ECONOMIC AND SOCIAL COUNCIL TO HOLD SUBSTANTIVE SESSION AT HEADQUARTERS 24 JUNE - 26 JULY

21 June 1996

Press Release
ECOSOC/5641

ECONOMIC AND SOCIAL COUNCIL TO HOLD SUBSTANTIVE SESSION AT HEADQUARTERS 24 JUNE - 26 JULY

19960621 Background Release Illicit Traffic in Narcotic Drugs, Coordination in Eradicating Poverty, Strengthening UN Collaboration with Bretton Woods Institutions to Be Discussed

Beginning on Monday, 24 June, the Economic and Social Council will mark a new phase in the ongoing reform effort of the United Nations by holding a substantive session which, for the last time in the foreseeable future, will extend for a five-week period. As the central forum for coordinating United Nations activities in the economic and social fields, the Council this year will have to tackle the fundamental problem of how to finance those efforts.

The Council has been meeting in a single substantive session annually since 1992; prior to that, two annual regular sessions had been held -- in New York, on social issues, and in Geneva, on economic topics. In 1991, the Council was restructured to embody the current five-week single annual session comprised of distinct segments: the high-level segment, coordination segment, operational activities for development segment, and the general segment. On 24 May, by adopting resolution 50/227 -- on further measures for the restructuring and revitalization of the United Nations in the economic and social fields -- the General Assembly decided that the Council should hold a shorter, focused substantive session, but may convene special sessions on urgent developments. Starting in July 1997, the Council's substantive session will meet for four weeks.

An overarching characteristic of the restructuring and revitalization efforts in the economic and social fields has been to move away from a rigid towards a more flexible and action-oriented format. This year again, various dialogue-format discussions are scheduled to be held aimed at promoting interaction among government representatives, senior intergovernmental officials, field-level staff, and non-governmental partners.

The substantive session begins on 24 June with the high-level policy dialogue on important developments in the world economy. Those scheduled to participate include the Managing Director of the International Monetary Fund (IMF), Michel Camdessus; the President of the World Bank, James D. Wolfensohn; the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rubens Ricupero; and the Director-General of the World Trade Organization (WTO), Renato Ruggiero.

The World Economic and Social Survey 1996, a major report before the substantive session, depicts a growing world economy with the highest growth rates concentrated in the developing world. It finds "a very encouraging and dynamic trend in some countries; for other countries, however, the numbers represent a minor or incipient improvement of the most difficult of circumstances".

The Council's high-level segment, to be held from 25 to 27 June, will address "international cooperation against the illicit production, sale, demand, traffic and distribution of narcotics and psychotropic substances and related activities". Council President Jean-Marie Kacou Gervais (Côte d'Ivoire) has stressed that the traditional distinction between consumer and producer countries no longer holds. That view is echoed in the Secretary- General's report, which also describes how traffickers have manipulated today's globalized and liberalized international economy in order to expand their activities. Later in the session, the Council will consider a proposal to convene a second international conference to combat the illicit production, demand and traffic of narcotic drugs and psychotropic substances.

Another policy dialogue will be held on 28 June to discuss the strengthening of collaboration between the United Nations development system and the Bretton Woods institutions. A background note on the subject, prepared to facilitate the dialogue, calls for sustained cooperation in such areas as eradicating mass poverty, stimulating economic growth and promoting employment.

Budgetary constraints affecting United Nations operational activities for development will be a major focus of the segment on that topic, to be held from 8 to 10 July. In informal dialogues with field staff, as well as agency heads, the Council will aim to promote greater budgetary transparency, address the linkages between administrative and programme expenditure, and ensure the most efficient use of resources.

Declining resource commitments to multilateral development institutions "makes it extremely difficult for them to respond adequately to the massive challenge of poverty eradication", states the report of the Secretary-General on coordination of United Nations activities for poverty eradication -- the theme of the Council's coordination segment, to be held from 1 to 3 July. This year, observed as the International Year for the Eradication of Poverty, should provide impetus for organizations to cooperate in light of the emphasis placed by global conferences on the multidimensional character of poverty and development issues, the report stresses.

Violence against migrant women workers, emerging concerns in the human rights field, such as toxic waste dumping as a rights violation, along with other pressing social, economic, environmental and humanitarian issues will be dealt with by the Council's general segment, which starts on 11 July. Among

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other matters, Council members will tackle such issues as early-warning systems for natural disaster reduction and the 1997 General Assembly review of Agenda 21 -- the blueprint for sustainable development adopted at the 1992 United Nations Conference on Environment and Development (UNCED).

Also to be considered at the forthcoming session is a report on arrangements for consultation with non-governmental organizations. A working group dealing with that matter has been seeking to update the process by which organizations are granted consultative status with the Council. The report reflects the current phase of those negotiations.

Highlights of some of the documents to be considered by the Council follow.

World Economy: Slow Growth Continues, Social Problems Persist The world economy is in a slowly accelerating growth path, according to the 1996 World Economic and Social Survey (document E/1996/60). There is "a very encouraging and dynamic trend in some countries; for others, however, the numbers represent a minor or incipient improvement of the most difficult of circumstances", it states, adding that economic growth appears to have the potential to be sustained in a large number of countries.

The 1996 Survey contains three parts. Part I contains an overview of the world economy. Part II provides a perspective on investment, including investment in developing countries and in post-conflict situations. Part III addresses some dimensions of economic and social change, including matters related to urban growth in the late twentieth century, electricity in the developing world, and business services in international trade. It also asks the following question: "should we worry about water?"

The Survey reports that growth continues to be concentrated in developing countries, which saw a growth rate of gross domestic product (GDP) in 1995 of 5.2 per cent, compared with a 2 per cent growth rate in developed countries. While noting that developing and transition economies have been outperforming projected GDP growth rates, the Survey cautions that those countries "have not yet pried loose from the 'low-level equilibrium' trap of high poverty and low growth". Counterbalancing that trend, there is a slowdown in the economies of the developed world, where governments face the challenges of translating growth into reductions in unemployment and poverty, as well as ensuring that growth impulses are not derailed.

Global financial flows continued to mushroom, with the world total of international credits rising to $832 billion in 1995, the Survey states. It adds, however, that developing and transition economies together accounted for little over 10 per cent of that figure. Because many countries lack the capacity for additional debt-servicing and, thus, for borrowing, they require direct investment and official financial flows, says the Survey.

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"Unfortunately, in general, the prospects for official development assistance (ODA) are bleak", the Survey continues. Indications are that the flow of ODA will continue to show a shrinking overall donor commitment to development assistance in the coming years. "This is not a uniform development, as certain donors are committed to significant increases in their aid effort; but with recent reductions of flows, especially by one of the largest donors, the total amount of concessional resources to be spread among the countries needing and deserving this assistance will be stretched much too thin."

In its part II, the Survey has a case study of investment in Japan from the late 1980s to the present. The analysis concluded that the financial structure that had developed in that country under the influence of the market, policy, history and social structure revealed serious weaknesses having macroeconomic, as well as sectoral, consequences. "That financial structure had once helped Japan to become the high-income and internationally competitive exporter of sophisticated manufactures that it is today. Few would dispute, however, that by the early 1990s it was in need of major reforms."

In part III, addressing the question "should we worry about water?", the Survey calls for policies aimed at promoting more efficient water use and allocation of scarce water resources. Moving towards more efficient water use may displace workers and disrupt production. Irrigated agriculture may face the challenge of moving towards means of irrigation that are more efficient or crops that are less water-intensive. "This may even mean the contraction of the agricultural sector; but the central goal must be to raise employment and production in the economy as a whole -- in a sustainable manner and with appropriate attention to income distribution -- and thereby raise overall living standards and efficiency."

The Council has also before it summaries of the surveys of regional economic and social conditions prepared by the regional commissions highlighting main problems and prospects.

The summary on the socio-economic situation in Asia and the Pacific (document E/1996/48) states that a combination of favourable developments and sustained domestic policy reforms enabled that region to record a strong growth performance in 1995, averaging 7.8 per cent, slightly lower than the 8 per cent registered in 1994. That deceleration trend is expected to continue through 1996 and 1997. The growth rates achieved by most of the least developed countries and island economies in that region remained well below the regional average, while negative growth persisted in central Asia. The fast-growing economies of east and south-east Asia have succeeded in sustaining high and rising rates of domestic savings and investment. However, the savings-investment process in south Asia has remained relatively weak.

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In contrast to south-east Asia, Africa's share in world trade continued to decline, according to the summary on the economic and social conditions in that continent (document E/1996/47). In 1995, for the second consecutive year and although Africa experienced modest economic growth, increase in GDP did not keep pace with population growth, and per capita income declined by 0.6 per cent. The health sector continued to disproportionately bear the burden of the ongoing socio-economic crisis. Rapid population growth and cut- backs in public expenditure, often in connection with debt-rescheduling and economic restructuring, culminated in a near collapse of the educational infrastructure. However, overall growth prospects in Africa indicated that the region has begun to gather momentum towards economic recovery, and total agriculture production was expected to increase by more than 3 per cent in 1996.

In Europe, the summary of the economic conditions for the region (document E/1996/46) states that economic growth has slowed down in the western part of the continent. In contrast, eastern Europe stood out as an area of rapid growth. In the region, on average, real GDP grew by over 5 per cent in 1995 and official expectations were for a further acceleration in 1996. In western Europe, some of the smaller economies moved into recession in 1995. Weak consumer confidence due to unemployment could be a cause. It is probable that economic growth will slow down in virtually every economy in 1996. Also, a renewed rise in unemployment in 1996 is unavoidable on the basis of present policies.

The summary of the economic survey of Latin America and the Caribbean, (document E/1996/49) states that the performance of most economies in the region continued to rely on external capital inflows. Most countries had moderate growth rates accompanied by diminishing inflation, as well as large current account deficits covered by external capital and low domestic savings rate. The GDP of the region grew by 0.6 per cent in 1995. In contrast with the increases of the four preceding years, per capita GDP fell by 1.1 per cent. The negative trend was attributed to the sharp contraction of activity in Mexico and Argentina, following the former's currency crisis. Due to higher commodity prices, the terms of trade improved in most of the region. In 1995, the total external debt of the countries of Latin America approached $574 billion, a nominal increase of 8 per cent over the 1994 figure.

The summary on Western Asia (document E/1996/50) discusses the impact of several factors, including the rise in oil prices, the surge in non-oil exports in several countries, progress in the Middle East peace process, and the continuation of the United Nations economic sanctions against Iraq. Oil revenues of the oil-exporting countries, which had fallen by 5 per cent in 1994, rebounded to 9.3 per cent. The region's GDP, excluding Iraq, registered a growth rate of approximately 2.8 per cent, compared with a meagre 0.8 per cent growth rate in 1994. However, due to the high population growth rate, per capita GDP remained stagnant in 1995. Inflation rates continued to

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decline in most economies, but remained extremely high in Yemen, the West Bank and the Gaza Strip, while Iraq continued to suffer from hyper-inflation. High unemployment continued to be a problem. During 1995, exports in the region increased by approximately 8.4 per cent, while imports rose by around 9.2 per cent. The external debt of countries in the region, excluding Iraq, remained at $180 billion, almost the same level as in 1994.

Illicit Drug Trade Flourishes in Globalized Economy

"Drug abuse and trafficking have become increasingly complex over the last three decades. There are more illicit drugs, production is more widely spread, there is more abuse, and more trafficking routes have opened up. A world market, driven by demand and opportunity, has developed just as much for illicit drugs as for consumer goods. This, in turn, has globalized the drug problem."

That excerpt from the Secretary-General's report on international cooperation against the illicit production, sale, demand, traffic and distribution of psychotropic substances and related activities (document E/1996/57) highlights the need for a concerted global response to the problem, which will be the focus of the Council's high-level segment.

The report describes the deepening problems related to drug abuse, drug trafficking and money laundering, which have been exacerbated in the current era of globalized and liberalized economic relations. "Until the mid-1980s, the drug challenge was perceived as a dichotomy between producing nations on the one side and consuming States on the other. The globalization of drug abuse and trafficking has now beyond any doubt eliminated this dichotomy. It has been replaced by the principle of shared responsibility."

Indeed, according to the report, countries and regions not traditionally associated with substance abuse problems have begun to see a rise drug consumption. "The highest rates of addiction are no longer found in developed countries, but rather in some developing countries in Asia, such as Pakistan." Drug abuse is also growing in Africa, says the report.

The United Nations has both the potential and the comparative advantage to contribute to cooperation between various national authorities, the report continues. Coordination should also be fostered between the public and private sector. The United Nations could also coordinate international efforts to combat organized crime and money laundering with other organizations working in the field and could coordinate the provision of assistance and training in that area to Member States.

Against a backdrop of increasingly organized drug traffickers and money launderers, coupled with growing drug use, the United Nations International Drug Control Programme finds itself underfunded and, thus, unable to fully

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carry out its important work. The report notes that the austerity measures facing the Organization could result in reductions of regular budget resources.

Because anti-drug efforts must be closely allied with development policies, the report calls for multidisciplinary teamwork and consultation at the outset of any project. Member States should act through the governing bodies of development organizations to ensure that they incorporate drug control concerns, whenever appropriate, in their activities.

Also before the Council is the report of the Commission on Narcotic Drugs on its thirty-ninth session (Vienna, 16-25 April), which contains a number of draft texts for consideration by the Council.

By one of the Commission's recommendations, the Council would invite governments which had not done so to establish, as a priority, competent authorities for the control of psychotropic substances. Another text recommends the elaboration of a draft declaration on guiding principles of demand reduction. A separate draft resolution calls on the Council to recommend that the General Assembly convene a special session for three days in 1998 to propose new international approaches to address the problem of illicit drugs.

Coordinating United Nations Anti-Poverty Efforts

As a basis for discussions during the coordination segment, the Council will have before it a report of the Secretary-General on coordination of the activities of the United Nations system for the eradication of poverty (document still to be issued). It states that the Council's functional commissions have approached poverty eradication issues from the perspective of their respective areas of competence. There has been a tendency to widen the scope of consideration by the commissions of related issues, leading to general and overlapping conclusions and recommendations. Therefore, the Council, at its 1995 coordination segment, had given guidelines on the division of labour among the commissions. According to the report, it should be for the Assembly to establish a broad policy framework, for the Council to integrate the work of the commissions and to guide the United Nations system on coordination issues, and for the functional commissions to focus on the core set of issues falling within their respective areas of competence.

In the area of poverty eradication, such a scheme would mean that the Assembly would address issues relating to national and international enabling environments, says the report. The Council would oversee the work of the functional commissions and other parts of the United Nations system. It would also take into account inputs from the country level through the executive boards of funds and programmes and the Administrative Committee on Coordination (ACC). For the Council to effectively play its oversight and

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coordinating role, it should adopt a multi-year programme of work. Close consultations would also be required between the Council's bureau and chairmen of the functional commissions.

The Council should focus on promoting a multidimensional and integrated approach to poverty eradication, the importance of which was recognized at the 1995 World Summit for Social Development, the report continues. It should also promote a gender-sensitive approach to poverty eradication. A continuing dialogue with the ACC and its subsidiary bodies would be required. The Council would need to ensure that monitoring activities of the functional commissions and the executive boards of United Nations funds and programmes focused on poverty eradication. In addition, the Council could consider devoting, on a periodic basis, a part of its general segment to a substantive examination of poverty.

The intention of the recommendations is to enable intergovernmental bodies to provide coherent policy guidance, the report states. The Council's efforts to harmonize the work of its functional commissions would also contribute to achieving the aims of the United Nations Decade for the Eradication of Poverty, which will start in 1997.

In considering how best to coordinate anti-poverty efforts, the Council will also take up the report of the Commission for Social Development on its special session, held from 21 May to 3 June in New York (document E/1996/29). That body is mandated to monitor implementation of the Copenhagen Declaration and the Programme of Action adopted by the Social Summit, which produced a series of recommendations concerning the eradication of poverty.

The Commission's report contains a draft resolution transmitted to the Council for action which was subject to five votes in the special session. The draft text would have the Council decide on several aspects of the Commission's functioning, including an increase in its membership, from the current 32 to 46 members. It would also have the Council decide that the Commission should hold its sessions annually -- instead of biannually -- and last eight working days. The Council would decide to request the Secretary- General and United Nations bodies to take appropriate measures to strengthen, within existing resources, the Organization's capacity for gathering and analysing information and developing indicators of social development.

Pressing Economic, Social Issues

During its general segment, the Council will turn its attention to a range of social, economic, environmental, humanitarian and human rights matters.

Among documents before the Council for consideration is the report of the Commission on Human Rights on its fifty-second session, held in Geneva

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from 18 March to 26 April (document E/1996/23). Among the texts requiring action by the Council is a draft recommending that the working group elaborating a draft declaration on the rights of indigenous people meet prior to the next session with the participation of indigenous organizations. Several other texts acted upon by the Commission will also require further action by the Council. The report of the Commission on the Status of Women (document E/1996/26), also before the Council, describes conclusions reached at its fortieth session, held in New York from 11 to 22 March. Texts approved by the Commission, which will be before the Council for consideration, state, among other provisions, that women's concerns must be mainstreamed to deal with the impact of economic and social changes on families, eradicate poverty and counter sexism and violence in an increasingly global media.

A draft resolution transmitted in the report of the Commission on Population and Development (document E/1996/25), which met in New York from 26 February to 1 March, would have the Council stress the need for an accelerated international response to the reproductive rights challenges of the Programme of Action adopted by the 1994 International Conference on Population and Development.

The need to accelerate research into all promising approaches to energy efficiency is the subject of a draft transmitted to the Council in the report of the Committee on New and Renewable Sources of Energy and Energy for Development (document E/1996/24) which met in New York from 12 to 23 February.

In addition, at the forthcoming session, the Council will also conduct its quadrennial review and analysis of agrarian reform and rural development.

Concerning humanitarian assistance, the Council will be called on to set a date for a review of preparedness and humanitarian response, as well as prevention, rehabilitation, recovery and development. Last year, the Secretary-General was requested to prepare a report, including options, proposals and recommendations for that review, which will aim to strengthen the coordinated response of the United Nations system for humanitarian assistance.

The Council will also consider the report of the Commission on Sustainable Development (document E/1996/28), which met in New York from 18 April to 3 May. It contains recommendations on the June 1997 special session of the General Assembly which will review progress in implementing the commitments of Agenda 21, the programme of action adopted by the 1992 UNCED. The Commission recommended that the special session recognize unmet objectives in Agenda 21's implementation, along with reasons for that failure; re- energize commitments to sustainable development; raise the profile of issues which had not been sufficiently addressed at UNCED; and define priorities for the years after 1997.

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Global leadership in the fight against AIDS has been entrusted to the United Nations Joint and Co-sponsored Programme on HIV/AIDS, another topic to be considered during the general segment. Major recent developments in the activities of the Programme, which became fully operational on 1 January, are described in another report before the Council (document E/1996/42). A series of visits to over 50 countries, to take place over a six-month period, was started with the aim of clarifying action plans for supporting national efforts, administrative arrangements, staffing issues and the work of advisers and Programme focal points.

Officers, Membership

The President of the Council is Jean-Marie Kacou Gervais (Côte d'Ivoire). The Vice-Presidents are Karel Kovanda (Czech Republic), Emilio J. Cardenas (Argentina), Gerhard Walter Henze (Germany) and Samir Moubarak (Lebanon).

The 54 members of the Council for 1996 are Argentina, Australia, Bangladesh, Belarus, Brazil, Bulgaria, Canada, Central African Republic, Chile, China, Colombia, Congo, Côte d'Ivoire, Costa Rica, Czech Republic, Egypt, Finland, France, Gabon, Germany, Ghana, Greece, Guyana, India, Indonesia, Ireland, Jamaica, Japan, Jordan, Lebanon, Luxembourg, Malaysia, Netherlands, Nicaragua, Pakistan, Paraguay, Philippines, Poland, Portugal, Romania, Russian Federation, Senegal, South Africa, Sudan, Sweden, Thailand, Togo, Tunisia, Uganda, United Kingdom, United Republic of Tanzania, United States, Venezuela and Zimbabwe.

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