing ones.

VINOD KUMAR SHRESTHA (Nepal) urged the development partners of the least developed countries effectively to implement the recommendations of the Mid- term Global Review Meeting for the remaining half decade. He reaffirmed the right of access of land-locked countries to and from the sea and urged the international community to support them through the Global Framework for Transit Transport Cooperation between Land-locked and Transit Developing Countries and the donor community.

He also called upon the Secretary-General to take necessary measures fully to equip UNCTAD's Division for Least Developed Countries to enable it to discharge its new responsibilities. In implementing structural adjustment programmes, he said, special attention should be given to the setting up of safety nets in the social development sector of least developed countries to help them protect vulnerable groups of their society.

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