COMMISSION ON SUSTAINABLE DEVELOPMENT CONTINUES DISCUSSING FINANCING OF AGENDA 21
Press Release
ENV/DEV/351
COMMISSION ON SUSTAINABLE DEVELOPMENT CONTINUES DISCUSSING FINANCING OF AGENDA 21
19960422 Countries in transition to a market economy required increased flows of official development assistance (ODA) and government incentives to change consumption and production patterns, the representative of Bulgaria told the Commission on Sustainable Development this afternoon. Speaking on financial resources and mechanisms for sustainable development, the representative of Bulgaria said that foreign direct investment (FDI) also would play a catalytic role in sustainable economic development. The representative of Poland called for a re-reorientation of banking systems to achieve sustainable development and said that it was important to have a guarantee or insurance system for private investors. The representative of Guyana said that progress in the funding of Agenda 21 needed to be accelerated, particularly in the area of ODA. Many countries were not yet benefiting from direct foreign private investment; ODA and debt relief measures would be required in those States. The representative of Bangladesh noted that ODA levels today were at an historically low level of 0.29 per cent of gross domestic product (GDP) -- well below the target level of 0.7 per cent. The renovation of infrastructure in the developing world -- essential if those countries were to attract international private investment -- would depend in large measure on capital flows from developed countries. The representative of the Philippines noted that there continued to be a negative net flows of resources to developed countries from the developing countries. Private sector investments could be used to improve the effectiveness of ODA but should not substitute for it. The representative of the United Kingdom suggested that ODA should be used to develop a policy framework for privately financed technology transfers. Also speaking this afternoon were the representatives of Mexico, Malaysia, and Indonesia. When it meets again at 10 a.m. tomorrow, 23 April, the Commission on Sustainable Development will continue its discussion of financial resources and mechanisms.Commission Work Programme
The Commission on Sustainable Development met this afternoon to continue its discussion of financial resources and mechanisms for sustainable development -- chapter 33 of Agenda 21, the blueprint for sustainable development adopted by the United Nations Conference on Environment and Development (UNCED), Rio de Janeiro, 1992. (For background on reports before the Commission, see Press Release ENV/DEV/350, issued today.)
Statements
CZESLAW WIECKOWISKI (Poland) said that official development assistance (ODA) should remain the major instrument for financing global environmental programmes. Poland would support measures aimed at combining internal and external resources for sustainable development, as well as schemes which could generate local activity. It was important to reorient the banking system to achieve sustainable development. A guarantee or insurance system for private investors was also needed to attract them and to reduce their risk in doing business.
Poland had reservations about the proposed air transport tax, he said. Administrative and economic instruments had an important role to play in changing production and consumption patterns. Public awareness and participation were key to that process. Education could result in reorientation of consumption patterns. Poland had developed a national system for financing environmental protection. It had established a new bank for environmental protection and was willing to offer its experience and expertise in that area to the United Nations system and to all countries to share.
CECILIA B. REBONG (Philippines) said that households in developed countries needed to adopt conservative consumption approaches. Public awareness could contribute in changing lifestyles and consumption practices. Media and advertisements would also help. Her country recognized the merits of the adoption of more sustainable consumption and production patterns. However, the adoption of such patterns should reflect the circumstances of different countries.
The Philippines was wary of supporting eco-labelling, she continued. In the absence of internationally accepted guidelines, the question of eco- labelling required further study. The Philippines demanded the full and immediate implementation of the financial commitments made under Agenda 21. The negative net flows of resources to the developed countries from the developing countries had continued. Any recovery in the ODA levels should not dampen efforts at achieving self-reliance. Increases in private flows should be strengthened by increases in ODA flows. Private sector investments could be used to improve the effectiveness of ODA, but should not substitute for
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ODA. International donor communities and international financial institutions should find ways to implement debt-for-nature swaps.
YORDAN UZUNOV (Bulgaria) said that rates of resource depletion around the world were accelerating. Bulgaria was fully committed to the key role of changing production and consumption patterns in achieving sustainable development. It had historically seen a great deal of waste in production systems, particularly those related to energy and industry. The new democratic Government was aiming to continue economic growth consistent with environmental protection.
Because of the lack of a fully functioning free market in Bulgaria, the Government was developing national incentives to influence both the supply and consumption side of economic structures, he said. Among the programmes put in place has been a debt-for-nature swap with the Government of Switzerland. Foreign direct investment (FDI) had a central catalytic role to play in sustainable economic development.
GEORGE TALBOT (Guyana) said that his Government was fully committed to its national responsibilities for financing sustainable development and the implementation of Agenda 21. Progress in the funding of Agenda 21 needed to be accelerated, particularly as it related to ODA. Many countries were not benefiting from FDI; ODA and debt relief measures would be required in those States.
The Commission should broaden its examination of new and innovative financial mechanisms for sustainable development, he said. Those new mechanisms should not be seen to substitute for ODA. The Commission should endeavour to identify mechanisms which could be put into place quickly. Political will was the most essential element in fulfilling Agenda 21 commitments.
MOHAMMED ABDUL MALEK (Bangladesh) said that it was frustrating to see that ODA levels today were at an historically low level of 0.29 per cent of gross domestic product (GDP) -- well below the target level of 0.7 per cent. The renovation of infrastructure in the developing world would depend in large measure on capital flows from developed countries. Such infrastructure development would be essential to attracting private sector investment flows.
In discussing the changing of production and consumption patterns, the level of economic development achieved by each country should be taken into account, he continued. The Commission should closely examine the implications that such changes would have on developing economies.
GERARDO LOZANO (Mexico) said that financial cooperation was of great importance to the achievement of sustainable development. There was a tendency to fail to recognize some of the agreements reached at the 1992 Earth
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Summit. The need for preservation of the environment was so serious that even reaching the target of 0.7 per cent of GDP for ODA would not be enough to meet those needs. There must, therefore, be an encouragement of the participation of the private sector, but such participation must be of a supplementary nature.
The use of economic instruments should serve to create incentive for changes in production and consumption patterns, he said. The use of such instruments should be an additional source for financing sustainable development, but they could not replace the work and commitment of governments for the implementation of Agenda 21.
HIMMET S. MAUI (Malaysia) said that a commitment had been made in Rio to provide the developing countries with 0.7 per cent in ODA. Such ODA had an important role to play in achieving sustainable development, especially in those countries that did not benefit from substantial private investment. That goal of 0.7 per cent should, therefore, be re-established. The continued deterioration of the global environment was a result of the persisting consumption patterns in developed countries.
PETER DEARDEN (United Kingdom) agreed that the special circumstances of the developing countries needed to be taken into account in measures aimed at achieving sustainable development. However, such measures should exploit "win-win opportunities" which could promote sustainable development and also contribute to economic development.
He noted the proposals for financial transfers based on historical emissions but said that it raised ethical questions such as how such transfers should be determined when such emission might have occurred unintentionally. Also, regarding the transfer of environmentally sustainable technology on a concessional basis, he said that ODA was best used to devise a policy framework for privately financed technology transfer.
WENING ESTHYPROBO FATANDARI MOE'MIN (Indonesia) said that the Rio Declaration and Agenda 21 called for a new global partnership to give them effect. The Economic and Social Council should include on its agenda an item on new and innovative ideas for generating funds. It also should encourage those countries that had not achieved the ODA target of 0.7 per cent to establish concrete timetables for achieving it.
She said that transfer of environmentally sound technology on concessional terms was a requirement for achieving sustainable development.
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