UNCTAD WELL PLACED TO MEET CHALLENGES OF GLOBALIZED ECONOMY, SPEAKERS TELL ECONOMIC AND SOCIAL COUNCIL
Press Release
ECOSOC/5667
UNCTAD WELL PLACED TO MEET CHALLENGES OF GLOBALIZED ECONOMY, SPEAKERS TELL ECONOMIC AND SOCIAL COUNCIL
19960712 Welcoming reforms in the machinery of the United Nations Conference on Trade and Development (UNCTAD), speakers told the Economic and Social Council this afternoon that UNCTAD's work would complement that of the World Trade Organization (WTO) in meeting the challenges of globalization. The Council was continuing its general segment by considering issues related to trade and development.The representative of Norway said globalization provided a potential for economic growth for all countries. Stressing the importance of channelling trade to the poorest parts of the world, he said UNCTAD had a particular role to play in working towards that end. He added that UNCTAD's new and cooperative role vis-à-vis the WTO was a solid platform for its work, and welcomed UNCTAD's substantially streamlined intergovernmental machinery. Poland's representative concurred that globalization offered the opportunity for developing countries to achieve higher levels of growth, stating that UNCTAD would be more responsive to the needs of a rapidly changing economy through its complementary relationship with the WTO. Extra effort was required to help the countries in transition, she added. The representative of Ukraine also expressed the hope that an open, transparent trading system would be effective in providing access to the markets of eastern Europe. A representative of the International Confederation of Free Trade Unions (ICFTU), stating that triumph of freedom had been turned into triumph of the market, called for a social clause in the WTO as it would be difficult to fight increased pressures for trade barriers without a social clause. The ICFTU rejected the use of the social clause for protectionism, she stressed, adding that workers rights were linked to international trade and ensuring those would lead to abolition of child labour. The Officer-in-Charge of the New York office of UNCTAD, Georg Kell, said the Trade and Development Board had decided to review in its substantive session in October issues relevant to a possible multilateral framework on investment and implications for development. He expressed confidence that the foundation had been laid for UNCTAD to contribute significantly to promoting growth and equality of opportunities in the service of development.
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Other statements on trade and development were made by the representatives of the Russian Federation, Belarus and Iran.
Also this afternoon, under the Council's consideration of food and agricultural development, a representative of the Food and Agricultural Organization (FAO) introduced the report on review and analysis of agrarian reform and rural development. A representative of Franciscans International made a statement. The Council subsequently took note of that report (document E/1996/70).
The Council will meet again at 10 a.m. on Monday, 15 July, to continue its general segment.
Council Work Programme
The Economic and Social Council met this afternoon to continue its general segment. Matters scheduled for consideration related to trade and development and food and agricultural development.
A note by the Secretary-General transmits to the Council the fourth progress report of the World Conference on Agrarian Reform and Rural Development, held in Rome from 20 October to 2 November 1995 (document E/1996/70). The report includes an overview of the period from 1990 to 1995 along with a summary of Conference discussions on reporting, monitoring and evaluation; access to land, natural resources, markets and services; people's participation; women in agriculture and rural development; and education and training.
The report states that during the past five years, Member nations had achieved growing consensus on the need for political and economic liberalization. The experience of many Member States had been that economic and political reform could not succeed without the strengthening of rural institutions and voluntary social organizations which could facilitate the active participation of rural people in development. Liberalization had also raised issues related to short-term economic effects and longer-term environmental impacts.
With the trend to increasingly rely on markets and the financial sector, wealth and opportunity had increased in many societies, but constraints still limited the equal participation of disadvantaged groups, according to the report. During the period under review, many Member States had witnessed an increase in their enrolment rates in education and an increase in the population active in agriculture. Educational services were generally dealing with more issues of interest to populations; the need for investing in education was now greater than it had been in recent years. But due to reform, many countries had undertaken cuts in their public expenditures with a consequent negative impact on the quality and availability of education.
Statements on Trade and Development
GEORG KELL, Officer-in-Charge of the New York office of the United Nations Conference on Trade and Development (UNCTAD), said the outcome of the ninth session of the Conference (UNCTAD IX) (Midrand, South Africa, 26 April to 11 May) and subsequent actions by UNCTAD's Trade and Development Board would be formally introduced at a later date to the General Assembly's Second Committee (Economic and Financial).
In the meantime, he said, a major step had been taken in implementing the decisions embodied in the "Midrand Declaration" and the "Partnership for Growth and Development", the final documents adopted at UNCTAD IX. The Trade
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and Development Board had met this week in Geneva, had established three commissions and decided on their thematic orientations. The Commission on Trade in Goods and Services and Commodities would hold two meetings. The first, scheduled to he held from 6 to 8 November, would take place before the Ministerial Meeting of the World Trade Organization (WTO), in Singapore in December, and would focus on the impact of the Uruguay Round on development; and the second meeting, scheduled for mid-February, would concentrate on trade, environment and development.
The Board had also established the Commission on Investment, Technology and Related Financial Issues, which was scheduled to meet from 18 to 22 November to deal with competition law and the interaction between trade and investment, he continued. Also established had been the Commission on Enterprise, Business Facilitation and Development, which would meet in January 1997 to discuss enterprise development strategies and service infrastructure for development.
He went on to say that the Board had also decided that its substantive session would take place from 7 to 18 October. At that meeting, the Board would review trends and policy implications in the area of investment, as well as issues relevant to a possible multilateral framework on investment and implications for development. The Board would also consider lessons from the east Asian development experience and would review implementation of the Programme of Action for the Least Developed Countries.
A special event was scheduled for 10 October when ministers and corporate executives would meet informally to discuss investment and development issues, including the possible multilateral framework on investment and implications for development, he continued. "Allow me to express our firm belief that UNCTAD's new agenda and the commitment to effective implementation has laid the foundation for contributing significantly to promote growth and equality of opportunities, in the service of development."
SYARGEI SYARGEEU (Belarus) said the state of international trade had a huge impact on the world economy. He stressed that his country wanted integration into world trade and economy. However, it faced a difficult situation. A more flexible approach by developed countries would be desirable. Belarus was also looking forward to the coming into force of its agreement with the European Union on partnership and development.
VLADISLAV FEDORTCHENKO (Russian Federation) said the importance of stable economic growth and the integration of countries into the global trading system was widely recognized. The recently held UNCTAD IX had reaffirmed the role of UNCTAD, and it had agreed on the need for reforming its secretariat.
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He welcomed the Conference's decision to strengthen coordination with the WTO and the Bretton Woods institutions. Real progress in that area would speed up competitiveness of the entire United Nations system. Stressing that trade barriers still hampered Russian trade, he said structural reform and mitigating the social effects of reform were difficult in the absence of trade opportunities.
YEVHEN KOZIY (Ukraine) expressed the hope that an open, transparent trading system would be effective in providing access to the markets of eastern Europe. The WTO should be an effective instrument for helping the development of trade. The WTO should create a reliable legal basis for expanding and diversifying international trade based on equal rights for all States. Ukraine hoped that expanded opportunities would be afforded to countries undergoing the transition to a market economy.
ARMAN AARDAL (Norway) said globalization was one of the most important trends in recent years. It provided a potential for economic growth for all countries. Channelling trade to the poorest parts of the world was of increasing importance. The UNCTAD had a particular role to play in working towards that end. The UNCTAD's new and cooperative role vis-à-vis the WTO was a solid platform for its work. The substantially streamlined intergovernmental machinery was welcome. Norway appreciated the increased focus on least developed countries, but felt that they should receive even more attention. A challenge for UNCTAD and all Member States was to operationalize the Midrand Declaration.
JOANNA WRONECKE (Poland) said all could agree on the close interlinkages between trade and development. The work of UNCTAD was critical in that respect. Poland fully supported the reforms that had been undertaken by UNCTAD. Globalization offered the opportunity for developing countries to achieve higher levels of growth. The UNCTAD would be more responsive to the needs of a rapidly changing economy through its complementary relationship with the WTO. Extra effort was required to help the countries in transition.
NAZARI TAJBADI (Iran) said UNCTAD was the primary United Nations forum for dealing with trade-related development. He recognized its role in improving trade in landlocked countries. Speaking on specific needs of landlocked countries, he said expansion of land-linkages was crucial. He stressed that Iran had been developing road and rail links with central Asian States and called for support from the international community.
BEATRICE VON ROEMER, of the International Confederation of Free Trade Unions (ICFTU), said she had just attended the sixteenth ICFTU Conference. There was a darker side to globalization, and the trade union movement was challenged by it. Millions today were shackled by bonded labour, child labour and worked under abominable conditions. Triumph of freedom had been turned into triumph of the market, and it had become "a dog-eat-dog world". A social
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clause in the WTO was important for all developing countries. It would be difficult to fight increased pressures for trade barriers without a social clause. The ICFTU rejected the use of the social clause for protectionism. She stressed that workers rights were linked to international trade and ensuring those would lead to abolition of child labour.
Statements on Food and Agricultural Development
FREDERICK WEIBGEN, of the Food and Agricultural Organization (FAO), introduced the report on review and analysis of agrarian reform and rural development. He said that the report placed great emphasis on reforms in a variety of areas, including technological, environmental and political. Agrarian reform had taken on new meaning as States turned increasingly to the market, but economic liberalization was only one side of the equation. Political reform was also apparent, as policy-makers were also increasingly emphasizing the importance of empowering civil society.
Sister MARY TEREZA PLANTE, of the Franciscans International, said the presence of land-mines prevented the use of land for farming. She stressed the need for "feminization of policy" and said that rural life should be made more viable so that migration to cities might be slowed. She also emphasized that every country should be food self-sufficient and that agrarian reform and rural development should be a part of the framework for the decade for the eradication of poverty.
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