ECOSOC/5689

FINANCE, INVESTMENT, TRADE IN FOSTERING 'ENABLING ENVIRONMENT' FOR DEVELOPMENT TO BE DISCUSSED BY ECONOMIC AND SOCIAL COUNCIL

13 November 1996


Press Release
ECOSOC/5689


FINANCE, INVESTMENT, TRADE IN FOSTERING 'ENABLING ENVIRONMENT' FOR DEVELOPMENT TO BE DISCUSSED BY ECONOMIC AND SOCIAL COUNCIL

19961113 Theme of 1997 High-level Segment among Decisions Adopted as 1996 Substantive Session Resumes Deliberations

As it resumed its substantive session this morning, the Economic and Social Council decided that its 1997 high-level segment would discuss the following theme: "Fostering an enabling environment for development -- financial flows, including capital flows; investment; trade".

The Council took that action by means of a decision adopted without a vote. By other provisions of the text, it also decided that the cross- sectoral theme of next year's coordination segment would be "Mainstreaming of gender perspectives into all policies and programmes in the United Nations system". It also decided that the sectoral theme of that segment would be "Fresh water, including clean and safe water supply and sanitation".

By the same text, the Council also decided that in its operational activities segment the high-level meeting would discuss "Funding for operational activities for development: implementation of General Assembly resolution 50/227", which concerns measures for the restructuring and revitalization of the United Nations in the economic, social and related fields. The draft decision was introduced by a Council Vice-President, Gerhard Walter Henze (Germany).

Also this morning, in two procedural actions, the Council decided to conclude consideration of coordination questions, as well as of programme and related questions in the economic, social and related fields.

In addition, the Council agreed to conduct informal consultations on a draft resolution on corruption and bribery in international commercial transactions, as well as text concerning non-governmental organizations, including those contained in the report of the Committee on Non-governmental Organizations.

The Council will meet again at 10 a.m. tomorrow, 14 November, to continue its deliberations.

Documents before Council

A note by the Secretary-General (document E/1996/103) transmits his proposal for the theme of the Council's 1997 high-level segment, which is the following: "The enabling national and international environment". According to the note, that is a sufficiently broad theme of topical interest, around which consensus-building is desirable. It will enable all Member States to address critical matters related to the enabling environment, bring their respective perspectives together and enrich the debate.

According to the note, the suggested theme reflects both the economic and social aspects of development and their interrelationships, as well as national and international perspectives and their interdependence, and addresses the question of opportunities and challenges arising from the twin processes of globalization and liberalization, which have increasingly been receiving the attention of governments and civil society. The subject would be of importance to all countries, since an enabling environment can no longer be designed and put in place by individual countries in isolation. The theme is also one of the cross-cutting themes that arise from the outcome of recent major international conferences, it adds.

A draft decision submitted by the Vice-President of the Council, Gerhard Walter Henze (Germany), on the basis of informal consultations on the themes for the segments of the substantive session of the Council in 1997 (document E/1996/L.54), proposed the following: for the high-level segment, "Fostering an enabling environment for development -- financial flows, including capital flows; investment; trade"; for the coordination segment, the cross-sectoral theme would be "Mainstreaming of gender perspectives into all policies and programmes in the United Nations system", and the sectoral theme would be "Fresh water, including clean and safe water supply and sanitation"; and for the high-level meeting of the operational activities segment, the theme would be "Funding for operational activities for development: implementation of General Assembly resolution 50/227".

Also before the Council is a revised draft resolution concerning corruption and bribery in international commercial transactions (document E/1996/L.26/Rev.1). It is sponsored by Argentina, Bulgaria, Canada, Costa Rica, Mexico, Nicaragua, Poland, Russian Federation, United States and Venezuela.

Under its provisions, the Council would recommend to the Assembly for adoption a "United Nations Declaration against Corruption and Bribery in International Commercial Transactions", the text of which is annexed to a draft resolution.

By the draft resolution, the Assembly would invite Member States to take appropriate measures and cooperate at all levels to combat corruption and

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bribery in international commercial transactions. The Council and its subsidiary bodies, in particular, the Commission on Crime Prevention and Criminal Justice, would be requested to, among other measures, examine ways to further the implementation of the resolution and the annexed declaration, so as to promote the criminalization of corruption and bribery in international commercial transactions, including through development of a legally binding international instrument.

Also by the draft, the Secretary-General would be requested to prepare a report for consideration by the Assembly's fifty-second session on the implementation of the text, including information on how the incidence of corruption and bribery in international commercial transactions impacts on economic and social development and environmental protection, and on measures undertaken to promote social responsibility and the elimination of corruption and bribery in international commercial transactions.

Under the provisions of the draft declaration annexed to the text, Member States, acting individually and through international and regional organizations, would commit themselves to a series of measures, including the following:

-- Take effective and concrete action to combat all forms of corruption, bribery and related illicit practices in international commercial transactions, in particular, to pursuing effective enforcement of existing laws prohibiting bribery in international commercial transactions; encourage the adoption of laws for those purposes where they do not exist; and call upon private and public corporations and individuals within their jurisdiction engaged in international commercial transactions to promote the objectives of the declaration; and

-- Criminalize, in an effective manner, acts of bribery of any public official or elected representative, by any private or public corporation or individual, taking action where appropriate through coordinated efforts, but without, in any way, precluding, impeding or delaying international, regional or national actions to further the implementation of the declaration.

The acts of bribery that should be criminalized include the offer, promise or giving of any payment, gift or other advantage, as well as the soliciting, demanding, accepting or receiving, directly or indirectly, by any private or public corporation or individual from a Member State to any public official or elected representative of another country, as undue consideration for performing or refraining from the performance of that official's or representative's duties in connection with an international commercial transaction.

Also by the declaration, Member States would pledge to deny, in countries that do not already do so and in accordance with the fundamental

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principles of their legal systems, the tax deductibility of bribes paid by any private or public corporation or individual of a Member State to any public official or elected representative of another country. They would also pledge to develop or maintain accounting standards and practices that ensure the openness of international commercial transactions, and that encourage private and public corporations and individuals engaged in international commercial transactions to avoid and combat corruption, bribery and related illicit practices.

Further by the declaration, Member States would pledge to examine, subject to each State's own constitution and the fundamental principles of its legal system, the possibility of establishing illicit enrichment by public officials or elected representatives as an offence, and regarding such offence as an act of corruption. They would agree to cooperate and afford one another the greatest possible assistance in connection with criminal investigations and other legal proceedings brought in respect of corruption and bribery in international commercial transactions in areas such as production of documents and other information, notice of the initiation and outcome of criminal proceedings concerning bribery in international commercial transactions to other States that may have jurisdiction over the same offence, and extradition proceedings.

In addition, Member States would pledge to take appropriate action to enhance cooperation to facilitate money-laundering countermeasures and measures to facilitate access to documents and records about transactions and about identities of persons engaged in corruption and bribery in international commercial transactions.

The declaration concludes by stating that actions taken in compliance with its provisions shall respect fully the national sovereignty and territorial jurisdiction of Member States, their constitutions and the fundamental principles of their legal systems, as well as their rights and obligations under international law, and shall be consistent with human rights and fundamental freedoms.

Also before the Council is a document, sponsored by Ireland, on behalf of the European Union, containing 14 amendments to the above text (document E/1996/L.56). Among those are the introduction of a new paragraph at the end of the text reading as follows: "Member States undertake that actions taken by them in furtherance of this Declaration will be confined to their own territory or to acts committed by their own citizens and further undertake to refrain from enacting legislation which purports to have extraterritorial effect."

In addition, the Council has before it the report of the Committee on Non-governmental Organizations (documents E/1996/102 and Add.1/Corr.1), which contains four draft decisions for action.

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By draft decision I, the Council would grant consultative status to 87 non-governmental organizations.

By draft decision II, the Council would grant roster status to 70 non- governmental organizations, pursuant to Council decision 1996/302.

By draft decision III, the Council would approve the issuance of the Committee's documentation in all the official languages of the Council.

By a further draft decision, the Council would approve the participation of the following 14 organizations of indigenous people not in consultative status with the Council in the open-ended intersessional working group of the Commission on Human Rights to elaborate a draft declaration on the rights of indigenous people: the Assembly of First Nations, from Canada; Association of Northern Indigenous Peoples of the Sakha Republic, from the Russian Federation; Centro de Servicios Comunitarios, from Guatemala; Chickasaw Nation, Confederated Tribes of the Indian Reservation, Na Koa Ikaika O Ka Lahui Hawaii, Protect Kohanaiki Ohanai and Upper Sioux Community/Pejihutazizi Oyate from the United States; Federación de Ayllus del Sur-Oruro, Fundación Amautica Fausto Reinaga, Organización de Mujeres Indígenas de Bolivia and Taller de Historia Oral Andina from Bolivia; International Alliance of Indigenous Tribal Peoples of the Tropical Forests, from the United Kingdom; and Organization for Survival of the Illaikipiak Indigenous Maasai Group Initiative from Kenya.

In addition, it would also approve on a provisional basis, pending the receipt of the views of the governments concerned, the participation of L'auravetl'an Foundation, from Liechtenstein, and the Organización de la Nación Aymara, from Peru.

Also before the Council is a draft decision, sponsored by the Bahamas, concerning participation of non-governmental organizations accredited to the Fourth World Conference on Women in the work of the Commission on the Status of Women at its forty-first session (document E/1996/L.55). It would have the Council approve the participation of the non-governmental organizations accredited to the Beijing Conference solely at the forty-first session of the Commission, at which it will be dealing with the follow-up to the Conference.

Under coordination questions, the Council has before it the annual overview report of the Administrative Committee on Coordination (ACC) for 1995 (documents E/1996/18 and Add.1). Under programme questions, it has before it the report of the Committee for Programme and Coordination (CPC) on the second part of its thirty-sixth session (document A/51/16 - Part II).

In addition, two conference room papers (documents E/1996/CRP.3/Rev.1 and CRP.5) concern the implementation of resolution 50/227, on further measures for the restructuring and revitalization of the United Nations in the

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economic, social and related fields. In addition, a report updating information on the establishment, terms of reference, membership and composition, term of office of members, reporting procedure and frequency of meetings of subsidiary bodies of the Council and the Assembly in the economic, social and related fields is also before the Council (document E/1996/97).

The provisional agenda for the resumed session of the Council is contained in document E/1996/93.

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For information media. Not an official record.