UNCTAD IX MUST SET CLEAR PRIORITIES, SECRETARY-GENERAL RICUPERO SAYS AS CONFERENCE BEGINS GENERAL DEBATE
Press Release
TAD/1822
UNCTAD IX MUST SET CLEAR PRIORITIES, SECRETARY-GENERAL RICUPERO SAYS AS CONFERENCE BEGINS GENERAL DEBATE
19960430 Conference Adopts Agenda, Elects 32 Vice-Presidents, Rapporteur(Received from a UN Information Officer.)
MIDRAND, South Africa, 30 April -- The ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) must set clear priorities for the coming years, but those priorities must not be to the detriment of UNCTAD's broad mandate, Rubens Ricupero told the Conference this morning as it began its general debate.
The auguries for success were good, the UNCTAD Secretary-General said. In the background, however, was a universal climate of fear which was infectious and could be disabling. There was fear of an uncertain future and of injustice. There was fear of loss of jobs or lower pay. There was also the fear that the costs of globalization would again be borne by the poor and the weak. The UNCTAD should serve as the world's "international development conscience". Faith in the future was synonymous with hope, and hope did not thrive with injustice.
Also addressing the Conference this morning, its President, Alec Erwin, Minister for Trade and Industry of South Africa, said UNCTAD must look beyond its institutional history and re-examine its rationale and precise location in a changing world economy. Partnership, a theme of this Conference, meant a clear definition of each other's role and function, a clear understanding of the reasons for forming the partnership and a definition of common work towards common objectives. The Conference must explore those notions of partnership in relation to other multilateral agencies, intergovernmental institutions, civil societies and non-governmental organizations, and the private business sector.
Statements, following the adoption of the Conference agenda and election of officers, were also made by the Minister for Foreign Affairs of South Africa, Alfred Nzo (on behalf of the "Group of 77" developing countries and China); the Minister for Foreign Affairs of Colombia (on behalf of the Non- Aligned Movement); and the Minister for Development Cooperation of Norway.
Also speaking were the representatives of Italy (on behalf of the European Union); Ukraine (on behalf of Eastern European States); and Bangladesh (on behalf of the least developed countries).
The general debate was followed by a ministerial round table on the theme of "Globalization: Development, instability and marginalization".
Also this morning, the Conference completed the election of officers. The following were elected Vice-Presidents: A.H. Mofazzal Karim (Bangladesh); Atanas Paparizov (Bulgaria); Yongtu Long (China); Ferdinand Kacou Angora (Cote d'Ivoire); Ricardo Cabrisas Ruiz (Cuba); Miroslav Somol (Czech Republic); Patricio Izurieta Mora-Bowen (Ecuador); Kassahun Ayele (Ethiopia); Bjorn Ekblom (Finland); Philippe Cuvillier (France); Thomas Souah (Gabon); Gunter Pleuger(Germany); Luis Noreiga Morales (Guatemala); Tejendra Khanna (India); Sirous Nasseri (Iran); Seymour St. Edward Mullings (Jamaica); Yukihiko Ikeda (Japan); Ali Abu Raghib (Jordan); J.M. Postma (Netherlands); Hans Meyer (Peru); Ernesto Ordonez (Philippines); Ro-Myung Gong (Republic of Korea); Y.N. Grekov (Russian Federation); Amnuay Viravan (Thailand); Mohamed Ennaceur (Tunisia); Tugay Ulucevik (Turkey); Victor Gladush (Ukraine); John Cooke (United Kingdom); Abdallah O. Kigoda (United Republic of Tanzania); Melinda Kimbel, (United States); Carlos Perez Del Castillo (Uruguay); and P.N. Sinyinza (Zambia).
Carmen Luz Guarda (Chile) was elected Rapporteur and William Rossier (Switzerland) Chairman of the Committee of the Whole.
The Conference appointed the following to its Credentials Committee: Trinidad and Tobago (Chairman), China, Luxembourg, Mali, Marshall Islands, Russian Federation, South Africa, United States and Venezuela.
Statement by President of UNCTAD IX
The first speaker this morning was ALEC ERWIN, Minister of Trade and Industry of South Africa and President of UNCTAD IX. Many organizations merely exist, he said, their raison d'etre being submerged in their institutional history. The complexity of their daily functioning and of the world within which they operate lead to inertia. This Conference must not allow UNCTAD to walk down that path. If it does it will cease to exist in the foreseeable future. The changes in the global economy and the urgency with which development must be addressed will not tolerate complacency. Successful organizations are those where their members want them to exist and work to keep them changing as circumstances change, accommodating their needs and aspirations. I believe that UNCTAD stands poised with the potential to move in this, more positive direction.
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As newcomers to UNCTAD, South Africa wants to assist in the process of re-invigorating the organization. Not long ago South Africa was faced with the horrifying prospect of failure. It may sound somewhat polemical even dramatic to compare the prospect we faced two years ago to UNCTAD's apparently more measured and diplomatic choices. But delaying development for 2 billion marginalized people is to us a horrifying prospect. There must be a vigour, a sense of urgency and purpose, and a new desire for efficiency, which will engender a confidence and momentum sorely needed in the world today.
The UNCTAD must look beyond its institutional history and re-examine its rationale and precise location in a changing world economy. Partnership, a theme of this Conference, means a clear definition of each other's role and function, a clear understanding of the reasons for forming the partnership and a definition of common work towards common objectives. A good working relationship is necessary. The Conference must explore these notions of partnership in relation to other multilateral agencies, intergovernmental institutions, civil societies and non-governmental organizations, and the private business sector.
"We have to guard against complacency, we must be pro-active and innovative and in doing so point to concrete roles UNCTAD will play." The organization must be driven by the need to solve the problems, answer difficult questions and create new possibilities. Delegates should speak their minds in the round tables, address issues and seek solutions. "Work to solve the perennial problems, don't create new ones."
Statement by UNCTAD Secretary-General
RUBENS RICUPERO, Secretary-General of UNCTAD: No better venue than South Africa could have been chosen for UNCTAD at the hour of its renaissance. What is happening in this country restores faith in the brotherhood of man. South Africa is the sole consolation for the massacres in Bosnia and Herzegovina, Rwanda and elsewhere as it provides living proof of the miracle of reconciliation. South Africa's will inspires UNCTAD to be no less bold in giving birth to a new institution.
A major challenge before the Conference is to determine the future role of UNCTAD as a means to realize its objectives. Its sole justification for existence must be continued relevance and practical contributions to Member States. With this objective in mind, a sweeping reform of the secretariat began to take place earlier this year. The restructuring was impelled by the desire to bring UNCTAD's functioning up-to-date. Many important details of the restructuring must await the outcome of the Conference but they must then be put in place as soon as possible. The UNCTAD will welcome ideas about how best to implement the new goals.
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The intergovernmental machinery must be overhauled and there is a growing consensus in the international community as to where it would like to go in this respect. The Conference must consider such issues as the terms of reference of intergovernmental bodies. It must set clear priorities for the coming years but these priorities must not be to the detriment of UNCTAD's broad mandate. The auguries for success are good. In the background, however, is a universal climate of fear which is infectious and can be disabling. It does not distinguish between the so-called mighty governments and others. There is fear of an uncertain future and of injustice. The remedy is to demonstrate that there is life after globalization. Faith in the future is synonymous with hope and hope does not thrive with injustice.
When a single unified market begins to take shape, competition is exacerbated. The slogan adopted by UNCTAD of a "partnership for development" must be given real significance. It stands for development and helping those less equipped to cope with the new environment. The UNCTAD must and will remain the guardian of the world's development conscience. The growing disparities in the world may be exacerbated by globalization and liberalization; new tools must be developed for the least developed countries and those dependent on one or two commodities. New ways must be invented to create economic opportunities for the poor. Many of the poor countries are in Africa. The UNCTAD must offer practical advice to assist their development and integration into the new economy while maintaining its role as centre of analysis.
The UNCTAD has the capacity to help the economies in transition; it is equipped to prepare the developing countries in the process of joining the World Trade Organization (WTO). It would be an aberration if the force of economic unification would end up excluding peoples and countries. The market and the forces of the private sector must be used for the integration of the poor. The economics of the environment will shortly become a question of concern to policy makers. The UNCTAD must put more emphasis on enterprise development. The promotion of small and medium enterprise is vital for developing countries. Strong and growing links are being established between the WTO and UNCTAD. It is incumbent on all to find a better way to integrate the members of the civil society in the work of UNCTAD.
We must build a consensus for a balanced strategy for growth and development and recognize that each country has the primary responsibility for the adoption of the macroeconomic strategy necessary for its development. The international community must provide an enabling environment for growth, particularly for those who will not be able to survive. There should be determination to face the challenge of widening inequality. Our first duty is to the poorest among the poor, the least-developed countries. For UNCTAD it is a matter of deep moral commitment and honour that those countries receive more and effective service and that it makes an effective contribution to the
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elimination of conditions leading to such categorization. Justice must be first of all for the most marginalized continent, Africa. The violence, suffering and poverty of Africa is the biggest failure of the twentieth century. We are all in debt for what we have been taking away from this continent. Without the talent and pain of Africans, civilization would not have been built in many countries. It is time we start to pay this human debt and come up with a sensible solution for African needs.
Other Statements
MARIO D'UURSO (Italy) on behalf of the European Union: The European Union has consistently placed development among its objectives, involving all regions but mainly the poorest countries, and with priority given to respect for democratic principles, the rule of law and human rights, and the need for stronger measures to combat poverty and to enhance the role of women. The outcome of the UNCTAD IX will be a point of reference for the reform of the economic and social sector of the United Nations provided UNCTAD can show it is able to select its own priorities and make the needed internal structural changes. The UNCTAD should be an institution focusing on questions of trade and development. It should continue to supplement but remain distinct from the WTO and from United Nations bodies, such as regional economic commissions.
In future, the idea of "partnership for development" must be combined with the concepts of "effective management" both at national and international levels, and compatibility with the requirements of sustainable and environmentally friendly development. The UNCTAD's activities will have to be geared to clearly identified objectives within strict deadlines and subject to rigorous monitoring, in order to demonstrate the effectiveness of the results obtained and their relevance to the development of the recipient communities.
The approach to problems will have to be updated: UNCTAD must take account of the increasing differences between the developing countries and concentrate on promoting the development aspects of international trade, in order to establish policies and procedures which will enable the most disadvantaged economies to participate fully in the new international system of trade. The renewed UNCTAD will have to ensure that a full part will be played by the private sector, whose potential for boosting development is becoming even more significant.
At the operational level, in order to consolidate its credibility and increase efficiency in the use of available resources, UNCTAD will have to reduce the number of programmes and sub-programmes to be implemented and limit its commitments as far as "cross-cutting" issues -- such as economic cooperation between developing countries or the fight against poverty -- are concerned. These issues should be examined in the light of their links with specific initiatives taken by the organization. The greatest attention,
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moreover, will have to be paid to the interaction between its analytical and technical assistance functions. Results obtained in the field should be used to direct more clearly the theoretical investigation of individual problems. It is necessary to simplify the consensus-building process and consultation methods employed by governments at various levels so that the organization can carry outs its tasks more efficiently.
ALFRED NZO, Minister for Foreign Affairs of South Africa and President of the Eighth Ministerial Meeting of the "Group of 77" developing countries: The Ministerial Meeting of the Group of 77 held last Sunday adopted a Declaration reflecting the commitment of the Group to meet the challenges of development. It stresses the importance the Group attaches to UNCTAD. The Declaration should form an important input to the policy deliberations in the coming two weeks. It is a sincere call for real partnership. I officially submit the Ministerial Declaration to UNCTAD IX.
RODRIGO PARDO GARCIA-PENA, Minister for Foreign Affairs of Colombia, addressed the Conference on behalf of the members of the Non-Aligned Movement: The Conference takes place in a world of rapid change in which the economic and political map has not yet been fully drawn. The political legitimacy of the processes of globalization and liberalization has been forgotten in many cases. Those processes cannot proceed with only a few winners. The international community must humanize the globalization process, and solidarity is required in that regard. The markets must function transparently and all countries must be able to compete.
The global integration of markets has benefitted developed countries. Access for commodities from developing countries must be a short-term goal with a long-term effect. A new pattern for economic relations is required. The integration of financial markets in a speculative environment does not lead to transfer of resources or to expansion of production. Measures to deal with the debt burden are required. Lasting mechanisms to coordinate macroeconomic policies must be established. There are no effective mechanisms to manage the world economic system. The old principle of comparative advantage has been replaced by the new one of competitive advantage. Unilateral economic measures have increased and have assumed extraterritorial character in flagrant violation of international instruments, including the United Nations Charter.
The attempt to establish a link between trade and labour is developing into a new conditionality. Industrializing countries are in the process of agreeing on foreign investment rules within the Organization for Economic Cooperation and Development (OECD) without participation from developing countries. These issues should be dealt with in UNCTAD, which is the most appropriate forum for them. The Non-Aligned Movement, at its Summit Meeting held in Cartagena, Colombia, last year, reiterated its support for UNCTAD.
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The Conference should reinforce that institution as the natural forum for the debate on development issues. The UNCTAD has to play a central role in preparing multilateral negotiations. It must contribute to the integration of markets, reducing inequalities in that process. The UNCTAD and the WTO have the obligation to work in a spirit of cooperation. Institutions are required for a new world in which the majority will not be poor.
VICTOR GLADUSH, First Deputy Minister for Foreign Economic Relations and Trade of Ukraine: Ukraine, a country in transition, attaches great importance to UNCTAD's activities. The UNCTAD was established 30 years ago to promote trade among countries with different levels of development. This task is still relevant today. The problems of countries in transition should be of increasing relevance to UNCTAD. Ukraine supports the fundamental areas of institutional reform for UNCTAD and the move to reconsider its functioning. The ninth session of UNCTAD is the institution's most important meeting. It is essential to establish effective mechanisms of coordination and cooperation between WTO and other relevant United Nations bodies so as to avoid duplication of work. The UNCTAD must continue to carry out its work in the development of trade and related areas.
The creation of WTO has opened up more possibilities for development. The relation between WTO and UNCTAD should be based on complementarity. The UNCTAD must assess the requirements and possibilities accruing from the second Uruguay Round. The main emphasis should be on practical work and in such areas as technical cooperation, investment promotion and enterprise development. The UNCTAD will be able to carry out its mandate in the light of globalization and growing economic dependence. It will be a more effective instrument in promoting development.
MOFAZZAL KARIM, Secretary, Ministry of Commerce of Bangladesh, speaking on behalf of the least developed countries: Although a number of developing countries have undertaken painful economic reforms and structural adjustments, the economies of most of these countries have continued to decline. While significant opportunities for growth and development exist, many are unable to seize them.
The UNCTAD should continue as the focal point for the integrated treatment of development and interrelated issues such as trade, finance, technology, investment, services and sustainable development. The world economy is recovering. However, the per capita income and global trade of least-developed countries are declining, despite their wide-ranging socio- economic and political reforms.
The opportunities and benefits for least-developed countries from the Uruguay Round are expected to be largely indirect and to materialize only in the long run. In contrast, the costs are more immediate and substantial. The
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developed countries, international organizations and regional commissions should provide necessary resources to implement the recommendations of the global framework for transit transport cooperation between land-locked and transit developing countries and the donor countries. Island least-developed countries require continued support to overcome their particular weaknesses.
Increasing globalization and liberalization have adversely affected many enterprises in developing countries. An enabling environment must be created for successful enterprise development in the least-developed countries with a package of support services. The potential for economic and technical cooperation between those countries and other developing countries needs to be deepened. The least-developed countries look forward to the strong support of the international community to adequately reflect their concerns, incorporating specific measures, including a safety net in their favour. An effective follow-up of the outcome of the mid-term global review as well as of the conclusions and recommendations relating to the least-developed countries adopted by major global conferences will be essential. The Programme of Action for least-developed countries indicated that the General Assembly should consider convening a third conference on those countries at the end of the 1990s in order to make a comprehensive appraisal of the implementation of the Programme and to decide on subsequent action. The UNCTAD should begin the necessary preparatory work for the proposed conference.
The proposal to carry out UNCTAD work on least-developed countries through a senior coordinator may not be appropriate. A full-fledged division would be required to deal with issues relating to those countries in order to ensure effective implementation of the programmes and provide necessary visibility. The Division for the Least Developed, Land-locked and Island Developing Countries should be maintained and strengthened, and the level of resources allocated by the Assembly should be fully protected. Actions taken so far have failed to halt the social and economic decline of the least- developed countries. Reversing the trends of deteriorating living standards and further marginalization is a pressing challenge.
KARI NORDHEIM-LARSEN, Minister for Development Cooperation of Norway and Chairperson of the High-level Intergovernmental Meeting on the Mid-term Global Review of the Implementation of the Programme of Action for the Least- Developed Countries for the 1990s: The report of the Mid-term Review Meeting describes how the processes of globalization and liberalization offer least- developed countries important long-term opportunities to reverse the economic decline that they have experienced over the last two decades. These processes raise serious concern for many countries in the short term. Responding to the challenges posed by globalization and liberalization will require major adjustments in economic policies, resource allocation and production structure. The primary burden of adjustments will inevitably have to be borne by the least-developed countries themselves.
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The formidable development challenges before the least-developed countries cannot be adequately addressed without effective and sustained support measures by the international community. That support is currently far from sufficient. The Meeting reaffirmed the principles of shared responsibility and strengthened partnership as indispensable to the success of national policies of those least-developed countries. Without external support, the long-term objectives and the sustainability of national efforts will be jeopardized.
Norway's commitment to least-developed countries remains strong. A meeting was held last week in Oslo among interested countries and representatives of international institutions with a view to considering how the 20/20 initiative for universal access to basic social services could be hastened. Considerable progress in bringing it into operation has been achieved. That initiative can contribute to putting greater focus on social sectors at a time when liberalization and privatization assume centre stage. Copies of the outcome of the Oslo meeting are available to interested delegations. The ultimate test of the world's social and economic health is development in the least-developed countries. "Let us hope UNCTAD IX will contribute to finding the right medication to improve the world's health. We cannot allow further marginalization to continue."
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