POLITICAL DECLARATION AND FINAL TEXT TO MEET CHALLENGE OF GLOBALIZATION ADOPTED AT CONCLUSION OF UNCTAD IX
Press Release
TAD/1831
POLITICAL DECLARATION AND FINAL TEXT TO MEET CHALLENGE OF GLOBALIZATION ADOPTED AT CONCLUSION OF UNCTAD IX
19960513 Conference Recognizes Particular Needs of Developing Countries For Integration; Provides New Orientation, Streamlines Structure(Received from a UN Information Officer.)
MIDRAND, South Africa, 11 May -- Recognizing that disparities between and within nations could be eliminated only through a global partnership, member States of the United Nations Conference on Trade and Development (UNCTAD) set priorities for policies and concrete action at the conclusion today of the ninth session of the Conference (UNCTAD IX).
Reaffirming their commitment to "partnership for development", the States ended the two-week gathering by adopting without a vote a political declaration and the Conference final text containing practical measures to help developing countries reap the benefits of globalization and development.
Noting that the impact of globalization and liberalization is uneven, the Midrand Declaration states that the partnership for development must be based on a clear definition of roles, the establishment of common objectives and the development of joint action. This calls for stronger intergovernmental cooperation between developed and developing countries as well as among developing ones, and effective coordination and complementarity of multilateral institutions. Further, it means mobilization of resources through dialogue and common action between governments and civil society, and partnerships between the public and private sectors.
The Declaration states that UNCTAD's mandate remains relevant as the focal point for dealing with trade and related issues of development. It must build upon its comparative advantage and offer support to developing countries to ensure their participation in the world economy on an equitable basis. Its policy research and analytical work must illuminate the changes in the global economy as they relate to trade, investment, technology, services and development and must facilitate policy formulation as members States strive for development.
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Final Text
By its final text, entitled "A Partnership for Growth and Development", the Conference provided the organization with new orientation for its activities, which would include new and emerging trade and development issues of particular interest to developing countries and on which UNCTAD could have substantial impact. The issues include those relating to multilateral framework for investment, enterprise development, technology and services infrastructure.
The Conference also streamlined the organizational machinery to reflect the new orientation. The Conference has recognized the need to revitalize and remodel the machinery to make it more responsive to the needs of a rapidly changing world economy.
As adopted by the Conference, the number of intergovernmental bodies is reduced to four -- the Trade and Development Board, responsible for ensuring the overall consistency of UNCTAD's activities with agreed priorities, and three Commissions. They are Commissions on Trade in Goods and Services and Commodities; on Investment, Technology and Related Financial Issues; and on Enterprise, Business Facilitation and Development. Over-arching issues such as those relating to the least developed countries, poverty alleviation, economic cooperation among developing countries, sustainable development and the empowerment of women will be integrated into their work.
The final document is presented in three chapters. Chapter I analyses challenges arising from globalization and liberalization and actions to be taken to maximize benefits and minimize risks. Chapter II discusses the contribution of UNCTAD to sustainable development. Chapter III is on the future work of UNCTAD and institutional implications.
The adoption of the final document of UNCTAD IX was the culmination of intergovernmental deliberations that started more than a year ago at the Trade and Development Board, the governing body of UNCTAD. Negotiations on the document were finalized at Midrand by a Committee of the Whole, three drafting groups and several smaller groups which met throughout the Conference.
Closing Statements
At the closing session, UNCTAD Secretary-General Rubens Ricupero said the Conference had given the organization a clarified and strengthened mandate, reinforcing its role as a forum for development, its commitment to ethical values and its technical and analytical work on trade and investment, a new and promising area. The organization had been restructured and streamlined. The work of renewal of the organization had begun. Action must
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be taken very early, giving concrete and pragmatic expression to the results of the Conference.
The President of the Conference, Alec Erwin (South Africa), said a major feature of the final document of the Conference was that it did not grapple with every problem in the world economy, addressing instead key problems. The real challenge ahead was implementing the document. South Africa was committed to working hard in UNCTAD. "We will take our presidency seriously", working with the Secretary-General and the secretariat to build on the new sense of rejuvenation and vitality and build upon the spirit of partnership.
Concluding statements were also made by the representatives of Cameroon (on behalf of the "Group of 77" developing countries), Egypt (on behalf of African States), Ghana, Costa Rica (on behalf of the Latin American and Caribbean States), Malaysia (on behalf of Asian States), Turkey (on behalf of Western European and Other States), Italy (on behalf of the European Union), China, Japan, Russian Federation, Australia, Canada, United Kingdom and Thailand.
After action on the text, explanations of position were made by the representatives of Cuba, Iran and the United States.
The UNCTAD IX brought together more than 2,500 participants from 135 of the 188 member States of UNCTAD, intergovernmental and non-governmental organizations. The Conference adopted a resolution expressing gratitude to the host country and endorsed Thailand's offer to host UNCTAD X in the year 2000. The quadrennial sessions of UNCTAD are the largest international gathering on trade and development. The eight previous sessions were held in 1992 (Cartagena de Indias, Colombia); 1987 (Geneva); 1983 (Belgrade); 1979 (Manila); 1976 (Nairobi); 1972 (Santiago de Chile); 1968 (New Delhi); and 1964 (Geneva).
Midrand Declaration
The Declaration states that UNCTAD IX has responded to changes and challenges by initiating important reforms designed to give new and real meaning to the partnership for development.
In a six-part Declaration, UNCTAD member States note that their economies continue to be unified by flows of trade, finance, information and technological change. The increased interdependence is a powerful impetus to liberalization of these flows. Competitive pressure on all economies has increased, and market forces play a pivotal role. The rules-based system of the World Trade Organization (WTO) will facilitate positive integration of countries into the global trading system if the commitment to this objective is strengthened.
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However, countries enter this system from very different starting points. Accordingly, the impact of globalization and liberalization is uneven. There are notable developing country successes where domestic reforms have provided increased dynamism to international trade and investment. Yet there remain problems of access to markets, capital and technology, and many grapple with the institutional transformation necessary for meaningful integration into the world economy.
The least developed countries, particularly those in Africa, as well as other developing countries remain constrained by weak supply capabilities and are unable to benefit from trade, the Declaration continues. Marginalization, both among and within countries, has been exacerbated.
It is in the interest of all countries that a mutually beneficial multilateral trading system continues to develop. This requires the recognition of differential impacts on countries and the solidarity necessary to ensure that all will benefit -- a true partnership for development.
The partnership must be based on a clear definition of roles, the establishment of common objectives and development of joint action. In practical terms this means: Strengthening intergovernmental cooperation between developed and developing countries and among developing countries, and more effective coordination and complementarity of multilateral institutions. It calls for the mobilization of resources towards development through dialogue and common action between governments and the civil society, and partnerships between the public and private sectors to achieve higher growth rates and greater development.
The mandate of UNCTAD remains relevant as the focal point for dealing with trade and related issues of development, it continues. It must build upon its comparative advantage and offer support appropriate to the needs of developing countries to ensure that they participate in the world economy on a more equitable basis.
The UNCTAD's policy research and analytical work must illuminate the changes in the global economy as they relate to trade, investment, technology, services and development. Such work must facilitate policy formulation within member States as they strive for development. It must lead to constructive policy dialogue among member States to enhance benefits of trade and must respond to different and changing developmental needs in the ongoing process of integration.
Policy formulation assistance requires appropriate technical support and cooperation in order to achieve concrete results, it states. It is essential that special attention be paid to creating an overall enabling environment at a policy and institutional level for the least developed countries.
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In enhancing technical cooperation, UNCTAD will strengthen its cooperation and coordination with WTO and other multilateral institutions. Developing countries themselves are increasingly contributing to technical cooperation.
Member States must also be supported as they build transparent and accountable governance and administration in all sectors of society.
The comprehensive United Nations reform process is designed to refocus and reinvigorate international cooperation for peace and development, it continues. Changes adopted at UNCTAD IX support the more focused work of UNCTAD through streamlining the intergovernmental machinery, improving the method and quality of expert input and focusing and integrating the secretariat's working methods. The results of these changes must be outputs that respond to the needs and demands of the member States.
To build on the political commitment of member States to the process initiated at this Conference and ensure its implementation, the President of UNCTAD IX should consider convening a special high-level review meeting two years prior to UNCTAD X, the Declaration states.
The Secretary-General of UNCTAD will convene a meeting with actors in development to advise him on how to enhance the participation of the civil society in UNCTAD, to build a lasting partnership for development between non-governmental actors and UNCTAD.
South Africa, as President of UNCTAD IX, in consultation with its regional partners and the Secretary-General of UNCTAD, will host a workshop on the partnership between the public and private sectors in mobilizing resources for development. The focus will be on the role of this partnership for least developed countries and how other developing countries can work together with least developed countries.
At no time in world history has the destiny of all its many different peoples been so intertwined, the Declaration continues. This must lead to solidarity in action to eradicate poverty. It has been stated that "no one can do for us what we will not do for ourselves. Our challenge is to ensure that all human rights and fundamental freedoms, including the right to development as an integral part of fundamental human rights, are promoted and protected."
Final Document Chapter I
The three-chapter final document of UNCTAD IX is entitled "A Partnership for Growth and Development". Chapter I -- "Promoting growth and sustainable development in a globalizing and liberalizing world economy" --
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contains an analysis of the world economy from the perspective of the interests of developing countries. It focuses on how those interests must be addressed and studied by UNCTAD in order to give an operational approach to their understanding and solution.
Addressing the challenges arising from the globalization of production and the liberalization of trade, the document states that those processes offer opportunities for all countries and enable developing countries to play a more active role in the world economy. At the same time, they have increased the complexity of interdependence, as well as the risks of instability and marginalization. Some developing countries are already benefiting from those processes. Others are less well placed to seize those opportunities. Intensive efforts are needed to help developing countries, particularly the least developed, benefit from the process of global trade liberalization. Policies and programmes need to integrate a gender perspective in order to contribute to women's empowerment.
Globalization and liberalization make all countries more susceptible to external developments, accelerating the transmission of positive impulses and, also, negative shocks, states the document. As a result, national and international policies are more interrelated, stressing the need for a vital role for international cooperation and partnership.
The Conference reaffirms the "partnership for development" concept. The concept of development has evolved from a narrow focus on economic growth and capital accumulation to that of a multidimensional undertaking with the ultimate goal of bettering the human condition. To confront the perpetuation of disparities between and within nations and the integration of environment and development concerns, a global partnership for sustainable development is required, as no nation can achieve those aims on its own.
Growth is a necessary condition for the economic, technological and social transformation of societies in developing countries, the text states. But for economic growth to be widespread and sustainable, cooperation should be promoted based on broadly shared conceptions of development problems. Democracy and accountable management are indispensable foundations for the realization of people-centred sustainable development. Human rights and fundamental freedoms, including the right to development as an integral part of fundamental human rights, should be promoted and protected.
The Conference recognizes that the participation of non-governmental actors -- the civil society -- is required to address the challenge of sustainable development. Sustained economic growth requires creation of an enabling environment for the private/business sector.
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Turning to the completion of the Uruguay Round of multilateral trade negotiations, the text states that the Round consolidated the process of trade liberalization. Identifying ways of expanding the trading opportunities created by the Uruguay Round is a challenge facing developing countries and countries in transition. The General Agreement on Trade in Services has opened possibilities for expanded trade in services. Developing countries will seek further liberalization in the services sector where it is important to their interest. The lack of efficient and transparent trade-related services such as customs, transportation, banking and insurance, telecommunications or business information is a major impediment to the integration of developing countries and some countries in transition into international trade. The Conference calls for measures to reduce the barriers.
The document identifies "competition policy" as an important new policy area, and states that there is growing realization that anti-competitive practices can have a negative influence on trade opportunities. The relevance of the work carried out in UNCTAD on restrictive business practices was recognized by the Conference, which also stated that "the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices is the only multilateral instrument on the importance of competition principles".
Continuing to address the new emerging issues facing the international community as a consequence of the Uruguay Round conclusion, the text states that a particularly important area is that of integrating trade, environment and development. In developing environmental policies with a potential trade impact, it is important to ensure that they are transparent and no more trade-restrictive than necessary to achieve the environmental objective.
Referring to the diversification attempts of many commodity-dependent countries, the document stresses that in the new market-oriented environment, new approaches are needed to help producers manage risks efficiently. There is concern among developing countries that the introduction of environmental conditionalities in the commodity sector will place an additional burden on commodity producers and divert resources from normal development programmes.
The economic importance of the enterprise as one of the main engines of growth and of development is now universally acknowledged, the text continues. The document defines enterprise as the economic unit that organizes production, creates employment, enhances skills, absorbs and promotes technological change and harnesses it for production, and invests for the future. Development policies should be directed at fostering viable and internationally competitive enterprises, including an entrepreneurial culture. The development and expansion of small- and medium-sized enterprises is also vital. Among key elements of a policy framework favourable to enterprise
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development are national macroeconomic stability and appropriate regulatory frameworks. At the international level, assistance for structural adjustment programmes in favour of enterprise development, advisory services, technical assistance and international dialogue are among the elements.
Foreign direct investment is an instrument for integrating economies at the level of production into the globalizing world economy. A stable and transparent legal framework is necessary to encourage investment. Intellectual property protection is an essential component of an environment conducive to the creation and international transfer of technology. The Conference acknowledges that there is no comprehensive, multilateral investment framework that covers a great majority of countries. The desirability, nature, issues and scope of such a multilateral framework, and especially its development dimensions, are increasingly being analysed and discussed.
In the section on measures to be taken to maximize the impact of globalization and minimize the risks of marginalization, UNCTAD member States set as their objective the full integration of developing countries, particularly the least developed countries and the economies in transition, into the world economy and the international trading system in order to enable them to reap the benefits of liberalization and globalization. "This means providing the conditions for an expansion of trade in goods and services to enhance their ability to meet their multilateral obligations, to understand and take advantage of their trade rights and to pursue their trade and economic objectives." Particularly to the least developed countries and other structurally weak economies, that objective calls for the development and expansion of capacities to supply goods and services to globalizing markets.
Further, UNCTAD members States recognize the importance of the support of the international community as well as UNCTAD's contribution in assisting developing countries and interested economies in transition to achieve that objective, and agree to apply a set of recommendations to that end.
The Conference recommends that in pursuit of economic growth and sustainable development, all governments should create a stable macro-economic framework. They should undertake structural adjustment and reform, and ensure a legal and regulatory framework which promotes investment. Donors and the United Nations system are urged to take part in the Mid-term Review Meeting of the New Agenda for the Development of Africa in the 1990s, scheduled to take place in September in New York. Donor countries should consider the possible development benefit of increasing official development assistance, particularly to the least developed countries.
The Conference calls for efforts to continue to address effectively the problems of heavily indebted low-income developing countries undertaking
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economic reforms whose growth prospects continue to be severely affected by their external debt problem. The Bretton Woods institutions are encouraged to expedite the ongoing consideration of ways to address the issue of multilateral debt.
In recent years, the magnitude of financial flows and the range of financial instruments in the international economy have grown rapidly, presenting new opportunities and challenges, the document states. One challenge is the increased exposure of domestic economies to the volatility of the international financial markets. It stresses that the developing countries should be better informed about risks and policy implications of different types of flows as well as risk-hedging instruments. Those countries, particularly the least developed, could also benefit from technical assistance related to the use of financial instruments for risk management in the international economy.
Addressing matters related to international trade in goods and services and commodity issues, the UNCTAD IX called on members of WTO to implement their commitments fully and apply provisions of the Final Act of the Uruguay Round, taking into account specific interests of developing countries. The full realization of the anticipated benefits from the conclusion of the Uruguay Round also requires that confidence in the integrity and credibility of the multilateral trading system be upheld, and the WTO dispute settlement mechanism is a key element in that regard. It is essential for all countries to respect the undertakings of the Uruguay Round, the document stresses, adding that countries should refrain from adopting measures inconsistent with their WTO obligations.
Preference-giving countries are invited to continue to improve and renew their generalized system of preferences. Appropriate technical assistance should be extended to the developing countries to develop and strengthen their service sectors, to help ensure that they reap the maximum possible benefits from liberalization of trade in services.
Governments and international organizations should consider providing technical assistance to developing countries and countries in transition to enable them to participate more effectively in the international trading system, including assistance to enable them to exercise their rights and meet their obligations in the WTO. The Marrakesh Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least Developed and Net Food-Importing Developing Countries should be effectively applied.
The Conference states that the pursuit of the built-in agenda contained in various Uruguay Round Agreements, as well as the way in which the international community deals with "new issues", should be carried out in a
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balanced way. The concerns of developing countries should be taken into account.
Governments reaffirmed their commitment to Agenda 21 and the principles of the Rio Declaration, adopted by the 1992 United Nations Conference on Environment and Development (UNCED). Governments should ensure that trade and environmental policies are mutually supportive to achieve sustainable development. In doing so, their environmental policies and measures with a potential trade impact should not be used for protectionist purposes. Governments should ensure that those policies and measures are transparent and pay appropriate attention to the special conditions and development needs of developing countries.
In order to attract foreign direct investment, the Conference invited countries to continue initiatives in such areas as a stable macroeconomic environment, transparent and accountable public administration, respect for property rights and the rule of law, the quality of labour, improvement of infrastructure, entrepreneurial and institutional capabilities, and simplified administrative and regulatory frameworks. The least developed countries need assistance to complement their efforts to create an environment conducive to investment flows. In order to assist enterprise development, developing countries need to establish an appropriate capital market infrastructure. In the absence of economies of scale, regional cooperation in this field should be enhanced.
Multilateral and bilateral donors are invited, in response to priorities of developing countries, to continue to provide adequate financial support and technical assistance for the implementation of national strategies for enterprise development, particularly for small- and medium-size enterprises. International institutions and governments are invited to provide targeted assistance to create and strengthen domestic enterprises of the developing countries through policies and measures to enhance market access.
Final Document: Chapter II
Chapter II of the conference text deals with the contribution of UNCTAD to sustainable development and states that UNCTAD, "having a clear comparative advantage in tackling trade-related development issues", should continue to facilitate the integration of developing countries and countries in transition in the international trading system in a complementary manner with the WTO. It should promote development through trade and investment in cooperation and coordination with the UNCTAD/WTO International Trade Centre, relevant institutions of the United Nations system and other international organizations. Its work should be geared to the special needs of developing countries, particularly the least developed countries, and focus on development issues.
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Sustainable development, poverty alleviation, the empowerment of women, least developed countries and cooperation among developing countries should constitute cross-cutting issues in UNCTAD's work. It should continue to facilitate discussions to consider development strategies and policies with special attention to analysing and exchanging successful developmental experiences and drawing lessons from them. In its analytical and deliberative work, UNCTAD should concentrate its efforts on a few priority subjects.
In the field of globalization and development, UNCTAD should continue to analyse global interdependence issues from a development perspective, concentrating on specific micro and macro issues, with poverty alleviation as an important objective. Work should focus on examining specific development challenges regarding effective participation in international trade and investment, particularly important development lessons learned about debt management problems from UNCTAD's work in this area. The organization should also examine successful development experiences and identify suitable options that may be of value to other countries, particularly the least developed. It should monitor the implementation of the Programme of Action for the Least Developed Countries for the 1990s and strengthen UNCTAD's contribution towards the effective implementation of the New Agenda for the Development of Africa in the 1990s.
The organization should continue to provide a forum for intergovernmental discussions, with the participation of representatives from the private sector. In particular, UNCTAD should promote international dialogue among development actors to assess the challenges and opportunities for enterprise development arising from the emerging new economic conditions, including the post-Uruguay Round environment. In the area of investment, UNCTAD activities should include improving general understanding of trends and changes in foreign direct investment flows and related polices; the interrelationships between such investment, trade, technology and development; and issues related to transnational corporations and their contribution to development.
Stressing the importance of UNCTAD's analytical role, the text calls for UNCTAD's activities to focus on identifying and analysing implications for development of issues relevant to a possible multilateral framework on investment. Also, UNCTAD should continue investment policy reviews with member countries and enhance the capacity of developing countries and countries with economies in transition to improve their overall investment climate, to obtain relevant information and to formulate policies to attract, and benefit from, foreign direct investment. Attention should also be given to assistance in the area of accounting standards and accounting education and related activities.
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Other UNCTAD activities regarding investment include promoting opportunities for foreign direct investment in host countries and promoting investment among developing countries and facilitating the holding of a pilot seminar on the mobilization of the private sector to encourage foreign investment flows to the least developed countries.
Concerning enterprise development, UNCTAD should continue to assist interested developing countries with policy-related issues and training activities concerning entrepreneurship development through programmes such as EMPRETEC 21 and in the area of reform of public sector enterprises, the text continues. The UNCTAD should also focus on facilitating the exchange of experiences on the formulation and implementation of enterprise development strategies, including questions relating to privatization and the public sector/private sector.
The Conference attaches importance to identifying and analysing the specific contribution foreign direct investment makes to indigenous enterprises development and to promoting ways to facilitate efficient domestic resource mobilization. It also states that UNCTAD should focus on providing technical assistance in technology development, including accessing information technology, and disseminating relevant information through an information system and networking. It should undertake science, technology and innovation policies reviews and identify, through an exchange of experiences among countries at different levels of technological development, policies favouring technological capacity-building, innovation and technology flows to developing countries.
In all of these activities, the text emphasizes, UNCTAD should take into account the work done by other international organizations to enhance synergies, avoid duplication and coordinate related activities.
The main role of UNCTAD in the field of trade in goods and services should be to help maximize the positive impact of globalization and liberalization on sustainable development by assisting the integration of developing countries, particularly least developed countries, into the international trading system, according to the text. Specific interests of the economies in transition should also be taken into account. It should work towards analysing the impact of the Uruguay Round Agreements on development; enhancing national capacities, in terms of human resources and administrative infrastructures; assisting countries in the process of accession to the WTO; and identifying impediments to trading success. It should also work towards providing a forum for examining issues relating to trade preferences; facilitating the understanding of the multilateral trading system; assisting developing countries, in collaboration with World Intellectual Property Organization and WTO, to identify opportunities provided by the Agreement on Trade-Related Intellectual Property Rights; and assisting the least developed
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countries that are WTO members to take maximum advantage of the special and differential measures provided for in the Uruguay Round Agreements.
The organization should provide analytical information on measures concerning the possible negative effects of the reform programme on least developed countries and net food-importing developing countries. It should also help them to strengthen their capacities in the services sector, as well as to identify export opportunities. In addition, UNCTAD should address issues of particular relevance to commodity-dependent countries.
The primary role of UNCTAD in the sector on services infrastructure for development and trade efficiency is to assist in generating trade-supporting services such as customs, transportation, banking and insurance, telecommunications or business information, which are adapted to individual requirements, focusing on services addressing the needs of the informal, micro, small- and medium-sized enterprise sectors. Also, UNCTAD should review and assess progress with the trade efficiency initiative. Free flow of information should be encouraged and UNCTAD should consolidate the Trade Point Network by making Trade Points fully operational and effective and by assisting interested countries in establishing new Trade Points.
The UNCTAD should, in close cooperation with the Economic Commission for Europe, UNCTAD/WTO International Trade Centre and other relevant international organizations, continue to enhance the capacity of interested developing countries and economies in transition to trade efficiently through programmes such as the Advanced Cargo Information System, Automated System for Customs Data, Training Human Resources in Maritime Management, Developing Human Resources for Trade and the Global Trade Point Network. In that connection UNCTAD should explore means to make these programmes financially self-sustainable and enhance the capacity of Trade Points to function as information and training centres for small- and medium-sized enterprises.
Within existing resources, UNCTAD should encourage and assist developing countries in assessing the efficiency of their trade supporting services and practices. Technical assistance should be demand-driven and directed towards developing countries with the greatest need. Donors are invited to increase financing for UNCTAD technical assistance programmes. The Trade and Development Board should plan for coherent regular and extrabudgetary programmes to strengthen the linkages between analytical work and technical cooperation. It should consider indicative, rolling three-year plans for technical cooperation and review programmes and activities, including their cost effectiveness. These activities should be continuously monitored and evaluated. The setting up of a special trust fund for least developed countries should be examined.
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Where appropriate, cooperation with the private sector, non-governmental organizations and the academic world should be sought.
Final Document: Chapter III
The institutional implications of UNCTAD's future work are addressed in chapter III of the Conference's text. The Conference recognizes the need to revitalize and remodel UNCTAD's intergovernmental machinery and took measures to make it more efficient and responsive to the needs of a rapidly changing world economy. Among those measures are focusing its activities, streamlining its budget, reducing the number of meetings, rationalizing its publications and striving for better coordination and cooperation with relevant international organizations in order to strengthen complementarity.
The Conference welcomes the reform of the Secretariat initiated by the Secretary-General of UNCTAD, and encourages his further efforts to ensure that the internal organization of the secretariat is consistent with the priorities, objectives and intergovernmental machinery established by the Conference.
The intergovernmental machinery is being structured in accordance with UNCTAD's future work programme, which is focused on a few priority trade and development issues on which it can make a substantial impact, and also includes cross-sectoral issues, such as poverty alleviation, the document states. The machinery should be tightly structured and concentrate on programmes of interest and practical value to developing countries, particularly the least developed countries.
The Conference agrees that the Trade and Development Board is responsible for ensuring the overall consistency of UNCTAD's activities with agreed priorities, setting or adjusting those priorities for the period remaining up until the next session of the Conference. It should explore possibilities of increasing its budgetary authority over the work programme of UNCTAD and prepare respective recommendations to the General Assembly.
Further, the Board will convene one annual regular session in the fall for approximately 10 working days, during which it will continue to deal with interdependence and global economic issues from a trade and development perspective. The Board can meet in three one-day executive sessions a year, with six weeks' prior notice, to deal with policy as well as management and institutional matters, and also with urgent matters that cannot be deferred to the regular session.
The Conference decided that the Board can set up subsidiary bodies, known as "commissions", as well as create new bodies and abolish existing ones, on the basis of the priorities of the organization and of the work
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accomplished. The new commissions will perform integrated policy work in their respective areas of competence, meeting once a year, in sessions as short as possible and not exceeding five days. The commissions will have specific mandates and greater delegation of decision-making on matters of substance.
The three new commissions are the following: Commission on Trade in Goods and Services and Commodities; Commission on Investment, Technology and Related Financial Issues; and Commission on Enterprise, Business Facilitation and Development.
The Conference decided that an executive session of the Board should be convened, not later than 10 July, in order to establish the new commissions, and to identify two agenda items from their respective priority issues for their first sessions.
Each commission may convene expert meetings of short duration, not exceeding three days, the outcome of which need not be in the form of agreed conclusions. The total number of expert meetings will not exceed 10 per year. Special consideration should be given at the next regular session of the Board to the question of improving the participation of developing country experts in UNCTAD meetings, including the question of financing their participation. The Economic and Social Council and the General Assembly were invited to consider the relationship between the Commission on Science and Technology for Development and UNCTAD.
The Conference reaffirms the importance of involving non-governmental actors in the activities of UNCTAD. The Secretary-General was requested to pursue consultations with those actors, taking into account the experience of participation of the civil society in other United Nations forums, and to report with recommendations to the Board. The Conference notes with appreciation the Secretary-General's initiative of holding a meeting with development actors to advise him.
Explanation of Position
Speaking after the adoption of the texts, the representative of Cuba expressed satisfaction with the adoption of the final document and the Declaration of the Conference. The UNCTAD has been preserved, despite attempts to dismantle the organization a few months earlier. The spirit of partnership for development, however, would not become a reality as long as international economic relations were spoiled by the application of unilateral coercive measures. In the negotiated document, there was no mention of the use of such measures. The negative effect of those measures had been highlighted in several declarations submitted to the Conference, including by the "Group of 77" developing countries. One country, however, vetoed any type of formulation on that theme in the final document.
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The representative of Iran said multilateralism could not just be limited to trade. Divergent viewpoints and clashes of interests of countries participating in UNCTAD had been and would be conducive to the emergence of new ideas and solutions to explore new ways of solving the current problems. Multilateralism was the guide to globalization. Exclusionary approaches force participants to revert to bilateralism. Unilateralism and discriminatory measures were against the spirit of Midrand. The Conference was successful for all, each with its own version of success.
The representative of the United States said the United States came to achieve success at UNCTAD, not at the expense of other delegations but in cooperation with them. Divisions and polarization that marked the sessions prior to UNCTAD VII had prevented the organization from achieving its full potential. The United States wanted to reinforce its partnership for development and growth. The Conference had yielded a "win-win" result.
The UNCTAD produced a new prioritized programme of work complemented by a new streamlined institutional structure. The next task would be to implement the plan. If success was achieved, it would be easier to set a new plan in Bangkok. At this Conference, the importance of reinforcing a rule-based trading system and reinforcing its principles was recognized. It was hoped that the South African spirit of reconciliation, peace and cooperation would be infused into UNCTAD's work.
Conference Highlights
Addressing the inaugural ceremony of the Conference on 27 April, Secretary-General Boutros Boutros-Ghali stressed that while the world had changed, UNCTAD's basic mission remained to ensure that international trade was a force for the durable development of all peoples and nations.
President Nelson Mandela of South Africa said UNCTAD had to equip itself to accomplish in the twenty-first century the objectives for which it had been established. Central to that new position must be the concept of "partnership for development", he stressed.
Two high-level round tables followed the inaugural ceremony, one of heads of States and the other of heads of agencies, which discussed the following theme: "The excluded 2 billion: Integrating people in the global economy". The heads of State of Jordan, South Africa, Costa Rica, United Republic of Tanzania and Switzerland took part.
Summarizing the discussions during the round tables, Secretary-General Boutros-Ghali said there had been a consensus that the logic of competition had to be balanced by the logic of solidarity, and that the international community needed to resolve the contradiction between efficiency and equity.
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Those were moral values, and those values might be the key to the solution to the problems created by globalization and liberalization.
Four other round tables were held during the four days of general debate, and dealt with major topics before UNCTAD IX, including the benefits and dangers of globalization, international trade as an instrument for development, enterprise development and the future work of UNCTAD.
A total of 137 speakers addressed the general debate -- 113 member States of UNCTAD and the observer for Palestine; 18 intergovernmental bodies; and five non-governmental organizations.
Opening the general debate, UNCTAD Secretary-General Rubens Ricupero said UNCTAD should serve as the world's "international development conscience". Several speakers, particularly from developing countries, stressed that the priorities to be set for UNCTAD's work in the coming years should not be to the detriment of the organization's broad mandate of promoting development through trade. There were calls for an action-oriented, refocused and streamlined UNCTAD, particularly from developed countries.
The concept of "partnership for development", adopted at UNCTAD VIII four years ago, was reaffirmed by speakers. It was generally agreed that there was a need to explore the notion of partnership in relation to other multilateral agencies, intergovernmental institutions, non-governmental organizations and the private business sector. The complementarity between the work of UNCTAD and WTO was widely noted.
The potentials of globalization and liberalization were highlighted. At the same time, concern was expressed over the plight of "the excluded 2 billion" and the challenge of integrating marginalized people and countries into the global economy. It was stated that preconditions for a functioning market economy included democracy and respect for human rights, and it was also said that market forces left on their own were completely devoid of social justice.
Parallel events to the Conference included an international business conference on Africa called "Africa Connect", organized jointly by UNCTAD and the South-Africa Council of the International Chamber of Commerce. At the end of the three-day event, more than 400 representatives of firms and business organizations adopted the Johannesburg Declaration. Stressing the encouraging experiences of enterprises in Africa, the Declaration took issue with the negative stereotyping of the region. Participants in the event committed themselves to various pro-active measures in order to make Africa "the dragon of the twenty-first century".
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Another event was the two-day Executive Symposium on Trade Efficiency, which saw the launching of the third phase of the Global Trade Point Network (GTPNet). It is now expected that GTPNet will become the main vehicle for global electronic trading and a major tool integrating the weaker partners into the world economy.
Concluding Statements
In closing statements today, speakers in the closing ceremony expressed gratitude to the host country and to the President of the Conference. They hailed the spirit of reconciliation and peace that characterized events in South Africa as an inspiration to negotiations at the Conference. They welcomed the documents adopted by the Conference and called for their implementation.
Reviewing the work of the Conference, many speaker called attention to courageous decisions taken and commended the spirit of cooperation and partnership that had prevailed. Several applauded the initiatives to improve the involvement of the private sector, non-governmental organizations and other non-governmental partners.
The representative of Malaysia, speaking on behalf of Asian countries, said it was important to recognize that UNCTAD had accumulated expertise and comparative advantage in trade in development issues. Reform must encompass that institutional knowledge, while making the organization more efficient.
The representative of China said the attempt to weaken UNCTAD was tantamount to eliminating the role of developing countries from the international trading system. The organization should play a role in monitoring the implementation of trade regulations, to help safeguard the interests of all countries on a fair and equitable basis.
The representative of Italy, speaking on behalf of the European Union, said the primary responsibility for development was with the countries concerned, which must implement policies of good governance and sound economic management.
The representative of Afghanistan called on the international community to act to stop the unwanted war in his country and end the suffering of the Afghan people.
The representative of Thailand said the Midrand Declaration would enrich and enliven the preparations for UNCTAD X. The Thai Government and people would do their best to enlighten the member States and secretariat of UNCTAD when they met in the "City of Angels" in the year 2000.
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Statements were also made by the representatives of Egypt, on behalf of African countries; Ghana; Costa Rica, on behalf of Latin American and Caribbean countries; Turkey; Japan; Russian Federation; Australia; Canada; and the United Kingdom.
RUBENS RICUPERO, Secretary-General of UNCTAD, expressing gratitude to President Nelson Mandela, all South Africans and to all those who had worked to make the Conference a success, said the President of the Conference, Alec Erwin, was the symbol of the new South Africa. He thanked William Rossier (Switzerland), Chairman of the Committee of the Whole, who had worked in the preparatory process of the Conference. He saluted Carlos Fortin, Deputy Secretary-General of UNCTAD, and all his colleagues in UNCTAD, adding that Mr. Fortin had guided UNCTAD during very difficult times with great competence.
He recalled that three tasks faced him at the time of his appointment in order to renew and revitalize UNCTAD: the organization's mission, its machinery and its instrument. "The mission is the mandate, and it is possible to say that there is now a clarified and strengthened mandate." It reinforced the role of UNCTAD as a forum for development, concentrating on the forest, not on the trees. It reinforced the organization's commitment to ethical values, and it reinforced its technical and analytical work on trade and investment, a new and promising area.
The organization had been restructured by decision of its member States, he continued. The Conference had streamlined the number of bodies and reduced the number of the days of meetings by concentrating on important priorities. That had been done by trying to reach out to the civil society, following up on an idea initiated by him. The inability of international organizations to include those non-governmental actors in their work was one of the main causes of the malaise among them.
The instrument for implementation was the Secretariat, he said. Prior to the Conference, he had announced a restructuring of the organization, knowing that criticism would be forthcoming. He had taken that action because he wanted to deliver on the promise that UNCTAD would move fast to face its responsibilities. The aim was to show that it was possible to restructure, and that process had been completed in the Conference. In the round table of heads of States, the leaders had expressed their views on the major challenge before the international community: how to integrate the excluded, the marginalized. They told the Conference what they expected from it. He welcomed the solidarity of the major agencies in their round table, which had included the heads of the International Monetary Fund (IMF) and WTO. They considered UNCTAD as a partner in the common fight for development.
The work of renewal of the organization had begun, he said. Action must be taken very early, giving concrete and pragmatic expression to the results
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of the Conference. There was a need to convene very soon a meeting of the Trade and Development Board and a meeting of the three new commissions to decide on the priorities. He called on the Conference participants to support the organization in that endeavour.
South Africa was a unique country in a unique situation, he continued. As once said by the Prime Minister of Norway, Gro Bruntdland, South Africa "has the uncompromising determination to compromise". What was unique about South Africa was that "you are the sole consolation for the massacres in Rwanda and Bosnia, the failures in Somalia and in so many other places of the world". South Africa had retained the faith that human beings had the capacity to heal.
ALEC ERWIN (South Africa), President of the Conference, said the success of the Conference might be due to the round tables where people spoke with a sense of urgency and passion about solving problems. One of the reasons South Africa was able to stand back from the brink of disaster was because it had always used the mechanism of talking about what people wanted to do.
A major feature of the final document of the Conference was that it did not grapple with every problem in the world economy. It addressed key problems. Analysis and open-minded discussion and frankness had been the prerequisites for the Conference's success. Developing countries were beginning to confront their problems and that had already been reflected in the world economy as whole. He thanked South Africa's neighbours for helping the country, an example of the building of a partnership.
The real challenge ahead was implementing the document, he continued. Problems of countries were not overcome unless policies and institutions were put in place which were bigger than the government of the day. To really change people's lives, it was necessary to stand above one's own interests and even above one's own political party's interests. South Africa was committed to working hard in UNCTAD. "We will take our presidency seriously", working with the Secretary-General and the secretariat to build on the new sense of rejuvenation and vitality and build upon the spirit of partnership.
Officers of Conference
The President of the Conference is Alec Erwin, Minister for Trade and Industry of South Africa. The Vice-Presidents are: A.H. Mofazzal Karim (Bangladesh), Atanas Paparizov (Bulgaria), Yongtu Long (China), Ferdinand Kacou Angora (Cote d'Ivoire), Ricardo Cabrisas Ruiz (Cuba), Miroslav Somol (Czech Republic), Patricio Izurieta Mora-Bowen (Ecuador), Kassahun Ayele (Ethiopia), Bjorn Ekblom (Finland), Philippe Cuvillier (France), Thomas Souah (Gabon), Gunter Pleuger (Germany), Luis Noreiga Morales (Guatemala), Tejendra Khanna (India), Sirous Nasseri (Iran), Seymour St. Edward Mullings (Jamaica),
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Yukihiko Ikeda (Japan), Ali Abu Raghib (Jordan), J.M. Postma (Netherlands), Hans Meyer (Peru), Ernesto Ordonez (Philippines), Ro-Myung Gong (Republic of Korea), Y.N. Grekov (Russian Federation), Amnuay Viravan (Thailand), Mohamed Ennaceur (Tunisia), Tugay Ulucevik (Turkey), Victor Gladush (Ukraine), John Cooke (United Kingdom), Abdallah O. Kigoda (United Republic of Tanzania), Melinda Kimbel (United States), Carlos Perez Del Castillo (Uruguay), and P.N. Sinyinza (Zambia).
Carmen Luz Guarda (Chile) is Rapporteur. William Rossier (Switzerland) is Chairman of the Committee of the Whole.
UNCTAD Membership
The following States are members of UNCTAD: Afghanistan, Albania, Algeria, Andorra, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Comoros, Congo, Costa Rica, Côte d'Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Democratic People's Republic of Korea, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Federated States of Micronesia, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Holy See, Honduras, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakstan, Kenya, Kuwait, Kyrgyz Republic, Lao People's Democratic Republic, Latvia, Lebanon, Lesotho and Liberia.
Also UNCTAD members are Libya, Liechtenstein, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritania, Mauritius, Mexico, Monaco, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Republic of Korea, Republic of Moldova, Romania, Russian Federation, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Slovak Republic, Slovenia, Solomon Islands, Somalia, South Africa, Spain, Sri Lanka, Sudan, Suriname, Swaziland, Sweden, Switzerland, Syria, Tajikistan, Thailand, The former Yugoslav Republic of Macedonia, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United Republic of Tanzania, United States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Viet Nam, Yemen, Yugoslavia, Zaire, Zambia and Zimbabwe.
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