INTERNATIONAL CONFERENCE ON DEVELOPMENT FINANCING WOULD CONVENE IN 1998, UNDER TERMS OF SECOND COMMITTEE DRAFT TEXT
Press Release
GA/EF/2705
INTERNATIONAL CONFERENCE ON DEVELOPMENT FINANCING WOULD CONVENE IN 1998, UNDER TERMS OF SECOND COMMITTEE DRAFT TEXT
19951114 Four Draft Resolutions Introduced; Other Texts Concern Focal Point on Migration, Development Communication, PalestineThe General 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 addressing that issue, by the terms of one of four draft resolutions introduced this afternoon in the Second Committee (Economic and Financial).
Sponsored by the "Group of 77" developing countries and China and introduced by the representative of the Philippines, the draft would also have the Assembly stress the need for the international community to create a favourable international environment to reduce volatility in private capital flows to developing countries. Further, the Assembly would invite developed countries to explore the reallocation of resources from their agricultural subsidies to augment the sources of financing for development.
By another draft introduced by the Philippines on behalf of the Group of 77, the Secretary-General would be requested to designate within the Department for Policy Coordination and Sustainable Development a clearly identifiable focal point on international migration and development. The Secretary-General would also be requested to submit a report addressing, among other issues, the convening of a United Nations conference on international migration and development.
The third Group of 77 draft introduced this afternoon would have the Assembly request the Joint Inspection Unit (JIU) to include development communication requirements of developing countries in its study entitled "A review of telecommunications and related information technologies in the UN system". The need for the United Nations system to develop a systematic approach to capacity-building in development communication, particularly in training field workers and development workers and technicians, would be emphasized.
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The final draft text, introduced by the representative of Egypt on behalf of the Group of Arab States, would have the Assembly 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.
Also this afternoon the Committee concluded consideration of a cluster of items on trade and development-related issues. Statements were made by the representatives of the Kyrgyz Republic, Venezuela, Myanmar, Belarus, Malaysia (on behalf of the Association of South-East Asian Nations), Iran, Lesotho, Australia, Singapore, Pakistan, Belize, Republic of Korea, Ukraine, Ethiopia and the Sudan.
The Committee will meet again at 10 a.m. Wednesday, 15 November, to begin consideration of human settlements, including the convening of the United Nations Conference on Human Settlement (Habitat II).
Committee Work Programme
The Second Committee (Economic and Financial) met this afternoon to continue its consideration of trade- and development-related matters and begin consideration of human settlements, including preparations for United Nations Conference on Human Settlements (Habitat II) (Istanbul, 1996). (For information on trade and development, see Press Release GA/EF/2703 of 13 November.)
The Committee was also scheduled to hear the 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. (See Press Release GA/EF/2704 issued today.)
The Committee had before it a number of documents covering the second session of the Preparatory Committee for the Human Settlements Conference, the work of the fifteenth session of the Commission on Human Settlements and implementation of the Global Strategy for Shelter to the Year 2000.
According to one report (document A/50/37), the Preparatory Committee for the United Nations Conference on Human Settlements (Habitat II), at its second substantive session held in Nairobi from 24 April to 5 May 1995, took a number of decisions requiring action by the General Assembly during its current session. By one decision, the Assembly would allocate, within existing United Nations budgetary resources, sufficient funds to cover the costs of general temporary assistance, advisory services, secretariat operations, communications, consultants, information dissemination, and miscellaneous expenses for the period October 1995 to July 1996.
The Assembly would also decide that a third session of the Preparatory Committee be held in New York from 12 to 23 February 1996 to finalize negotiations on the draft statement of principles and commitments and global plan of action of the United Nations Conference on Human Settlements. In a third action, the Assembly would deal with organizational questions, including the establishment of committees and procedural business of the Conference, which is scheduled for 3 to 14 June 1996 in Istanbul, Turkey.
An annex to the report of the Preparatory Committee spells out the proposed organization of work of the Conference, based on the experience of recent United Nations conferences. As recommended by the Committee, the General Assembly would authorize the convening of pre-Conference consultations on 1 and 2 June 1996 in Istanbul, with the purpose of enabling all participating States to reach agreement on all procedural and organizational matters, including the election of officers, the agenda, the composition of the General Committee and the rules of procedure. The Assembly at its current
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session would endorse the provisional rules of procedure for the Conference approved by the Preparatory Committee.
To ensure the broad-based participation of local authorities in Habitat II, the General Assembly would authorize a special modality, comparable to that provided representatives of national human rights institutions at the 1993 Vienna World Conference on Human Rights and to the representatives of selected scientific associations at the 1994 Yokohama World Conference on Natural Disaster Reduction.
A draft text approved by the Commission on Human Settlements at its fifteenth session (document A/50/8) would have the General Assembly adopt the Global Strategy Plan of Action for 1996-1997 and urge governments, relevant United Nations and private sector organizations and intergovernmental organizations to prepare and implement their specific plans of action. The Assembly would also urge governments, in preparing their plans, to strengthen integrated national shelter strategies and to review them regularly.
Governments would also be invited by the Assembly to make voluntary contributions to the United Nations Habitat and Human Settlements Foundation.
The Assembly would further request the Preparatory Committee for the Habitat II Conference to take into account the conclusions of the mid-term review of the Global Strategy, as well as the Plan of Action for 1996-1997 in the preparation of the Global Strategy Plan of Action.
According to another report, (document A/50/8/Add.1) the objective of the Global Strategy is to facilitate adequate shelter for all by the year 2000. The report contains extensive guidelines for the consideration of governments to define the roles of the public, private, non-governmental and community sectors in the delivery of shelter and services within an enabling framework. Under such enabling strategies, the actual construction of shelter is undertaken by people through their own initiatives as cooperative organizations, or as individual households.
The document on the implementation of the Global Strategies states that many countries, particularly the least developed ones, have moved away from direct construction, but have not yet been able fully to mobilize the flow of public and private funds to support the development of the private sector. The large-scale freeing-up of the land market for housing or the introduction of extensive settlement-level infrastructure, which would mobilize private finance into housing, is happening in only a few countries, it states. Many countries have made the institutional and legislative changes towards an enabling strategy but are yet to make the level of investment in infrastructure necessary to induce the other actors in the sector.
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According to the report, the mid-term review of the implementation of the Strategy, being undertaken by the Centre on Human Settlements (Habitat II), would provide new guidance for action at the country level.
A note by the Secretary-General (A/50/411) reviews the activities of the various regional commissions in preparation for the Habitat II Conference.
Introduction of Draft Resolutions
NERMIN WAFIK (Egypt), speaking in her country's capacity as Chairman of the Group of Arab States, introduced a draft resolution on Israeli settlements (document A/C.2/50/L.13.)
Under that text, 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 illegal.
The draft is sponsored by Bangladesh, Cuba, Egypt (on behalf of the Group of Arab States), Indonesia and Malaysia.
LIBRAN N. CABACTULAN (Philippines), on behalf of the Group of 77 and China, introduced a draft resolution on communication for development (document A/C.2/50/L.14.)
That draft 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.
The Assembly would regard the informal mechanism of the round-table 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".
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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 field workers 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.
Mr. CABACTULAN (Philippines) also introduced another draft resolution on behalf of the Group of 77 and China (document A/C.2/50/L.15), which would have the Assembly 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.
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 to 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 fulfillment of the commitments under the International Development Association (IDA) tenth and eleventh replenishments would be sought. 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, in particular 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.
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Mr. CABACTULAN (Philippines) then introduced, as orally revised, a draft resolution on international migration and development (document A/C.2/50/L.12) which is also sponsored by the Group of 77 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 related to the objectives and modalities for the convening of a United Nations conference on that question. 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 and to submit a report containing concrete proposals on ways of addressing that question, including aspects related to objectives and modalities for the convening of a United Nations conference.
Statements
IGNACIO GARCIA, a representative of the European Community, said developing countries as a group had become major and dynamic exporters and importers and played an increasingly important role in the multilateral trading system. He said during the period of 1991 to 1993, the rate of growth of developing country trade substantially exceeded the overall rate of growth of world trade. That improvement, he said, reflected the overall trend towards greater trade liberalization, as well as the efforts made by many developing countries to apply sound macroeconomic policies and more open trade and investment regimes. A strong commitment by both developed and developing countries to sustain and pursue the process of trade liberalization was a critical condition for sustainable development.
He said a major challenge for the implementation of the Uruguay Round would be to ensure that the least developed countries, in particular those in Africa, could fully benefit from increased trade opportunities. The Marrakesh Ministerial decisions concerning the least developed countries should be implemented. The European Union, which was the least developed countries' largest trading partner and provided about 60 per cent of their preferential export markets, was fully committed to that objective. Regional economic integration, provided it was outward oriented and supportive of the multilateral trading system, greatly contributed to the expansion of global
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trade and enhanced growth and development possibilities. The European Union supported that trend and believed new opportunities had been created for enhanced cooperation among different regional organizations.
He said the ninth session of UNCTAD provided an opportunity to consider the organization's future role and its institutional implications. The European Union was convinced of the importance of UNCTAD's role relating to trade issues from a development perspective and in facilitating the participation of developing countries in international trade. Those functions were, to some extent, larger in scope than those of the World Trade Organization. A clarification of UNCTAD's role in relation to the World Trade Organization, Department for Economic and Social Information and Policy Analysis and Department for Policy Coordination and Sustainable Development would, however, be important to ensure complementarity and avoid overlaps and duplication. He added that UNCTAD should also give greater attention in its work and programmes of cooperation to the needs of the least developed countries.
JENICH KADRAKOUNOV (Kyrgyz Republic) drew attention to a conference of five newly independent central Asian republics held in his country with the support of the United Nations Development Programme (UNDP). It had been the first time that those countries had come together to discuss common issues, including the environment. Among other decisions, they had noted serious demographic problems since their independence and had agreed to meet again on the matter. The five republics had signed a declaration pledging to combat their common problems together and to reach a regional agreement on trade and transit. UNCTAD assistance in that regard would be helpful. Assistance from relevant organizations in developed countries was also needed. The five republics had decided to repeat the same exercise every two years.
He went on to say that the United Nations system should be more actively involved in all phases of structural adjustment programmes. He joined earlier speakers in urging the United Nations to intensify efforts to streamline operational activities for development.
MILENA SANTANA (Venezuela) said her delegation supported the statement made by the Philippines on behalf of the Group of 77 and China. She noted the progress made in strengthening multilateral trade and welcomed efforts of UNCTAD in that respect. She hoped the World Trade Organization would follow that effort and also help developing countries achieve socioeconomic development. She was concerned about the linkage of trade and environment being advanced by some countries for national protectionist interest. Such actions would not advance international trade.
She said an international seminar on trade and environment held at the end of last July in Caracas had called for resources to promote studies in developing countries on trade and environmental issues.
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U SAW WYNN (Myanmar) said his Government had implemented far-reaching economic reforms, replacing the centrally planned socialist system with a market-oriented economic system. With the formation of a privatization commission the Government had launched a process to increase efficiency through competition and to strengthen the role of the private sector. Fundamental and far-reaching economic and social reforms being implemented by least developed countries would be accelerated it they were accompanied by adequate external financing and international support measures.
He stressed that the implementation of the Programme of Action for the least developed countries would enable those countries effectively to address their social and economic needs and ultimately the alleviation of poverty.
ALEXEI A. MOJOUKHOV (Belarus) attached great importance to the World Trade Organization. His country was implementing reforms concerning trade, he said, but those efforts required acceptance by the international community. A small European Government, Belarus looked forward to trade opportunities with the European Union. The country exported finished products, but it was also an energy importer. Without an outlet to the sea, Belarus was interested in establishing a modern communication system. Its reforming economy could in the future become an important link in meeting European needs. The necessary legal and economic conditions had to be established in that regard.
Efforts to diversify the export-import situation faced some obstacles, he said. His country's exports were held back by an inadequate international economic environment, among other problems. Belarus was seeking to restore trade ties with some Asian countries, which were now countries in transition. It was linking old trade ties with new ties. He called for the immediate signing of an agreement with the European Union on trade matters, and reiterated his Government's interest in UNCTAD's activities, including efforts directed to countries in transition. He proposed that Belarus be selected as a case study on information technology and its impact on the process of development by the Commission on Foreign Investment and Transnational Corporations of UNCTAD.
S. THANARAJASINGAM (Malaysia), speaking on behalf of the Association of South-East Asian Nations (ASEAN) countries (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Viet Nam), said international trade had contributed significantly to their progress. The export-led growth pursued by them had been coupled with sound domestic macroeconomic management and sustained political stability. That had contributed to sustained economic growth and expansion in trade in most ASEAN countries. In 1993, ASEAN exports and imports were estimated respectively at $204 billion, or 5.5 per cent of global exports, and $224 billion, or 5.9 per cent of global imports. An increasing share of ASEAN exports now comprised manufactures and high-value-
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added goods, while its imports comprised capital and intermediary goods. With the generally improved world economic condition, it was widely expected that the future growth prospects of ASEAN countries would be further enhanced.
He said the first ministerial conference of the World Trade Organization scheduled to take place in Singapore in December 1996 should review and assess the implementation of the Uruguay Round agreement, complete the unfinished business of the Marrakesh Ministerial Meeting and examine the issues likely to have an impact on the post-Uruguay Round multilateral trading system. The meeting should focus on further enhancing the implementation of the Uruguay Round agreement and should also seek to resolve difficulties faced by the developing countries in implementing the agreement. The ASEAN was concerned that some developed countries continued to ignore multilaterally agreed trading rules by imposing unilateral protectionist measures. Equally of concern to the group was the increasing trend towards new types of protectionism such as environmental labelling and social clauses which would have a negative impact on economic growth and development, especially of the developing countries.
The ASEAN welcomed the convening of the ninth session of UNCTAD which, he said, should facilitate better understanding of issues, enhance cooperation and promote more effective decision-making. The unique role of the organization as a focal point for integrated treatment of development, trade and interrelated issues should be recognized. The UNCTAD should be strengthened and adequate resources provided to ensure that it carried out its tasks and responsibilities effectively.
BEHZAD ALIPOUR-TEHRANI (Iran) said the imposition of coercive economic measures and the unilateral actions taken by some developed countries against developing countries were absolutely contrary to the provisions of the Charter, as well as to the principles of international law. He called for effective measures to eliminate such illegal and anti-human actions.
He said the application of measures by industrial countries for surveillance of developing countries' goods introduced yet another ramification of extra-territorial measures. Those issues, together with the possible introduction of new arrangements within the system, made the role of the United Nations and its bodies more crucial in the efforts to balance global trade with development policies.
He called for the strengthening of UNCTAD and for a more concrete role for it in the process of integrating the developing countries into the world economy and the international trading system. He said Iran had been creating and expanding road, rail, air, sea and communication links with the newly independent central Asian States by investing in multi-billion dollar projects
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during the last few years. The projects offered not only closer and cost- effective alternative routes for access of the countries to the major seaports on the Persian Gulf, but also created a new trade route linking Europe and Southeast Asia.
PERCY M. MANGOAELA (Lesotho) said his country had chaired two recent meetings on land-locked and transit developing countries. Those meetings had agreed on a framework for transit cooperation which was a major breakthrough. The UNCTAD's support to those countries could not be overemphasized. Lesotho was committed to regional and subregional arrangements. In an increasingly interdependent world, the full benefits of trade liberalization would be difficult to achieve, let alone be broadly and evenly enjoyed, unless issues of concern to developing countries, such as debt, would find appropriate and durable solutions. The Global Framework for Transit Transport Cooperation was a solid basis for further strengthening international cooperation for alleviating transit-transport constraints of land-locked developing countries. The importance of a strong political will on the part of all concerned could not be overemphasized.
He welcomed the reaffirmation by the international community of the will to work cooperatively for the achievement of the primary objectives of the Programme of Action of the least developed countries, including that of arresting further deterioration in their socioeconomic situation. Since their consensus adoption in Paris in 1990, those objectives had been strengthened by the outcome of major international conferences which had reaffirmed the peculiar and difficult situations of the least developed countries. Full and effective implementation of the commitments of those international conferences was of utmost importance.
KATHY WONG (Australia) said the achievement of the outcomes of the Uruguay Round envisaged by the negotiators would depend on the extent to which all participants honoured the commitments made. Hard work would be needed to ensure that the commitments entered into in the Round were fully implemented. Australia reaffirmed the importance of an open, rule-based, equitable, secure, non-discriminatory, transparent and predictable multilateral trading system.
She said the establishment of the World Trade Organization provided for a significant upgrading in the governance of the international trading system. She noted the contact that had been initiated between the World Trade Organization and UNCTAD, adding that it was a good signal for future constructive cooperation. Australia encouraged UNCTAD to work in close complementarity and consistency with the World Trade Organization with regard to policy approaches, research and technical assistance. She hoped UNCTAD would become an efficient and focused market-oriented and complementary body to the World Trade Organization, one which would play a positive role in integrating developing countries into the global market economy and assisting them to implement the Uruguay Round agreements.
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LEE TEE WEE (Singapore) said regional trade arrangements should enhance competition rather than act as a shield to block the region from competition. Regional initiatives were an intermediate step to and not a substitute for the multilateral trading system. Singapore was supportive of regional initiatives so long as they were consistent with the World Trade Organization and were non-exclusionary. Globalization was one of the most powerful and pervasive influences on nations, businesses, workplace and communities. Global economic forces were causing regimes to topple, enemies to bury the political hatchet in a common quest for foreign investment and large corporations to rethink their strategies.
It was a paradox that while economies were globalizing, politics in many parts of the world were localizing, he said. In the wake of the impact of globalization, it was timely to reexamine the tools that were really needed to address the issues in a holistic and integrated manner. That would require a rethinking and an attitude change. There should be an ethic of solidarity on the international economic scene to address the suffering of millions of people living in poverty.
AMIN DADA (Pakistan) said there was a disturbing emergence of protectionism in new forms. There were also ominous signs that developed economies were seeking to protect inefficient sectors of their economies by restraining imports on various pretexts, such as concern for the environment or the rights of workers in the developing countries. Such linkages could not be accepted. The objective of growth of developing countries warranted not only greater market access for their products but special and more preferential treatment to them. All regional arrangements should be scrutinized closely to ensure that they did not discriminate against imports from outside.
He said the conclusion of the Uruguay Round should not give rise to illusory feelings that all had been accomplished. For many developing countries, much remained to be done. Pakistan was fully committed to the attainment of an equitable and non-discriminatory global trade regime. It was also committed to taking measures to ensure greater access of goods and services from outside countries to its own markets. Pakistan hoped all countries, especially the developed ones, would be guided by the same principles while formulating their trade policies.
EDWARD A. LAING (Belize) said that traditionally countries had been permitted to take certain notable exceptional discriminatory measures, notwithstanding the general requirement of non-discrimination. Those had included domestic measures for business or trade regulation, the protection of life or health, the protection of national treasures or natural resources, and the protection of public morals or public order and national security.
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Although national security was normally a serious business about which States could do as they pleased, GATT and general international practice had not tolerated far-reaching claims under that heading. That had been reflected in the report on economic measures as coercion. While generally endorsing the report on coercion, he did not concur with the views of some that "the application of coercive economic measures cannot be completely excluded in a realistic consideration of international relations" and that judgements should be "made on a multilateral basis". In matters relating to coercive measures in the period since the Second World War, the only arbiter was universal authority and the only guide was the Charter.
Globalization was a novel phenomenon that challenged conceptual and creative abilities he said. It may have some aspects that conflicted with the equality, self-determination and democracy essential to the United Nations. If that were so, the harm could be far-reaching. It could merit the development of exceptions to formal equality, as was done with cases of permitted discrimination. The Secretariat should urgently carry out work on the topic.
SANG-YOON KIM (Republic of Korea) said the international community must not allow further impoverishment and marginalization of the least developed countries. UNCTAD had a vital role to play in that regard. He expressed the hope that UNCTAD IX would produce tangible results and concrete actions for developing countries and the least developed countries in particular. He attached great importance to commodity agreements for assisting developing countries and the least developed countries in particular. Conclusion and implementation of commodity agreements among developing countries should be vigorously pursued. Moreover, the trade agreements among developing countries should be considered as useful mechanisms, considering the potential for capitalizing on complementarity of developing countries.
Consensus in multilateral forums should be pursued to avoid unilateral measures in the area of trade, he said. Addressing science and technology for development, he noted that the process of gaining technological capability was not instantaneous, cost-free or automatic. The international community should continue to help developing countries strengthen and develop their national capacities and capabilities in the field of science and technology. In the area of environmentally sound technologies the transfer of technology should be promoted on concessional and preferential terms to facilitate the implementation of Agenda 21 of the United Nations Conference on Environment and Development.
SERGIY YAMPOLSKY (Ukraine) said the forthcoming ninth session of UNCTAD would be significant in defining the organization's future role. It was important for the organization to continue its assistance to countries in implementing the outcome of the Uruguay Round of trade negotiations and to provide technical assistance to countries in transition and the developing
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countries. The UNCTAD should be strengthened to carry those tasks. He hoped the full implementation of Uruguay Round agreements would allow products of countries in transition to gain access to international markets. He was concerned about the lack of effective work in the area of science and technology.
BERHANU KEBEDE (Ethiopia) said that least developed countries had implemented socioeconomic and political reforms, and had pursued sound macroeconomic policies to accelerate growth and ameliorate poverty. Despite those economic reform measures, the economic conditions of the least developed countries had actually deteriorated.
The primary challenge for least developed countries and their partners today was to reverse those adverse trends and take full advantage of the opportunities for growth and development, he said. The challenge of expanding exports, improving competitiveness and diversifying export commodities and their markets deserved serious consideration. The support of the international community was crucial for implementing least developed countries' efforts in development finance, investment and technical assistance. Assistance should seek to offset adverse consequences in the short run and, over the longer term, to take full advantage of special measures accorded in various agreements.
The least developed countries would depend on official development assistance for some time in the future, he said. The timely replenishment of the International Development Association (IDA) and the "soft-term windows" of regional development banks and other grant-based multilateral programmes were utmost priorities. External debt had been a major factor in the economic decline of the least developed countries. The debt stock of least developed countries at the end of 1995 stood at $127 billion -- 76 per cent of their combined Gross Domestic Product. For most African least developed countries, external debt equalled or exceeded their gross domestic product. Implementation of the debt relief measures agreed to at the World Summit for Social Development deserved close consideration in preparing debt strategies.
IZZELDIN HAMID (Sudan) said the least developed countries needed international support for their economic and social development. More action was needed on their debt problem. They also required more investment and assistance in gaining access for their products to international markets.
He said that official development assistance to his country from both multilateral and bilateral sources had declined substantially between 1990 and 1995. Prior to 1990, the Sudan received, on a regular basis, an annual average of between $700 million and $800 million from various sources, including both development assistance and balance of payments support. Since 1990, the average flows of loans had declined from approximately $150 million in 1990 to a low of $29 million in 1994, mainly from the African Development
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Bank, the Islamic Development Bank and the Organization of Petroleum Exporting Countries (OPEC) Fund. All bilateral aid donors had stopped providing new grants to the Sudan in the early 1990s. Capital flows peaked in 1985 at $1.9 billion. That dropped to $773 million in 1989 and to $127 million in 1993-1994. The international community should live up to its commitments towards the least developed countries.
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