SECOND COMMITTEE IS TOLD DEVELOPING COUNTRIES DO NOT NEED 'SERMONS'; ECONOMIC AID SHOULD FLOW WITHOUT INTRUSION INTO DOMESTIC AFFAIRS

18 October 1996

Press Release
GA/EF/2726

SECOND COMMITTEE IS TOLD DEVELOPING COUNTRIES DO NOT NEED 'SERMONS'; ECONOMIC AID SHOULD FLOW WITHOUT INTRUSION INTO DOMESTIC AFFAIRS

19961018 Delegates Say Financial Help Is Not Enough; Technology Transfer, Training, Human Resources Development, Trading Reforms Also Needed

To achieve true development, developing countries would have to depend upon available human resources, training and technology transfer and not additional financial resources alone, the Second Committee (Economic and Financial) was told this morning by the representative of Israel.

Speaking in the general debate on the world economic situation, he said technology held the key for real economic independence and special efforts should be directed at technological cooperation between developed and developing countries. Moreover, both recipient and donor countries must turn to the local private sector and the international business community to generate their involvement.

The importance of technical assistance was also highlighted by the representative of Gabon, who stated that the international community should promote economic growth through consistent technical assistance and through economic cooperation and regional integration. He stressed that volatility in commodity prices and unfair business practices had hindered developing countries.

Developing countries did not need sermons about the relationship between democracy, human rights and development or theological debates about sustainable development, said the representative of Singapore. There was no doubt that economic growth required political stability and good government. The United Nations should, however, find a way to help the least developed countries without intruding too brashly into their domestic affairs or imposing any particular political ideology on them.

The representative of the Democratic People's Republic of Korea said that every country should formulate policies according to its own conditions and realities, and there could be no single development formula that was universally applicable. A development formula should not be imposed on any country as an absolutely unique approach and no preconditions should be set for assistance.

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Attempts to introduce new issues on the trade agenda such as investment, labour standards and corruption should be rejected, said the representative of Myanmar. The practice of some major countries to promulgate domestic legislation with extra-territorial implications that had an adverse impact on legitimate interests of other sovereign States was highly objectionable.

Statements were also made by representatives of the United Arab Emirates, Mali, Nicaragua, Benin, The former Yugoslav Republic of Macedonia, Pakistan, Morocco, South Africa, Kazakstan, Malta and Sri Lanka.

The Committee will meet again at 3 p.m. today to continue discussion of operational activities for development.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to continue its general debate on the world economic situation.

Statements

MOHAMMAD ABDULLAH AHMAD (United Arab Emirates) said the consequences of recession in the last two decades were still felt in developing countries, especially in those prone to natural disasters. He stressed that development and security went together. The Second Committee, as a machinery in the field of international cooperation should -- more than ever before -- concentrate on tackling development issues. It was evident that restructuring had not been enough for developing countries to tackle problems like poverty. It was urgent that the effects of debt be mitigated and that barriers to developing countries' access to peaceful technology be removed.

As populations had grown by leaps and bounds, many social problems had been aggravated, he said. He stressed that the recommendations of international conferences held by the United Nations should be implemented. Moreover, an appropriate trade environment based on justice and equity should be created. Equitable trade and cooperation should be the pillars of that policy. With cooperation and regional integration, development could be a reality. The arbitrary Israeli practices in the occupied Palestinian territories, including Jerusalem, the Golan and the south of Lebanon had hampered development. He also emphasized the importance of reform in the United Nations.

MOCTAR OUANE (Mali) said that despite the positive growth shown by some developing countries, the poorest among them, especially those in Africa, recorded negative growth. The number of people stricken by grinding poverty was growing. Adequate solutions should be found to the economic problems faced by mankind on the eve of the new millennium. Commodity exports of developing countries should enjoy a just compensation. The forthcoming ministerial meeting of the World Trade Organization should take into account the problems faced by developing countries in the wake of the globalization of trade.

He said efforts to resolve the external debt of developing countries should be pursued, with the debt of least developed countries cancelled. Noting the decline in official development assistance (ODA), he urged donor countries to strive to meet the 0.7 per cent target set some years ago. The decline in ODA must be reversed. The donor countries should fulfil commitments made at the conferences on the least developed countries.

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He said the United Nations should be given the resources it needed to carry out its activities. Political will should be mustered for that purpose. Attaining the goals of peace, development, respect for human rights, and putting the United Nations on a sound financial footing -- as enunciated by the heads of State and government at the fiftieth anniversary celebration of the Organization last year -- required the cooperation of all Member States.

GUY-MARCEL EBOUMY (Gabon) said the present session offered a timely opportunity to focus attention on underdevelopment and debt problems. Economic growth and development were major concerns, since many conflicts originated in underdevelopment. Gabon believed that economic growth improved not only the quality of life, but also helped in maintaining peace worldwide. The new definition of development placed the human being at the centre. The Agenda for Development currently being negotiated was therefore welcome, but Gabon was concerned that the ad hoc working group had not yet reached a conclusion.

In 1995, there had been a growth of 3 per cent in Africa, he said. While those statistics inspired confidence, one should be careful in interpreting them. The majority of the developing countries had attracted only a weak inflow investment despite liberalization. The gap between rich and poor countries, as well as disparities among developing countries, had continued to grow. Volatility in commodity prices and unfair business practices had hindered developing countries. He stressed that the international community should promote economic growth through consistent technical assistance and through economic cooperation and regional integration. South-south cooperation was crucial in that regard. Africa had undertaken courageous, if destabilizing, reform; democracies were being strengthened and economies liberalized.

There had been currency devaluation. However, there had been a lack of support from the international community; ODA was at its lowest level and that, combined with the difficulties that developing countries faced in obtaining loans, led to the marginalization of those nations. He stressed that donors should abide by the commitment to provide 0.7 per cent of the gross national product (GNP) to ODA. Debts continued to be a mortgage on the development of African countries.

ENG WAH WOOH (Singapore) said a four-point agenda had evolved for the December meeting of the World Trade Organization to be held in his country: a review of the implementation of the Uruguay Round and addressing problems encountered in its implementation; a review of the built-in agenda of the Uruguay Round agreements with a view to starting a preparatory process for implementation; further liberalization initiatives; and finally, how emerging new issues could be addressed. There was consensus on the first two items on the agenda, but less on the last two. The built-in agenda of the Uruguay Round agreements constituted the main framework for the future work programme.

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Proposals had also been made on the incorporation of so-called new issues, including investment, competition policy, labour standards and corruption. To achieve a balance, Singapore had suggested three criteria for the inclusion of new issues, namely the issue must be trade-related; it must be sufficiently mature to be addressed in the World Trade Organization, and the Organization must be the appropriate forum for discussing it. There was no consensus at present as to whether those new issues should be included.

He said developing countries did not need sermons about the relationship between democracy and human rights and development, or theological debates about sustainable development. It was not as if the economies and societies of the "theologians" provided examples of such bedazzling brilliance as to preclude all other points of view. There was no doubt that economic growth required political stability and good government. The United Nations should, however, find a way to help the least developed countries without, at the same time, intruding too brashly into their domestic affairs or imposing any particular political ideology on them. Singapore was convinced from its own experience that there were no simple models that could be applied universally.

Under a third-country training programme, assistance was being offered to developing countries. It was being carried out in cooperation with Japan, Germany, United Kingdom, Republic of Korea, Australia, Canada and Norway, as well as with the Commonwealth Secretariat, the Asian Development Bank and the World Bank. Singapore had sponsored training visits for about 2,000 individuals annually from more than 60 developing countries in Africa, the Caribbean, the south Pacific and Latin America. Singapore did not impose itself as a model for any country. Its essential message was that every country should find its own way.

ERICH VILCHEZ ASHER (Nicaragua) said it was important that economic and social development enjoy the highest place on the agenda of the United Nations. Decisions on reform in the United Nations should not be taken which took account only of the financial aspect. On no grounds must funds for development be cut. As the Human Development Report had noted, disparities between the rich and poor countries had continued to widen. Structural adjustment by developing countries had been undertaken, even if it had been painful. Now the international community should live up to its commitment to provide 0.7 per cent of the GNP to ODA, and to implement Agenda 21.

He thanked the international community for its help in consolidating a democratic system in Nicaragua. Economic development would lead to combatants being inducted into civil life. He called for just trade practices, and welcomed steps taken by the Paris Club to tackle the debt problem.

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ROGATIEN BIAOU (Benin) said globalization was marginalizing a number of countries, particularly those in Africa. The "informal sector" in Africa could be an essential path -- besides the state and the private sector -- in alleviating poverty. Efforts should be made to improve and strengthen that sector, and his Government was doing that through a recently launched programme. Food security was also being stressed. He hoped the Rome summit on food security would lay out the means to help African States improve their food production.

His delegation was opposed to limiting the special Assembly session's review of Agenda 21 to a few of its 40 chapters, as was being suggested by some delegations. General consideration of Agenda 21 should cover all chapters. He said that the five working days proposed for discussions on Agenda 21 during the special session would not be enough; 10 days would be needed. Efficiency should not be sacrificed on the altar of financial crisis. Real political commitment at all levels and solidarity with least developed countries should be shown.

EVIATAR MANOR (Israel) said that after 40 years of experience, it was now evident that additional financial resources alone would not bring about real development. For true development, countries had to depend on the availability of human resources, skills development, training and technology transfer. Both the recipient and donor countries must turn to the local private sector, as well as to the international business community, to generate their involvement. Economic growth was a precondition for sustainable development. A management structure that was committed to sustainable development at the local and central level of government, as well as in the public and private sector, was needed.

Technology held the key for real economic independence and special efforts should be directed at technological cooperation between developed and developing countries, he said. Israel had succeeded in producing technologies that were particularly relevant to desert environments, such as new irrigation technologies, energy production systems and suitable plant varieties. It would continue to put its experience at the disposal of the developing world.

It was also in the process of establishing the International Centre for Combating Desertification and its international development programmes had trained 60,000 people in more than 120 countries of Asia, Latin America, Africa and the Middle East. It believed that peace would contribute to prosperity in the Middle East, just as economic stability and growth would contribute to peace. He hoped that the Committee's time would be devoted to important economic and development issues confronting developing nations, and that the Committee would avoid political issues that were extraneous to it.

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RI KWANG NAM (Democratic People's Republic of Korea) said every country should formulate policies according to its own conditions and realities, and that there could be no single development formula applicable to all. A development formula should not be imposed on any country as an absolutely unique approach, nor be set out as a precondition for assistance. The current unfair international economic relations critically impeded development efforts of developing countries. The role and functions of the United Nations in the economic and social fields should be strengthened.

The restructuring and streamlining of the Organization was praiseworthy and should be undertaken in a manner that enabled it to make substantial contributions to the development of developing countries. The Democratic People's Republic of Korea would further expand and develop economic cooperation with all countries in independence, peace and friendship.

IGOR DZUNDEV (The former Yugoslav Republic of Macedonia) called for efforts against protectionism in all fields of economic cooperation. Regional and economic integration should be strengthened, and infrastructure created which favoured development of all parts of the world. In addition, a favourable international environment must be created and a solution found to the problem of debt. Also, there should be an increase in foreign investments in countries in transition.

The economy of his country had suffered greatly from the United Nations sanctions against the former Yugoslavia, he said. Also, it had suffered from the Greek embargo against it. However, economic cooperation between the two countries was presently on the increase. He hoped that the positive trend would continue.

U ZAW WYNN (Myanmar) said a significant number of developing countries had failed to benefit from free trade, capital inflows and investment. Statistics showed that the gap between the developed and developing countries had widened. To meet that challenge, the international community should translate into action its commitments made at the United Nations Conference on Environment and Development (UNCED) and establish a new and equitable global partnership. A supportive economic environment was needed. In that context, the unsustainable levels of debt were of concern. He welcomed the World Bank, International Monetary Fund (IMF) and Paris Club agreement to reduce the excess debt of several of the poorest countries. He also expressed regret at the decline in ODA.

Attempts to introduce new issues on the trade agenda such as investment, labour standards and corruption should be rejected, he said. The practice of some major countries to promulgate domestic legislation with extra-territorial implications that had an adverse impact on legitimate interests of other sovereign States was highly objectionable.

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HAMID NAWAZ KHAN (Pakistan) said the international community should address the relevant issues which threatened to derail growth in global trade. Noting with concern the emergence of protectionism, he said impeding the exports of developing countries would have a counter-productive effect on their ability to deal with environment and labour issues. Every effort should be made for agreement to be reached on a comprehensive and integrated programme of action for the promotion of global economic and social development. A successful conclusion of the Agenda for Development would be in the interest of all.

He said the continued marginalization of the United Nations in the economic field was unfortunate. The General Assembly had been unable to play a meaningful role in international economic policy- and decision-making. The United Nations had a leading role to play in intergovernmental efforts to alleviate socio-economic problems. In the field of development assistance, he said the role of the United Nations was being eroded through progressive down- sizing of its development machinery, and through the intrusion of conditionalities in its development programmes.

AHMED AMAZIANE (Morocco) said private capital flows to developing countries were limited to a small number among them. Benefits of economic and technological progress had not reached a broader number of the world's population. Africa's situation was particularly alarming; its external debt was rising and a large proportion of its foreign earnings went into debt- servicing. He hoped African States would be among the first to benefit from the various new initiatives on resolving external debt. Sub-Saharan Africa was on the threshold of extreme poverty. While reaffirming the responsibility of African States for their own development, he said the international community should also help by making available more resources to them.

It was regrettable that protectionism had reared its head since the Marrakesh ministerial meeting on the Uruguay Round, and he hoped the Singapore World Trade Organization conference would take stock of what needed to be done. A prosperous and stable world would benefit all countries, he said, and he appealed for collective effort to meet the challenges facing the United Nations.

MATHE DISEKO (South Africa) said his country was heartened by efforts towards reform and recovery, not only in its subregion, but in other parts of the African continent as well. Through the Southern African Development Community (SADC) the region was making strides towards economic integration through economic cooperation, mutual assistance and partnership for development. The region's economic integration would enable it to play a proper role in the world economy. He urged the international community to revisit outstanding issues of an Agenda for Development and to provide necessary resources for the implementation of the Special Initiative for Africa.

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South-South cooperation should be strengthened, but not as a substitute for North-South partnership, he said. International cooperation was vital in the fields of environment and development. Sustained political commitment was essential to implement Agenda 21, and there was a need to reaffirm the principles contained in the Rio Declaration and Agenda 21. The role of the Commission on Sustainable Development was crucial to sustainable development and should be strengthened. The World Food Summit to be convened in Rome next month would afford the international community an opportunity to demonstrate its commitment to poverty eradication strategies. South Africa urged the international community to meet the challenges of hunger, malnutrition and poverty.

SERGEY AGEYEV (Kazakstan) said a narrow regional approach to solving problems was unacceptable. He welcomed the efforts of the international community to integrate the economies in transition into the world economy. Kazakstan was engaged in restructuring its economy and was trying to accelerate economic reforms. Profound market changes had occurred in the country and many monopolies had been dismantled. The country was grateful for the loan of $1.5 billion that had been given to it. Further help from, among others, the United Nations Development Programme (UNDP), the United Nations Conference on Trade and Development (UNCTAD) and the Economic Commission for Europe (ECE) would be required by the central Asian countries. He stressed the need for a more active interaction between the region and the United Nations system.

He expressed support for efforts to increase cooperation among all aid- givers in the region. He welcomed the United Nations support for a system of transit for States of central Asia which did not have access to the sea. Attention to problems of transport, communication and transit was crucial. A significant part of the territory of Kazakstan was prone to natural disaster; in particular, the drying up of the Aral Sea was of concern. The country could not deal with the problem on its own and would need United Nations help. He welcomed the fact that the General Assembly had adopted a resolution which would have it hold a special session on environment in 1997.

JOSEPH CASSAR (Malta) said that during the last few years Malta had witnessed a vast expansion of enterprise and entrepreneurship. That had been coupled with diminished direct government intervention through devolution and decentralization. Moreover, it had improved its infrastructural capacity in the areas of energy, water supply, telecommunications, air and sea links. Full employment had been practically achieved and the Government had initiated and steered a process of transforming the welfare state into a welfare society. Education had been one of the top priorities and through bilateral and multilateral cooperative programmes it had contributed to investment in human resources.

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Poverty continued to threaten social cohesion in the world, he said. Bilateral and multilateral assistance could make a difference in tackling it. He called for the implementation of the Barbados Programme of Action which outlined the particular economic and environmental conditions of the small island developing States.

HERMAND DE SILVA (Sri Lanka) called for speedy conclusion of the negotiations on the Agenda for Development, since the Agenda underlined the central role of the United Nations in the fields of economic cooperation and development. The realization of successful development objectives required that developing countries exercise strong political commitments that must be matched with appropriate policies. National efforts should be complemented by enhanced cooperation with developed countries and with international organizations and other specialized agencies. South-South cooperation should be expanded.

The specific character of individual developing countries should be taken into account in the development debate, he said. Trade liberalization, privatization, freezing of price controls and scaling down of welfare measures had not always proved to be a panacea for developing countries which had accepted them as economic injunctions. Many developing countries had become victims rather than beneficiaries of globalization and liberalization. Interdependence had made their fragile economies highly vulnerable to the changes in the world economy. The immediate task for national and international policy was to secure an enhanced role in world trade for developing countries through export expansion and diversification of products and markets.

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