ECONOMIC AND FINANCIAL COMMITTEE HEARS CALL FOR COORDINATED CONSIDERATION OF DEVELOPMENT ISSUES TO FOSTER CONSTRUCTIVE DIALOGUE

27 October 1997

Press Release
GA/EF/2775

ECONOMIC AND FINANCIAL COMMITTEE HEARS CALL FOR COORDINATED CONSIDERATION OF DEVELOPMENT ISSUES TO FOSTER CONSTRUCTIVE DIALOGUE

19971027 Committee Concludes Consideration of Renewing Dialogue On International Cooperation for Development; LDCs' Programme Of Action

Overloading the development agenda would overtax the ability of countries to participate in a constructive dialogue, the representative of New Zealand told the Second Committee (Economic and Financial) this afternoon. The Committee concluded its consideration of renewing the dialogue on strengthening international economic cooperation for development and implementation of the Programme of Action for the Least Developed Countries for the 1990s.

The importance of the international development dialogue should not be reduced by spreading the issue across too many forums where it could not be given proper attention, he continued. A coordinated consideration of development issues should take place. The need for an open exchange of ideas was even more critical as globalization increased the interdependence of all nations.

The representative of Egypt said the General Assembly should reach during its current session an agreement on how to enhance the dialogue on strengthening international economic cooperation for development and its framework. Outcomes of recent international conferences could be used as a basis to start a dialogue on the issues of development and to promote common interests. The Assembly should stop drafting resolutions that requested that such a dialogue be held at its succeeding sessions.

A dialogue on strengthening international cooperation for development should cover all subjects in the world economy, the representative of Iraq said. Countries must refrain from using coercive political measures and the weapon of the embargo against developing countries. The mentality of embargoes and blockades was not compatible with the principles of the World Trade Organization as well as with the development programmes of the United Nations.

The representative of Afghanistan said socio-economic development could only work under peaceful conditions. As a least developed, landlocked and war-stricken country, Afghanistan faced enormous problems and impediments to

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development. War had devastated the Afghan people, economy and infra- structure, and the existence of more than 10 million landmines posed further problems for rehabilitation and reconstruction.

Lesotho's representative said the gains realized from economic reforms in least developed countries had not sufficiently reduced the level of poverty. Efforts to set up appropriate machineries to address financing aspects of development also fell short of requirements. Women, the major actors in agriculture and business, did not have adequate economic power necessary to act as the engine of growth in least developed countries. The international community must improve living conditions in the least developed countries and empower women.

Statements were also made by the representatives of Bahrain, Kazakhstan, Israel, Ethiopia, Republic of Korea, India, Ukraine, Democratic Republic of the Congo, Iran, Nepal and Indonesia.

The Committee will meet again at 10 a.m. on Tuesday, 28 October, to begin consideration of sectoral policy questions, including industrial development cooperation and business and development.

GAEF2775

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to continue consideration, under the general heading "sustainable development and international economic cooperation", of the question of the renewal of the dialogue on strengthening international economic cooperation for development through partnership, and the implementation of the Programme of Action for the Least Developed Countries for the 1990s. (For background information, see Press Release GA/EF/2774 issued today.)

Statements

MOHAMMED MUBARAK AL-KHALIFA (Bahrain) said the adoption of the Agenda for Development and the nineteenth special session of the General Assembly confirmed the importance of the United Nations in the field of economic and social development. Yet, that undertaking could not be successful without mutual contributions from the developed and developing countries. The developed countries should assume the responsibility for creating an environment that would help developing countries meet their development objectives, through the transfer of technology, elimination of protectionist restrictions and tariff barriers, and transfer of capital to those countries. The developing countries should contribute sound planning and serious work in establishing healthy economic structures.

Bahrain had provided the necessary atmosphere to encourage foreign capital and labour to promote its economic activities, he said. If global development was to take root, the United Nations must play an important role through the work of its specialized agencies. The international community must stress that work and give the Organization the necessary support in order for it to fulfil its role in promoting a world with stability for all.

SERGEY AGEYEV (Kazakhstan) said his country attached great importance to the issue of sustainable development and international cooperation for development. Kazakhstan was open to the outside world and was ready for dialogue on an international partnership for development. Kazakhstan had focused its efforts on establishing a favourable environment for investment.

He said his country was participating in regional integration efforts. Kazakhstan would soon be able to play a major role in other regional and global integration efforts in the world. Kazakhstan was ready for constructive interaction with other Member States to achieve the goals of the Agenda for Development.

ADEL ABDELLATIF (Egypt) said his Government believed that the Assembly should reach during its current session an agreement on how to enhance the dialogue on strengthening international economic cooperation for development and its framework. It was unrealistic to continue drafting resolutions that requested that such a dialogue be held at the succeeding sessions.

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The distance between developed and developing countries was becoming smaller at the level of economic and social policies, he said. At the level of international economic actions, the movement of trade between North and South had increased. Outcomes of recent international conferences could be used as a basis to start a dialogue on the issues of development in order to promote common interests. His Government was surprised by the continued postponement of that dialogue.

While building a common understanding in the field of development, it was not acceptable to postpone a dialogue, he said. It was not an appropriate method to address those issues. Dialogue would help lay down a framework for common understanding.

ILAN MOR (Israel) said international support measures -- financial, technical and commercial -- were of critical importance to the future growth and development of the least developed countries. Israel had fascinating and successful cooperative programmes for international development in Asia, Africa, Latin America and Oceania in the fields of education, research, nature protection, rural development, agriculture and science and technology.

If development aid was to achieve its primary goal of long-term development, he said, programmes must be both financially viable and have a management structure that was committed to sustainable development on all levels of government as well as on public and private enterprises. To achieve true development, countries must depend on the availability of human resources.

MICHAEL POWLES (New Zealand) said New Zealand supported ongoing efforts to engage developing and developed countries in a genuine dialogue on international cooperation for development. The need for an open exchange of ideas was even more critical now as globalization increased the interdependence of all nations. The Agenda for Development was the most comprehensive consensus United Nations document covering the breadth of development issues. It formed a useful basis from which to go forward in building a more efficient and effective United Nations operation in the field of development.

Warning about overloading the development agenda and thus overtaxing the ability of countries to participate in a meaningful way, he said there was a need to give careful thought to how to best target collective energies. New Zealand did not wish to reduce the importance of the international development dialogue by spreading the issue across too many forums where it could not be given proper attention. New Zealand would like to see a coordinated consideration of development issues.

BERHANU KEBEDE (Ethiopia) said the development partners were far from meeting their commitments to support the efforts of the least developed countries. The developed countries ratio of assistance to gross national

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product (GNP) had hit its lowest point in 1996. Resource flows to the least developed countries (LDCs) had remained stagnant in current dollar terms through the 1990s and had diminished in real terms. The situation was not different for the United Nations system. The funds and programmes were experiencing a shortage of resources needed to undertake development projects and programmes in the LDCs. It was necessary to reverse the current trend in donor performance through the recovery in overall official development assistance (ODA) and reorientation of aid programmes. There was also a need to enhance the quality and effectiveness of assistance to the LDCs. External finance needed to be channelled to major investment programmes in physical infrastructure and social service, which were necessary for the least developed countries to attract substantial private investment. In addition, the LDCs needed the active support of non-traditional donors.

His Government welcomed the high-level meeting on integrated initiatives for least developed countries scheduled for the end of the month. The high-level meeting was a part of a new pro-active international effort to accelerate the integration of the LDCs into the global trading system. The meeting should be followed by an appropriate programme of activities. Those activities would bring together the major agencies, donors, interested governments and the LDCs to maintain the current momentum and to review, monitor and follow up the proposals emanating from the high-level meeting.

MOHAMMED AL-HUMAIMIDI (Iraq) said few developing countries had the human resources and capacity-building necessary to derive benefits from globalization. Developing countries required continued international financial support to meet developing and capital needs. Economic cooperation, and the various modalities for achieving it, as well as freedom of trade were necessary for developing countries to take advantage of the new economic climate. It was important that the obstacles to the access to world trade were also lifted for those countries. The gap between the North and the South needed to be closed. The international community must find measures to reduce the marginalization of developing countries and to mark a new era of cooperation between developing and developed countries.

A dialogue on strengthening international cooperation for development should cover all subjects in the world economy, he said. Countries must refrain from using coercive political measures and the weapon of the embargo against developing countries. The mentality of embargoes and blockades was not compatible with the principles of world trade and the World Trade Organization (WTO) as well as with the development programmes of the United Nations. Embargoes could also inflict serious injuries on neighbouring countries of the affected States.

The objectives for international cooperation between developed and developing countries required the increased presence of international institutions, he said. Interdependence required efficient solutions and programmes. It was important to attach high priority to development

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programmes in order to launch a constructive dialogue aimed at establishing international cooperation. Such a dialogue would provide impetus for international cooperation for development.

HAFIZULLAH AYUBI (Afghanistan) said the sustainability of the domestic reforms of least developed countries was being threatened by reduction in ODA flows, external debt burden, decline in their already marginal share of global trade and the lack of access to markets. Afghanistan was concerned about the worsening economies of the least developed countries, deepening poverty in those countries and widening gap between the rich and poor nations.

Explaining that a socio-economic development plan could only work under peaceful conditions, he said that as a least developed, landlocked and war-stricken country Afghanistan was facing enormous problems and impediments to development. War had devastated Afghan people, economy and infrastructure. The existence of more than 10 million landmines posed further problems for rehabilitation and reconstruction. Urgent measures were required to overcome the present devastating situation in Afghanistan. He appealed to the international community, especially financial institutions, to assist in the process of peace, reconstruction and revitalization of his country's economy.

CHANG BEOM CHO (Republic of Korea) said his Government welcomed the Agenda for Development's call for a renewal of the dialogue on strengthening international cooperation for development through partnership as the intergovernmental follow-up mechanism. It was important to reach a consensus during the current Assembly session on the dates, modalities and themes for the high-level dialogue. The dialogue should be convened as soon as was feasible in order to build on the momentum gained through the adoption of the Agenda for Development, which was the blueprint and foundation for all future development partnership.

One of the most important challenges of globalization was to bring the LDCs into the global economic mainstream, he said. Now was the time for the international community to do all it could to support the fragile recovery of the least developed countries and to help maintain and accelerate their economic growth. His Government welcomed the recent recommendation of the United Nations Conference on Trade and Development (UNCTAD)'s Trade and Development Board to hold a third United Nations conference on the least developed countries at the end of the decade.

His Government had announced its intention of introducing the Generalized System of Preference scheme for LDC priority export products, he said. It would grant preferential duty-free access to various export items among the 112 products that were of major export interest to the LDCs. Next year, the Republic of Korea planned to launch a two-year "Special Programme for the Economic Development of African Countries" with the aim of supporting African self-help efforts and promoting Asia-Africa development cooperation.

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ASHOK GEHLOT (India) said the end of East-West rivalry had provided an opportunity for enhanced cooperation for mutual benefit. The United Nations should focus more on development, as the Organization was central in all development dialogue. Such dialogue would provide another forum for sending a clear and strong message regarding the imperatives of development in terms of trade, technology transfer and financial flows.

Noting that a productive base had been provided for a development dialogue by the series of United Nations conferences since 1992, he said it was unfortunate that all that dialogue had taken place at a time of aid fatigue and budgetary pressures in the developed countries, the questioning of efficacy of international development cooperation, protectionist measures and attempts to shift attention from the question of trade access and preferences and financial flows to that of reordering of priorities and reallocation of resources.

VOLODYMYR RESHETNYAK (Ukraine) said the spirit and letter of the Agenda for Development should guide any preparation for the dialogue on strengthening international cooperation. The international community must also take into account important experience gained at previous negotiations. It should also do its best to avoid repetition of long and useless disputes and focus on key issues which were of interest to all parties.

He said that dialogue should be conducted with the broad participation of the Bretton Woods institutions, the private sector, non-governmental organizations and representatives of major groups of civil society.

ANDRE KAPANGA (Democratic Republic of the Congo) said developing countries faced unprecedented economic difficulties, and the United Nations must adapt in order to meet the problems facing those countries and stand up to the challenges of the twenty-first century. Peace, freedom and stability comprised an indispensable part of development, and no country could be safe and secure while there was tension elsewhere.

During more than 30 years, the Democratic Republic of the Congo faced the waste of public resources and mismanagement, he said. The national economy had regressed totally and the country had been humiliated. It was in the face of that serious situation that the country's citizens overthrew the discredited regime that no longer met its aspirations. The economic, political and social situations had deteriorated even further, and now the country was moving through a transitional state.

His Government was currently implementing a democratic process aimed at trying to restore an economic infrastructure, he said. It asked the international community to walk hand in hand as it restored democratic institutions. Development could be considered a partnership, but first and foremost it was the responsibility of each State to help its people to develop. His Government's will to change its foreign policy meant reliance on

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its efforts and encouraging regional and South-South cooperation. His Government would spare no efforts to improve bilateral and multilateral ties with all its partners and to ensure the success of its reconstruction programme. The Democratic Republic of the Congo was open to all countries and organizations that wished to assist it to restore its economy.

MOHAMMAD-ALI ZARIE-ZARE (Iran) said the organic link between peace and development deserved special attention. The realization of long-term peace hinged upon the realization of sustainable development. Development required two major components -- national and international. Both of them being important and critical to the success of sustainable development.

While supporting the idea of a two-day high-level dialogue on the social and economic impact of globalization and interdependence and their policy implications, he said it was preferable that the discussion took place in the course of the fifty-second session of the General Assembly. The Secretary- General had a role to play in encouraging dialogue among countries as well as in facilitating it. That would constitute a practical step towards placing the issue of development at the centre of the United Nations activities.

SHAILENDRA KUMAR UPADHYAY (Nepal) said it was evident that the first substantial programme aimed at assisting the weakest and most vulnerable countries of the world did not produce the desired result. It should be noted that the number of LDCs reached 48 in 1995, up from 41 at the start of the programme in 1990.

External support measures were urgently needed to prevent the least developed countries from sliding into a situation of despair and hopelessness, he said. His Government believed that foreign direct investment could not be a substitute for ODA to the LDCs for some time to come. The LDCs should not be left unattended to the onslaught of the forces of globalization and liberalization and the demanding terms of foreign direct investment.

His Government had been pursuing liberal economic policies with the cooperation and assistance from international financial institutions, he said. It was also engaged in the consolidation and development of democratic values with a deep commitment to fundamental human rights. Nepal suffered from additional physical and geographical handicaps which made its efforts towards sustainable development even more difficult. Nepal deserved more than what it was getting, and, despite severe resource constraints, it had faithfully abided by its commitments. The international community should do what it could to alleviate the conditions of the people of the least developed countries, especially those which were making their best efforts.

ARIZAL EFFENDI (Indonesia) said in vastly changing times of rapidly growing interdependence there was no alternative to constructive dialogue based on the imperatives of mutual interest and benefits, shared responsibilities and interdependence. The much lauded spirit of partnership,

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which had been manifested in numerous intergovernmental conferences during the past few years, would be further strengthened and more broadly embraced when such a dialogue was renewed in the General Assembly.

The spirit of partnership had led the international community to believe that the lack of political will to address the core issues of development had constrained the implementation of international agreements and commitments, he said. There were other reasons that could be cited for the lack of implementation, but the spirit of partnership through the renewal of a high-level dialogue was critical and necessary in promoting new impetus for further implementation. The first dialogue should be held as early as possible, and discussions should involve broad-based participation and include as many actors as possible.

The least developed countries and their development partners still needed to make concerted efforts in response to the challenges identified at the mid-term global review of the Programme of Action's implementation, he said. The international community must work to: reverse the decline in the economic and social conditions of LDCs; promote their sustainable economic growth, development and structural transformation; and stop LDCs from becoming further marginalized in the international economy. Considering those variables, his Government believed that international policy measures were still of critical importance in supporting the efforts of the LDCs in overcoming their domestic problems.

M.C. MPHUTLANE (Lesotho) said the gains realized by the least developed countries' economic reforms had not sufficiently reduced the level of poverty in those countries. There was also the problem of the inability of the private sector to access excess liquidity in the banks as a result of the underdeveloped nature of financial markets, the conservatism of banks and the lack of financial intermediaries. Government efforts to set up appropriate machineries to address financing aspects of development also fell short of requirement. Women, the major actors in agriculture and business, did not have adequate economic power necessary to act as the engine of growth in least developed countries.

Stressing the need for the international community to take a decisive action to improve living conditions in the least developed countries, she called for the availability of resources for development; the empowerment of women; prioritizing poverty eradication; improving the rules of the game in the global trade; and the provision of emergency assistance to countries in special situations.

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