UNCTAD IX DISCUSSES EFFECTS OF FREE MARKET FORCES, FOREIGN DEBT, WORKERS' RIGHTS, IN GENERAL DEBATE
Press Release
TAD/1827
UNCTAD IX DISCUSSES EFFECTS OF FREE MARKET FORCES, FOREIGN DEBT, WORKERS' RIGHTS, IN GENERAL DEBATE
19960506 (Received from a UN Information Officer.)MIDRAND, South Africa, 2 May -- Market forces left on their own were completely devoid of social justice, Abdallah Omari Kigoda, Minister for Industries and Trade of the United Republic of Tanzania, said at the ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) as it continued its general debate in an extended afternoon meeting.
Equal rights and obligations were fine concepts only if there was a capacity to enjoy and exercise those rights, he added. The Tanzanian Minister was among several speakers this afternoon who drew attention to the foreign debt problem of developing countries, particularly in Africa. In 1995, he said, his country spent $155 million in debt-service payments, a sum more than twice what the Government spent in providing clean water.
The Minister for Commerce, Trade and Industry of Zambia, Alfeyo S. Hambay, said the development problems of African countries were worsened by the effects of debt burden which must be addressed by the international community as a matter of priority. Unless effective action was taken at the multilateral level to ease that burden, developing countries would remain poor and unable to play a significant role in the global economy.
The Minister for Trade and Tourism of Angola, Francisco Gomes Maiato, said that a lack of solution to the debt problem would undoubtedly lead many African economies to a catastrophic situation. He also called for greater assistance from the international community to help the peace process in his country.
In the last five years, Croatia had to cope not only with the difficult transition to a market economy, but also with war and aggression, the Minister for the Economy of Croatia, Davor Stern, told the Conference. Despite such circumstances, the country had undergone intensive economic restructuring, privatization, and law and institution-building to improve competitiveness in the international market. Croatia had achieved economic stability, he said.
Two non-governmental organizations addressed the Conference this afternoon. A representative of the International Confederation of Free Trade Unions (ICFTU) said that there was a consensus at the 1995 World Summit for
Social Development that it was unacceptable for free-market growth to be allowed to go side by side with flagrant violations of fundamental labour standards, as there was a clear link between respect for basic workers' rights and development.
While the myths of globalization were being trumpeted, the reality was that many developing countries were still trapped in poverty, which was to a large extent caused by unequal and unjust international economic, trade and financial structures, a representative of Third World Network stated. The fact that those problems still existed and had worsened showed more than ever that there was a dire need for an international development agency like UNCTAD.
Statements were also made by the Minister for Cooperation of France, Jacques Godfrain; the Commerce Minister for Algeria, Abdelkrim Harchoui; the Minister for Trade and Industry of Ethiopia, Kassahun Ayele; the Minister for Industrial and Commercial Development of Cameroon, Pierre Eloundou Mani; the Commerce Minister of Bahrain, Ali Saleh Al-Saleh; the Commerce Minister of Guinea, Sekou Konate; the Minister for Economic Planning, Information and Communications of Mauritius, Rajkeswur Purryag; and the Commerce Minister of Cote d'Ivoire, Ferdinand Kacou Angora, on behalf of the African, Caribbean and Pacific Group of States.
The representatives of Colombia, Jamaica, Peru, Lao People's Democratic Republic, Panama, Yemen and Eritrea also spoke, as did the Executive Director of the International Cocoa Organization (ICO) and the Director and Executive Coordinator for Globalization of the United Nations Environment Programme.
Statements
The first speaker this afternoon was ALFEYO S. HAMBAYI, Minister for Commerce, Trade and Industry of Zambia: Although it is true that the successful conclusion of the Uruguay Round and other global developments have offered least developed countries an opportunity and a challenge to attract investment and expand their exports, it is also true that, given the structural weaknesses of their economies, these countries will not be able to take advantage of the challenges and opportunities offered by the Round. The international community, therefore, should give priority to assisting these countries in getting rid of supply-side constraints which impede the smooth flow of foreign direct investment to them and prevent them from making maximum use of the opportunities created by the Round. Without an effective and sustainable solution to these problems, the stated goal of the international trading system and the global economy will only be realized at the expense of many marginalized developing countries left in poverty and under development.
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Developing countries, especially those in Africa, though having significant variations in growth performance, are the weakest segment of the international community. They are dealing with many developmental problems, which are worsened by the effects of the debt burden, which must be addressed by the international community as a matter of priority. Unless effective action is taken at the multilateral level to ease the debt burden, developing countries will remain poor and unable to play a significant role in the global economy. Member States must expedite the implementation of all special and differential measures taken in favour of least developed countries. Concessions on tariff and non-tariff measures on products of interest to the poorest countries ought to be implemented immediately, including further improvements in the generalized system of preferences (GSP) schemes.
NESTOR OSARIO (Colombia): "In the world today, the only constant is change." The culmination of the Uruguay Round is a milestone in economic history. The concepts of globalization and liberalization are guiding the global economy. The new picture will offer the benefits of development. However, for some, it will entail significant efforts. It is here that UNCTAD can play an important role. Its validity is clear but it must have a pragmatic approach. It should be an international forum for the discussion of international trade issues. The principle of universality should be at the core of the institution. The UNCTAD should assess world economic trends and their impact on developing countries.
The UNCTAD must be involved in the new topics that are associated with international trade, with a view to formulating recommendations that will improve the negotiating capabilities of the developing countries. It must strengthen its work in the area of service and technical assistance. The UNCTAD should have a three-tiered structure -- a trade and development board, committees and expert groups. Developed countries will have to contribute to integrating developing countries into the international economy. International cooperation channelled through UNCTAD is essential to the objectives of globalization. The challenge is to obtain sustainable development and raise the standard of human existence. A world where equity, prosperity and respect for human beings reigns should be our goal.
JACQUES GODFRAIN, Minister for Cooperation of France: Democracy is advancing in Africa. Governments are increasingly aware of their responsibilities concerning development. These developments must strengthen the international community's resolve to help the continent, with UNCTAD as the instrument for aid. The "Africa Connect" seminar, being held in parallel with UNCTAD IX, is an example of such assistance. The UNCTAD should give priority to the problems of the least development countries. There is a need to think about the type of aid given to developing countries as they are at different stages of development.
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The UNCTAD has already shown that it can change while implementing the Cartagena Commitment. It should become more than ever before the institution that promotes development through trade. France supports the restructuring proposals of the UNCTAD Secretary-General. It also supports the idea of creating a trust fund for the least developed countries. A mechanism to support trade efficiency also deserves priority. The future UNCTAD must be open to all representatives of civil society, including the private sector. There should be coordination between UNCTAD and specialized as well as other agencies in its restructuring exercise. The aim is to make UNCTAD a dynamic organization focusing its attention on the most urgent issues.
SEYMOUR MULLINGS, Deputy Prime Minister and Minister for Foreign Affairs and Foreign Trade of Jamaica: The challenge of development is the most urgent task facing the international community. The UNCTAD therefore has an important mandate and should be given the resources to discharge its mission. The Jamaican Government seeks to establish a stable macroeconomic framework which provides an enabling environment for enterprise development and encourages investment flows. To achieve its objective, it is important to engage the social partners, entrepreneurs and labour in this process. The UNCTAD VIII in Cartagena recognized that a partnership at the global level involving all countries was necessary to achieve a more efficient and equitable world economy. That partnership should be extended to include the civil society.
To avoid duplication and overlapping in the international system the competence and responsibility of other organizations and institutions must be taken into account. The UNCTAD is an institution of strategic importance. Jamaica supports UNCTAD's continued work in enterprise development and also welcomes the proposal for a strategy which takes account of the circumstances of individual countries and reflect that country's particular needs. It intends to review its own enterprise development strategy in view of the new UNCTAD initiative which undoubtedly will be developed in consultation with the appropriate international organizations such as the United Nations Industrial Development Organization (UNIDO) and regional development banks.
The technical assistance programmes of UNCTAD provide valuable support for small open economies and contribute to the development of their trade capacity and efficiency. Jamaica also supports the establishment of three UNCTAD commissions, on trade, services, enterprise development and investment. Financing of experts from developing countries in UNCTAD expert group meetings is of particular importance in encouraging wider involvement. It further supports the United Nations System-Wide Special Initiative on Africa in which UNCTAD has an important role.
DAVOR STERN, Minister for the Economy of Croatia: The private sector should be recognized as our main partner in dealing with multilateral issues
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of market access, financing, investment, competition and technology development. All this together reaffirms the need for cooperation and integration of world economies in which UNCTAD has its role to play. In the last five years Croatia had to cope not only with the difficult transition to market economy, but also with war and aggression, which caused human suffering and enormous material damages of about $27 billion. Despite such circumstances, Croatia has undergone intensive economic restructuring, privatization, law and institution-building, to achieve competitiveness in the international market. Croatia has achieved economic stability, which is the starting point for its complete integration into the European and global institutions.
Croatia is now in the process of entering the multilateral trade system of the World Trade Organization (WTO). However, for countries in transition, developing and the least developed countries, WTO rules and instruments are sometimes inadequate to achieve development of their domestic economy. The aim of globalization and liberalization is for domestic industry to become internationally competitive and consequently able to foster growth. Parallel with multilaterlism, regionalism should be endorsed and extended to the developing countries.
The UNCTAD should help developing countries, particularly least developed ones, to adapt to the new economic environment resulting from the Uruguay Round. The importance of extending technical assistance to all countries which are not able to keep up with new requirements and challenges should be stressed. In order to help promote sustainable growth and trade efficiency, and eliminate inequalities and poverty, UNCTAD should cooperate with the private sector and other social partners. That will increase its ability to promote the full integration of all countries into the global economic system.
ABDELKRIM HARCHAOUI, Minister for Commerce of Algeria: Despite growth and world trade, there is a myriad of constraints obstructing developing countries and limiting their economic objectives. Developing countries which are trying to improve and reform their economies cannot manage their programmes in any real way in the absence of a more stable economic environment. That environment would result from dialogue with developed countries.
Openness is aimed at creating conditions for favourable international trade. The initial optimism stemming from the conclusion of the Uruguay Round has been curbed. Reduced access to markets of the industrialized countries, a new agricultural policy that seriously affects the net food importing countries like Algeria, and other factors that widen the disparities between the developed and developing countries jeopardize the future of the economies of the developing countries. The developing countries do not question their
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responsibility in preparing for entry into the international economy. There must be new approach to the international economy.
The UNCTAD remains the United Nations institution that is best able to deal with development issues facing the world. Important questions for trade are becoming increasingly complex for the developing countries. There must be a conceptual place like UNCTAD whose primary role is to assist in adapting policies of development to the realities of globalization. The UNCTAD must be able to act as a centre for technical assistance specifically for those developing countries which are being called on to quickly adapt their economies and trade practices.
KASSAHUN AYELE, Minister for Trade and Industry of Ethiopia: To deal with the challenges faced by the least developed countries in implementing the Uruguay Round Agreements -- heavy transitional costs, higher bill of importing food items, and loss of GSP margins -- the developed countries should implement those Agreements fully. Also, the international community should take concrete measures to translate the Marrakesh Ministerial decisions in favour of those and net food importing developing countries. Least developed countries seeking accession to WTO should also be provided with the necessary assistance.
The main objective of the new economic policy of Ethiopia is to reduce the role of the State in the economy and increase the role of the private sector. The Government has established a "privatization agency" entrusted with the task of privatizing Stated-owned enterprises. It is necessary to adopt an enterprise development strategy at the national level. However, such a strategy must have international support, including technical and financial assistance, as well as institutional and human capacity-building. Africa has been bypassed by the increased flow in foreign direct investment. The UNCTAD should play a vital role in promoting such investment and creating the necessary conditions for the development of enterprises. The function of UNCTAD in consensus-building is vital.
HANS MEYER (Peru): Although globalization and liberalization have stepped up and the world is heading in the direction of a single world market, not all countries have benefitted equally. Globalization in and of itself is not sufficient. It must offer a favourable international climate that can underpin individual efforts. It is important for the international community to express firm support for UNCTAD.
In July last year, Peru launched an economic programme to reverse its economic crisis. A transformation took place within the framework of strict discipline and a democratic system. Peru now has the highest growth rate in the southern hemisphere. Significant aspects of the economy have been transferred to the private sector which is a driving force in the economy. A
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special emphasis has been placed on social development leading to a 10 per cent drop in the poverty level in Peru.
The Conference should define more accurately what the task of UNCTAD should be. It should include analysis of market policies, political dialogue on trade and development, and modification of intergovernmental machinery to make it relevant to trade and investment services. The UNCTAD must have a complementary role with WTO. It is the only forum where international trade is analysed through the prism of development. Peru is committed to seeing that UNCTAD IX is remembered as a milestone in the historical change of the institution.
PIERRE ELOUNDOU MANI, Minister for Industrial and Commercial Development of Cameroon: Despite the discussions in recent United Nations development- related conferences, several of the topics raised, including eradication of poverty and transfer of technology, will continue to appear in the socio- economic agenda of developing countries. Cameroon has implemented a series of economic and financial reforms and has taken other measures aimed at integrating the country in the globalization process. Inflation has been controlled, but unemployment has increased.
Difficulties such as these are being experienced by several developing countries. Cameroon supports the recently launched United Nations System-wide Special Initiative for Africa. Commodity price fluctuations make it impossible for countries to plan a budget. The UNCTAD should take measures to address that problem. Cameroon supports the restructuring proposal. However, that should not affect UNCTAD's work in favour of the least developed countries.
FRANCISCO GOMES MAIATO, Minister for Trade and Tourism of Angola: Many countries in the African continent are implementing political and economic recovery programmes under extremely difficult conditions. Yet, there are still many doubts around these programmes designed for social and economic development. The instability of markets and price fluctuations continue to be a major concern of the developing countries. The Common Fund for Commodities, established in 1989 to overcome these difficulties, still has problems. Measures are required to provide opportunities to countries to have access to the Fund, particularly the least developed countries.
The public support to development, which was dramatically reduced in the last years, cannot be considered as humanitarian help nor as political financial support. It is a commitment of the international community in accordance with General Assembly resolutions. The vicious problem of external debt must continue to receive special attention from the international community. If the debt problem is not resolved, it will undoubtedly lead many African economies to a catastrophic situation. The UNCTAD should continue to
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be the forum for the search of solutions to issues relating to development and the interdependence of economies. Angola's peace process is facing some difficulties in its implementation. Greater assistance is needed from the international community.
ALI SALEH AL-SALEH, Minister for Commerce for Bahrain: Bahrain is an island State, small in size, but with big aspirations. It does not enjoy the oil wealth of its neighbours, but has something more valuable -- a people who are educated, versatile and willing to work. This resource is both capable and determined to propel the country into developed status. Realistically, however, it cannot go it alone. It needs the technology owned by the developed countries to expand its manufacturing capability so as to integrate into the global mechanism. The industrial capabilities of the developed countries have largely been supported by developing countries like ourselves through the provision of primary materials. "It is now pay-back time".
The developed countries must accept their responsibility to assist developing countries through the process of direct investment and transfer of technology to enable developing country enterprises to be internationally competitive. However, it is up to developing countries to create an enabling environment conducive to attracting such investment.
Bahrain adopted a policy of using what little oil revenue it has to develop a first class infrastructure, demonstrating what can be achieved with a little help from the owners of technology, and a government committed to free trade and national development. Least developed and developing countries must work hard at developing their economies, in some cases with external aid, others through self-help. There must be a commitment from the governments and people to do everything within their means to integrate into the world economy. Regionalization is a means of leveraging self-help capability, and is not antipathic to the globalization of the world economy. The basis for cooperation through regionalization is trade. The UNCTAD should provide initiatives and policies to strengthen the role of trade as the main instrument of world development, and the provision of practical assistance through technical cooperation.
SEKOU KONATE, Commerce Minister of Guinea: It is hoped that the Conference will give rise to constructive conclusions and recommendation to assist developing countries in a globalizing and liberalizing their economy. Guinea has been involved in sweeping reforms and in implementing laws that guarantee human rights. New economic codes have been devised and published. New relations based on the globalization and liberalization of trade have imposed certain constraints and challenges, including on efforts to alleviate poverty and debt burden and to improve terms of trade. For countries like Guinea which have totally liberalized and democratized their economies, the
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benefits of globalization will hardly be felt. Its economy is still not performing as expected.
The number of least developed countries has risen and for that reason, Guinea, a member of that group, welcomes the Conference. All of the agenda items must be carefully considered and appropriate recommendations made. Issues such as the fall in price of raw materials, growing indebtedness, the level of social costs, collapse of commodity agreements, mobilization of financial resources for development, volume of ways to implement official development assistance all deserve attention. Donors should step up their efforts to achieve the goals that have been set for those countries. The international community should take measures to find a lasting solution to the debt problem. The creditors of the Paris Club should review its admission criteria. Conditions applied to Africa's debt should be removed. The debt granted on favourable conditions and then rescheduled should be cancelled. Trade-related debt should be reduced thanks to improved modalities of the Brady Plan and more effective use of the International Development Association (IDA) facility.
ABDALLAH OMARI KIGODA, Minister for Industries and Trade of the United Republic of Tanzania: The real situation on the ground reveals that globalization and liberalization processes at this stage are partial and incomplete. As such, the character of these processes suggest wide possibilities for further marginalization of the already marginalized least developed countries. Those countries enter global arrangements from a weak position. The effectiveness of macropolicy measures will be felt at the micro-levels if, and only if, the international community is able to put in place an institutional mechanism which will ensure that the benefits of globalization and liberalization effectively permeate the micro-level -- the marginalized and socially excluded majority.
The developed world should purposefully shun the propensity to pamper continued marginalization of those in the least developed countries categorized as vulnerable or victims of seclusion. Africa and the least developed countries are not apologetic nor do they seek to apportion blames for this regrettable situation. "What we call upon is the need to pursue a development process which carries with it a human face so as to assist the least advantaged to join the globalization process, with an enhanced ability to participate meaningfully. Development thus has to have an essence of humanity: the obligation to care for those in need." The much celebrated market forces left on their own are completely devoid of social justice or creating level playing fields. Equal rights and obligations are fine concepts only if there is a capacity to enjoy and exercise these rights.
In 1995, The United Republic of Tanzania spent $155 million in debt- service payments, a sum more than twice what the Government spent on providing
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clean water. Given this situation and unless there are efforts to relieve the country of its debt burden, it can never invest in enhancing its capacity for development and its competitiveness in a liberalized world trade regime.
ALOUNKEO KITTIKHOUN (Lao People's Democratic Republic): Over the past years, the number of poor and hungry in the developing world has doubled. More than two thirds of them live in Asia. As the world economy moves towards liberalization and globalization, it is hard to understand the rationale behind the continuing use of coercive economic measures against developing countries. The Lao People's Democratic Republic is concerned over this practice or any attempts of this nature, which clearly contradict international law.
The Lao People's Democratic Republic, began in 1986, the transformation of a centrally planned economy to market-based system. Last March, the Government set an ambitious goal to achieve by the start of the next millennium a growth rate of about 8.5 per cent per year. It is hoped that by the year 2000, per capita income will reach $500, up from the current level of $350. It is a daunting and massive task. The shift from a subsistence economy to a capital-based economy is only in its initial stages. The national economy does not yet have a solid foundation and the living conditions of the Lao people in rural areas are far below that of those living in the cities. Given the initial infrastructure, wealth in natural resources, geographic location and an increasing number of skilled people, it is hoped that the goal will be achieved as planned. The Lao People's Democratic Republic welcomes cooperation and assistance from friendly countries, international organizations and non-governmental organizations.
The present UNCTAD IX is a good opportunity for elaborating a programme for cooperation between developed and developing countries. The developing countries and in particular, the least developed ones, while recognizing their prime responsibility for their own development, cannot implement the colossal task on their own. External financial, technical and commercial cooperations are of critical importance.
RAJKESWUR PURRYAG, Minister for Economic Planning Information, and Telecommunications of Mauritius: Mauritius has gone a long way towards meeting the post-General Agreement on Tariffs and Trade (GATT) objectives. It has virtually liberalized trade, investment and payments and is now gradually liberalizing markets to improve productivity and competitiveness. its major trading partners' response to its reform programmes is too slow.
Mauritius, hampered by the problems of a small island developing country and endowed with limited natural resources, is not in a position to easily integrate into the world economy and tap emerging opportunities. This Conference should address such issues and adopt a package of measures to
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enable developing countries to evolve positively in the international environment.
The Conference should adopt a resolution to confer on small island developing States special and differential treatment, since these countries are subject to a series of limitations that prevent them from fully enjoying the benefits of trade liberalization.
The concept of net food importing countries should be redefined to include countries like Mauritius, since they import almost all of their foodstuffs. If the export revenue from agriculture offsets food import bills because of only one product -- sugar in the case of Mauritius -- such countries should be classified as net food importing States. The GSP should be expanded to cover more export products of interest to developing countries. The provisions of certain contractual arrangements, like Lome IV, should be evoked, particularly the relaxation of the rules of origin, which in certain cases are considered to be too stringent. A compensatory formula for countries that will be affected by the implementation of the Uruguay Round Agreements by way of erosion or loss of preferences should also be evoked. The Conference should clearly spell out the difficulties faced by developing countries to acquire new technology. A mechanism to facilitate the transfer of technical know-how and technology from developed to developing countries should be worked out. This Conference should clearly define UNCTAD's future role in the new world economic order. The deliberations of this Conference on these issues are vital to the developing countries as a whole.
JAVIER BONAGAS (Panama): The preparatory process for UNCTAD IX has debated the benefits and disadvantages of globalization, as can be seen in the documentation before the Conference. Participants in UNCTAD IX need to understand that political will is required for the organization to play any new role. The future of UNCTAD might depend on a certain number of countries, those which have the resources. North and South must act in accordance with recent changes in the world, be flexible and non-confrontational.
The UNCTAD must be equipped with flexible structures, but most of all those structures must be backed by good faith. Developing countries hope they will have better understanding from the developed world. Developing countries also have to carry out measures required for transforming their economy to adapt to new international realities. The success of those measures requires a favourable international economic environment. The UNCTAD must be equipped with the necessary resources.
MOTAHAR ALSAIDI, Deputy Minister for Planning and Development of Yemen: The Conference provides an opportunity to bring developing countries into the international system and to produce a methodology for understanding the different aspects of the economic order and meeting common challenges. The
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wisdom shown by South Africa in arriving at a solution on a basis of equity and justice should serve as an example to the rest of the world.
In earlier times, economies were structured on individualistic criteria. Today, any system based on such criteria cannot be effective. The dynamics of worldwide integration must be employed and a system of justice with equal opportunities for all should be embraced. Individual practices must be reviewed to adapt them to the present situation. Yet, powerful States continue to take advantage of certain situations, using criteria that work to their interests. This unacceptable situation cannot go on indefinitely.
There are imbalances and major shortcomings in the international economic machinery. These shortcomings must be tackled through a redistribution of resources and the problems addressed urgently. Yemen encourages action that can curb military spending and redefine priorities to focus on development. International solidarity should be based on programmes of assistance to mitigate the problems of developing countries, particularly the problem of debt. Social security must be reformed with a lasting means of assistance to those in need. International assistance is essential to strengthening government institutions and policies and to bring stability to all countries. International support to least developed countries should be provided in a consistent manner and on a clear basis, reflecting the unique conditions of each country. The UNCTAD must coordinate its efforts with WTO and other institutions to bring developing countries into the world community.
BEREKHET-AB HABTEMARIAM, Director Foreign and Domestic Trade Division, Ministry of Trade and Industry of Eritrea: Unlike most developing countries, Eritrea, is in the midst of a transformation process -- transformation into an independent State; change from totalitarianism to the tenets of democracy; adaptation from 30 years of armed struggle towards peace and internal reconciliation; and conversion from a State-run economy to that of a market- driven human and economic development. This is a challenge with only a few parallels of which Bosnia and Herzegovina is the most glaring contemporary. The difference between Eritrea and Bosnia and Herzegovina is in the length of the war and the amount of international focus given to the latter.
Nevertheless, the problem can be ameliorated by a strong commitment to peace, proper governance and a process of development based on local inputs. The Government is undergoing a gradual transformation, and has become a member of subregional, regional and international organizations.
The issues surrounding WTO cannot be separated from the concerns and options pertaining to the future development of the least developed countries. The heart of the matter lies, not in the argument centred around the issues of fairness of the system to which those countries are trying to adapt, but rather in the holistic nature of their approach to the problems of peace and
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integrity. Today, the least developed countries are submerged under the effects of economic blocs, the erosion of preferential treatments and an increasingly stringent market barrier exercised by the developed partners. The lack of a compatible research and information infrastructure in those countries has significantly limited their ability to advance their individual and group interests.
The solution is partly in the involvement and commitment of the international community, but more so in the effort and determination of least developed countries to achieve a breakthrough. This cannot be achieved without due regard to research and development as an instrument for assessing prevailing conditions and for the selection of workable modalities. Yet, research and information technology have become patents not only of the developed partners but also of regional and international organizations. The present structure of international organizations tend to work on a remote control basis while that of regional and subregional organizations tend to benefit the countries they are seated in. A fairer approach should be adopted to assist least developed countries plant the seedlings of research and development and to assist regional and international organizations to secure their continuous presence in the demanding situation of the least developed countries.
FERDINAND KACOU ANGORA, Minister for Commerce of Cote d'Ivoire, on behalf of the African, Caribbean and Pacific Group (ACP): The ACP countries seek actions that will enable developing countries to benefit from the positive effects of globalization. This group encompasses the largest number of developing countries and a considerable number of land-locked countries. Its members face the greatest risk of marginalization. Meetings of UNCTAD are important for international cooperation. The ACP countries realize that they must undertake certain measures by the year 2000 to benefit from globalization. These include measures leading to macroeconomic stability, good governance and political stability, greater foreign direct investment, human resource development, and infrastructure development. The heavy dependence on commodities, whose value has been falling constantly since the 1980s, is an obstacle to attracting foreign direct investment. Considerable efforts are expected from the ACP States, which in turn expect a great deal from private investors.
Africa has the highest rate of return on investments. The UNCTAD must help these countries to attract foreign direct investment. Human resource development depends on development assistance and on the commodities sector. Negotiation for new agreements to strengthen cooperation between producers and consumers is the chief instrument for development. Financing the external debt of the ACP countries is a problem that is far from being resolved and they ask the international community to find a lasting solution. The creditors
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in the Paris club should modify their admissions policy to include all of the ACP countries.
EDOUARD KOUAME, Executive Director of the International Cocoa Organization (ICO): Judging by the situation with cocoa, special measures are required when applying liberalization to commodities. There is a need for safeguards to avoid costly burdens for the countries concerned. The organization's main objective is to ensure the promotion and cooperation among those involved in the cocoa industry. Also, it aims at market transparency through the regular publication of statistics and other related matters.
The peculiarities of commodities and the fragilities of their market require special measures to address the special needs of producer countries. That is required to add fresh momentum to the situation experienced by the producer countries, which are in the majority in the developing world.
MARTIN KHOR, of the Third World Network, read out highlights of a joint international non-governmental organizations statement for UNCTAD IX entitled "Globalization must not be at the expense of people: As members of civil society, non-governmental organizations are very concerned about the effects of globalization and liberalization, and a shift of policy focus internationally and in most countries away from broad social concerns to narrow economic competitiveness. Among the adverse aspects of globalization is the way key national policies are now being made by global institutions controlled by the North and which act in the interests mainly of the elite and of big corporations. This has seriously eroded the national sovereignty of many Southern countries.
"We do not share the 'optimism' that freer trade and investment will solve development problems." On the contrary, for poorer countries, liberalization has meant the opening up to foreign imports and firms which have already run the local enterprises out of business. There is a process of de-industrialization in many African countries. It is a myth that the Uruguay Round and trade and investment liberalization benefit everyone. Instead, the more powerful are making use of liberalization to further squeeze out the poor and the powerless. While the myths of globalization are being trumpeted, the reality is that many developing countries are still trapped in poverty which is to a large extent caused by unequal and unjust international economic, trade and financial structures. That these problems still exist and have worsened shows that there is a dire need for an international development agency like UNCTAD more than ever.
DAN CUNNIAH, Assistant Director of the International Confederation of Free Trade Unions (ICFTU): The UNCTAD should concentrate its work primarily in the area of transnational corporations and foreign direct investment. Also, it should undertake analysis of the main emerging issues on the agenda
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of WTO, including labour standards, investment, the environment and competition policy. The new openness to trade and investment of many countries could provide important dynamic advantages for world economic growth. But increased competitive pressure could result in a downward spiral in working and living conditions whereby everybody is made worse off. The Conference should express its support for the first ministerial meeting of WTO later this year to adopt a formal decision to establish a WTO working group or committee on trade and labour standards.
Trade and capital liberalization have brought virtually every country into a network of global interdependence. But the current emphasis on open deregulated labour markets as engines of growth is leading to a race to the bottom, whereby basic labour standards are ignored, the right to form or join a trade union is suppressed, and organizing trade unions is violently repressed in many countries. There was a clear consensus of the World Summit for Social Development that it was unacceptable for free-market growth to be allowed to go side by side with such flagrant violations of fundamental labour standards. It stated that there was a clear link between respect for basic workers' rights and development. Globalization and liberalization are already destroying hard-won social gains and marginalizing a large segment of the population in many countries. Social standards are being driven down to the lowest common denominator. A social clause in trade agreements is what is needed to guide globalization in a more positive and cohesive direction.
HANS ALDERS, Regional Director and Executive Coordinator for Globalization of the United Nations Environment Programme (UNEP): Economic growth is very uneven among countries. Likewise, the environmental strains are unevenly distributed. This can lead to a severe "lose-lose" situation whereby environmental care and economic growth are hampered rather than enriched by each other. In formulating multilateral responses to environmental degradation, UNEP's role is not only based on environmental assessment, but also on economic, social and cultural aspects. Integrated in its work is the recognition that there is a common but differentiated responsibility. It also seeks to ensure that the differing responsibilities are taken into account when policy responses are formulated and implementation strategies set up.
The UNCTAD and UNEP are implementing a joint programme on trade and environment, addressing multilateral environment agreements, the concept of equivalencies and mutual recognition in the context of eco-labelling and capacity-building. An UNCTAD-UNEP seminar on trade, environment and sustainable development will take place at UNCTAD IX, on 7 May, to brief delegations on their joint programme of work. Those joint activities are recognized and have the full support of the Commission on Sustainable Development, which is meeting in New York today. The UNCTAD Secretary- General's opinion that UNCTAD has to continue its work in the field of trade and environment is welcome. His remark about his expectation to see the economics of the environment become shortly a matter of growing concern and importance to policy makers is not only interesting but unavoidable.
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