NINTH SESSION OF UN TRADE AND DEVELOPMENT CONFERENCE TO BE HELD IN MIDRAND, SOUTH AFRICA, 27 APRIL-11 MAY

19 April 1996

Press Release
TAD/1817

NINTH SESSION OF UN TRADE AND DEVELOPMENT CONFERENCE TO BE HELD IN MIDRAND, SOUTH AFRICA, 27 APRIL-11 MAY

19960419 Background Release Meeting to Focus on Need to Foster Growth, Reduce Inequality, Open 'Promise of Prosperity' to Everyone

GENEVA, 19 April (UNCTAD) -- Efforts to improve the lot of nearly half the world's population and open the "promise of prosperity" to everyone will be explored at the ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) to be held in Midrand, South Africa, from 27 April to 11 May. The objective of the Conference is to maximize the benefits of globalization and liberalization, while reducing the costs to the weaker economies. At the same time, the Conference will seek to address the issue of marginalization by devising strategies for integrating the "excluded 2 billion" into the mainstream of the world economy.

The unifying theme of UNCTAD IX is "Promoting growth and sustainable development in a globalizing and liberalizing world economy". On the basis of an assessment of development issues in the context of today's economic realities, the ninth session will attempt to devise global development strategies for the future.

In addition, the Conference will address matters related to the promotion of international trade as an instrument for development in the post- Uruguay Round era. It will discuss the promotion of enterprise development and competitiveness in developing countries and in States with economies in transition. Priorities for the future work of UNCTAD will also be set.

Some 2,500 participants from the 188 member States of UNCTAD are expected to gather for the event, which is held every four years and is the largest intergovernmental forum designed to promote development through trade and international economic cooperation. The Conference's assessment of the challenges and opportunities arising from the Uruguay Round Agreements will be transmitted to the first Ministerial Conference of the World Trade Organization (WTO), which will meet in Singapore from 9 to 13 December.

Secretary-General Boutros Boutros-Ghali will open UNCTAD IX on 27 April. President Nelson Mandela of South Africa will address the inaugural session, followed by UNCTAD Secretary-General Rubens Ricupero.

Following the inaugural session, the United Nations Secretary-General will preside over a round table on the following topic: "The excluded 2 billion: Integrating people in the global economy". Participants will include the UNCTAD Secretary-General, Mr. Ricupero; the Managing Director of the International Monetary Fund (IMF), Michel Camdessus; the Director-General of the WTO, Renato Ruggiero; the Administrator of the United Nations Development Programme (UNDP), James Gustave Speth; and the Managing Director of the World Bank, Sven Sandström.

A four-day general debate is scheduled to start on Tuesday, 30 April. Four ministerial round tables will be held concurrently with the general debate focusing on major topics before the Conference, including the benefits and dangers of globalization, international trade as an instrument for development, enterprise development, and the future work of UNCTAD in accordance with its mandate.

A Committee of the Whole will convene in parallel with the plenary throughout the first week of the Conference. Two drafting groups are scheduled to meet simultaneously from 6 to 8 May followed by a Contact Group. The final plenary meeting is scheduled for 11 May. The Conference will be preceded by a one-day meeting of senior officials on 26 April.

The ninth session of UNCTAD is the culmination of intergovernmental deliberations that started more than a year ago. A document prepared by the Trade and Development Board -- the executive body of UNCTAD that is open to all of its member States -- will form the basis for the negotiations. The President of the Board, William Rossier (Switzerland), called that document "an instrument for negotiations", which reflects the views of all parties in bracketed text. Given the short time available, there had not been negotiations proper, he said, adding that the Conference will have the task of finalizing the document in the light of discussions and negotiations at the ministerial level.

Parallel events being held in conjunction with the Conference include an international business conference on Africa called "Africa Connect". Also, southern African business leaders and high-level civil servants will gather to discuss recent developments in the process towards global trade efficiency at the "South Africa's National Event of Trade Efficiency", comprising a symposium and an exhibition.

Other events scheduled to be held in connection with UNCTAD IX include the Seventh Raul Prebisch Lecture, to be given on 29 April by Jagdish Bhagwati, Arthur Lehman Professor of Economics and Professor of Political Science, on the theme: "The Global Economy or the Global Age: An Opportunity, not Peril". The Raul Prebisch lectures were instituted in 1982 in honour of UNCTAD's first Secretary-General.

- 3 - Press Release TAD/1817 19 April 1996

Also scheduled is a meeting of some 100 non-governmental organizations that will bring their perspective to the intergovernmental deliberations at the Conference. That meeting will be held from 24 to 27 April at the Eskom Centre, near the Conference premises.

On 28 April, Ministers of the "Group of 77" developing countries are expected to adopt a declaration on UNCTAD IX, which will address the Group's future role in the organization. Ministers of the least developed countries are scheduled to meet on 1 May.

Three seminars will also be held. They concern development strategy and management of the market economy, on 29 April; risk capital investment in Africa, on 6 May; and trade, environment and sustainable development, on 7 May -- the latter is jointly organized by UNCTAD and the United Nations Environment Programme (UNEP). In addition, a joint UNCTAD/World Bank colloquium will address the theme: "Integrating developing countries into the global economy: challenges and opportunities".

The eight previous UNCTAD sessions were held in 1992 (Cartagena de Indias, Colombia); 1987 (Geneva); 1983 (Belgrade); 1979 (Manila); 1976 (Nairobi); 1972 (Santiago de Chile); 1968 (New Delhi); and 1964 (Geneva).

Features of the pre-Conference text and of other UNCTAD documents and related events follow.

Emerging Consensus

While the preliminary negotiating positions are contained in square brackets in the 61-page, four-part pre-Conference text (document TD/367), there is convergence on a number of broad development concepts and on ways to promote growth and sustainable development. Underlying that emerging consensus is a recognition that the processes of globalization and liberalization in the world economy offer both opportunities for development and risks of marginalization. The globalization of production and the liberalization of trade offer opportunities for all countries and enable developing countries to play a more active role in the world economy, according to the text. At the same time, those processes also increased the complexity and challenges involved in interdependence, as well as the risks of instability and marginalization. Some developing countries are already reaping the benefits. Others are less well placed to seize those opportunities.

"No country can evolve in isolation", the text states. "Each is part of a global economy that is increasingly interdependent in terms of economic activities and expectations in respect of living standards." Noting that "especially in Africa" economic and human well-being "lags seriously behind", governments recognize that "the challenge is daunting".

- 4 - Press Release TAD/1817 19 April 1996

Unequal Partners

In the trade area, "not all countries have been equally positioned" to seize the new trading opportunities and "there is thus a real risk" that a large number of them "could become further marginalized", the text states. The importance of special measures for the least developed countries to reduce the possible negative effects of the Uruguay Round Agreements is reaffirmed.

Governments are focusing on the basic question of how to enhance the integration of developing countries, particularly the least developed countries, as well as interested economies in transition, into world trade and the international trading system, the document continues. They are seeking agreement on measures which could enable those countries to derive maximum benefit from available trade opportunities in goods and services. Attention is being given to the difficulties faced by commodity-dependent countries in integrating into the trading system, for example, by examining successful commodity diversification experiences and promoting the exchange of information among commodity producers and consumers.

While many efforts have been undertaken by developing countries in commodity and market diversification, some have been more successful than others, the document goes on. In many cases, particularly for Africa and the least developed countries, "international assistance, enhanced market access opportunities, development finance, investment and technical cooperation can play a crucial role to complement domestic efforts". Donors are called upon "to cooperate with producer countries to facilitate the introduction of risk management instruments through institution-building, training and familiarization, as well as adaptation of local banking systems".

The UNCTAD's main role in the field of trade in goods and services should be to help maximize the positive impact of globalization and liberalization on sustainable development, the text states. That should be done by assisting in the effective integration of developing countries and economies in transition into the international trading system and addressing commodity issues, including the problem created by commodity dependence.

Views converge on the importance of competition policy; the "Set of multilaterally agreed equitable principles and rules for the control of restrictive business practices (RBPs)" is recognized as "the only multilateral instrument on RBPs and represents broad consensus of the international community on the importance of competition principles".

In order to enhance trade efficiency, says the text, UNCTAD should "assist developing countries, particularly the least developed countries, and countries in transition in generating trade-supporting services, such as customs, transportation, banking and insurance, telecommunications or business information which are adapted to their particular requirements, with a

- 5 - Press Release TAD/1817 19 April 1996

particular focus on services addressing the needs of micro, small and medium- sized enterprise sectors". It should consolidate the Trade Point Network by making Trade Points fully operational and effective and by assisting interested countries in establishing new Trade Points.

Focus on Enterprise Development

According to the text, in order to address the challenge of sustainable development, action is required on the part of both governments and non- governmental actors which form the civil society. The latter consists of "companies, large and small and both domestic and transnational, private investors, non-governmental organizations, universities and research centres". As for the role of governments, the text terms it as being essential in most countries for the "provision of basic infrastructure, ensuring the appropriate policy environment, stimulating the development of entrepreneurship and promoting or undertaking, as necessary, some functions which cannot, for reasons of scale or externality, be adequately initiated by the private sector".

The text states that foreign direct investment (FDI) is considered to be an instrument through which economies are being integrated at the level of production into the globalizing world economy. That is due to the function of FDI in bringing a package of assets, including capital, technology and managerial and organizational skills, and access to foreign markets. It also stimulates technological capacity-building for production, innovation and entrepreneurship within the larger domestic economy through catalyzing backward and forward linkages.

It is increasingly acknowledged that development policies, at both the national and international levels, need to be directed specifically at fostering viable and internationally competitive enterprises, including an entrepreneurial culture, the text continues. Within that context, the particular need to foster the development and expansion of small and medium- sized enterprises is vital.

Developing countries and interested economies in transition are encouraged to develop or strengthen their national strategies for fostering enterprise development, including through improvements that result in a sound regulatory framework for development, with particular focus on small and medium-sized enterprises, the text states. In doing so, they are also encouraged to broaden and deepen their dialogue with the business community, so as to ensure that enterprise development strategies take into account the needs of the private sector.

International institutions and governments are invited to provide targeted assistance for the creation and strengthening of the domestic enterprises of developing countries through policies and measures to ensure

- 6 - Press Release TAD/1817 19 April 1996

market access for the growth of enterprises in developing countries; to provide access to information networks by enterprises; and to enhance the transfer of technology to the developing countries through international trade and economic cooperation.

The UNCTAD should continue to provide a forum for intergovernmental discussions with the participation of representatives from the private sector concerning issues related to privatization, enterprise development and international flows of investment, the text goes on. In particular, it should promote an international dialogue among development actors for the purpose of assessing the challenges and opportunities for enterprise development arising from the emerging new economic conditions, including the post-Uruguay Round environment.

Enhancing Sustainable Development

Addressing the link between trade and the environment, the text states that "governments should have as their objective to ensure that trade and environmental policies are mutually supportive for sustainable development". Furthermore, "changes in production and consumption patterns to make them consistent with sustainable natural resource use will be more difficult to effect if environmental costs and benefits are not taken into account in the prices of products, or if the adoption of environmentally preferable production methods are not facilitated by other means.

As for the contribution by UNCTAD, governments share the view that one of its main challenges "will be to facilitate the process through which developing countries utilize the benefits of globalization to accelerate the attainment of the objective of sustainable development. For that purpose, it will be necessary to monitor how some of the basic elements for sustainable development evolve and interact in an increasingly globalizing world economy, and to track changes in those interactions. It will also be necessary to evaluate the impact of those elements on the development process, seek new opportunities for the furtherance of development resulting from globalization and liberalization, and provide policy approaches and actions to help developing countries integrate into the world economy and achieve sustainable development".

Streamlining UNCTAD's Intergovernmental Machinery

Governments agree that UNCTAD's intergovernmental machinery needs to be structured in accordance with the organization's future work programme, which should be more sharply focused on issues of central importance to development and on which it can make a substantial impact. The number of meetings should be reduced.

- 7 - Press Release TAD/1817 19 April 1996

That applies also to the Trade and Development Board, according to the text, which states that the Board should hold only one regular session, instead of two as in recent years. The regular session should be held in the fall, last approximately 10 working days and contain a high-level segment. In addition, the Board could convene three one-day executive sessions a year to deal with policy, management and institutional matters, or any urgent issues. When the Board is not in session, its elected bureau would take care of housekeeping business.

The text further states that the Board should have a smaller number of subsidiary bodies, known as commissions, with greater delegation of decision- making. Their sessions should not exceed five days. Commissions could convene short expert meetings to assist them in their tasks.

Report of UNCTAD Secretary-General

As in previous sessions, the Secretary-General of UNCTAD has prepared a report for the Conference (document TD/366). It discusses the topics before the Conference and contains proposals by the UNCTAD secretariat.

In his 79-page report to the ninth session, Mr. Ricupero states that the sole claim for the continued existence of UNCTAD "is its ability to make a relevant contribution to the tasks of fostering growth, reducing inequality and building its capacity to make a difference to people's lives".

The UNCTAD's activities should "be more sharply focused on a relatively small number of issues of central importance to development on which it can make a substantial impact", Mr. Ricupero says in chapter IV, which contains personal reflections on the future work of the organization. That applies both to analysis and to its tangible activities, for which priorities will be set by UNCTAD IX.

The private sector should be more involved in UNCTAD's work, according to the report. Multilateral institutions so far have failed to give adequate room to non-governmental actors who are increasingly shaping world affairs, such as transnational companies and private investors, non-governmental organizations, universities and research centres. By involving those actors, "we could help to convert a conference into a real partnership for development, making UNCTAD a model of what a truly international agency of the twenty-first century should be", he says.

Parallel Events

The international business conference on Africa called "Africa Connect", to be held in Midrand from 2 to 4 May, is organized jointly by UNCTAD and the South-Africa Council of the International Chamber of Commerce. The event is an expression of the willingness of the Secretary-General of UNCTAD to involve

- 8 - Press Release TAD/1817 19 April 1996

the private sector and other non-governmental actors more closely in UNCTAD's efforts to maximize the benefits of the globalizing economy for development.

The purpose of Africa Connect is to boost business in Africa through identifying opportunities for international and cross-country investment and trade. It will bring together business leaders from African firms and transnational corporations, African chambers of commerce and industry, investment promotion agencies and high ranking government officials, including ministers of trade and industry and ministers of finance.

Southern African business leaders and high-level civil servants will gather to discuss recent developments in the process towards global trade efficiency at the "South Africa's National Event on Trade Efficiency", also to be held in Midrand in parallel with the Conference. That National Event comprises an Executive Symposium on Trade Efficiency (from 29 to 30 April) and an exhibition of electronic trading technologies, open from 30 April until the end of the Conference.

The National Event is organized by the South African Department of Trade and Industry, with the substantive and technical cooperation of the UNCTAD secretariat and funding by the Government of Switzerland, as well as private companies.

Building on the success of the 1994 United Nations International Symposium on Trade Efficiency (Columbus, United States), the Midrand Executive Symposium will consist of six interactive, action-oriented panels. Speakers from southern Africa and from international organizations at the forefront of trade efficiency will present new developments in each of the main trade- supporting services -- customs, transport, banking and insurance, telecommunications, business information and trade facilitation.

Over 40 Trade Point managers from developing countries and economies in transition, along with 30 from developed countries, will have the opportunity to discuss the development of the Global Trade Point Network (GTPNet) during the Symposium. They will display their products and services at the technological exhibition, where a model Trade Point will also be displayed.

Trade Points are centres for facilitating trade transactions, bringing together the services of all potential agents involved in trade (customs, banks, transporters, insurance companies, etc.) either physically or via electronic connections; sources of trade-related information on markets, procedures, regulations; and gateways to global networking using modern technology to provide access to international databases, find trade matches and open the door to electronic commerce.

- 9 - Press Release TAD/1817 19 April 1996

UNCTAD Membership

The following States are members of UNCTAD: Afghanistan, Albania, Algeria, Andorra, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Comoros, Congo, Costa Rica, Côte d'Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Democratic People's Republic of Korea, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Federated States of Micronesia, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Holy See, Honduras, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakstan, Kenya, Kuwait, Kyrgyz Republic, Lao People's Democratic Republic, Latvia, Lebanon, Lesotho and Liberia.

Also UNCTAD members are Libya, Liechtenstein, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritania, Mauritius, Mexico, Monaco, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Republic of Korea, Republic of Moldova, Romania, Russian Federation, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Slovak Republic, Slovenia, Solomon Islands, Somalia, South Africa, Spain, Sri Lanka, Sudan, Suriname, Swaziland, Sweden, Switzerland, Syria, Tajikistan, Thailand, The former Yugoslav Republic of Macedonia, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United Republic of Tanzania, United States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Viet Nam, Yemen, Yugoslavia, Zaire, Zambia and Zimbabwe.

* *** *

Note:Information on the Conference is available on the Internet on an UNCTAD IX home page at the following address:

http://gatekeeper.unicc.org/unctad/.