NEGATIVE IMPACT OF ECONOMIC SANCTIONS STRESSED BY SPEAKERS IN SECOND COMMITTEE, AS DEBATE ON WORLD ECONOMY CONTINUES
Press Release
GA/EF/2724
NEGATIVE IMPACT OF ECONOMIC SANCTIONS STRESSED BY SPEAKERS IN SECOND COMMITTEE, AS DEBATE ON WORLD ECONOMY CONTINUES
19961017 The total value of losses to Burundi two months after sanctions were imposed on it by its neighbours were estimated to be at $165 million, the Second Committee (Economic and Financial) was told this morning, as it continued its general debate on the world economic situation. Calling for the immediate lifting of economic sanctions imposed on his country by its neighbours, the representative of Burundi said sanctions had resulted in reduction of food production by 30 per cent and decline in industrial growth by 10 per cent. The country could face widespread famine in the coming months if the situation continued, he stressed. Stating that a hostile economic environment had prolonged the economic crisis of developing countries, particularly those in Africa, the representative of Libya called for an end to coercive measures by some developed countries against developing ones imposed to influence sovereign decisions. Such measures violated the principles of international partnership, he added. The representative of Cuba, drawing attention to the Helms-Burton Law promulgated by the United States which sought to penalize foreign companies doing business in Cuba, wondered whether that legislation was being taken into account in the efforts of some delegations to have the United Nations adopt a declaration on corrupt practices in international business. The representative of Colombia decried the allocation of increased resources to resolve financial crises caused by speculative ventures, at a time when restrictions were placed on official assistance flows to combat poverty. Growth and development based excessively on private capital flows had proved unsustainable, he said, calling for the development of strategies to counter a worldwide globalization process, dominated by a few countries and enterprises. The representative of Indonesia advocated a "once and for all" agreement to address the cycle of underdevelopment, excessive indebtedness, and lack of resources. Statements were also made by the representatives of Venezuela, Sudan, Belarus, Poland, Nigeria, Dominican Republic, Romania, Cameroon, Ethiopia, Jamaica, Nepal, Viet Nam and Madagascar. The Committee will meet again at 3 p.m. today to continue its debate on the world economic situation and to hear an address by the Rector of the United Nations University.Committee Work Programme
The Second Committee (Economic and Financial) met this morning to continue its general debate on the world economic situation.
Statements
NORMAN PINO (Venezuela) said the process of globalization was irreversible and developing countries should be helped to benefit from it. Urgent attention must be paid to the question of external debt, taking a case-by-case approach to the problem. There must be a good international economic environment to enable developing countries to gain access to markets and technologies. The forthcoming meeting of the World Trade Organization in Singapore would provide an opportunity to begin a dialogue on pending international trade questions. There should be cooperation between that body and the United Nations Conference on Trade and Development (UNCTAD).
He rejected attempts to restrict market access on the basis of environmental questions. The World Food Summit in November would provide an opportunity for countries to renew their commitments to eliminate hunger and malnutrition. Venezuela would do its best to ensure the Summit's success. Stressing the importance of united efforts in combating corruption, he expressed the hope that the Economic and Social Council's draft declaration on the matter would be approved by consensus in the Second Committee.
LEYLA OMER BASHIR (Sudan) called for an end to sanctions imposed on countries in conflict situations. Such sanctions worsened their economic situations, leading to increased poverty. The Sudan had managed to reduce the suffering of its people and make progress towards peace.
The commitments made by developed countries at international conferences remained a dead letter, she said. The promise of 0.7 per cent of gross national product (GNP) for official development assistance (ODA) had not yet been fulfilled. Developing countries were seeing rising levels of conditionality along with a reduction in resources. Their domestic savings and export incomes were declining and they found it impossible to compete in world markets.
The Sudan was striving to reduce poverty, she said. Donor countries must fulfil the commitments made at the Uruguay Round trade negotiations held at Marrakech and end protectionism. It was hoped that progress would be made at the meeting of the World Trade Organization in Singapore. Noting that external debt was threatening many economies, she hailed the initiative of the World Bank and the International Monetary Fund (IMF) to ease the debt problems of developing countries. More resources should be given to regional organizations.
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ALYAKSANDR SYCHOU (Belarus) said the growth in the world economy over the last 10 years was mainly a result of the success of the developed countries and a small number of newly industrial States of South-East Asia. The number of least developed States had increased from 36 to 48 over the past 10 years. However, the total volume of aid to that group had declined considerably during the last five years. In Belarus, the transition to a market economy had been complicated by the considerable expenses it incurred in fulfilling its disarmament obligations and in dealing with the consequences of the Chernobyl disaster. It was hoped that the United Nations would render special assistance to the countries of central and eastern Europe during their transitional period.
The economic institutions of the United Nations system should be strengthened, he said. Such reform could considerably improve the effectiveness and dynamism of their work. Constructive work had been carried out by such specialized agencies, funds and programmes as the United Nations Development Programme (UNDP), the United Nations Industrial Development Organization (UNIDO) and the United Nations Economic Commission for Europe (ECE), in rendering financial and technical assistance to economies in transition. The UNCTAD should play a role in determining the just place for those economies within the international trade system. The removal of current restrictions on trade in his countrys' goods was crucial.
ZBIGNIEW SZYMANSKI (Poland) said sustainable human development depended solely on peace and security, both at the national and international levels. The Agenda for Development represented a comprehensive approach to the issues of economic and social development. Although some progress had been made in negotiation on it, Poland believed that work on that document should be intensified to provide a solid base for international development cooperation in the years to come. The experience of Poland and other countries which had introduced basic economic reforms confirmed that successful pursuance of sustainable growth depended on making individuals active agents of transformation and on providing them with basic human rights and the right to develop entrepreneurship.
There were no uniform policy patterns for economic development, he said. International solidarity for development, strengthening inter-country economic ties, international investment, ODA flows and increased trade, including through transnational corporations, could help in the process.
ISAAC E. AYEWAH (Nigeria) said African countries continued to experience the crippling impact of external debt, deteriorating terms of trade, increasing trade barriers, low commodity prices, declining investment and financial flows, capital flight, and the unpredictability of global monetary and financial systems. Nigeria supported the Secretary-General's initiative on an agenda for development. The effort to formulate such an agenda for the
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United Nations was of critical significance in implementing the General Assembly's Declaration on International Economic Cooperation.
The United Nations should play a central role in launching a process of sustained dialogue between developed and developing countries, he said. Without determined efforts to hold an international conference on external debt problem, economic growth in the developing countries would remain illusory. Africa today continued to face problems in obtaining access to markets, capital and technology, in addition to handicaps arising from institutional arrangements.
ENRIQUILLO A. DEL ROSARIO C. (Dominican Republic) said the new Government which recently took office in his country had taken steps to revitalize the economy. Emphasis was being placed on transparency in government and the fight against corruption. There would be enthusiastic support for efforts to root out corruption in international business practices. The Dominican Republic would join in sponsoring any draft text on the subject.
The Committee's working method should be rationalized to make it more focused and effective. In addition, statements to the Committee should be shorter.
ION GORITA (Romania) said there must be a new partnership between governments, international institutions, business and civil society, in order to tackle the problems raised by globalization. Restructuring of the Organization, political will and courage were all needed to implement the decisions of the various international conferences. There must be a new effort to deal with social problems, including the scourge of AIDS, which threatened human survival.
JAIRO MONTOYA (Colombia) said his country endorsed the statement made by Costa Rica on behalf of the "Group of 77" developing countries and China. The Second Committee should intensify efforts as a forum on economic and development issues. It must have clear objectives, precise priorities and action-oriented negotiations regarding current economic problems. There should be less rhetoric; static terminology and language should be avoided. Particular attention should be given to macroeconomic issues.
World economic growth had declined in 1996, he said. While developing countries markets had provided an impetus for growth, many of those countries faced deficits associated with such factors as increasing imports, decreasing exports and debt-servicing. Growth based on private capital flows had proven unsustainable, and globalization had made the developing countries more vulnerable to external factors. In 1996, 25 million would join the ranks of the poor.
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Had globalization improved well-being throughout the world? he asked. Evidence was to the contrary. Strategies were needed to counter a globalization process which had deepened economic imbalances, damaged the environment and increased poverty -- a process that was dominated by a few countries and enterprises. It was unacceptable that increased resources were being devoted to solving financial crises caused by speculative ventures while restrictions were being placed on official assistance flows aimed at combating poverty. Privatization and the free market were not a panacea for development.
NUGROHO WISNUMURTI (Indonesia) said the world economy had remained buoyant as a result of developing country growth rates of over 5 per cent. That economic performance should be reflected in their increased participation in global decision-making. Nevertheless, some 25 million joined the ranks of the poor every year, most of whom were women in developing countries. That bleak situation attested to the failure of past development strategies. The international community must see to it that the external economic environment became more stable, predictable and fairly organized. There should be dialogue between the developed and developing countries.
The United Nations should be reformed, with efforts made to improve the participation of all countries, he said. Moreover, all countries must pay their assessed contributions in full, on time and without conditions. There was a clear and urgent need to conclude the agenda for development. While Indonesia welcomed the important work of the World Trade Organization in implementing the Uruguay Round agreements, that body should concentrate on tangible trade issues and not deal with matters beyond its mandate. Indonesia advocated a "once and for all" agreement to address the cycle of underdevelopment, excessive indebtedness and the lack of resources.
MOUSSA ALIOU (Cameroon) said the widening gap between the rich and poor countries demonstrated that the development strategies of the past few years had been unsuccessful. Cameroon welcomed the decision to draft an agenda for development, which should encourage new and innovative approaches. Enthusiasm over the agenda had waned because of the attitude of the developed countries. Account should be taken of Africa's economic problems in drafting that agenda. African countries had fulfilled their commitment to undertake difficult economic reforms and now expected support from their development partners.
The secretariat of the Convention to combat desertification should be given the resources needed to implement its provisions. Cameroon had set up processes to implement the plan of action of the United Nations Centre for Human Settlements (Habitat II). The reopening of the New York office of the United Nations Institute for Training and Research (UNITAR) was a source of satisfaction. Efforts should be made to regularize the situation of its Executive Director.
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BERHANU KEBEDE (Ethiopia) said the international community should take specific measures to increase financial resources for developing countries, in order to generate growth and support political and economic reform. Factors that limited the development of infrastructure in African countries should also be addressed, so as to facilitate the flow of foreign direct investment.
Efforts should also be made to help African States reduce their stock of external debt, he said. For economic reforms to succeed in those countries, creditors -- including multilateral institutions -- should adopt such measures as debt cancellation or conversion. The recent initiative of the IMF and the World Bank on external debt was welcome, as was the earlier proposal by the Group of Seven industrialized countries.
The recent mid-term review of the United Nations New Agenda for the Development of Africa in the 1990s had clearly demonstrated the failure of the international community to meet its commitments, he said. The Agenda, together with the new United Nations System-wide Special Initiative on Africa, could provide a good framework for partnership in development. It was hoped that Africa and the rest of the international community would make the best use of the next five years to implement the Agenda's objectives.
DAVID ALLEN PRENDERGAST (Jamaica) said that, as a small island developing country, Jamaica was committed to the full implementation of Agenda 21, as well as to implementation of the Barbados Programme of Action. It recognized that national implementation of those documents had to be carried out in tandem with action by the international community. The continuing problem of external debt was an issue of concern. It was the scourge of developing countries, particularly the least developed countries.
Like many other developing countries, Jamaica had diverted much of its hard currency earnings to repayment of its foreign debt, he said. As a result, little remained for development activities. Jamaica supported the Special Initiative on Africa and the New Agenda for Africa. It also welcomed World Bank and IMF initiatives aimed at reducing the debts of the poorest countries.
HIKMAT BAHADUR SHAHI (Nepal) said the promotion of liberal trade policies and globalization had failed to narrow the gap between developed and developing countries. The socio-economic situation of many African and least developed countries had continued to deteriorate. They had been marginalized as a result of unfavourable markets for their exports. Many of the least developed countries were landlocked and faced constraints in overseas trade. Lacking direct access to the sea and a significant market base, they could not offer any comparative advantage to foreign investors.
He expressed the hope that the first Ministerial Conference of the World Trade Organization would represent a breakthrough in the process of
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globalization. It should ensure that the products of least developed countries were given free and unrestricted access to world markets. The industrialized countries should not deviate from the commitments they had made at major international conferences.
BALTHAZAR HABONIMANA (Burundi) called for the immediate lifting of the economic sanctions imposed on the country by its neighbours. He said the sanctions should be targeted instead against those causing violence and the massacres in order to prevent the wanton suffering of the Burundi people who were already in distress. The international community should seek a viable alternative to staving off the suffering of innocent people.
He said the total value of losses to the country two months after the sanctions had been in place were estimated at $165 million. The sanctions had resulted in reduction of food production by 30 per cent; decline in industrial growth of 10 per cent; livestock production of 24 per cent and a decline of 30 per cent in industrial production. Burundi might face widespread famine in the coming months if the situation continued, he emphasized. He also noted that the few existing industries were gradually being shut down because of raw material shortages. The resulting social disorder might well aggravate the general situation and further destabilize the country, he concluded.
MOHAMED ELMEJREBI (Libya) called for an end to coercive measures by some developed countries against developing ones with the purpose of influencing sovereign decisions. Those measures violated the principles of international partnership and the Charter on Economic Rights and Duties, which stated that no country had the right to use or encourage the use of coercive economic or political measures to pressure another into becoming dependent on it.
He said the hostile economic environment had prolonged the economic crisis of developing countries, particularly those in Africa. Economic and technological cooperation among developing countries were important tools that could revitalize their development and self-reliance. Such cooperation could be achieved through the adoption of common policies, building national capabilities and continuing the North-South dialogue. The international community should take measures to reduce the wide gap between developed and developing countries to the area of technological know-how to enable developing countries to strengthen their national scientific and technological capabilities as well as their institutions.
NGO QUANG XUAN (Viet Nam) said even as the world's economy had grown, a large proportion of its population continued to live in absolute poverty. The gap between developed and developing countries had widened, while such factors as neo-protectionism had taken a negative toll on international trade. Important work was being done by the United Nations and its agencies. That work was all the more important in the face of a tendency towards decreasing ODA.
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He called for increased allocation of resources to development. During the last 10 years, Viet Nam, under its renovation policy and with international support, had achieved significant results in the social and economic spheres. It had worked to broaden its participation in multilateral activities and this year had decided to present its candidature for membership in the Economic and Social Council. Those elections would be held on 31 October, and he hoped Member States would support his country's candidature.
ARISOA LALA RAZAFITRIMO (Madagascar) said positive transformations in the political arena had not been accompanied by similar changes in the economic realm. Poverty, ignorance, environmental degradation and inadequate development persisted, while protectionism -- the antithesis of free trade and a market economy -- continued in many forms. There were fluctuations in the prices of products produced by the developing countries, and external debt problem was still present. How long would private flows to medium-level countries continue? Artificial obstacles to technology transfer hampered the growth of developing countries, even as those countries were reforming their institutions and liberalizing their economies.
He stressed the importance of regional cooperation in promoting growth and accelerating development. Madagascar had been active in the Indian Ocean Commission and it hailed Costa Rica's initiative on holding a South-South conference on trade, investment and finance in January 1997.
She welcomed the results of the Group of Seven Summit in Lyon. The need for an all-encompassing approach to globalization had been stressed at United Nations conferences. Solutions to development problems were available; what was needed was the impetus to implement them. Peace required growth and development, as well as an ability to see the world from others' point of view.
PEDRO PEDROSO (Cuba) said a moratorium should be declared and the United Nations freed of permanent restructuring to enable it to concentrate on fulfilling its mandates on matters concerning development and international cooperation. Cuba supported calls for renewed commitment and political will of Member States to face the development challenges and fulfilment of agreed commitments. The results of the various United Nations conferences should be evaluated and the follow-up processes ensured. Institutions carrying out those implementation processes should be strengthened. Likewise, the decisions and recommendations of the ninth session of UNCTAD (South Africa, May 1996) should lead to the strengthening of that organization.
He drew attention to the Helms-Burton Law of the United States which sought to penalize foreign companies doing business in Cuba, and said the international community was witnessing the hazards that still plagued the
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international trading system. He wondered whether that legislation was being taken into account in the efforts of some delegations to have the United Nations adopt a declaration on corrupt practices in international business. His delegation attached importance to the restructuring of the economic and social sectors of the United Nations system and hoped that the process would be fully implemented, he concluded.
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