In progress at UNHQ

GA/EF/2792

SECOND COMMITTEE BEGINS CONSIDERATION OF REPORT OF ECONOMIC AND SOCIAL COUNCIL

11 November 1997


Press Release
GA/EF/2792


SECOND COMMITTEE BEGINS CONSIDERATION OF REPORT OF ECONOMIC AND SOCIAL COUNCIL

19971111 The Second Committee (Economic and Financial) this morning heard suggestions and recommendations on the efforts to streamline and revitalize the work of the Economic and Social Council.

The representative of the United Republic of Tanzania, speaking on behalf of the "Group of 77" and China, rejected the Secretary-General's recommendation that the Commission on Science and Technology for Development should become a subsidiary body of the Trade and Development Board of the United Nations Conference on Trade and Development (UNCTAD) and not a functional commission of the Council. Such institutional measures would not help resolve the problems arising from the way they were currently dealt with in the United Nations structure.

The representative of Luxembourg, speaking on behalf of the European Union and associated States, said the Council's review of its subsidiary organs was important. The Union welcomed the consensus on the promotion of a favourable environment for development and the debates on financing of operational activities and the development of an integrated United Nations strategy in the field of informatics.

The Council's general segment was still overburdened with items which had a marginal relation to its role, the representative of the Russian Federation said. The Council's agenda must be streamlined so it did not duplicate the efforts of Main Committees of the General Assembly.

The representative of the United States said the Council should be instilled with the spirit of a council and not an assembly. Meetings should be arranged so members faced each other and not a chairman, so it could deliberate and not merely make statements. Those changes would require an invigorated bureau and more frequent meetings throughout the year.

In introductory remarks, the Officer-in-Charge of the Division for Economic and Social Council Support and Coordination of the Department of Economic and Social Affairs, Sarbuland Khan, said there had been an enduring fashion in the United Nations to denigrate the Council, but it was working to become an effective mechanism in the economic and social sector. It had made significant progress, which was evident in the annual report. The total

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length of the Council's substantive session had been reduced, the agenda had been streamlined, and it had adopted a more effective thematic approach in both its high-level and coordination segments.

Also this morning, the Committee held, an informal video-conference panel discussion on "Havana + 50: New challenges for the international trading system". The panel was moderated by the Secretary-General of UNCTAD, Rubens Ricupero, in New York, and Nacer Benjelloun-Touimi (Morocco), in Geneva. The panellists included: Tofail Ahmed, Minister for Commerce and Industry, Bangladesh; Douglas Worth, Chairman of the Trade Committee of the United States Council for International Business; Eduardo Delgado-Bermudez, Director- General of the Cuban Association of the United Nations; and Geza Feketekuty, Director of the Centre for Trade and Commercial Diplomacy, Monterey Institute of International Studies.

Introducing the discussion, Oscar de Rojas (Venezuela), Chairman of the Second Committee, said the United Nations Conference on Trade and Employment, held in Havana in 1947, was convened under the umbrella of the newly established United Nations. The founding fathers of the Organization intended that in economic and trade issues the United Nations system should be "a sort of tripod". Two legs of that tripod were comprised of the Bretton Woods institutions, and the third would be an organization dealing with trade issues. Later, UNCTAD filled a vacuum that existed before the establishment of the World Trade Organization (WTO) two years ago. It was worthwhile to ask if, with the current composition of institutions, the international community was well-equipped to confront the challenges and possibilities of the twenty- first century.

The Committee will meet again at 3 p.m. today to continue its consideration of the report of the Economic and Social Council.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to begin consideration of the report of the Economic and Social Council (document A/52/3). The report includes a summary of, as well as action taken by, its organizational and substantive sessions of 1997, the latter held in Geneva in July.

The report also contains the agreed conclusion of the Council's high-level segment, held from 2 to 4 July, during which the Council carried out a comprehensive review of the theme, "Fostering an enabling environment for development: financial flows, including capital flows, investment and trade". The agreed conclusions address the following issues: strengthened international cooperation; national policies; the role of the United Nations system; policy coherence; marginalization; official development assistance; external debt; volatility and vulnerability; foreign direct investment; and trade and commodities.

Council Texts Calling for Assembly Action

-- By decision 1997/217, the Council took note of the note by the Secretary-General transmitting the report of the Executive Board of the World Food Programme (WFP) on the revision of the General Regulations of WFP, endorsed the revisions and decided to transmit them to the Assembly for consideration at its fifty-second session.

-- By resolution 1997/42, the Council took note of decision 97/14 of the Executive Board of the United Nations Development Programme (UNDP)/United Nations Population Fund (UNFPA) and recommended to the Assembly at its fifty-second session that it decide on the process and modalities, including the consideration of convening a special session of the Assembly in 1999, to review and appraise the implementation of the Programme of Action of the 1994 International Conference on Population and Development (ICPD).

-- By resolution 1997/43, the Council recommended that the Assembly adopt a decision whereby, beginning in 1998, the report of the United Nations University would be considered directly by the Second Committee of the Assembly in accordance with its programme of work.

-- By resolution 1997/44, the Council recommended to the Assembly the adoption of a draft resolution on proclaiming 2001 the international year of volunteers. Under its terms, the Assembly would proclaim the year and call for a concerted promotional and information campaign on behalf of the year at the national, regional and international levels, with the strong participation of the mass media. The Assembly would appeal to Member States, as well as other participants in the observance of the year, to highlight 2001 as a special occasion benefiting the peoples of the world in their quest for a

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better life for all, based on the voluntary commitment of individual and groups to make available their time and share their resources and skills in the interest of those less advantaged.

-- By resolution 1997/46, the Council recommended that the Assembly, at its fifty-second session, proclaim the year 2000 as international year of thanksgiving.

-- By decision 1997/223, the Council endorsed two recommendations included in the report of the Committee for Development Planning on its thirty-first session and decided to submit them to the Assembly for appropriate action. The recommendations, regarding the list of least developed countries, are contained in paragraphs 240 (a) and (b) of the report: that Vanuatu be graduated from the list with immediate effect; and that Cape Verde, Maldives and Samoa be graduated from the list at the time of the next review, in 2000, provided that they continue to meet the criteria for graduation at that time.

-- By decision 1997/308, the Council took note, of the extract from the report of the Commission on Human Settlements at its sixteenth session, which includes two draft resolutions recommended for adoption by the Assembly.

One draft resolution, on the Global Strategy for Shelter to the Year 2000, would have the Assembly adopt the Plan of Action for the Strategy for the period 1998-1999, and urge governments, relevant United Nations and private sector organizations and intergovernmental and non-governmental organizations to prepare and implement their specific plans of action. Governments would also be urged, in implementing their national plans of action, to strengthen integrated national shelter strategies based on sustainable development. Organizations of the United Nations system, particularly the UNDP, and other multilateral agencies would be urged to provide increased financial and other support to governments for achieving the objective of adequate shelter for all.

The other draft text concerns follow-up to the second United Nations Conference on Human Settlements (Habitat II) (Istanbul, 1996) and the future role of the Commission on Human Settlements. The six-part text would have the Assembly reaffirm that the Commission, as a standing committee of the Economic and Social Council, should have a central role in monitoring, within the United Nations system, the implementation of the Habitat Agenda, the programme of action adopted by the Istanbul Conference, and advising the Council thereon. In view of the importance of non-governmental organizations, local authorities, the private sector and research organizations in the promotion of human settlements development, it would also decide that such organizations should be encouraged to participate in the work of the Commission. The Assembly would further decide that the Commission, in fulfilling its mandate, shall assist the Council in monitoring, reviewing and assessing the progress

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made in the implementation of the Habitat Agenda, among other measures, through the analysis of relevant inputs from governments, local authorities and their associations, relevant non-governmental organizations and the private sector.

In connection with its consideration of the report of the Council, the Committee will have before it additional reports, including a note by the Secretary-General containing in its annex a report, prepared by the Economic and Social Commission for Western Asia (ESCWA), on the economic and social repercussions of the Israeli settlements on the Palestinian people in the Palestinian territory, including Jerusalem, occupied since 1967, and on the Arab population of the occupied Syrian Golan (document A/52/172-E/1997/71).

The report, covering the period from March 1996 to May 1997, states that Israeli settlement activities carried out during 1996 created new geographical and demographic realities before the start of the final stage of peace negotiations. The Government of Israel confiscated large amounts of land and carried out a number of other activities: master plans were drawn up; settlements were expanded; quarries, bypass roads and a separation line were established; and certain areas were sealed off for military purposes. There were at present 19 settlements in the Gaza Strip, established on 23,000 dunums of land and surrounded by an additional 23,000 dunums (security zones), bringing the total land area used for settlements to 46,000 dunums (a dunum is equal to approximately 1,000 square metres). That area constitutes 41.8 per cent of the state land and 12.6 per cent of Gaza Strip land (the total area of the Gaza Strip is 365 square kilometres). There are about 5,000 settlers living in the 19 settlements, most of which are clustered around the Gush Katif settlement.

According to the report, the placement, existence and activities of those settlements create an atmosphere that lead to friction between the Palestinians and the settlers, thereby aggravating the security situation. The establishment of Israeli settlements in the Gaza Strip also has a negative impact on the economic and social situation of the Palestinians. Palestinian farmers were prevented from using agricultural land located near the settlements; social and health conditions among the Palestinians have deteriorated; and the prolonged closure practices have made the already serious economic situation of the Palestinians much worse. There has been an increase in unemployment among Palestinians in the occupied territories, as well as a significant decrease in real wages. (For additional information on the report, see Press Release GA/EF/2771 of 22 October.)

The Secretary-General's report on the possibility of strengthening the coordination of the organization and bodies of the United Nations system in the field of energy within the framework of the Administrative Committee on Coordination (ACC) (document A/52/175-E/1997/75) consists of a description of activities, assessments, recommendations and proposals. It contains

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information on the following topics: the relationship between energy and sustainable development; mandates and activities of the organizations in the field of energy and the linkage of those activities to sustainable development; and cooperation and coordination of energy activities within the system. The report also includes recommendations and proposals on enhancing the capability of the United Nations system in the field of energy for sustainable development, as well as options for a high-level discussion on energy.

According to the report, access to and adequate availability of energy service is a prerequisite to achieving the socio-economic development required to improve quality of life and satisfy basic human needs. An adequate supply of energy services is urgently needed in many developing countries, particularly in the least developed countries, remote rural areas and small island developing States, where more than two billion people have little or no access to commercial energy services. It is critically important that short-term options for the development and use of energy resources be in harmony with those options that, in the longer term, will better contribute to sustainable development.

In general, the current policies for and patterns of production, conversion, distribution and use of energy are unsustainable, the report states. Those policies are characterized by a strong emphasis on energy supply rather than demand, including demand-side management, and lack due regard to the social, economic and environmental consequences of such approaches. Current energy prices favoured the development and use of conventional energy sources over renewable ones, and current fuel-pricing practices did not encourage energy efficiency. Policy changes leading to the full internalization of environmental costs in prices through the use of economic and fiscal instruments and to the removal of permanent subsidies are required to achieve a sustainable energy future.

The report states that entities within the United Nations system are active in all the stages of the energy cycle at the national, regional and global levels. There are activities in energy development and supply, including assessment exploration, production, conversion and distribution of energy resources; promoting the development of renewable sources of energy; and electricity generation and distribution, including rural electrification. Activities and programmes related to energy use include energy conservation, improved energy efficiency and demand-side management and improved management techniques for energy institutions and enterprises. Associated activities include energy planning encompassing policy development, energy analysis and projections, development of methodologies and analytical techniques, including models for energy studies and evaluation, and environmental impact assessment.

In response to the demands and priorities of the countries that they support, the organizations of the United Nations are involved in a broad range

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of activities which are commensurate with the goals of realizing a sustainable energy future, according to the report. Increased attention is being given by a number of entities to energy efficiency, conservation, demand-side management and pricing policies. Several organizations contribute to the promotion and dissemination of clean energy technologies, including clean coal technologies. Support for the further introduction and application of renewable energy sources is increasing, with a special emphasis on improving access of the rural population to energy services. In the area of capacity-building and institutional development, energy-planning activities are increasingly linked to the broader context of socio-economic or environmental planning and plan implementation.

According to the report, the merger of the three United Nations Departments working in the economic and social fields -- the Department for Development Support and Management Services, the Department for Economic and Social Information and Policy Analysis and the Department for Policy Coordination and Sustainable Development -- provided a good opportunity to bring together the United Nations Secretariat's analytical, normative and technical capacities. The resulting synergies would enrich both the policy and the technical-cooperation dimensions of United Nations activities in those fields. Many activities in energy are undertaken at the country level, during which cooperation and coordination are pursued in various manners in response to the local situation. Such efforts will benefit from a common strategy and enhanced sharing of experiences.

Major changes are required in the current energy systems for them to contribute to sustainable development worldwide, the report says. Those changes could only be achieved if all actors involved, including the United Nations system, redoubled their efforts to ensure the development, promotion and implementation of policies and programmes aimed at realizing a sustainable energy future. The entities within the United Nations system have an important role to play in developing a reference framework which will promote a balanced and mutually reinforcing approach to economic, social and environmental aspects of sustainable energy development and foster partnerships for sustainable energy development with relevant actors outside the United Nations system, particularly with non-United Nations intergovernmental organizations dealing with energy and the private sector.

According to the report, the Committee on New and Renewable Sources of Energy and on Energy for Development addressed all aspects of energy and should continue to play a valuable role in furthering United Nations policy discussion on energy in the years ahead. To that end, its effectiveness would need to be enhanced, through better representation of governments, improved dissemination of reports to the Committee and of the Committee, and increased participation of the organizations of the United Nations system, including regional commissions, in its work.

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Inter-agency cooperation and coordination in the field of energy has been rather ad hoc, according to the report. The preparation of the Secretary-General's report on energy activities for the Commission on Sustainable Development marked the beginning of enhanced cooperation and coordination that will be pursued along the following lines: convening of ad hoc meetings of the entities within the United Nations system dealing with energy; devoting part of the agenda of the sessions of the Inter-Agency Committee on Sustainable Development to energy and ensuring linkages with other ACC bodies; cooperating with organizations outside the United Nations system; and encouraging joint programming and implementation of energy activities within the United Nations system.

Regarding a high-level discussion on energy, the report states that options for a dedicated session of the Commission on Sustainable Development, possibly in 2001, were discussed by the Commission and put forward for consideration by the Assembly at its nineteenth special session.

The Secretary-General's report on new and innovative funds for globally agreed commitments and priorities (document A/52/203-E/1997/48) focuses on the financing of global development priorities that have resulted from recent major international conferences. Prepared in close collaboration with the UNDP, the report discusses the proposals considered viable and feasible, of which two main areas have been identified: public-private partnerships in mobilizing finance for achieving development objectives; and national charges and fees drawing particularly upon national experiences in the past few years in the area of environmental protection. Specific recommendations for consideration by the Council were provided for both areas. Those ideas should be pursued in the context of the work of the relevant functional commissions where mobilization of resources could be related to specific programmes and goals as a key element of the strategy for the implementation of the outcomes of United Nations conferences.

The search for new and innovative ways of generating funds is part of a larger process of mobilizing additional resources for development cooperation, according to the report. Any discussion on new and innovative ways of financing development should not distract attention from the importance of meeting the targets of official development assistance or other existing financial commitments in terms of international development cooperation. The funds generated by new and innovated ideas should neither be viewed as a substitute for official development assistance nor a source for financing of the regular and peacekeeping budgets of the United Nations.

The report emphasizes issues related to the financing of multilateral, intergovernmental or public development cooperation objectives, and the underlying premise is that the private sector is the primary source of financing for meeting those objectives. When private finance is not forthcoming, public incentive policies and other forms of public-private

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partnerships should be explored. Resorting to purely public finance should only be pursued when the other two approaches fail to work. That is not to deny the need for public finance; private financing will not flow into non-profitable areas or areas with unacceptably high risk and into production or preservation of public goods that cannot be easily internalized into economic decision-making.

The report states that special attention could be accorded to the development of enhanced technical cooperation services, including information sharing, which development assistance agencies could offer in order to strengthen the capacity of developing countries to mobilize and manage private capital for achieving sustainable development.

The Council might consider a systematic review of the discussions held in various forums to identify the more promising ideas for further consideration, the report says. As the acceptability of any new ideas or mechanisms is directly linked to the uses to be made from the funds raised, it is important to carry out the discussions in its functional commissions, particularly on those ideas that will help achieve the objectives of the global conferences, so that the funding methods are closely tied to the policy objectives of each sector. Consequently, the Council could request its functional commissions to report back to it on new and innovative ways of funding, drawing attention to aspects which require coordinated and coherent policy. As for the funding mechanisms of a cross-sectoral or non-sectoral-specific nature, the Council could continue to take up the issue but with narrower focus and greater depth. To that end, the Council could request the Committee for Development Planning to prepare a report.

Another note by the Secretary-General transmits the report of the Executive Director of the United Nations Population Fund (UNFPA) on the United Nations Population Award (document A/52/212), established by the General Assembly in its resolution 36/201 of 17 December 1981. The Award is presented annually to an individual or individuals, to an institution or institutions or to any combination thereof for the most outstanding contribution to increasing awareness of population questions or to finding solutions to them.

The report states that laureates were selected by the Committee for the Award, which is composed of representatives of 10 Member States elected by the Council for a period of three years. In January, the Committee elected Julio Armando Martini Herrera (Guatemala) as Chairman. The following five individuals served as honourary members in an advisory capacity to the Committee: Robin Chandler Duke, Chairperson, Population Action International; Miguel de la Madrid Hurtado, former President of Mexico; Dirk van der Kaa (Netherlands); Shidzue Kato (Japan); and Victoria Sekitoleko, Minister for Agriculture, Animal Industry and Fisheries of Uganda.

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A total of 22 nominations were received for the 1997 United Nations Population Award, and the Committee chose three laureates, instead of the traditional two, and all in the individual category, the report states. After a thorough review of the nominations, and taking into account the views offered by the honourary members, the Committee selected Elizabeth Aguirre de Calderón Sol, Director, National Family Secretariat, El Salvador; Toshio Kuroda, Director Emeritus, Nihon University Population Research Institute, Tokyo; and Mechai Viravaidya, Director, Population and Community Development Association, Thailand as the 1997 laureates. The winners received the 1997 Award at a Headquarters ceremony held on 10 June.

Statements

SARBULAND KHAN, Officer-in-Charge of the Division for Economic and Social Council Support and Coordination of the Department of Economic and Social Affairs, said there had been an enduring fashion in the United Nations to denigrate the Council. Today, he would attempt something unfashionable and praise the Council and pledge to help it become an effective mechanism in the economic and social sectors. The Council had made significant progress and that was evident in the annual report. One of the manifestations of the Council's impact was seen in many of the items and discussions that had taken place in the Second Committee, in which the work of the Council was more than adequately reflected.

The total length of the Council's substantive session had been reduced from seven to four weeks, he said. The Council's agenda had been streamlined, and it had adopted a more effective thematic approach in both its high-level and coordination segments. The resulting outcome of those changes was holistic and had a direct impact on the Council's subsidiary bodies. The Council had also adopted innovative elements regarding its method of work, including the high-level policy dialogues. The Council had also worked to enhance its deliberation on the work of the United Nations system by adopting agreed conclusions during its coordinating segment.

There was still a long way to go, he said. The selection of themes for the high-level segment required careful thought and preparation, and pre- session consultations were required to prepare the agreed conclusions. The bureau, with the support of the Secretariat, had a key role to play in exploring avenues for further progress. There was also a need to redefine and sharpen the Council's oversight responsibilities. The operational activities segment also needed to be strengthened considerably if the Council was to fulfil its mandate. In addition, the harmonization of the Council's subsidiary bodies needed to be achieved and should receive further attention.

KATINDA E. KAMANDO (United Republic of Tanzania), speaking on behalf of the "Group of 77" developing countries and China, said the proposed replacement of the Committee for Development Planning by specialized ad hoc

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panels would not provide the required continuity or the integrated approach to development that was necessary. Such ad hoc panels could, however, play a useful role within the framework of a strengthened Committee for Development Planning, so as to become a major means of providing continuing policy and technical back-up to the Council's secretariat, to the Council itself and in general to the United Nations. It should work in close collaboration with the proposed Strategic Policy Unit in the Office of the Secretary-General.

On science and technology, energy and natural resources, he said the problem was where to place the two key development-related areas within the United Nations system. They had been split up between different institutions and bodies and without the needed critical mass, technical back-up or political impetus. They had suffered because of that dispersion and from inadequate follow-up consideration in the United Nations. The Secretary- General's recommendation that the work and functions of the Committee on New and Renewable Sources of Energy and Energy for Development as well as the Committee on Natural Resources be consolidated within the Commission on Sustainable Development was not acceptable to the Group of 77 and China. The Group also rejected the recommendation that the Commission on Science and Technology for Development should become a subsidiary body of the Trade and Development Board of the United Nations Conference on Trade and Development (UNCTAD) rather than a functional commission of the Council. Such institutional measures would not help resolve the problems arising from the way they were currently dealt with in the United Nations structure.

JEAN-CLAUDE MEYER (Luxembourg), speaking on behalf of the European Union and associated States, said the European Union welcomed the consensus on the promotion of a favourable environment for development, on the issue of freshwater and on the mainstreaming of a gender perspective into the activities of the United Nations. It also welcomed recommendations on the follow-up of the results of major United Nations conferences; on the Joint and Co-sponsored Programme on HIV/AIDS (UNAIDS), as well as the debates on financing of operational activities and the development of an integrated United Nations strategy in the field of informatics.

The review of the subsidiary organs of the Council was important, he said, also reaffirming the importance of the intergovernmental process in the Secretary-General's reform proposals. The Council had a full agenda before it when it reconvened again at the end of the year. The European Union intended to play an active and constructive role during the resumed session.

VASSILY NEBENZIA (Russian Federation) said the general segment of the Council was still overburdened with items having marginal relation to its role. Those issues demanded considerable time and effort on the part of Member States and diverted attention of the Council from its major task as a principal body on coordinating the United Nations activities in the economic and social fields. The Council's agenda must be streamlined. The Council

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should not duplicate the efforts of the Second and Third Committee (Social, Humanitarian and Cultural) of the General Assembly.

Addressing the question of splitting the annual session into mini- sessions, he said such mini-sessions would not enjoy adequate representation and the emerging comprehensive approach to the diverse United Nations machinery in the economic and social fields might be lost. Russia welcomed the recommendation to expand the operational activities segment, but that should not be done at the expense of other segments. Russia welcomed the proposal to establish a separate segment to review United Nations emergency humanitarian assistance.

SETH WINNICK (United States) said the 1997 high-level segment had had a particularly fruitful debate, but preparations for the agreed upon conclusions needed to begin earlier, so that it did not bog down the rest of the session. The Council's work regarding the integrated follow-up to United Nations conferences had been productive, and it was perhaps the leading edge of the Council's coordination activities.

Highlighting the Council's efforts in following up on the work of the working group on informatics, he said that it had been important in determining how information issues would be used in development and how all countries could be brought into the globalized information system. The relationship between the Council and the ACC required greater attention and the development of new methodologies. The ACC was playing an increasingly important role in the coordination of subsidiaries bodies of the Council. Communications between the Council and the highest levels of the organizations of the United Nations system should be developed.

New methodologies to enhance the role of the Council in harmonizing the work of its subsidiary bodies needed to be pursued, he said. It was also important to instil in the Council the spirit of a council and not an assembly. Meetings should be arranged so members face each other instead of facing a chairman, so it could deliberate and not merely make statements. That would require an invigorated bureau and more frequent meetings of the Council throughout the year.

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For information media. Not an official record.