DRAFT ON UN DECLARATION ON CORRUPTION AND BRIBERY IN TRANSNATIONAL COMMERCIAL ACTIVITIES INTRODUCED IN ECONOMIC AND SOCIAL COUNCIL

18 July 1996

Press Release
ECOSOC/5673

DRAFT ON UN DECLARATION ON CORRUPTION AND BRIBERY IN TRANSNATIONAL COMMERCIAL ACTIVITIES INTRODUCED IN ECONOMIC AND SOCIAL COUNCIL

19960718 Discussion on Regional Cooperation Matters Continues

Continuing its general segment this morning, the Economic and Social Council heard the introduction of a draft resolution on corruption and bribery in transnational commercial activities, and also statements on matters related to regional cooperation.

The draft resolution, introduced by the representative of the United States, would have the General Assembly adopt a draft United Nations declaration on corruption and bribery in transnational commercial activities. In eight articles, the draft declaration, among other provisions, calls for criminal penalties for bribery or the solicitation of bribes; business codes of conduct prohibiting bribery; government procurement procedures to improve transparency; and accurate records of payments for transnational commercial activities. The representatives of Argentina and Venezuela also spoke on the draft.

Concerning regional cooperation, speakers stressed the vital role of the regional economic commissions of the United Nations in support of new subregional trade blocs. The representative of Uganda, speaking also on behalf of Kenya and the United Republic of Tanzania, said that a new body, East African Cooperation, had been formed by those three States in March. The new organization would initially focus on currency liberalization, private sector development and the issuance of an East African travel document; subsequent cooperation would address tax policy, customs and transport regulations.

The representative of Brazil, speaking on behalf of the countries of the Common Market of the Southern Cone (MERCOSUR) -- Brazil, Argentina, Paraguay and Uruguay, as well as Bolivia and Chile -- said that MERCOSUR was establishing a unified market and eliminating distortions which generated artificial competitive advantage. He viewed with concern proposals for cuts in resources allocated to the Economic Commission for Latin America and the Caribbean (ECLAC).

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Statements were also made by the representatives of Costa Rica (on behalf of the "Group of 77" developing countries and China), Lebanon, Guatemala (on behalf of the Central American countries), Poland, Ireland (on behalf of the European Union), Nicaragua, Ghana, Jamaica, Czech Republic, Romania, Venezuela, Belarus and Indonesia.

When it meets again at 3 p.m. today, the Council will continue its general segment, focusing on regional cooperation in the economic, social and related fields.

Council Work Programme

The Economic and Social Council met this morning to continue its consideration of regional cooperation and to hear the introduction of a draft resolution on corruption and bribery in transnational commercial activities. (For background information on regional cooperation, see Press Release ECOSOC/5671, of 17 July.)

By the terms of a draft resolution sponsored by Argentina, United States and Venezuela, the Council would recommend to the General Assembly for adoption a draft resolution containing a United Nations declaration on corruption and bribery in transnational commercial activities (document E/1996/L.26).

Under the terms of the draft, the Assembly would commend the international work being undertaken to address the problem of corruption in transnational commercial activities. Member States would be urged to take measures to combat corruption in transnational commercial activities, particularly bribery.

Also by that draft, the Secretary-General would be invited to inform Member States and the United Nations system of the text and to encourage action to promote its full implementation. He would be requested to report to the Assembly's fifty-second session on the text's implementation. Also at that session, the Assembly would review the Inter-American Convention against Corruption and other similar actions by international and regional organizations, with a view to considering possible future United Nations action in that area.

The Assembly would also approve the draft declaration, which is annexed to the text. It contains eight articles dealing with action to combat foreign commercial bribery; criminal penalties for bribery or the solicitation of bribes; prohibition of the tax deductibility of bribes paid to foreign public officials; accounting standards and practices to improve transparency as well as business codes of conduct prohibiting bribery; government procurement procedures to improve transparency; accurate records of payments for transnational commercial activities; cooperation in connection with criminal investigations concerning bribery in transnational commercial activities; and cooperation with the Secretary-General in the preparation of his report on the declaration's implementation.

Introduction of Draft Resolution

VICTOR MARRERO (United States), introducing the draft resolution on corruption and bribery in transnational commercial activities, said the text was part of his country's initiative to combat those problems. The United States also supported the adoption of the draft United Nations declaration on

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crime and public safety contained in the report of the Commission on Crime Prevention and Criminal Justice. Bribery distorted markets and hindered economic development. Bribes undermined democratic accountability. The draft encouraged governments to combat that problem.

He added that the Council could be made more relevant if it were able to engage in issues of international concern, rather than delegating difficult issues to other bodies. The issues of corruption and crime threatened the lives and livelihoods of people. If States wished to raise the Council's importance, they should encourage it to deal with such issues and to approve the draft resolution.

NORMA DUMONT (Argentina) said that her country had long fought against corruption. That issue was one of the most disturbing challenges facing the international community, as corruption went beyond national borders and did not distinguish between North and South. The Organization of American States (OAS) had taken a number of measures in response, including the adoption of the Inter-American Convention against Corruption. The Council should take a leadership role in that area and should approve the draft resolution.

ENRIQUE TEJERA-PARIS (Venezuela) said the United States had taken the initiative of preparing the draft resolution which Venezuela had co-sponsored with keen interest. The draft's objective of punishing those responsible for corruption as well as Venezuela's well-known struggle against corruption in the public and private sectors had made it of particular interest to that country.

Corruption was a threat that required a collective response, he said. The Inter-American Convention against Corruption had been a major accomplishment. The draft merited prompt support as it would serve the struggle against corruption. Venezuela could not overlook the problem because it was a tradition in that country to actively pursue and punish those responsible for corruption and those involved in ill-gotten gain.

Regional Cooperation

OSCAR ACUNA (Costa Rica), speaking on behalf of the "Group of 77" developing countries and China, stressed the importance of regional commissions in the implementation of action-oriented programmes which should be supportive of a regional enabling environment for sustained economic growth and poverty alleviation. Cooperation at the regional level was crucial in implementing an international agenda for sustained economic growth. Emphasis should be placed on the role of regional commissions in promoting South-South cooperation.

He stressed the role of the regional commissions in contributing to the enhancement of the international environment in terms of financial flows,

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technical cooperation and trade. By providing a forum for regional cooperation, the regional commissions contributed to the implementation of major international mandates, including those of the global conferences.

The regional commissions constituted a comprehensive network of economic and social relationships, common interests and needs that enabled them to serve as policy analysis bodies at the service of the States in their respective regions, he went on. They provided a well-tested intergovernmental machinery able to support cooperation among experts, policy planners and governmental officials for the elaboration of regional strategies, norms, standards and instruments. Cooperation between the Council and the regional commissions should be strengthened.

SAMIR MOUBARAK (Lebanon) said the report of the Economic and Social Commission for Western Asia (ESCWA) contained comprehensive information which could guide future planning for development projects in the region. It should be read in conjunction with another report of ESCWA which was not before the Council that provided even more details on the services which that Commission rendered. Lebanon had full confidence in the work of ESCWA. "We are happy to have its headquarters back in Beirut and we can tell you and other members of the Commission as well as interested members of the Economic and Social Council that you may rest assured that the Lebanese Government will live up to its commitment and provide for the required premises agreed upon on time."

JULIO ARMANDO MARTINI HERRERA (Guatemala), speaking on behalf of the Central American countries -- Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama -- said that the regional commissions had a critical role to play within a restructured United Nations system. They had multi- disciplinary contributions to make to the development of their member States.

The membership of the Economic Commission for Latin America and the Caribbean (ECLAC) was unified in its support for its regional commission. Even those that did not subscribe entirely to ECLAC's ideas appreciated its role as a centre of debate. The ECLAC was adapting to the changing context of the region. Many activities being carried out at United Nations Headquarters and at Geneva could be decentralized and achieved with more efficiency at the regional level.

ADAM SKRYBANT (Poland) said that the Economic Commission for Europe (ECE) was a well-placed organization that had provided useful work for 50 years. An important shift in the work of the Commission had meant that assistance was being provided to countries in transition. He hoped that shift would not diminish the interest of the Commission's trans-Atlantic members. An ad hoc working group on strategic direction, meeting in Geneva, was developing plans for the future. At the fifty-first session of the ECE last April, the Commission had sought to increase the role of the private sector in

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its work. Greater involvement by non-governmental organizations in its work would also be welcome.

Problems related to unemployment, poverty, ageing populations, gender issues, migration and organized crime were challenging the region, he said. The integrated nature of those problems demanded an integrated response. The membership of the ECE had increased from 34 to 55. Yet, through rationalization, the ECE frequently lacked the resources to meet the challenges before it. It would be a shame if Member States were denied needed assistance due to the financial crisis of the United Nations.

PHILIP GRANT (Ireland), speaking on behalf of the European Union, said that the regional commissions were valuable agents for facilitating regional cooperation in a variety of fields. The programmes of action in the recent round of global development conferences had stipulated specific roles for the regional commissions in carrying them out. The report of the Secretary- General only acknowledged that in general terms.

He said the European Union had been surprised at the omission in the report of any section dealing with the follow-up to the 1992 United Nations Conference on Environment and Development (UNCED), particularly regarding Agenda 21, the programme of action adopted by the Conference. The European Union attached great importance to the strengthening of ties with regional integration groupings throughout the world. Cooperation work by the regional commissions could only enhance trade links between Member States.

HENRIQUE VALLE (Brazil), speaking on behalf of the members of the Common Market of the Southern Cone (MERCOSUR) -- Brazil, Argentina, Paraguay and Uruguay, as well as Bolivia and Chile -- said that the MERCOSUR was consolidating its customs union and deepening the establishment of a unified market through eliminating distortions which generated artificial competitive advantage. The member countries of the MERCOSUR, in addition to common economic and commercial interests, shared a solid commitment to democratic principles, human rights and the rule of law. Another basic characteristic of MERCOSUR was that of open markets. Towards that end, it had recently adopted a free trade association with Chile, and a similar accord was under negotiation with Bolivia.

The external relations of MERCOSUR with the member States of the Latin American Integration Association were the strongest force for liberalization in the region and were contributing to the common objective of generating a free trade area in the Americas, he said. Progress towards the establishment of a free trade area throughout the Americas had been made at the Summit of the Americas (Miami, Florida, 1994) and the Meeting of Trade Ministers (Denver, Colorado, 1995). The MERCOSUR had also achieved an interregional agreement with the European Union. He viewed with concern proposals for cuts

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in resources allocated to the United Nations regional commissions. The ECLAC should remain a centre of excellence, he concluded.

MARIA DREYFUS STADTHAGEN (Nicaragua) said the regional commissions could contribute to implementing at the regional level commitments adopted at recent global conferences. There was great potential for cooperation among the regional commissions themselves in such areas as trade. Reform of the regional commissions should be aimed at enhancing their effectiveness, not at reducing their capacity to help countries of the region. The reforms must be tailored to take account of the specific conditions in each of the regions. The ECLAC had played a key role in the areas of research and development. It had cooperated with Central American institutions in finding mechanisms to facilitate investments in Central America. The executive secretaries of the regional commissions should be present at the Council's high-level segment.

JACK WILMOT (Ghana) said that the reform plan of the Economic Commission for Africa (ECA) had placed a new strategic focus on priority areas, including social and economic policy analysis, food security, sustainable development, development management, information for development, regional cooperation and integration. He expressed the hope that the Commission would receive the necessary support from the United Nations system in that regard.

Ghana endorsed the proposal in the Secretary-General's report regarding a joint project between ECA and the Economic and Social Commission for Asia and the Pacific (ESCAP) with a focus on technical cooperation, with possible financing by the United Nations Development Programme (UNDP) as a follow-up to the Asia-Africa Forum held in Bandung, Indonesia, in December 1994. Such a joint project would enhance interregional cooperation in several important areas.

SEMAKULU KIWANUKA (Uganda), speaking also on behalf of Kenya and the United Republic of Tanzania, said that cooperation in his subregion was effectively relaunched in March of this year with the inauguration of the secretariat of East African Cooperation in Arusha. The former East African Community, which collapsed in 1977, had been the oldest, most elaborate and successful cooperation arrangement in Africa. The member States of that body had a common currency, a common market, common services in transport and communications, a central legislature and a robust economy.

East African Cooperation, the new organization, would build on elements uniting Uganda, Kenya and the United Republic of Tanzania, including currency liberalization, a belief in private sector development, and the issuance of an East African travel document, he said. The organization would proceed to cooperate in the areas of tax systems, customs and transport regulations, economic and social policies, disease research and agriculture.

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VILMA MCNISH (Jamaica) said that the regional commissions were playing an important coordinating role in linking regional and global issues. The ECLAC was making a valuable control in both the analytical and operational areas. Jamaica had benefited from ECLAC subregional activities such as technical assistance. Her Government was concerned that the report of the Secretary-General on the work of ECLAC had not provided more disaggregated data on the Caribbean countries of the region. There were also no specific references in the document to Caribbean experiences in current accounts, external financing or trade. Caribbean data on net capital inflows and on intraregional trade for the Caribbean Community (CARICOM) had been ignored. Caribbean States were already marginalized by their small size; she looked forward to a more balanced and coordinated approach regarding economic reporting from the ECLAC region.

KAREL ZEBRAKOVSKY (Czech Republic) said that the ECE was an important multilateral forum for regional cooperation. Over the past five years, membership had grown to 55 countries; it was not a "rich countries club". Nearly half the membership of the ECE were countries in transition, several of which could be classified as among the least developed countries. The future priorities of the ECE should centre on solving regional problems as well as global problems affecting Europe, such as the environment.

It should also address the problem of the transformation of State- controlled systems to the free market, and the harmonization of regional activities with those of development agencies such as the UNDP, he said. The Czech Republic supported ECE reforms aimed at eliminating unnecessary overlaps with other international bodies, and at improving programme coordination. The ECE should continue to apply new forms of partnership such as the close involvement of the business community, cooperation with non-governmental organizations and "public participation" in its work.

SORIN TANASESCU (Romania) said that the ECE was achieving improved efficiency by streamlining its procedures. The Commission had set out new targets for cooperation among European States. The ECE had stepped up regional cooperation on environmental issues. The Commission had sponsored legal agreements on protection of the atmosphere and on regional watercourses. The ECE had played an important role in facilitating the integration of economies in transition into the world economy. It had closely followed up on the global development conferences. The regional commissions had a competitive advantage over the United Nations system when it came to regional analysis.

GONZALO VIVAS (Venezuela) said ECLAC had made major contributions to the economies of the region in recent years. It had combined analytical work with cooperation activities for development. The ECLAC had also made considerable effort to actively interact with a wide range of players from the public, private and academic sectors of various member countries. Measures had been

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proposed to improve the ECLAC's effectiveness which deserved support. Venezuela appreciated the annual publications of ECLAC and supported their wide dissemination.

ULADZIMIR GERUS (Belarus) said the regional commissions played a key role in advancing economic cooperation. The ECE had made a great contribution by assisting countries of central and eastern Europe in overcoming the problems of transition. It had also worked to unite the transportation systems of various countries, simplify trade procedures and minimize the consequences of the Chernobyl disaster in affected countries. Funds for the regional commissions should not be curtailed. Rather, the regional commissions should have the capacity to respond to problems in their respective regions.

ISSLAMET PEORNOMO (Indonesia) said the tasks of the regional commissions had grown as a result of the commitments undertaken at recent global conferences. The commissions were responding to such challenges by adapting their activities to the realities in their respective regions. "The response of the commissions is particularly encouraging in view of the fact that resources available to them are becoming more and more scarce." The decline of resources was ironic in light of growing demands on the regional commissions. The piecemeal approach to reform was leading nowhere. The Council must provide clear and coherent direction for a future path for the regional commissions.

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