UNCTAD/WTO COMPLEMENTARITY, TRADE CONDITIONALITIES AMONG ISSUES DISCUSSED AT UNCTAD IX

Press Release
TAD/1825

UNCTAD/WTO COMPLEMENTARITY, TRADE CONDITIONALITIES AMONG ISSUES DISCUSSED AT UNCTAD IX

MIDRAND, South Africa, 1 May --The complementarity in the activities of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) was among issues discussed at an extended meeting this afternoon, as the ninth session of the Conference (UNCTAD IX) continued its general debate.

The analytical work of UNCTAD was a source of wisdom for the WTO, the Deputy Director-General of the new organization told the Conference. A practical result of WTO's joint endeavours with UNCTAD was a programme of technical assistance. The two agencies were working together to avoid duplication and for maximum substantive coordination and collaboration, he added

The UNCTAD should focus on analysing specific problems of the world economy relating to trade and development and provide recommendations in those areas which had not been covered by the WTO, the representative of the Czech Republic said, adding that UNCTAD/WTO cooperation was required to provide assistance to the least developed countries. The representative of Australia said UNCTAD had a vital role to play, working cooperatively with the WTO, to help developing countries participate effectively in multilateral trade negotiations.

Also this afternoon, several speakers cautioned against conditionalities in the area of trade. The Minister for Industry and Commerce of Zimbabwe, H.M. Murerwa, expressed concern over proposals to widen the scope of the WTO to include issues such as the link between trade and labour standards, foreign investment regimes and competition policies. The implications of the Uruguay Round negotiations had not yet been absorbed, he said, adding that developing countries required more time to adjust to the new challenges and assistance to strengthen their negotiating capacity.

Globalization must not lead to interference in the political and economic affairs of nations and to the establishment of a single model of political institution, the Minister for Foreign Trade of Cuba, Ricardo Cabrisas Ruiz, said. The principle of national sovereignty of States became

all the more applicable when they were transforming and adjusting their economic ties. States should not apply a double standard when calling for free access to markets, he added.

The Executive Director of the International Tropical Timber Organization (ITTO) cautioned against rhetoric. He said the international community now knew more than enough about the causes of and the solutions to the world's social and economic ills, after having participated in several rounds of United Nations-development related conferences in recent years. What was needed were concrete actions.

Statements were also made by the Secretary of State for Cooperation for Development of Belgium, Reginald Moreels; the Minister for Development Cooperation of Norway, Kari Nordheim-Larsen; the Minister for the Environment of Ireland, Brendan Howlin; and the Minister for Commerce and Industry of Kuwait, Hilal Al-Mutairi.

The representatives of Denmark, Spain, Bhutan, Germany, Dominican Republic, Ukraine, Slovak Republic, Madagascar, Venezuela, Philippines, Viet Nam, Nigeria, Malta and Belarus also spoke.

In addition, statements were made by the Managing Director of the Investment and Technology Promotion Division of the United Nations Industrial Development Organization (UNIDO), the Managing Director of the Common Fund for Commodities, the Executive Secretary of the Economic Commission for Europe (ECE), the Director of the Special Unit for Technical Cooperation among Developing Countries of the United Nations Development Programme (UNDP), and the Deputy Executive Director of the United Nations Population Fund (UNFPA).

Statements

The first speaker this afternoon, as the ninth session of the Conference (UNCTAD IX) continued its general debate, was REGINALD MOREELS, Secretary of State for Cooperation and Development of Belgium: Globalization can have shortcomings if the rules of competition are not respected. That is particularly true in relation to least developed countries. The ability to adapt to the new international environment differs. Particular attention must be paid to countries which are having more problems in coping with the new economic realities. The 20/20 initiative for social development should be encouraged. The private sector should respect a certain code of conduct. Regulations concerning labour conditions should receive particular attention, including limitations on child labour, an area that also belongs to the category of human rights.

The participation of non-economic sectors is important in order to contribute to keeping the social fabric together. The implementation of the "Tobin tax" should be considered by the international community. The UNCTAD

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should focus on assistance to least developed countries. Efforts must be made to continue to ease the debt burden. Belgium will continue to support both bilateral and multilateral efforts towards alleviating debt. Enterprise development must be encouraged. The UNCTAD has a real asset in the international scene -- the confidence of the international community. It should limit its work to priority areas, including matters relating to least developed countries and technical assistance.

KARI NORDHEIM-LARSEN, Minister for Development Cooperation of Norway: The challenge in the days ahead is to define an international institution that can promote international trade and development. It is important to give women, who are major producers, a more equitable role in the new economic order. The UNCTAD faces an important challenge of transformation as it deals with issues on the cutting edge of global transformation. It still has an important role: to help government and people deal with the challenges of globalization and liberalization. There is now a more unified and dynamic multilateral trading system. The UNCTAD must have a more distinct and complementary role and concentrate on ways in which it can fill institutional gaps. Efforts to help the developing countries must be strengthened.

The UNCTAD has a particular mission on behalf of the developing countries. That should be the most important issue on the development agenda. Given its mandate and mission, UNCTAD should continue to have an important analytical role and to access the processes of liberalization and globalization. Its analytical work should become more user-oriented. It can play an important role in policy formulation and policy guidance. Without such policies, the struggle for economic progress will be a losing battle. The UNCTAD should continue as a forum for discussing linkages between trade, technology and enterprise. Major changes are needed regarding its technical assistance. The organization must be comprehensively reformed. Norway insists that least developed countries have the main priority of UNCTAD; its work programmes have to be sharply focused. Foreign capital will increasingly come from foreign direct investment. In future, UNCTAD should work to make developing countries attractive partners for foreign investment. In the new global economy, the private sector and the civil society must be included.

PETER BRUCKNER (Denmark): National governments have the primary responsibility for development. They must provide macroeconomic stability along with an appropriate regulatory framework for business. They must pursue appropriate education and training policies and maintain the rule of law. The growth created by globalization can do nothing more than create the basis for social progress. Domestic policies are, therefore, needed to promote equity and social justice, tolerance, responsibility and involvement. The least developed countries have the primary responsibility for their development. They themselves must define and implement appropriate policies. While structural adjustment contributes to macroeconomic stability and higher real growth rates, the focus should be on development, with structural adjustment

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as a necessary element. Reducing poverty must be the overriding goal, not just an accidental byproduct of economic reform.

Denmark supports the new World Bank/International Monetary Fund (IMF) proposal on debt, a comprehensive framework for solving the problems of highly indebted poor countries' multilateral debt on a case-by-case basis. It also supports the work of UNCTAD in providing technical assistance for better debt management. Economic growth should be sustained to ensure a continuous improvement in living standards, and should not take place to the detriment of future generations. The processes of trade liberalization and growing environmental awareness could and should be mutually supportive. Greater attention should be given to sustainable development.

The Conference must identify a function for UNCTAD distinct from that of other organizations. It must define work programmes that will enable the organization to play a more useful role in its own area. The UNCTAD should become an effective instrument for the complete integration of the developing countries, particularly the least developed, into the world economy. To achieve this, the organization should focus on the "core issues" identified by the European Union.

MIROSLAV SOMOL, Deputy Minister for Industry and Trade of the Czech Republic: The basic objective of the Czech Government's policy of transformation is to create and preserve a stable political and economic environment. It has gained fundamental support from the majority of the population. The preservation of social consensus on reform measures has largely facilitated the successful implementation of the transformation process. Macroeconomic stability was achieved through consistent, restrictive fiscal and monetary policy. Liberalization is being implemented on three levels: multilateral trade policy; intensive participation in European integration processes; and relations with the developing countries. Seventy- five per cent of the country's trade will soon be free of any duties or other obstacles, and that is due to a liberal generalized system of preferences scheme. The Czech market is also open to the developing countries.

The country's experience may provide some inspiration for countries tackling similar problems. The UNCTAD might play a significant role in supporting the exchange of experience and providing technical assistance.

Activities of UNCTAD cover too broad a range of issues and lack concentration on specific key questions. The organization should provide real and practical assistance to its developing members in search of optimum solutions to their economic and developmental problems. One of UNCTAD's important tasks is its complementary role with the WTO. The UNCTAD should focus on analysing specific problems of the world economy relating to trade and development and provide recommendations in those areas which have not been covered by the WTO. It should continue to provide technical assistance to

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developing countries and to countries undergoing a process of economic transformation in areas relating to the Uruguay Round conclusions. Another important field of activity should be UNCTAD/WTO cooperation in providing assistance to the least developed countries. Information materials of UNCTAD should concentrate on the needs of its member States.

RICARDO CABRISAS RUIZ, Minister for Foreign Trade of Cuba: Over the last 35 years, the United States embargo against Cuba has cost the Cuban economy more than $40 billion, an amount that far surpasses any damage suffered as a result of the Cuban appropriations of United States properties. Such appropriations have not been compensated because the United States has ruled out any bilateral negotiating process. The recently enacted Helms-Burton legislation is an attempt to intimidate third States which develop ties with Cuba. The United States' attempts to impose in an extraterritorial manner its domestic legislation is a violation of basic norms of international law.

While strengthening integration and interdependence, globalization must not lead to interference in the political and economic affairs of nations, and to the establishment of a single model of political institution. The principle of national sovereignty of States becomes all the more applicable while they transform and adjust their economic ties. The current economic situation is not determined just by countries, but also by an endless number of economic agents. The majority is only interested in profit maximization. In this economic game, the law of the jungle, environmental destruction, and irrational use of natural wealth must not prevail. States should not apply a double standard when calling for free access to markets.

The expansion of trade and economic cooperation among developing countries is invaluable to help them join the world economy. The Cuban Government attaches great importance to the ongoing second round of negotiations on the global system of trade preferences among developing countries, which should conclude with a ministerial meeting to be held in Havana later this year.

RAIMUNDO TEREZ-HERNANDEZ (Spain): Since the last Conference in Cartagena, Spain has made economic adjustments to meet the requirements imposed under the Maastricht Treaty. While the prospects of the Spanish economy are encouraging, unemployment and public deficit are a cause for concern; adjustment measures are needed. To reduce its deficit, the Spanish Government is carrying out strict budgetary adjustments. Spain has continued to increase its development aid. Formerly a recipient country, it has become a net contributor of development aid. Cooperation among developing countries is also a mechanism that holds out very good prospects, especially if it takes the form of regional cooperation agreements. Spain also attaches importance to regional cooperation between developed and developing countries.

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Technical assistance is a field of particular importance. The UNCTAD has an important role to play in providing assistance to the developing countries. It is a matter of clearly defining the priorities and those sectors in which UNCTAD action can be most effective.

JIGMI Y. THINLEY, Deputy Minister, Ministry for Foreign Affairs of Bhutan: What UNCTAD needs today is a clear definition of time-bound tasks and better programme designs which lend themselves to meaningful evaluation. It needs to undergo a process or revitalization and self-renewal. It needs to do some serious introspection and derive inspiration and courage from the strength of its unique capabilities. The organization should build on its past achievements to become more responsive to emerging challenges. It is hoped that the proposed downsizing of the secretariat will not reduce the capacity of UNCTAD to undertake the tasks assigned to it by this Conference.

The UNCTAD and the WTO can derive profit from complementing and supplementing each other in related activities. The UNCTAD could facilitate better preparation for negotiations among trading partners at the WTO through research, analysis and intellectual input and help build consensus on contentious issues. It must strengthen its assistance to countries that are at risk of being marginalized by the process of liberalization, to integrate them into the global economic system. It may need to advocate more cautiously the virtues of universal liberalization to fledgling economies. Competition among equals is healthy and profitable, but indiscriminate competition among unequals is ethically wrong and practically impoverishing for the lesser. Effective use should be made of in-house capabilities for rendering technical assistance.

NORBERT LAMMERT (Germany): Official development assistance (ODA) should be concentrated on the poorest counties. Some 30 per cent of Germany bilateral ODA goes to countries south of the Sahara. In the last four years, those countries received more than one third of bilateral and multilateral ODA from industrialized countries' sources. Within the framework of the Lome Convention, Germany, together with her European partners, actively supports the adjustment and development processes, especially in Africa. It expects the IMF and the World Bank to continue their sizeable support. However, the indicators for sustainable growth, investment and export diversification are still weak. While trade liberalization is necessary, it is not a sufficient condition for achieving those objectives. The linking of trade liberalization with pro-active structural and institutional reforms would contribute to the creation of a stable environment, a precondition for attracting more private capital.

African countries have a good chance to catch up with the dynamic development of the other regions in the South. This is not an unrealistic perspective, provided that their own development efforts are continued and intensified and that the donor community continues its assistance.

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It is, therefore, imperative that the results of the Uruguay Round be implemented consistently and without delay. Particular attention ought to be paid to the implementation of the provisions of the Marrakesh Agreement that relate to the least developed countries. Free international trade requires strict compliance with adopted trade rules. Strict compliance with the rules works to the benefit of all. The policy of free trade must be given a new impetus at the WTO Conference in Singapore next December. Trade liberalization is not a one-stroke operation, but a continuous process.

The UNCTAD should focus its attention on bringing about useful contributions to the liberalization of trade and capital flows by using its analytical capacities properly and providing the forum for discussion. It should help to promote the further integration of the poorest countries into an open international trading system and a liberal world economy. We have to identify traditional activities of low value to developing countries and emerging issues for which UNCTAD would have a comparative advantage.

JESUS SEADE, Deputy Director-General of the World Trade Organization (WTO): Under the Uruguay Round, the potential for integration has been greatly enhanced, but the support of the international community is needed. The WTO is engaged in two lines of work: the further implantation of the Uruguay Round, and preparation for the first WTO Ministerial Conference to be held in Singapore next December. The analytical work of UNCTAD is a source of wisdom for the WTO. A joint WTO/UNCTAD paper on strengthening participation of developing countries in world trade and the multilateral trading system was prepared as a contribution to the Conference and is being circulated as a background document. It examines the potential for new market access that the Uruguay Round has created for the developing countries. It also examines the requirements of those countries in order to realize this potential.

The WTO tasks include putting into practice the results of the Uruguay Round and the development of institutional machinery. The recent creation of the subcommittee on and for least developed countries provides for their systematic participation. A practical result of joint endeavours with UNCTAD is a programme of technical assistance. The two agencies are working together to avoid duplication and for maximum substantive coordination and collaboration. That programme of long-term engagement with selected countries, initially eight, aims to nurture and sustain them. The international economic system will draw dynamism and energy from increased participation of developing countries and countries in transition. The UNCTAD has an essential role to play in this process. A sharper focus will emerge of its vision and objective.

FREDERICO ALBERTO CUELLO (Dominican Republic): A source of anxiety for the Dominican Republic is the new agenda of international trade negotiations and competition under the aegis of the Organisation for Economic Cooperation and Development (OECD), an organization with limited membership. How can it

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be suggested that this agenda be established on a clearly exclusive basis and to maintain the fundamental objectives of that institution? The UNCTAD should be transformed into a body with an analytical capacity equivalent to that of the OECD. When describing the history of the Uruguay Round, UNCTAD's role in support of the negotiations over services should be highlighted. Through coordination of national studies, developing countries were able to understand the importance of services and to gain valuable knowledge to support their liberalization offers while training people to negotiate.

The Dominican Republic supports the complementarity of UNCTAD not only with the WTO, but also with other institutions involved in negotiations for the modification of trade regulations. But none of those institutions simultaneously bring together the universal capabilities and dimensions of UNCTAD's. Its mandate is necessary because the developing countries need to prepare for new subjects. All of the developing countries need transparency if they are to fulfil their hopes and fight the inevitable marginalization that goes along with globalization.

JOANNA HEWITT (Australia): It is important that developing countries embrace economic and trade policy reforms which build sustainable, consistent market growth. Australia welcomes UNCTAD's concentration on poverty alleviation as its ultimate goal. Foreign aid should primarily assist developing countries help meet the basic needs of their people. In the provision of those basic human needs, the principal objective must be the alleviation of poverty and the promotion of economic development. Trade liberalization has a crucial role to play in finding sustainable solutions to poverty alleviation.

The UNCTAD has a vital role to play, working cooperatively with the WTO to help developing countries participate effectively in multilateral trade negotiations. "We should consider here in Midrand how best UNCTAD can support moves for further trade liberalization and help developing countries maximize the benefits to be gained from the liberalization that has already taken place as a result of the Uruguay Round." The major challenge before UNCTAD IX is to agree on the organization's work programme for the coming four years. The programme should relate closely to the new structure proposed by the UNCTAD Secretary-General. "We endorse his proposal to concentrate UNCTAD's work in four divisions, to appoint a Deputy Secretary-General and to establish a new and senior position to oversee UNCTAD's work on the particular needs of least developed countries."

VICTOR GLADUSH, First Deputy Minister for Foreign Economic Relations and Trade of Ukraine: Despite its difficult economic situation, Ukraine is pursuing a programme of economic reform in cooperation with the IMF. Highlights of that programme include the continuation of privatization and stringent financial discipline. Ukraine rejected States' monopoly on foreign trade. The system of State contracts has been eliminated. Changes are being

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drafted on investment legislation. Wide-ranging reforms being implemented by a large number of countries will have a great impact on international economic relations.

The question of economies in transition should be a priority area of UNCTAD. Support for economic reform to those countries will be carried out without affecting assistance to other countries. It is important to emphasize the universal nature of UNCTAD in all areas. At a time when the United Nations system is going through difficult moments of reform, Ukraine supports the streamlining of UNCTAD. Its work in areas concerning trade efficiency, foreign investment, business practices, anti-monopolistic legislation, and the elimination of barriers for effective participation in world trade should be maintained. Closer cooperation between UNCTAD and the WTO was necessary to make the best possible use of the comparative advantage of both bodies. Their work should be complementary.

PAVEL HRMO (Slovak Republic): Institutional remodelling and revitalization are urgently needed to enable UNCTAD to seize new opportunities and to foster international cooperation for development. The UNCTAD addresses issues of sustainable growth, but this should be done in a more efficient and practical way. Its Trade and Development Board should respond to General Assembly requests to address specific issues which deal with the problems of least developed countries and African countries. Regular sessions should be limited to one annual session of 10 days. A greater focus in the future work of UNCTAD should be on matters of development and on searching for linkages between economic and ecologically sustainable development, trade, finances, investments and technology. Promoting the greater involvement of the business sector, grass-roots organizations, non-governmental organizations and academia is another area to be strengthened.

Slovakia inherited many macroeconomic and structural deficiencies of the centrally planned system. Due to vigorous reform policies, the progress of macroeconomic stabilization has been rapid and efficient. Its main objectives have been to maintain a liberal and open trade policy; increase the level of stability and development in the areas of foreign trade and of participation in the multilateral trading system; develop multilateral and bilateral trade relations and to gradually integrate into the European Union; and to redevelop bilateral and multilateral trade relations among Central and Western European countries. The Slovak economy has been traditionally outward-oriented and this trend has been reinforced by the recently liberalized trade regime.

H.M. MURERWA, Minister for Industry and Commerce of Zimbabwe: Zimbabwe is concerned by the proposal of some development partners to widen the scope of WTO to include such issues as the link between trade and labour standards, foreign investment regimes and competition policies. The implication of the Uruguay Round talks have not been properly absorbed or even understood yet. It is a strain to adjust to the Uruguay Round Agreements, particularly those

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requiring changes to many domestic laws and policies. Developing countries require more time to adjust to the new challenges. They will require assistance to strengthen their negotiating capacity, to bargain effectively for meaningful concessions in the new and emerging issues.

The coordinated African programme of technical assistance has gone a long way in assisting Zimbabwe develop an appropriate legal and regulatory framework conducive to the development of a competitive service sector while taking into consideration multilateral obligations under the General Agreement on Trade in Services. Although Zimbabwe has succeeded in a number of areas, it is concerned that unless the Conference adopts concrete and concerted measures to counter negative social consequences, its efforts will be fruitless. Zimbabwe urges the Conference to address the external factors of commodity prices, market access, capital flows and debt which have a direct impact on the success of its domestic reform programme. The Conference is expected to generate new trends in policy thinking and in programme directions for the benefit of all.

YO MARUNO, speaking on behalf of MAURICIO DE MARIA Y CAMPOS, Director- General of the United Nations Industrial Development Organization (UNIDO): The UNIDO has developed competence and programmes especially in the areas of industrial polices and institutional infrastructure, industrial competitiveness, entrepreneurship and skills development and private sector promotion, including small and medium-scale industries which are of particular relevance to the developing countries. Most of UNIDO's current technical cooperation programmes are directed at the private sector.

In response to the calls on UNIDO by African decision-makers and the international community to focus its activities on Africa, UNIDO is promoting the launching of an "alliance for African industrialization" whose main purpose is to strengthen the efforts of African industry to increase its productivity and international competitiveness. The alliance will also seek to help expand the production capacity of African industry, in line with emerging demands of national, regional and international markets. The alliance will be demand-oriented and its ownership solidly African. It will stimulate and encourage private enterprises in Africa to form their own commercial partnerships at the country, subregional, regional and international level. The alliance will enhance the attainment of the goals and objective of the Second Industrial Development Decade for Africa. Its implementation will be through the formulation and execution of programmes in the African countries involved.

JAONA RAVALOSON (Madagascar): The Conference offers a unique opportunity to draw attention to Africa and to the least developed countries. Foreign direct investment has increased recently in developing countries but not in all of them, particularly in the least developed countries. Given the positive impact of such investment in recipient countries, such investment in

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Africa should be encouraged by UNCTAD. The Conference should be the launching pad for innovative measures to tackle the plight of the least developed countries.

The UNCTAD has a legitimate place in the family of international organizations. It should limit and balance its programmes; activities concerning least developed countries should be a priority. There should be coordination with the non-governmental sector. Efforts of the new UNCTAD Secretary-General to reform and restructure the organization's secretariat are welcome.

WERNER CORRALES (Venezuela): The challenge is how to ensure that the new processes of globalization and liberalization will benefit all countries. Venezuela has a long history of participation in international trade and has also suffered from shocks and learned lessons. The predictability of the main trading flows is necessary, and complying with multilateral norms is essential. It was important to evaluate whether the two processes of globalization and liberalization were generating restrictions in countries. Thus, UNCTAD has a role to play in the area of multilateral trade, particularly concerning norms to conciliate globalization and liberalization with development.

The UNCTAD should maintain and strengthen its analytical function. The issue of trade and environment is of the utmost importance to developing countries. They would benefit greatly from the active involvement of UNCTAD in discussing that issue. The UNCTAD should serve as a think-tank and promoter of a dialogue between developed and developing countries.

BRENDAN HOWLIN, Minister for the Environment of Ireland: Ireland, as a recently industrialized country, appreciates the needs and concerns of developing countries. Under successive governments, it has successfully pursued a policy of export expansion and industrial development. The process of globalization and liberalization should not be allowed to lead to a system of international trade and economic relations based on ruthless competition between nations, a system under which the strong wins at the expense of the weak. It was a matter of serious concern that the weakest economies have continued to be marginalized. This unacceptable situation must be a central challenge to UNCTAD IX.

The UNCTAD has a special contribution to make in overcoming the marginalization of the least developed countries. To fulfil that task, and to maintain the respect and acceptance of all its members, it must become highly focused and disciplined. It should concentrate on a small number of central issues of direct relevance to trade and development, and produce results which are of practical value. Analyses of the impact of the processes of globalization and liberalization on development should be continued. It should focus on the position of the least developed countries and work to

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facilitate their participation in the global economy. It must be assured that developing countries, particularly the least developed countries, benefit from liberalization measures. In cooperation with other international institutions, UNCTAD can assist developing countries in their efforts to benefit from new trading opportunities arising in the global economy.

ERNESTO M. ORDOÑEZ (Philippines): For many in the developing world, the quest for peace through economic freedom remains an impossible dream. For 2 billion people in the world, peace is, at best, a precarious reality because there is still not enough economic freedom. International economic growth can be promoted and development can be sustained through the forging of partnerships among all countries and various sectors of society. Partnership should be achieved through direct investment by developed countries in capacity-building projects and programmes in developing countries that will enable the latter to participate more fully in the freer flow of global trade in products and services.

Partnership can also be achieved through a strategic programme of development that will substantially transform women into major contributors to national and eventually global economic productivity. They can be also achieved through micro-, small- and medium-size enterprises that will stimulate the generation of new employment opportunities. The private sector should participate in the implementation, monitoring and supervision of UNCTAD-sponsored plans and programmes to guarantee that they will indeed be most responsive in enhancing global competitiveness and widening trade opportunities for nationally generated goods and services.

NGUYEN XUAN QUANG, Deputy Minister for Trade of Viet Nam: Developing countries should be self-reliant while strengthening international cooperation and integrating into global trade and economy. Developed countries should step up policy coordination with developing countries so as to establish a favourable and stable environment for business and trade activities, helping them to cope effectively with new challenges. Developed countries should also share the economic burdens of developing countries by extending greater assistance in terms of experience, technology and finance, to enable them to get out of the status of underdevelopment and to be able to face the new challenges.

New steps must be taken to defend against new protection measures arising from the implementation of the Uruguay Agreements and to assist developing countries to accede to the international trade system. Developing countries should be given every opportunity to participate in the WTO on the basis of conditions compatible with their level of trade and economic development, as well as with their financial and developmental needs. Enterprises in developing countries face difficulties such as how to compete, to survive and develop in the process of globalization and liberalization. Governments of developing countries should create a favourable legal

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environment for the development of enterprises, especially small and medium- size enterprises. Viet Nam is undertaking economic reforms. Its goals cannot be achieved without the support and cooperation of the developed and developing countries.

HILAL AL-MUTAIRI, Minister for Commerce and Industry of Kuwait: The generalized system of preferences has existed for almost 30 years and its aims have not yet been achieved. Thus, the gap between developed and developing countries continues to widen. That could lead to a catastrophe that could also affect developed countries. The developed countries are well equipped to absorb the processes of globalization and liberalization. However, developing countries are not, particularly the least developed countries. The UNCTAD should adopt measures to address that problem.

The UNCTAD should encourage trade-related investment and take measures to help least developed countries face the negative impact of the outcome of the Uruguay Round. It should also help those countries to become members of the WTO. Kuwait expresses its solidarity with them in the form of concessional loans and other assistance. It has established a fund to conduct programmes in those and other developing countries. The decrease in ODA must be reversed in order to increase both the quantity and the quality of the flow of financial resources to developing countries. The solution to environmental problems should be dealt with through multilateral agreements.

M.V. OFFOR (Nigeria): Poverty is closely related to environmental problems. Nigeria is pursuing adequate environmental management policies. Those polices, however, can only be implemented if the issues of poverty and economic and social development can be addressed effectively. Many developing countries may, therefore, not be able to divert the limited resources available for development to address externally imposed environmental concerns which are a form of protectionism. The unilateral and extraterritorial application of environmental standards in international trade is prejudicial and should be discouraged. Rather, developed countries should provide adequate financial assistance and environmentally sound and relevant technologies, at affordable costs, to African countries.

The UNCTAD needs to examine the close relationship between poverty and the environment with the aim of making appropriate recommendations. It should also monitor closely the protectionist tendencies in developed countries on the linking of trade to non-trade issues such as the environment. The development of Africa is the responsibility of Africans. The international community should provide assistance, and an enabling environment should be created to attract such assistance. Even African countries that are not classified as least developed countries are in the same poverty trap. The international community must not shy away from the acute problems of African countries. The Conference provides Africa with the forum to reorient itself to meet development challenges. There is a need to provide policy approaches,

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adequate measures and concrete actions to help developing countries integrate into the world economy. The planned reform of UNCTAD in both its operational and institutional aspects must address these issues.

MICHAEL BARTOLO (Malta): Malta is completing a series of reforms which have included legislation for gradually deregulating interest rates, and liberalizing exchange rate policy and financial services in line with current practice in the European Union. This programme of reforms also led to the modernization of Malta's laws on companies, competition and monopoly, consumer protection and State aid, and their harmonization with European Union legislation. Other barriers to trade have been dealt with environmental protection laws and the reform of the civil service are nearing completion. Malta accomplished this in a conscious effort to become a full member of the European Union and, at the same time, to increase the standard of living of its people.

Malta shares the Secretary-General's vision of an UNCTAD which will concentrate on what is realistic and practical and has the ability to make a valid contribution to the tasks of fostering growth and reducing inequality so as to make a difference to people's lives. Malta looks forward to a restructuring of the secretariat in line with this thinking and with the decisions of this Conference. It believes in the continued relevance and need for an institution like UNCTAD which has a unique capacity to analyse international economic issues from a development perspective and to provide an integrated treatment of a wide range of trade development issues. The UNCTAD is, thus, able to articulate and voice the concerns of developing countries, thereby, helping to ensure that their interests are duly taken into account at the international level.

Malta has benefited from its cooperation with UNCTAD in the past. It's decision to cooperate with UNCTAD in the installation of ASYCUDA, the programme for customs reform and computerization, has proved a worthwhile investment. It has also benefited from the generalized system of preferences and UNCTAD's other services which helped build its export promotion activities. Malta is also participating in the Trade Point Network backed by UNCTAD and actively supports South-South cooperation in the Mediterranean.

V. TSEPKALO, Vice-Minister for Foreign Affairs of Belarus: Over the past 10 years, the economy of Belarus was affected by the large sums spent on work to eliminate the consequences of Chernobyl. There must be a more flexible approach from the developed countries as to the needs of the developing States. Special consideration should also be made for States in transition like Belarus. Developed countries have made a greater use of tariffs and Belarus has been directly affected. Two of its competitive products are subject to unfairly and arbitrarily imposed anti-dumping sanctions. Used in this way, the anti-dumping regulations present barriers to market access for Belarus.

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The generalized system of preferences was aimed at alleviating the burdens of tariffs but it is gradually losing its effectiveness for developing countries and countries in transition. A number of countries of the Commonwealth of Independent States (CIS) have encountered specific problems regarding the system. Moreover, several beneficiary countries under the system are ahead of Belarus in economic indicators. Belarus might be forced to carry out a review and modification of its own system of preferences. It hopes that its partners will understand. It is unacceptable for the WTO to become a harsher mechanism. The UNCTAD must continue its work along the lines set down in Cartagena. The implementation of its tasks will prove that it does have the potential to find solutions to the problems of development and trade.

B.C.Y FREEZAILAH, Executive-Director of the International Tropical Timber Organization (ITTO): By the "ITTO 2000 Objective", producing members undertake a commitment that by the year 2000 there will be evidence in their tropical forests of sustainable management practices. That will ensure that trade in tropical timber products comes from sustainably managed sources. It is an ambitious target which requires the political will and determination of especially the producers of tropical timber. The international community now knows more than enough about the causes of and the solutions to the world's social and economic ills, after having participated in several rounds of United Nations development related conferences in recent years. Enough rhetoric has flowed over mounting piles of studies and reports on all facets of the human predicament. What is now needed are concrete actions.

The UNCTAD and related agencies, such as ITTO, must set the example. Global development requires confronting the challenges and ensuring that world investment and trade help bridge the economic and social disparities among and within nations in the final years of the twentieth century. Failure to do so will bring to mind the sad note of caution which the then Secretary-General of UNCTAD sounded at UNCTAD V, in Manila, when he suspected that rhetoric and diversionary tactics were becoming the ploy of certain delegations. He had asked if it is really necessary, when trying to shelter someone from the rain, to call for a study to determine whether this person will get wet if he/she goes out in the rain without covering up.

ROLF W. BOEHNKE, Managing Director, Common Fund for Commodities: The Common Fund can best be described as a partnership of 103 nations, rich and poor, developed and developing, which are joining forces to advance economically the most needy countries.

The focus of the Common Fund is on commodities, a core question of development in many regions of the world. Africa represents the overwhelming number of commodity dependent, low income countries whose plight is increasingly getting precarious. The Fund will hold a workshop in Abidjan next month to raise awareness of the opportunities the Fund offers to

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commodity producers. While many of the objectives of the Integrated Programme for Commodities remain valid, the ways and means of implementing these objectives have to be adjusted to today's conditions. It is the role of the Common Fund to assist commodity producing developing countries and countries in transition in meeting the challenges and participating in the new opportunities. It has the advantage of seeking more generally applicable solutions for commodity problems benefiting many commodity-producing countries.

The Fund has been promoting productivity an diversification of production and commodity exports. The creation of new end-uses, finding commercial outlets for new products emanating from research, promoting higher productivity and control of devastating effects of pests and diseases on commodities are some of the areas in which the Fund is supporting. The Fund cooperates closely with 24 international commodity bodies, focusing on areas where projects can be most effective. It also ensures that target beneficiaries effectively play their role in project design and execution. Particular attention will be given in the future to projects which support sustainable commodity development.

The Fund joins forces with the larger institutions such as the World Bank, the Food and Agricultural Organization (FAO) and UNCTAD. With regard to the First Account of the Common Fund, measures have been put in place for the use of part of the net earnings of the First Account to support commodity market development, enabling developing countries to function more effectively in a liberalized global economy. This is one of the areas in which the Fund looks forward to strengthening with UNCTAD, the World Bank and the WTO. Further measures regarding the First Account will follow in order to use its full resources in the spirit of the agreement establishing the Fund.

YVES BERTHELOT, Executive Secretary of the Economic Commission for Europe (ECE): Regional integration is consistent with globalization provided that multilateral disciplines are respected by regional arrangements. Open regionalism, which is geared towards enhancing the competitiveness of firms within a given region, subsequently increases their capacity for benefit from the global economy. It is necessary to both pursue and streamline cooperation between UNCTAD and the regional commissions. This process has to be seen against the background of the restructuring of the economic sector of the United Nations.

An independent study for the further rationalization of joint inter- institutional activities was commissioned by UNCTAD and the regional commissions. The preliminary findings show that the concerned institutions have already undertaken substantial reforms, which include identification of a limited number of priorities corresponding to comparative advantages, subsequent reforms, in intergovernmental machinery and efficiency savings

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The study highlights that the clarification of relationships between the regional commissions and UNCTAD should be based on the principle of subsidiarity, which leads to work being performed at the level most suited to increasing the efficiency of all institutions concerned. The UNCTAD can assist developing countries and countries in transition to prepare themselves for the integration into the world economy. To extend the cooperation experience, support mechanisms are necessary.

DENIS BENN, of the United Nations Development Programme (UNDP): The UNDP has established an effective working partnership with UNCTAD in designing and carrying out significant policy and operational initiatives involving technical cooperation with developing countries on a range of trade related issues. Of particular importance is the collaboration with UNCTAD in respect of least developed countries. The Programme has established a close operational link with UNCTAD in its capacity as the United Nations focal point for those countries. Special attention needs to be focused on Africa. It is hoped that the international community will cooperate with African countries and with the UNDP and the United Nations system as a whole.

Another area of interest to both UNCTAD and the UNDP is the promotion of South-South cooperation. The substantive discussions that are taking place at the Conference should not be viewed in isolation. The agreement to be made will form part of a series of international ones. As such, it must be seen as an integral part of the efforts of the international community to adopt a multi-dimensional approach in dealing with the complex issues which bear upon human survival and development. The UNDP urges the international community to provide increased resources for multilateral technical cooperation to enable the organizations of the United Nations system to continue to assist the developing countries, particularly in the area of capacity development.

KERSTINE TROANER, Deputy Executive Director, United Nations Population Fund (UNFPA): If economic policies are to succeed fully, greater attention is needed to making better quality basic social services more widely available. Meeting this goal requires that priority be given to the groups in greatest need: the poor, women, children and aged. Special attention is needed for people caught up in emergencies. It is important to identify the target group and to monitor the effectiveness of interventions. Special priority is needed to improve both the quality of the services to women and women's access to them. In too many societies women still lag behind men in health status, educational achievement, and employment opportunities. Gender disparities are often justified on the grounds of "custom" and "tradition". It is time to overturn this convenient excuse. Empowering women by offering effective social services liberates 50 per cent of the population to become effective participants in the development process.

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Within countries, new partnerships are needed between public and private sectors as a means of increasing both the quality and the effectiveness of domestic resources for social services. Non-governmental organizations have demonstrated their ability to energize their constituencies for advocacy, resource mobilization and service delivery. Commercial organizations also have a stake in social development. They should be encouraged to participate. External donors must be encouraged to intensify their commitment to social sector investment.

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