SECOND COMMITTEE CONCLUDES CONSIDERATION OF FINANCING OF DEVELOPMENT

Press Release
GA/EF/2769

SECOND COMMITTEE CONCLUDES CONSIDERATION OF FINANCING OF DEVELOPMENT

All donors to the United Nations operational activities for development needed to be assured that their contributions were making an impact and were targeted at priority needs, the representative of Australia told the Second Committee (Economic and Financial) this afternoon as it concluded its consideration of the financing of such activities.

Aid impact and aid effectiveness must be addressed for the ongoing review of development financing to be meaningful, he continued. He called for development assistance to be used to eradicate poverty, adding that development agencies within the United Nations system should cooperate, harmonize and maximize their activities at the country level.

The quality and impact of official development assistance (ODA) needed to be improved, the representative of Luxembourg said. Speaking on behalf of the European Union, he noted that the Union's contributions represented about 58 per cent of the ODA given by members of the Organisation for Economic Cooperation and Development (OECD). Also, the member States of the Union were collectively the main contributors of core and non-core resources to the optional activities of the United Nations.

Norway's representative welcomed the establishment of the proposed Office for Development Financing to further explore new and innovative ways and means for financing development activities. Many proposals for innovative financing mechanisms had been put forward during the last few years, including taxes on aviation fuel, on international air tickets and on the use of credits. Those proposalS were among the ideas that merited positive consideration, but it must be stressed that funds raised from such sources would be in addition and would not replace ODA.

Singapore believed the development debate of the past few decades was over, that country's representative said. There was no alternative to plunging into the global economy. Those who had refused to do so, or tried to

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buck the trend, would pay the price. The issue at hand was how to help the less developed countries acquire the resources to build the institutions, train the personnel and formulate the policies needed to take the dive. That must be the starting premise and main goal of all operational activities for development.

A representative for the United Nations Educational, Scientific and Cultural Organization (UNESCO) said decreasing the regular programme budget for development and increasing extra-budgetary funding carried the risk of making specialized agencies more vulnerable to bilateral donors' conditionalities and creating a United Nations system "a la carte".

The representative of the Republic of Moldova supported the establishment of the "United Nations House" at the country level, with all funds and programmes being part of a single United Nations office under a resident coordinator. Pakistan's representative said the idea of a single United Nations assistance framework at the country level would only bring desired results if the coordination capacity of the recipient country was enhanced.

Statements were also made by the representatives of Turkey, Canada, Egypt, Uruguay (on behalf of Common Market of the Southern Cone - MERCOSUR), Nepal, Senegal, Cuba, Japan, Ethiopia, Jamaica, India, Ukraine, Romania, Iran, Mexico and South Africa (on behalf of the Southern African Development Community (SADC)).

The Committee will meet again at 10 a.m. on Wednesday, 22 October, to begin consideration of sustainable development and international economic cooperation.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to continue its consideration, under the general heading "operational activities for development", of the financing of those activities and of economic and technical cooperation among developing countries (ECDC/TCDC). (For background information, see Press Release GA/EF/2769 issued today.)

Also before the Committee is a report of the Secretary-General on the state of South-South cooperation (document A/52/402). It states that the current international scene is witnessing a marked upsurge in cooperation among developing countries. In the past four years alone, more than 100 actions were recorded involving a variety of actions to establish, revise, reinvigorate and launch initiatives in ECDC and TCDC. That is happening at the same time as the world is witnessing an increased globalization of its economies, accompanied by a progressive liberalization.

The liberalization of international trade, financial transactions and, to some degree, foreign direct investment intensifies competition among economies (and their enterprises) and necessitates secure and large domestic economic spaces as bases from which firms can launch successfully into the international trading system. Accordingly, expanded subregional, regional and interregional economic spaces continue to emerge.

For developing countries, says the report, the primary motivation is the formation and consolidation of viable economic spaces that would create dynamic trade and investment growth, develop viable, integrated and competitive productive systems to serve regional and international markets, strengthen macroeconomic policy coordination and enhance infrastructural linkages.

The report reviews attempts towards those ends focusing on institutional aspects, operational aspects, monetary and financial aspects, and matters related to investment, innovation and enterprise development.

Statements

BURAK OZUGERGIN (Turkey) said his Government's position as primarily a donor, as well as a recipient country in technical cooperation among developing countries (TCDC) activity gave it an advantageous point of view in understanding the mechanics of TCDC programmes. Turkey's official activities were increasingly expanding, bringing into play new local institutions, non- governmental organizations and the private sector. The allocation in the national budget for the two-year period 1995-1996 was approximately $50 million. That amount was the total for the three major government departments that coordinate and manage TCDC programmes, the Foreign Ministry, the Ministry for National Education and the State Planning Organization. And while other public institutions did not have specific allocations for

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technical cooperation in their budgets, most of them were involved in some type of TCDC activity on a small scale. Current TCDC programmes included direct, on-site development projects, as well as offering training courses, workshops, seminars, meetings and symposia, all substantially financed by the Turkish Government.

He said his Government had to date signed over 80 bilateral agreements covering the economic, trade, scientific, industrial, technical and environmental fields with developing countries and countries in transition in the Middle East, Africa, the Caucasus, the Central Asian Republics and the Commonwealth of Independent States (CIS), Latin America and Europe. Turkey was a member of the Economic Cooperation Organization and the Black Sea Cooperation. Both organizations emphasized the role of the private sector and aimed to create a suitable working environment among member States in order to enhance and facilitate cooperation.

ROBERT R. FOWLER (Canada) said although coordination and cooperation among the funds and programmes of the United Nations was necessary, it must be extended to include coordination with United Nations institutions, such as the World Bank, and regional development banks. That would ensure that the limited developmental resources of the entire United Nations system were used as effectively as possible. The international community could no longer afford to have the different arms of the United Nations development system working in isolation from, or in competition with, each other. The rationalization of United Nations operations both at the Headquarters and in the field should be a priority.

Continuing, he said Canada recognized the problems created for the funds and programmes by the current unpredictability of their core financing. Canada was convinced that the international community must continue to explore ways in which Member States could help to provide "secure and predictable funding" for United Nations development activities. The Secretary-General had encouraged further thinking on the possibility of multi-year funding schemes and Canada urged the funds and programmes to accelerate the work that they had now started in that area.

MAGED A. ABDEL AZIZ (Egypt) said all Member States were aware that there had been a sharp decline in basic resources. That trend was a matter of great concern because the persistence of the situation would have negative repercussions on the funds and programmes as well as the recipient countries. Financing through basic resources did not provide the necessary contributions, and other methods of funding must be developed that would be politically acceptable and approved.

He then took up the recommendations made in the report of the Secretary- General on new funding modalities. The question of burden sharing was far from clear in its implementation in the new system of financing for development, he said. How would the burden be shared and which States would

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assume the burden? Regarding non-traditional sources, there were still outstanding questions as to how to ensure the principle of neutrality, which was one of the basic principles of the United Nations. The United Nations could not rely on the private sector as a reliable source of funding. Regarding the establishment of an Office for Development Financing, his Government questioned the rationalization of expenditures and if the programmes and funds would be in a position to assume that role.

Financing should be reliable, predictable and stable, he said. Additional resources should supplement basic resources. Those were the main elements needed to set the framework for consideration of new modalities for financing of development so as to achieve consensus among Member States, the Economic and Social Council and the Executive Boards of the funds and programmes.

JORGE PEREZ-OTERMIN (Uruguay), speaking on behalf of the Common Market of the Southern Cone (MERCOSUR), said there was a need to seek new sources of financing for development while promoting South-South cooperation, cooperation with financial institutions and cooperation with organizations within the United Nations system.

Explaining that MERCOSUR had become a model subregional concept for development, he called on the international community to support its efforts. MERCOSUR believed that a new concept of international cooperation should address such issues as the re-definition of the role of state, environmental challenges, technological progress and the consolidation of democracy. MERCOSUR supported the reform of the United Nations Development Programme (UNDP) and viewed as positive the Secretary-General's proposals regarding coordination and cooperation within the United Nations system. MERCOSUR also supported decentralization of programmes and national execution as well as detailed monitoring of programmes.

He called on donor countries to fulfil their commitments with regard to contributions to development programmes. MERCOSUR supported the preservation of the principle of universality and the rights of countries to development assistance and cooperation.

JAYANTA CHAND (Nepal) said his Government was in general agreement with all seven recommendation made in the Joint Inspection Unit (JIU) report contained in A/51/636, which attempted to make development cooperation effective and efficient by resolving the problems and unwarranted bottlenecks that existed in the field, and also in the programmes of the agencies themselves.

Nepal shared the view of the JIU that the usefulness of a country strategy note diminished if it did not significantly reduce the frequency, costs and workloads entailed in the development of country programmes of international organizations, both within the United Nations system and outside

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of it, he said. The note should either be dispensed with or a new country- strategy-note process should be designed where there were ongoing significant structural adjustment programmes financed by the multilateral financial institutions. The recommendation that the Administrative Committee on Coordination (ACC) should update the policy and operational parameters for the note was a timely one, and it should be accepted.

Nepal had many things in common with other least developed countries of Asia and Africa, he said. Least developed countries which were also landlocked need full support, not only from the countries of the North but also from their stronger partners from the South. South-South cooperation assumed greater importance in that context. The ECDC/TCDC modalities within the framework of South-South cooperation should be directed to the benefit of the weakest link of the South, namely the group of the least developed countries. Only by enabling those countries to rise above their present unacceptable economic situation would they be able to move forward in the direction of realizing development goals.

IBRA DEGUENE KA (Senegal) said South-South cooperation should not be a substitute to North-South cooperation and that the sharing of knowledge and experience should be the essence of international cooperation. It was in the interest of all development partners to foster and encourage greater cooperation. He commended UNDP for funding South-South cooperation efforts. There should be a tangible increase in resources for strengthening that initiative, he said.

Stressing the need for improving efficiency of implementation mechanism, he called for more involvement and participation of countries in programme implementation. Senegal supported the creation of national focal points and the use of the resources within countries before looking elsewhere. Also, regional centres of excellence should be established.

IGOR CIOBANU (Republic of Moldova) said his Government welcomed the proposals for reform, particularly those concerning the United Nations Development Group. He also welcomed the establishment of "UN Houses" at the country level, with all funds and programmes being part of a single United Nations office under a Resident Coordinator. He also supported the establishment of an Office for Development Financing to increase core resources for development.

His Government had received technical assistance in transforming its political system to a democratic one and for converting its economic system to free market, he continued. Also, his Government, placing importance on technical cooperation among developing countries, had hosted three regional conferences during which opinions and experiences had been shared.

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In spite of assistance received, his country needed further help in the area of trade, he said. His country needed markets in which to sell its products and technical assistance to allow it to produce competitive products. There were many areas in which assistance was needed, but first large amounts of funding were needed to support human resources improvements.

MIRTHA HORMILLA CASTRO (Cuba) said the enhanced efficiency of the operational activities system of the United Nations required a substantial increase in resources, including all sources in a predictable, ongoing reliable basis and in keeping with the needs of the recipient countries. Her Government viewed with great concern the continuing decline of official development assistance (ODA), as well as basic contributions to funds and programmes, and considered it important that donor countries meet the goals set in terms of basic resources for the current programming cycle.

While Cuba welcomed voluntary contributions from other sources, it was concerned at the new trends seen in that area, she said. The basic characteristics of operational activities of the United Nations should be universal, voluntary, neutral and multilateral and should be maintained, despite new modalities for financing that had been gaining ground.

Operational activities for development should aim to complement development efforts of the recipient countries, in line with their own policies, needs, requirements, national plans and priorities, she said. They should not be utilized as a means to set conditions or oppose national modalities under the banner of "good governance". In the next few days important negotiations would take place in the General Assembly relating to the future of the United Nations system for operational activities. The position of the "Group of 77" developing countries and China had already been expressed, and her Government fully supported it. The reform being undertaken should not change the nature of the work of the United Nations carried out in the Member States, which had been their comparative advantage and best asset.

HAMIDA KHURO (Pakistan) said the development funds and programmes were faced with serious and disturbing declines in voluntary contributions. The Secretary-General recognized that resources for development must be restored and made more predictable to preserve the intensity of the operations. Pakistan supported the Secretary-General's recommendation to establish a new system of core resources consisting of voluntary contributions and multi-year negotiated pledges. He called for a time-frame for a decision on that recommendation.

He also welcomed the establishment of a development account. Establishment of the United Nations Development Group and strengthening of the resident coordinator system were good proposals. The idea of a single United Nations assistance framework at the country level would only bring desired results if the coordination capacity of the recipient country was enhanced.

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The decline in voluntary contributions to core resources was due to a lack of political will on the part of the donors, he continued. Donors had called for increased efficiency in the United Nations development activities. However, the tremendous improvements which had been made in that regard had not led to an increase in voluntary contributions. Efficiency arguments became suspect when they are used as an open-ended pretext for withholding funds. The donor community also cited difficult domestic political climates as a reason to withhold funds. Another argument was the privatization of the development cooperation idea, which in fact was highly unreliable due to the unpredictability and volatility of private capital investments.

WATARU NISHIGAHIRO (Japan) said the operational activities for development of the United Nations system should ensure neutrality, impartiality and a worldwide network and high-level of expertise and also should create maximum impact on the development of developing countries.

He said capacity-building was the key to ensuring the sustainability of development and enhancing the ownership of the development process by developing countries. The operational activities of the United Nations should focus primarily on capacity-building. There was need for collaboration and cooperation among funds and programmes to avoid duplication. Evaluation of their operational activities was also important in enhancing their efficiency and impact as well as inducing development partners to participate more actively.

There was a need for a thorough re-examination of why countries favoured non-core funding over core resources, he said. There was also a need to develop a more responsive mechanism and programme policies to guide core resources. South-South cooperation, especially with its new dimension of triangular cooperation, was one of the most important tools for advancing development cooperation based upon a global partnership.

BERHANU KEBEDE (Ethiopia) said his Government had benefited from the activity of the funds and programmes of the United Nations. After successfully instituting a federal form of government in 1995, Ethiopia reorganized the development management system and accorded priority setting and programme execution to the regions and local communities. Sector Investment Programmes (SIPs) were developed in collaboration with the World Bank for transportation, education and health sectors. Those Programmes were discussed with bilateral and multilateral donors and achieved a wide acceptance. That sector investment approach enabled a focused intervention of several development partners in priority areas which were selected by the Government. Such an approach also called for a pool of resources and co-financing arrangements.

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National execution was one way to strengthen national capacity-building in development management, he said. His Government was committed to the effective implementation of that modality, and had assumed a leading role in coordinating, designing and managing external assistance. The establishment of two high-level steering committees within the Prime Minister's office to monitor the implementation of UNDP and United Nations Children's Fund (UNICEF) assisted programmes was just one example.

While ODA continued to decline, the number of countries seeking United Nations system support to address their specific economic and social problems was increasing, he said. Those countries were competing for the limited resources available at the disposal of United Nations agencies. That increased expectation called for serious efforts to meet ODA targets, enhance co-financing arrangements, widen the donor-base and supplement core funds.

DAVID PRENDERGAST (Jamaica) said it was important to ensure that resources were utilized effectively and efficiently in view of the current uncertain economic future for many developing countries. There was need to strengthen and enhance the impact of operational activities of the United Nations at the country level as those activities continued to play an important role in the management of the development processes of many countries.

Continuing, he said the provision of funding on a predictable, continuous and assured basis, commensurate with the increasing needs of developing countries was not a cliche. Declining resources would have a direct impact on delivery and success of programmes in developing countries. It was alarming to note that there had been a continuing decline in the level of core resources available for development as core funds remained indispensable to the funds and programmes. Non-core funds, though becoming increasingly popular, should not be seen as a substitute for core funds as they were often allocated and targeted at specific purposes.

JEAN-CLAUDE MEYER (Luxembourg), speaking on behalf of the European Union, said the implementation of the reform measures announced by the Secretary-General on 17 March had already had a positive impact and had contributed to the strengthening of the presence of the United Nations in the field. The European Union welcomed the creation of the United Nations Development Group and supported the additional proposals of the Secretary- General contained in the report "Renewing the United Nations", which aimed to increase the efficiency and effectiveness of the operational activities of the Organization.

The European Union attached great importance to the issue of reinforcing national capacities in developing countries in all aspects concerning the management of development, he said . In that context, the development and follow-up of national execution must receive special attention. The evaluation and impact of operational activities were also of vital importance.

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The Union was encouraged by the first positive experiences obtained with common services and premises and was convinced that adequate consideration would be given to those elements during the next triennial policy review of operational activities.

The contributions of the European Union represented about 58 per cent of the ODA given by members of the Organisation for Economic Cooperation and Development (OECD), he said. The member States of the Union were also collectively the main contributors of core and non-core resources to the operational activities of the United Nations. The European Union was prepared to step up its efforts to reverse the current downward trend in the percentage of gross national product (GNP) allocated to ODA. The quality and impact of ODA also needed to be improved.

ANITA AMORIM, representative of the United Nations Educational, Scientific and Cultural Organization (UNESCO), said the regular programme budget for development had decreased while extra-budgetary funding increased. That trend carried with it the real risk of making specialized agencies more vulnerable to bilateral donors' conditionalities and creating a United Nations system "a la carte". An increase in both modalities of funding, both core and non-core, was vital. A wider sense of trust and partnership was needed among intergovernmental machinery, implementing agencies, funds and programmes of the United Nations.

While the idea of private funding of operational activities had stimulated a lively debate, she said, the importance must not be forgotten of the intergovernmental machinery and its role of overseeing the programming and the proper funding of programme budget activities from core resources.

The specialized agencies, with established contacts at the international, national and local levels, had an irreplaceable role to play, she continued. The priority for agencies was to have political dialogues with members of their governing bodies and in that way judge the needs of each Member State. The main activities of the agencies should be: to help Member States establish their development strategies and policies; to reinforce national capacities with the assistance of the civil society; and to augment capacities regarding the execution of national programmes and projects.

ALAN MARCH (Australia) said the international community had not given enough consideration to the effectiveness of funding modalities or the utilization of funds at the operational level. Australia believed that for any examination of development financing to be effective, aid impact and aid effectiveness must be addressed. All donors to the United Nations operational activities needed to be assured that their contributions were making a sustainable development impact and were pursuing the highest priority needs. Australia would like to see that development assistance was used effectively to eradicate poverty.

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He said there was a considerable scope for the various development agencies within the United Nations system to cooperate, work together more harmoniously and productively. Greater coordination must go beyond the harmonization of policy and governance structures. United Nations development programmes must maximize their impact and cooperate at the country level.

KENNY REBEIRA (Singapore) said despite different conditions in various South-East Asian countries, the currency turbulence was due to similar economic causes. Those causes included weak financial sectors, unsustainable macroeconomic policies with large current account deficits and an inflexible exchange rate regime too closely linked to the dollar. The South-East Asian countries could overcome their setbacks within a few years provided their governments addressed the weaknesses in their macroeconomic and fiscal policies as well as their financial institutions and systems. Basic conditions for rapid growth remained, with saving rates high.

Singapore believed the development debate of the past few decades was over, he said. There was no alternative to plunging into the global economy. Those who had refused to do so, or tried to buck the trend, would pay the price. The issue at hand was how to help the less developed countries acquire the resources to build the institutions, train the personnel and formulate the policies needed to take the dive. That must be the starting premise and main goal of all operational activities for development. The United Nations and its Members did the less developed countries no favours by not recognizing that fact or trying to obscure it.

Singapore valued the TCDC and ECDC modalities and stood ready to work closely with the United Nations and Member States to help developing countries, he said. There was an urgent need for more systematic coordination of the United Nations development policies and programmes and the integrated channelling of resources towards high-priority needs. Also, genuine coordination among development partners, the United Nations system, the multilateral financial institutions and bilateral donors was a high priority.

MARGARET ALVA (India) said the effectiveness of operational activities of the United Nations needed to be strengthened and enhanced. The key to enhanced effectiveness clearly lay in considerably increased, stable, secure and predictable levels of funding, linked to programme requirements of the funds and programmes, which should also retain their voluntary, official, multilateral and universal character.

The current funding picture for core resources was a matter for deep concern, she said. There was a need to examine, in some detail, whether the current modalities for generating contributions to meet the established programmed targets, as well as the new requirements arising from the recent cycle of global conferences, were adequate. At the same time, there was considerable ongoing discussion on new and innovative funding of global development requirements which involved a review of a variety of new sources.

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The preliminary discussion of that subject at the substantive session of the Economic and Social Council clearly indicated that much more clarity might be needed on the link between any new funding modality and new innovative funding ideas. Some countries believed that more attention should be paid to non-core funding avenues, with a view to drawing on lessons learned and evolving a more responsive mechanism and programme policies in core funding areas.

Her Government also believed that the promotion of technical cooperation among developing countries should be a priority of operational activities, she said. India welcomed such initiatives as the establishment of the Trust Fund for South-South cooperation and allocation of resources for TCDC by the Executive Board of UNDP, although such resources represented only 0.05 per cent of UNDP's overall programme resources and need to be further augmented.

SERHIY REVA (Ukraine) said his Government welcomed the process of adjustment of operational activities of the entire United Nations system to the most acute needs of recipient countries. It was encouraging that in addition to addressing the needs and requirements of the least developed countries, particularly those from the sub-Saharan region, the UNDP, the United Nations Population Fund (UNFPA) and other funds and programmes had increased their presence in countries with economies in transition in order to facilitate their integration into the world economic system. The technical assistance rended by those programmes and funds played an important complementary role in the efforts of the respective national Governments.

The problem of funding operational activities, including UNDP as their central mechanism, and related funds continued to be a matter of great concern, he said. Additional efforts were needed to place the United Nations operational activities on a more secure and predictable financial footing. Improvement of technical assistance machinery, in general, and the wide implementation of such modalities as national execution, purposeful involvement of the private sector and other non-traditional donors could substantially contribute to solving that problem and make the United Nations operational activities more attractive to traditional donors. More must be done to improve the coordination; to identify and eliminate duplication, overlapping and unnecessary competition; and to decentralize the entire United Nations operational activities system, giving emphasis on strengthening the resident coordinator and taking into account the national priorities.

SORIN TANASESCU (Romania) said the executive boards of UNDP and UNFPA had recently approved a UNDP change management plan, including moves to increase coordination at the country level, decentralize activities and to use resources more efficiently. Romania supported the continuity of execution- related activities at the country and regional level with conception-related activities at Headquarters.

The programme of action adopted at the 1994 International Conference on Population and Development had recognized the specific need for assistance to

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countries with economies in transition, especially in the field of reproductive health and family planning, he said. Efforts undertaken in Romania and countries of the region confirmed the importance of the multilateral assistance in the field. His Government hoped that the "Cairo + 5" review would allow Member States to engage in an intensive discussion of all such matters. SVEIN AASS (Norway) said the least developed countries, which continued to be heavily dependent on external financing for their development, had particularly been affected by the decrease in ODA. Decreasing contributions limited the extent to which the United Nations system could carry out its mandate and respond to the challenges arising from the recent series of conferences. Member States must assume their responsibility in assuring sufficient, predictable and stable funding. His Government welcomed a funding system that contributed to equitable burden-sharing among member countries, he said. Such a system ensured predictability and continuity, and encouraged broader responsibility for financing United Nations activities. The administrative costs should be universally shared by all Member States, and there should be a clear link between programmed activities and funding. A model for funding based on a system of assessed, negotiated and voluntary contributions would meet those concerns. His Government also welcomed the establishment of an Office for Development Financing to further explore new and innovative ways and means for financing development activities, he said. Many proposals for innovative financing mechanisms had been put forward during the last few years, including taxes on aviation fuel, on international air tickets and on the use of credits. Those proposal were among the ideas that merited positive consideration, but it must be stressed that funds raised from such sources would be in addition and would not replace ODA. MOHAMMED-ALI ZARIE-ZARE (Iran) said operational activities for development were the most tangible manifestation of the efforts of United Nations, particularly in the area of technical assistance. Operational activities had always been close to the heart of the developing world. Developing countries had found those activities beneficial and complementary to their own developmental efforts. Developing countries remained hopeful that the operational activities would not be adversely affected in those changing and uncertain times. However, he said, the Secretary-General's report on funding modalities of operational activities presented a disquieting picture of decreasing core contributions for the United Nations funds and programmes. There seemed to be a rather growing shift of attention away from long-term development towards emergency relief operations. Funding should be multilateral, neutral and universally accessible. It should also produce stable, secure and predictable levels of resources needed for the programme requirements of the United Nations funds and programmes. Non-core resources should not be considered a

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substitute to core resources. Any new system for core resources should not entail any new commitment for developing countries. MARCO PROVENCIO (Mexico) said the San Jose Plan of Action was highly relevant and it took the subject of South-South cooperation to a new level. International cooperation for development was one of the several constitutional principles which guided his Government's external policy. Mexico both received and provided cooperation, and that was a fact of the daily economic life in the country. His Government also supported the statements of both developing and developed countries concerning the decline in ODA. South-South cooperation must be complementary to ODA, and it had a particular feature. South-South cooperation depended on the countries of the South and did not depend on budgetary, economic and other situations prevailing between traditional donors and developing countries. It depended on the efforts developing countries made with the support of multilateral organizations. Mexico had considerable experience in South-South cooperation, he said. For example, as of 1980, Mexico had provided more than $2 billion in financing to neighbouring countries in Latin America and the Caribbean. When it was necessary to adjust the debt it was done under the best terms approved by the Paris Club so far. His Government also participated in other mechanisms established with other developing countries. MATHE DISEKO (South Africa), speaking on behalf of the member countries of the Southern African Development Community (SADC), said that in spite of recent positive developments, the countries of southern Africa still required the support of the United Nations system and the international community. The SADC needed to redress the devastation of the economies and infrastructure of the region following years of conflict, compounded by natural disasters. Substantial resources were required to sustain the region's transport and communications network. Unless a programme of rehabilitation and upgrading of the region's infrastructure was maintained, the efforts of the SADC to promote trade and investment in production would be adversely affected. In addition, progress in the areas such as rural poverty eradication and the mitigation of problems associated with increasing levels of urbanization continued to be of critical concern in the region. The SADC signalled its commitment to improving the life of some of the most vulnerable sectors of society through the adoption of a declaration on gender and development, he said. It spelled out concrete actions to be taken to address the disparities between men and women in the region which had hitherto impeded their full participation in power-sharing and decision- making. SADC also adopted a plan of action on responses to HIV/AIDS in the region as well as a code on HIV/AIDS and employment. There was a high probability of the recurrence of drought in the 1997-1998 season due to the re-emergence of the El Nino phenomenon. SADC appealed to the United Nations and the international community to respond to the drought situation in southern Africa to avert famine in the region.

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