SPEAKERS STRESS NEED FOR ACTION-ORIENTED UNCTAD, AS CONFERENCE CONTINUES GENERAL DEBATE

Press Release
TAD/1823

SPEAKERS STRESS NEED FOR ACTION-ORIENTED UNCTAD, AS CONFERENCE CONTINUES GENERAL DEBATE

(Received from a UN Information Officer.)

MIDRAND, South Africa, 30 April -- The need for an action-oriented United Nations Conference on Trade and Development (UNCTAD) to face the challenges of the new millennium was stressed by several speakers this afternoon, as the ninth session of the Conference (UNCTAD IX) continued its general debate.

Strong support was expressed for UNCTAD's efforts to restructure itself and for proposals for its rationalization and the maximization of its efficiency. However, it was stated, the search for greater efficiency should be conducted with caution. The quality of UNCTAD's technical assistance programmes was praised by several speakers, and wide support for its research and analytical work was expressed.

Attention was drawn to the use of trade and economic measures against countries to exert political pressure as a harmful phenomenon in world trade, which severely weakened the credibility of international agreements. The UNCTAD was called upon to denounce such policies. Further, a proposal was made for UNCTAD and the United Nations Industrial Development Organization (UNIDO) to be merged.

At the outset of the meeting, the Deputy Prime Minister of Thailand, Amnuay Viravan, conveyed to the Conference his Government's invitation to hold the tenth session of UNCTAD in the year 2000 in Thailand. He said the offer was symbolic of the collective confidence, as well as commitment, of all member States in the future of UNCTAD. The President of the Conference, Alec Erwin, Minister of Trade and Industry of South Africa, endorsed the invitation.

Also making statements this afternoon were the Minister for Foreign Affairs of Japan, Yukihiko Ikeda; the Minister for Trade of the United Kingdom, Anthony Nelson; the Minister for Foreign Affairs of the Republic of Korea, Gong Ro-Myung; the Secretary of State for International Economic

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Affairs of Switzerland, Kranz Blankart; the Commerce Minister of Saudi Arabia, Osama Jafar Faquih; the Minister for Foreign Trade and Economic Cooperation of China, Wu Yi; the Minister for European Affairs and Foreign Trade of Finland, Ole Norrback; the Commerce Minister of Iran, Yahya Ale Ishagh; the Minister for Foreign Trade of the Netherlands, A. van Dok-van Welle; the Minister for Foreign Trade of Morocco, Mohamed El Alami; the Minister for Trade of Iraq, Mohammed Mahdi Salih; the Minister for Planning of Chile, Luis Maira; and the Minister for Commerce, Industry and Cooperatives of Vanuatu, Sela Molisa.

Statements were also made by the representatives of the Russian Federation, Ghana, Canada, Luxembourg, Argentina, Portugal, The former Yugoslav Republic of Macedonia, and Greece. Representatives of the European Commission and of the Organization of African Unity (OAU) also spoke.

The representatives of Greece and The former Yugoslav Republic of Macedonia exercised their right of reply.

The Conference will meet again tomorrow, 1 May, at 9:30 a..m., for a round table on the following theme: "International trade as an instrument for development in the post-Uruguay Round World". At 10:30 a.m., the Conference will resume its general debate.

Statements

JOAO DE DEUS PINHEIRO, of the European Commission: The main role of UNCTAD should be to facilitate sustainable development through trade and investment and the participation of developing countries in the international trading system. Also, UNCTAD should pursue work in the more traditional areas, such as commodities and preferences. The European Community attaches great importance to the current reform effort in UNCTAD, which could serve as an example to other institutions.

A more rational framework and structure for UNCTAD's activities will not reduce the importance of UNCTAD's work. The reform effort should aim to greatly enhance the value of UNCTAD's contribution to development even in a period of budgetary difficulties. By being one of the largest contributors of technical assistance through UNCTAD programmes, the European Community is expressing its confidence in our ability to develop activities in response to the needs of developing countries.

The Community has been active in expanding its cooperation activities to a wide range of developing countries. There is a new partnership foreseen between the European Union and the developing countries of the Mediterranean, called the Mediterranean policy. The Community is strengthening its relationship with Latin American and Asian developing countries. Since the

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signature of the Maastricht Treaty, one of the main objectives of the Community's policy in the area of development cooperation is the smooth and gradual integration of the developing countries into the world economy. Recently, that objective was re-asserted in the revised text of the Lomé Convention.

YUKIHIKO IKEDA, Minister for Foreign Affairs of Japan: It is important for both developing and developed countries to have a common vision of results to be achieved by development. Goals that focus on achievable results should be established. It is particularly important to establish an economic environment which permits private companies to freely engage in economic activities. It is necessary to adopt a comprehensive approach encompassing a wide variety of measures, such as establishing appropriate legal frameworks and administrative systems, stabilizing macroeconomic conditions, promoting trade and investment, and facilitating technology transfer in developing countries. An approach that combines the most appropriate policy mix for each country must be adopted.

The UNCTAD should be able to help developing countries to integrate themselves into the world economy and take advantage of the opportunities brought about by changes in global economic conditions. It should engage in action-oriented dialogue based on high-level research and analyses conducted by the secretariat, identify appropriate measures to be taken, and provide technical assistance tailored to meet specific needs. There must be a shift from the politically motivated confrontational style between North and South that has characterized UNCTAD in the past to the promotion of cooperation founded on a new partnership. The organization must focus on the issues of greatest concern to developing countries -- adaptation to economic globalization and liberalization. Its activities in recent years have not achieved their full potential because of the lack of clear focus. Reforms must not end with simply the saving of resources; rather, part of the resources saved should be reinvested in activities that will benefit developing countries.

The Conference must agree on concrete reform plans and take the necessary actions. It should give priority to promoting South-South cooperation in trade and investment. Much can be learned from the experiences of the newly industrialized countries. Japan is prepared to make contributions to UNCTAD's efforts to analyse the factors that have contributed to economic growth in East Asia, to study adapting the approaches to growth in other regions, to help establish appropriate systems within developing countries that are striving to join the World Trade Organization (WTO) and to promote the commercialization of primary commodities. Japan wishes to ensure that the least developed countries will greatly benefit from the implementation of those cooperation measures. If African nations are to achieve self-sustained

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growth, the international community must support their efforts to formulate and implement their own appropriate development policies. Their democratization efforts must be assisted and support strengthened in the basic social sectors that are most likely to be affected by economic reforms.

Japan has organized follow-up meetings to the 1993 Tokyo International Conference on African Development so as to make use of Asian experience for African development. It has also provided support to Africa in the fields of democratization, economic reforms, human resource development, and environmental protection. Japan has addressed global, issues such as population, HIV/AIDS and the eradication of polio. It is committed to making an active contribution to completely ridding the African continent of polio by the year 2000. Japan proposes that the second meeting of the Tokyo International Conference on African Development be held in or around 1998 and its preparatory meeting in 1997, both in Tokyo. It would like to have the high-level participation of Asian countries in these meetings. Japan supports setting a goal of giving African children access to primary education by the year 2015 and intends to provide assistance amounting to $100 million over three years to expand education in Africa. During the same period, it will accept approximately 3,000 candidates from African countries for technical training courses in Japan and make available $2 million to promote South-South cooperation.

AMNUAY VIRAVAN, Deputy Prime Minister of Thailand: The relevance of UNCTAD is being questioned in some quarters, but given the complexity of the new international economic environment and the challenges it presented to developing countries, the role of UNCTAD remains of utmost relevance. The role of UNCTAD in maximizing the effects of globalization and minimizing its problems must be supported. Environment, labour standards and human rights conditions are further contributing to such problems.

Thailand is creating an enabling environment for investment. As developing countries move towards integration, the nature of that integration should not be dictated by the North or by transnational corporations. Beyond South-East Asia, Thailand provides technical assistance to least developed countries. The role and contribution of UNCTAD to economic development offered hope to billions of people. As the Conference discusses the future work of UNCTAD, it has the responsibility to build on the past work of the organization, and enhance its future role. "I look forward to an action- oriented UNCTAD." The organization should contribute to the agenda for future multilateral trade negotiations, starting with the WTO meeting in Singapore later this year. The Conference has the responsibility of giving UNCTAD new vitality. Whatever the consensus to be reached, I am optimistic. With confidence in the future of UNCTAD, Thailand has offered to host UNCTAD X in the year 2000.

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ANTHONY NELSON, Minister for Trade of the United Kingdom: The UNCTAD has to change with the times. The consensus expressed so far is a demonstration that there is political will, but the technicalities and details have not been well spelled out. The United Kingdom concurs with those who have called for change. It is appropriate that, in the wake of the decision that UNCTAD will become less politicized, change for the future will concentrate more on practice. It is important that UNCTAD translate into practice the feeling of the Conference.

The United Kingdom has one of the largest aid programmes and one of the largest sources of private capital. It has forgiven $1.8 billion of old debt and would like to go farther. There is a growing consensus that good government and sound economic management are the firmest foundations of economic trade and development. There are countries that will be bypassed. Those that cannot compete will see the profits pass on to others. The value of organizations like UNCTAD is to bolster the political determination of people and to see that consensus is built on the integrity of statistics.

The UNCTAD should adopt a more analytical role. It must concentrate on what it can do best. It is essential that the analytical role supersede the "pan" role that UNCTAD has undertaken in the past. We must be surgical in our attempt to achieve relevance. If we fail to change, the major countries of the world will lose interest. There is a role for UNCTAD outside the WTO and the Organization for Economic Cooperation and Development (OECD), but it must be built on a honing down of the sectors of the organization. There must be a refinement of activities whose impact can be monitored. If its activities were more mission-orientated, UNCTAD would receive wide support.

GONG RO-MYUNG, Minister for Foreign Affairs of the Republic of Korea: For the past decades, UNCTAD has been recognized as the central body for dealing with trade and development issues under the United Nations system. The raison d'être of UNCTAD is to provide mechanisms through which the potential gains of globalization and liberalization are translated into growth and sustainable development for all countries, especially for developing countries and economies in transition. The Republic of Korea expects a heightened role for UNCTAD in the years to come. To that end, the work programmes of UNCTAD should be carried out in a more practicable and action- oriented manner while focusing on a limited number of priority areas. The UNCTAD needs to define its distinct role while establishing mutually reinforcing partnerships with other international organizations. The UNCTAD and WTO must form a "complementary synergy" in the international trade arena. The ninth session of the Conference provides a unique opportunity to identify guiding principles and to translate them into concrete actions. If the international community is unable to do so, UNCTAD will fall behind the newer and more relevant currents of the world economy.

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In view of the positive effects of experience-sharing among developing countries, such efforts should be encouraged in a more systematic manner within the framework of UNCTAD. A triangular cooperation mechanism, that is, South-South cooperation assisted by developed countries, is a highly desirable action-oriented policy idea. The UNCTAD could be a moderator and a focal point in that triangular cooperation. Reinforced partnership will bring the member States of UNCTAD together in coping with the challenges of globalization. "This sense of togetherness will give us strength."

FRANZ BLANKART, Secretary of State for External Economic Affairs of Switzerland: Switzerland intends to continue as a main contributor to UNCTAD's technical cooperation programmes. Nevertheless, a more rational use of financial resources is called for. Together with UNCTAD, Switzerland organized an international seminar on improving aid coordination in technical cooperation. It has also started to enact some measures based on the conclusions reached at that seminar and proposes that project quality be reinforced through a regular exchange of information on best practices among all the agencies providing technical cooperation in the fields of trade. It further proposes adoption of a country-based approach, which includes a mechanism for inter-agency coordination of assistance programmes in a specific region or country, and that transparency be ensured through improved information. It is now possible to gather and update information on all programmes of technical cooperation. Switzerland proposes that UNCTAD help create and maintain such a data bank.

Switzerland backs the programme on trade efficiency and has not spared any political or financial effort in its support. This will have to be one of UNCTAD's priorities in the years to come. The opening of markets is not sufficient to guarantee an effective participation of developing countries and of economies in transition in international trade. The proposed policy review for trade efficiency could from the centre of UNCTAD's future activities in this field.

The future priorities of UNCTAD must determine the structures and the working methods of the institution. To improve efficiency means to strengthen control of the Trade and Development Board in all of UNCTAD's activities, including policy regarding publications and technical cooperation. This means setting up a limited number of commissions. It would be appropriate to create commissions which would deal with the trade in goods and services, investment, and trade-supporting services. The reform of UNCTAD's intergovernmental machinery must go hand in hand with the rationalization of the secretariat. Particularly important is the increased participation of the civil society and the private sector in UNCTAD's work. The main players are now in the private sector. The proposal to establish a "development senate" is a step in this direction.

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OSAMA JAAFAR FAQUIH, Commerce Minister of Saudi Arabia: Several events have made it imperative for UNCTAD to review its methods of work to enable it to re-establish its credibility, to enhance its capacity to interact with those events, and to improve its performance and its services for development. Those objectives can only be achieved through the improvement of UNCTAD's methods of work, the rationalization of its efforts, and the maximization of its efficiency. The benefits are connected with the quality of ideas put forward and initiatives which would allow countries to benefit from their tangible and positive results.

Saudi Arabia has supported development efforts of developing countries by contributing an annual average of 5.5 per cent of its gross national product (GNP) over the past two decades. It is strongly committed to the free economy approach, and believes in the supremacy of the principle of inter- dependence. It has decided to accede to the WTO, after having enjoyed observer status at the General Agreement on Tariffs and Trade (GATT).

His country's main exports -- oil and petrochemical products -- are facing obstacles in developed countries' markets, which often are put forward on the grounds of environmental justifications. For example, some developed countries are moving towards the imposition of a so-called "carbon tax" in a discriminatory manner, when compared with other sources of energy. That is in contravention of the aims and purposes of the international trading order predicated on equity, balance and transparency. Member States should reaffirm their commitment to those aims and purposes, and desist from imposing such taxes or other discriminatory and unjust practices in order to safeguard the credibility of the international economic order.

WU YI, Minister for Foreign Trade and Economic Cooperation of China: The UNCTAD is the only intergovernmental body within the United Nations system dealing with a comprehensive review of trade, development and related issues. How to enhance its role and function is a pressing task of the session. The organization has provided help to China for economic and trade development. Her country will continue to cooperate with the organization and to support its work. China is ready to explore and open up more channels for cooperation, based on the principle of equality and mutual benefit.

China has made some achievements in economic development; the living standard of its people has risen substantially over the 17 years of reform and open door policy, and particularly, as a result of a socialist market economy. There has also been considerable achievement in the utilization of foreign capital and in other fields of external economic cooperation. Yet, China remains a developing country with 65 million of its people living under the poverty line.

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Foreign trade and economic cooperation is an important component of both China's national economy and of its open-door policy. The main force behind the development of China's foreign trade is reform of the foreign trade regime just as its national economic development is driven by reform of its economic system. China has instituted significant reform measures in line with the requirement of the socialist market economy, and by drawing on international practices. It has put in place an integrated trade and economic system; foreign trade and economic businesses of various types operate on different levels and through various channels. China's foreign trade and economic management style is basically compatible with international practices.

China will further improve and develop multilateral, as well as bilateral, trade and economic ties. It will make greater contributions to safeguarding the multilateral trading system.

OLE NORRBACK, Minister for European Affairs and Foreign Trade of Finland: With the radically new circumstances dictated by globalization and liberalization, governments have to see to it that UNCTAD's relevance is secured. This Conference is not being held in isolation from other multilateral events, including the first ministerial meeting of the WTO later this year. The agenda of that meeting is still being discussed. Finland places strong emphasis on a speedy conclusion of the current negotiations on the institutional strengthening of the WTO, particularly its dispute settlement mechanism.

The international community also has to start discussing in the WTO the need for universal adherence to certain minimum environmental labour standards, but not for the purpose of providing an excuse to increase trade restrictions. It is important to recognize that the capacity to take effective measures in support of environmental protection and social security differs from country to country. That is an area where technical assistance must be offered wherever needed. The future agenda of UNCTAD should, taking into account the different levels of development and different needs of countries, give adequate consideration to means by which the developing countries could take better advantage of new trading opportunities created by the Uruguay Round.

The UNCTAD needs to draw on a combination of analyses of problems faced by developing countries, particularly the least developed among them, dissemination of information and the provision of technical assistance. Its activities relating to such issues as trade and environment, trade efficiency, enterprise development and trade-related technical assistance are among those that promote the full integration of the developing countries into the world economy. These activities enhance the relevance and image of UNCTAD, and should be retained on UNCTAD's agenda for future work. The real test of the

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international community's resolve to give birth to a new, more relevant UNCTAD will be its ability to agree on a limited number of essential fields of activity after Midrand, to let the organization adjust to the new requirements of today.

YURI GREKOV, First Deputy Minister for Foreign Economic Relations of the Russian Federation: Streamlining of UNCTAD's activities is necessary to make it possible for the organization to play a leading role in international economic discussions. The Russian Federation welcomes the efforts of the different institutions to define areas of cooperation. The mandate of UNCTAD is to deal with the questions of trade and development. It is important to maintain the principle of universality. The market and private initiatives under reasonable State regulations are a fundamental force of development. The activities of UNCTAD should proceed from a recognition of these facts. It should look for new opportunities for the development of trade.

The UNCTAD has provided support to many countries in adapting to the requirements of the WTO. The steps taken by the Russian Federation to join the WTO is not only important for integrating it into world trade, but also for improving the conditions of its entrepreneurs who often come up against discriminatory measures. It will participate in the discussions on the question, as well as matters concerning investment cooperation.

There has been liberalization in the Russian Federation in recent years. Price control has been abolished, and the rate of the ruble has been set on the basis of market principles. The Russian Federation has concluded the second stage of liberalization -- financial stabilization. In the race for integration into the world economy, there has been an increase in the integration process among the countries of the Commonwealth of Independent States (CIS). Russian imports have increased and the share of domestic goods on the consumer market is about 54 per cent. Despite difficulties, it has kept a system of preference for the developing countries. There are many shortcomings and mistakes, but Russia does not seek any special privileges. It nevertheless has the right to claim the same conditions as other countries engaged in international trade. DAN ABODAKPI, Deputy Minister for Trade and Industry of Ghana: Since 1993, Ghana has been implementing an economic recovery programme aimed at reversing several years of economic decline. Despite its bold efforts and sacrifices by its population, the development process has become even more arduous and, at times, frustrating. For instance, trade liberalization has proved to be a two-edged sword for the private sector. The benefits of improved access are heavily eroded by the rapid growth in imports of finished products. It is difficult for Ghana's manufacturers, accustomed to operating in a tightly controlled market, to compete. What then should be done? That is the central and burning question which UNCTAD IX must resolve.

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The international community must support the Common Fund for Commodities and provide it with adequate resources. The need to diffuse new and emerging technologies is imperative if developing countries are to assume their rightful place in the new international economic order. The Conference must pronounce itself clearly on the issue of technology as an instrument for averting the marginalization that stares so menacingly in the face of so many developing countries.

Ghana supports UNCTAD's efforts to restructure and shed excess weight in search of greater efficiency. However, reform should be driven by need rather than by strict financial considerations. The organization should not duplicate WTO efforts; similarly, the WTO should not take on tasks in which UNCTAD has undisputed comparative advantage. In addition to the Trade and Development Board, UNCTAD should have three commissions to address the key issues of trade, services, and investment and resource flows. There is a general consensus that the quality of UNCTAD's technical assistance programmes is second to none. The donor community, including donor developing countries, should exert additional efforts to make it possible for weaker developing countries to avail themselves of the economic benefits inherent in those programmes.

JOHN GODFREY (Canada): Canada attaches great importance to the integration into the world trading system of developing countries and countries in transition. The significant changes in the global economy point to the need to help developing countries consolidate the gains made in the Uruguay Round and to take their place at the table with their developed- country partners in the further development of the multilateral trading system. This is where there is an important role for a more focused and effective UNCTAD.

The work of UNCTAD should reflect the fact that there is a range of levels of development even among the developing countries, and that there are variances in levels of participation in world trade. It should identify impediments to the participation of developing countries, especially the least developed. Delegations need to avoid overburdening the work of the organization, to avoid trying to be all things to all people.

A sharp focus on priority issues is essential. Structurally, UNCTAD should have significantly fewer intergovernmental bodies that meet less frequently in shorter sessions. This will allow sufficient time for analysis and implementation. Documents should be more concise and non-duplicative. The organization of the secretariat should reflect the work priorities of the Conference. Finally, governments should have a greater role in overseeing UNCTAD's activities.

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YAHYA ALE ISHAGH, Commerce Minister of Iran: The most important obstacle to sustainable development is poverty; it can lead other efforts to total failure. Environmental aspirations of the global community will not be attained unless more than 2 billion people who are deprived of the most essential and vital necessities of life are freed from the yoke of poverty. In an increasingly integrated world, all governments, poor and wealthy, must join forces and work together and take unprecedented measures to solve the chronic problem of poverty.

The participation of the developing countries in the international economic and trading system must be enhanced. Expansion of economic cooperation among developing countries can contribute to that objective. Partnership among developing countries should encompass a broad range of activities, including optimal utilization of common and complementary capabilities. Technical assistance to developing countries in that regard should be placed on the priority list of UNCTAD's future activities.

The use of trade and economic levers to exert pressure and for political motives is a new harmful phenomenon in world trade. The continuation of such policies will severely weaken the credibility of international agreements. The international community, including UNCTAD, should denounce such policies. The UNCTAD does not stand in the way of other international institutions, neither does it duplicate their functions. Rather, it is an important factor in promoting sustained and balanced growth.

GEORGES WOHLFART (Luxembourg): Many speakers have stressed the importance of economic globalization, but this apparently has not been beneficial for the majority of countries. Everyone agrees that essential reforms will have to be carried out. The paramount role of the private sector in sustaining long-term development must be stressed. Luxembourg supports the creation of a private investment fund to release funds for micro-enterprises in developing countries. It is prepared to finance the feasibility study of that project. It is hoped that, in four years, the initiative referring to enterprises will be crowned with success.

ALFREDO V. CHIARADIA (Argentina): Many of UNCTAD's premises and all of its objectives from the Cartegena Conference remain valid. The main challenge is to find a pragmatic approach and to make the reforms go deeper. Some of the trends that were recognized in Cartegena have grown more acute. The ultimate responsibility of every society is creating the political and macroeconomic conditions for economic growth.

Argentina has implemented a programme of economic reform and made radical changes. It has concentrated the State's role in essential functions and can boast an orderly, stable and dynamic economy. Having overcome the

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effect of overreaction of international markets, it is regaining its growth rate. It is no less important to note the effect that world conditions have on such a policy. Globalization leaves no other choice than to unite to reduce economic gap. A multilateral system of open and stable trade is essential. The WTO has to deepen trade liberalization. Its ministerial conference in Singapore will provide an opportunity to review the Uruguay Round commitment. There can be no effective implementation of unilateral rules without the effective participation of the affected countries.

The agricultural sector is crucial because the distortions contained in the Uruguay Round are harmful both to countries and the environment. There is continued concern over the existence of food insecurity, particularly in Africa. The systemic risk of high levels of debt has been reduced, but it continues to be a burden for some countries. Argentina supports proposals to alleviate the debt of the heavily indebted countries. Resources set aside for those purposes should be increased. Regional integration provides an appropriate instrument to meet contemporary challenges. It can ensure that countries are more openly involved in international trade.

The UNCTAD is the only instrument available to the international community for an integrated approach to development. It should focus on an analysis of policies, particularly those not covered by multilateral rules and disciplines. The second area of concentration should be technical cooperation with developing countries. Argentina puts particular value on the programme for the management of debt. The Conference should ensure that UNCTAD is really beneficial to the developing countries.

A. VAN DOK-VAN WEELE, Minister for Foreign Trade of the Netherlands: For UNCTAD to continue to be a vital and dynamic organization, a stronger focus on a limited number of so-called core issues should be agreed upon. Its roles in the following areas should be maintained: support to efforts by developing countries to expand trade and economic cooperation; technical assistance; and analytical work. Unlike many other members of the United Nations family, UNCTAD has a tradition of adapting itself to new realities. Ways of continuing those activities which are considered valuable should be explored. At the same time, one should not hesitate to abandon activities that are no longer justifiable.

A "lean and mean organization" thus created should look for new opportunities to combine in its approach to the ever-increasing inter- relationship which exists not only between trade and development, but also with investment and enterprise development. A platform for an integrated dialogue on trade, development, investment and enterprise development is required. "Am I too far off the mark when I submit to you the suggestion to explore the possibility of merging the strength of the United Nations

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Industrial Development Organization (UNIDO) into UNCTAD?" The existence and functioning of organizations like UNIDO is no longer self-evident despite its valuable work in the past. With a merger, the continuity of valuable work to reinforce the social-economic sector would be safeguarded in a single forum.

Focusing on priorities and an intergovernmental machinery designed accordingly is an inevitable consequence of the new political and economic spectrum. The administrative set-up of UNCTAD will have to be matched to the agreed priorities. A revitalized UNCTAD, it has been said, will hold its own amidst the international economic and financial institutions. In particular, it will have its own function, in close cooperation with the WTO, to contribute to the economic growth in developing countries and economies in transition.

MOHAMMED MAHDI SALIH (Iraq): The Conference must face the inhuman practices of economic blockades. Since the disappearance of the socialist block, the United States has been extending its hegemony. It hampers the efforts of nations to move towards economic dependence. The six-year blockade against Iraq has damaged the infrastructure of the country and has harmed other countries by reducing Iraq's imports, causing them to lose business. It has also reduced employment and prevented Iraq from being able to pay its debt. The blockade has affected Iraq's ability to extend assistance to other countries. The United States planned the blockade before August 1990 as part of an effort to annihilate Iraq. The first attempt by the United States was in 1988 when the House of Representatives passed a bill to freeze the assets of Iraq. More than 1 million people have died as a result of the blockade.

Because of the cruelty of the British and United States Administrations, conditions affecting the sovereignty of Iraq and preventing it from utilizing its assets to purchase medicine and foodstuffs have been imposed. Despite its huge oil assets, Iraq has been prevented from feeding its people. Economic blockades should be ended.

Among the important characteristics of the new economic order are liberalization and globalization. The obstacles have to be first removed on the movement of goods and services. Iraq calls for an end to poverty and underdevelopment and for raising the living standard of the people in the developing countries.

JOSE P. LUIZ GOMES (Portugal): Contributing to the harmonious integration of the developing countries, especially the most vulnerable, in the world economy must be the ultimate task of UNCTAD. In pursuing that objective, it is essential to bear in mind the growing differentiation among the developing countries, an indisputable reality in today's world. The diversity of development levels in the developing world calls for particular

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attention to be given to those countries in greater need, with priority for the least developed countries.

Portugal welcomes the interest of the Conference in matters relating to the questions of business development and promotion of private initiative, competitiveness and investment, matters which cannot be removed from the very core of a strategy for sustainable development. The answer to the challenges set by a globalized and liberalized world economy depends, first of all, on the adoption of policies of good governance, administrative reform and State modernization that can guarantee a favourable atmosphere to the development of an enabling environment for foreign direct investment.

Portugal supports the definition of a well-focused and action-oriented programme of UNCTAD. Foreign direct investment plays a fundamental role in development; however, Africa has been forgotten, receiving less than 2 per cent of such investment flow. Portugal is interested in the "Africa Connect" business symposium held in parallel with UNCTAD IX, and welcomes the launching of the United Nations System-wide Special Initiative on Africa, particularly UNCTAD's participation in it.

VIVJAY S. MAKHAN, of the Organization of African Unity (OAU): The UNCTAD is a forum for consensus-building in international cooperation on development issues, especially at a time when the world is moving towards economic liberalization and globalization, and marginalization threatens millions of people. "Development is about people, man being at its centre." The OAU regrets the current trend of systematic downscaling of institutions and organizations which were established with the primary objective of helping the developing world in their development endeavours. "Reform should not be at the expense of effectiveness." The question is how best to enhance the capacity of African countries, especially the least-developed ones, to better understand the new trading system or to support the optimum use of the commodity futures to their best advantage. The OAU calls for the operationalization of the first account of the Common Fund and appeals to those who have pledged resources to the second account to honour those pledges without delay.

The solution to Africa's debt problem should go hand in hand with investment and trade flows. "You should not perceive Africa as a continent with a begging bowl! Africa needs an honest chance to participate in this great shift of the world economy." What Africa requires is support to implement its self-determined priority programmes. It expects effective support in its efforts to build up its capacity to take on the challenges it faces in the liberalization and globalization process. The OAU invites its development partners to recognize and understand Africa's own choice of priorities and to support it in its efforts.

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MOHAMMED EL ALAMI, Minister for Foreign Trade of Morocco: This Conference must be guided by the results of other development-related United Nations conferences. The UNCTAD provides a universal forum for macroeconomic policy and sustainable development. Most developing countries have opted for liberalization of their economies to facilitate their integration in the international trading system created by agreements such as the one establishing the WTO. Thus, it is important to implement such agreements. The current revival in the world economy is modest; unemployment and other difficulties continue.

Foreign debt is a considerable drain on developing countries. Creditors should opt for a brave solution. The UNCTAD must participate in the search for a final solution to the debt problem. Coordination between the United Nations system and international financial institutions is essential. The structural problems of the African continent are massive and its future prospects uncertain. Many of those problems are related to dependency on commodities, thus the importance of strengthening the Commodities Fund. The proposal for a Marshall Plan for Africa suggested by King Hassan II is starting to materialize in the United Nations Special Initiative. That is encouraging.

South-South cooperation is an important factor in international cooperation for development and will help the most vulnerable economies. The UNCTAD must adapt itself to new realities and become more action-oriented. It must improve its analytical work in order to help developing countries in trade negotiations.

GOCE PETRESKI (The former Yugoslav Republic of Macedonia): As a country in transition, the Republic of Macedonia takes advantage of the opportunities arising from globalization and liberalization of the world economy, by creating conditions to promote growth and by undertaking a series of reforms. Of great importance to the future development in the Balkans is faster economic integration into the European Union. Following the promotion of international trade in the period after the Uruguay Round, the Republic of Macedonia and other economies hold high expectations, particularly since the Uruguay Round Agreements have already become an important regulatory framework for growth of international trade. The role of UNCTAD in promoting trade and development in all parts of the world is indisputable. It must trace weakness in its traditional and new spheres of work and indicate the development perspectives by proposing global and regional solutions.

The UNCTAD should act as a promoter of trade and development and be an important institution for the promotion of international economic cooperation. Changes in the world have led to changes in the economic policies of many countries; perceptions of the past have shifted and the methods of analyses

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have been refined. Development policies that pay little attention to the contribution of foreign trade, private enterprise and foreign investment do not yield sustained growth and development. The international institutions being built today should be flexible, relevant and competent.

STYLIANOS PERRAKIS, Secretary-General, Ministry of Foreign Affairs of Greece: The conclusion of the Uruguay Round is contributing to the phenomenon of globalization. At UNCTAD VIII, the international community, following the wind of change, opted for partnership for development. The Cartagena Commitment on partnership for development remains valid. However, there is a need to go further and address matters such as the complementary relationship between UNCTAD and the WTO. UNCTAD's analytical work and technical assistance are of great value to developing countries. Clear priorities must be established at UNCTAD IX, including concerning the issue of enterprise development.

The transfer of the secretariat of the Commission on Transnational Corporations from New York to Geneva has strengthened UNCTAD. The UNCTAD should give priority attention to the least developed countries, which need special attention by the international community. Other issues that require focus include the participation of women in development. Countries in transition also need special attention. The environment is not the only new component of development. Others, such as human rights, have become important elements. The UNCTAD must adapt itself as an institution to changing times, and the Conference should streamline it to make it more effective in attending the needs of developing countries.

LUIS MAIRA, Planning Minister of Chile: The market appears to be an unavoidable tool for growth. The process of globalization and liberalization should promote opportunities of growth. The most developed countries continue to apply a set of protectionist practices and do not help to establish a fairer international system. It is hoped that UNCTAD will conclude its work with important South-South agreements.

Economic growth should be accompanied by social development. Movement towards those objectives are the responsibility of each country. It is hoped that the international community will assist national efforts. International trade constitutes a strong element of economic growth. A dynamic and relevant private sector will provide jobs and help to strengthen the world economy. The concept of trade efficiency must be implemented in the use of moderate adaptive technology. The UNCTAD should focus on the consolidation of trade centres.

Chile is interested in foreign direct investment, which plays a positive role in promoting economic progress. Developing countries should confront the

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challenge of establishing an appropriate framework to attract such investment. The UNCTAD can assist in the formulation of policies and incentives that will attract foreign direct investment. It should restructure and revitalize its functions and mandates and come to grips with the challenges of the international community. Its future work should be in the context of the numerous international social contracts that have been adopted. The intergovernmental machinery of UNCTAD should be carefully reviewed. The secretariat requires profound restructuring. It should adopt specific recommendations regarding the programme of work and it should also continue its analytical work. The UNCTAD should give more attention to the wide ranging study of national experience.

SELA MOLISA, Minister for Commerce, Industry and Cooperatives of Vanuatu: Like most other least developed States, Vanuatu is afflicted with numerous environmental and economic difficulties, many of which are caused by external factors and, therefore, beyond the country's control. For the country's struggle to achieve growth to succeed, environment needs to be adequately addressed and incorporated into the concept of development. Without that, small island nations will have an insufficient basis on which sustainable development will flourish.

Trade liberalization is desirable in that it enables people to enjoy those goods and services which they cannot produce themselves or that they can produce only at a comparatively higher cost. It is unfortunate, however, that Vanuatu, like other small island economies, lack the necessary skills to compete against stronger competitors. It is, thus, liable to be pushed out of the market. Deregulation is desirable, but it may be best not to be unduly liberal until the country has developed the capacity to compete on equal basis.

Right of Reply

NOTIS BOTZAHIS (Greece), speaking in exercise of the right of reply: According to the Security Council, the correct name of The former Yugoslav Republic of Macedonia is subject to a settlement of the difference in interpretation. That difference has not been settled.

Mr. PETRESKI (The former Yugoslav Republic of Macedonia): It is regrettable that such interventions should conclude the important work of the Conference today. The Council resolution in question does not request his country not to use its constitutional name, the Republic of Macedonia.

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