ASSEMBLY WOULD DECIDE TO CONVENE TWO-DAY RESUMED SESSION OF SECOND COMMITTEE TO CONSIDER FINANCING FOR DEVELOPMENT, BY DRAFT APPROVED

5 December 1997

Press Release
GA/EF/2805

ASSEMBLY WOULD DECIDE TO CONVENE TWO-DAY RESUMED SESSION OF SECOND COMMITTEE TO CONSIDER FINANCING FOR DEVELOPMENT, BY DRAFT APPROVED

19971205 Committee also Recommends Convening Third LDCs Conference in 2001, Meeting of Experts on Landlocked and Transit Countries in 1999 by Other Texts

The General Assembly would decide to convene a two-day resumed session of the Second Committee (Economic and Financial) to solicit views from governments on required inputs from a broad range of stakeholders, and views on key elements which might be included in the consideration of the topic of financing for development, by the terms of one of six draft resolutions approved without a vote this morning by the Committee.

Also by the draft, the Assembly would decide to create an ad hoc open- ended working group during its fifty-third session to examine all the inputs requested, in order to formulate a report containing recommendations for a high-level international intergovernmental consideration of that topic. It would further decide to consider at its fifty-fourth session the convening of a summit, an international conference, a special session or other appropriate high-level forum on financing for development to further the global partnerships for development, no later than the year 2001.

By a four-part draft resolution on international trade and development also approved this morning, the Assembly would request the United Nations Conference on Trade and Development (UNCTAD) to continue to identify and analyse the implications for development of issues relevant to investment, taking into account the interests of developing countries. The need for increased and more effective participation by developing countries in rule- making and standard-setting activities in the context of the international trading system would be stressed.

Also this morning, the Committee approved texts that would have the Assembly:

-- decide to convene the Third United Nations Conference on the Least Developed Countries at a high level in the year 2001;

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-- request the Secretary-General to convene in 1999 a meeting of governmental experts from landlocked and transit developing countries and representatives of donor countries and financial and development institutions to explore the possibility of formulating action-oriented measures;

-- stress the need to strengthen the role of the United Nations in the field of science and technology, particularly through policy guidance and better coordination; and

-- call on the international donor community to support the strengthening of existing emerging microcredit institutions in the developing countries, especially the least developed and the African countries.

The Committee will meet again at 4 p.m. today to take action on all outstanding draft proposals.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to take action on a number of draft proposals submitted under its consideration of macroeconomic policy questions, and sustainable development and international economic cooperation.

By the terms of a revised four-part draft resolution on international trade and development (document A/C.2/52/L.24/Rev.1), the Assembly would, under part I of the text, request the United Nations Conference on Trade and Development (UNCTAD) to continue, on the basis of the outcome of its ninth session (UNCTAD IX, Midrand, South Africa, May 1996), to identify and analyze the implications for development of issues relevant to investment, taking into account the interests of developing countries and bearing in mind the work undertaken by other organizations.

Also, by the terms of part I of the text, UNCTAD would be invited to continue to follow developments in the international trading system, in particular their implications for developing countries, and to identify new opportunities arising from the implementation of the Uruguay Round agreements, and to assist developing countries to participate effectively in multilateral trade negotiations.

Under part II of the draft resolution, the Assembly would deplore any attempt to bypass or undermine multilaterally agreed procedures on the conduct of international trade by resorting to unilateral actions over and above those agreed to in the Uruguay Round. It would affirm that environmental and social concerns should not be used for protectionist purposes.

By the text's part III, UNCTAD would be encouraged to continue its special role in promoting the integration of trade, environment and development by examining trade and environment issues from a development perspective in cooperation with relevant international organizations.

Part IV of the draft would have the Assembly request governments, the United Nations system, intergovernmental and non-governmental organizations to take concrete measures to implement the United Nations New Agenda for the Development of Africa in the 1990s, including the measures and recommendations agreed upon at its mid-term review, especially those related to trade and development.

It would urge governments and concerned international organizations to implement the Ministerial Declaration on Measures in Favour of the Least Developed Countries, and to apply the Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform of the Programme on Least Developed and Net Food-importing Developing Countries, as well as the recommendations adopted at the Mid-term Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the 1990s and at

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UNCTAD IX, as they relate to trade and trade-related issues of the least developed countries.

The draft resolution is sponsored by Australia, Canada, Japan, New Zealand, Norway, Russian Federation and United Republic of Tanzania.

A revised draft resolution on the role of microcredit in the eradication of poverty (document A/C.2/52/L.27/Rev.1) would have the Assembly encourage all involved in poverty eradication programmes to consider incorporating microcredit schemes in their strategies and adopt policies that support the development of microcredit institutions and their capacities, so that credit and related services may be made available to increasing numbers of people living in poverty.

It would call on the international donor community to support the strengthening of existing and emerging microcredit institutions in the developing countries, especially the least developed and the African countries. It would also call on the United Nations system, particularly its funds and programmes and the regional commissions, as well as relevant international and regional financial institutions and donor agencies involved in the eradication of poverty, to explore the microcredit approach in their programmes as a tool for the eradication of poverty and further developing other micro-finance instruments.

The draft text is sponsored by Bangladesh, Benin, Brazil, Bolivia, Canada, Cape Verde, Chile, Costa Rica, Côte d'Ivoire, Egypt, El Salvador, Ethiopia, Ghana, Guyana, India, Indonesia, Italy, Japan, Lao People's Democratic Republic, Malaysia, Mali, Malawi, Mauritania, Mongolia, Mozambique, Namibia, Pakistan, Papua New Guinea, Peru, Philippines, Samoa, Senegal, Spain, Sri Lanka, Tunisia, Uganda and the United States.

By the terms of a draft resolution on the implementation of the Programme of Action for the Least Developed Countries for the 1990s (document A/C.2/52/L.38), submitted by the Vice-Chairman of the Committee, Hans-Peter Glanzer (Austria), on the basis of informal consultations held on the draft resolution contained in document A/C.2/52/L.12, the Assembly would decide to convene the Third United Nations Conference on the Least Developed Countries at a high level in the year 2001. It would decide to convene an intergovernmental preparatory committee in due time to prepare for the Conference, preceded by three expert-level preparatory meetings, which should be carried out within the budget level proposed by the Secretary-General for the biennium 1998-1999.

The Assembly would also decide to include in the provisional agenda of its fifty-third session an item entitled "Implementation of the Programme of Action for the Least Developed Countries for the 1990s" and consider the date, duration and venue of the Conference, its preparatory process and the funding for participation of representatives from each least developed country from

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extrabudgetary resources. It would also decide that UNCTAD be the focal point for the preparation of the Conference. By a draft resolution on specific actions related to the particular needs and problems of landlocked developing countries (document A/C.2/52/L.39), submitted by the Vice-Chairman of the Committee, Adel Abdellatif (Egypt) on the basis of informal consultations held on the draft resolution contained in document A/C.2/52/L.26, the Assembly would request the Secretary-General to convene in 1999, within the overall level of resources for the biennium 1998-1999, another meeting of governmental experts from landlocked and transit developing countries, and representatives of donor countries and financial and development institutions, to review progress in the development of transit systems and explore the possibility of formulating necessary action-oriented measures. It would call on both the landlocked developing countries and their transit neighbours to improve the transit transport infrastructure facilities and bilateral and subregional agreements; develop joint ventures in the area of transit transport; and strengthen institutions and human resources dealing with transit transport. The Secretary-General would be invited, in consultation with the Secretary-General of UNCTAD, to take measures for the effective implementation of the activities called for in the present resolution, and to staff and equip adequately UNCTAD's Office of the Special Coordinator for Least Developed, Landlocked and Island Developing Countries, in accordance with the outcome of UNCTAD IX, to allow it to continue to support the landlocked developing countries. Donor countries, the United Nations Development Programme (UNDP) and multilateral financial institutions would be invited to provide landlocked and transit developing countries with appropriate financial and technical assistance for the construction, maintenance and improvement of their transport, storage and other transit-related facilities. By the terms of a draft resolution on science and technology for development (document A/C.2/52/L.47), submitted by the Vice-Chairman of the Committee, Adel Abdellatif (Egypt), on the basis of informal consultations held on the draft resolution contained in document A/C.2/52/L.3, the Assembly would reaffirm that capacity-building in science and technology in developing countries should remain a priority issue on the United Nations agenda. It would urge that international cooperation efforts be intensified and strengthened towards developing countries' endogenous capacity-building in science and technology, including their capacity to utilize, modify and adapt foreign scientific and technological products to suit local conditions. It would also recognize the role of the private sector and governments in science and technology for development, particularly the role of governments in providing appropriate regulatory frameworks and incentives for the development of science and technology capabilities. The need to strengthen the important role of the United Nations in the field of science and technology would be stressed. Organizations, funds and programmes of the United Nations would be called upon to continue to work in a coordinated and

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expeditious manner to develop a catalogue of proved technologies to enable effective technology choice by developing countries of state-of-the-art technologies.

The Assembly would reaffirm the need for adequate financial resources on a continuous and assured basis to foster science and technology for development. It would recognize the importance of cooperation among developing countries in the field of science and technology through the establishment and strengthening of national technology and information centres to promote technology research, training and dissemination, as well as joint projects in developing countries. It would urge the organizations and bodies of the United Nations system and other relevant international, regional and subregional organizations to support such efforts through technical assistance and financing.

A draft resolution titled "global partnership for development: high- level international intergovernmental consideration on financing for development" (document A/C.2/52/L.51) is submitted by the Vice-Chairman of the Committee, Adel Abdellatif (Egypt), on the basis of informal consultations held on draft resolutions contained in documents A/C.2/52/L.2 and A/C.2/52/L.2/Rev.1), titled "global partnership on financing for development: convening of an international conference on financing for development".

Under its provisions, the Assembly would stress the need for a process that would take stock of various efforts undertaken both within and outside the United Nations system on financing for development in preparing for high- level international intergovernmental consideration. It would decide to convene for two days a resumed session of the Second Committee to solicit views from governments on required inputs from a broad range of stakeholders and views on key elements which might be included in the consideration of the topic of financing for development, "and to indicate where to source such inputs".

The Secretary-General would be requested to ensure that the reports requested at the Committee's resumed session are compiled and forwarded to governments at the fifty-third Assembly session with an index report indicating recurring themes and key elements found therein. He would also be requested to prepare a report to be submitted at the same time on the work of the United Nations to address financing for development.

In addition, the Assembly would also decide to create an ad hoc open- ended working group to work during its fifty-third session to undertake an in- depth examination of all the inputs requested, with a view to formulating a report containing recommendations on the form, scope and agenda of a high- level international intergovernmental consideration of the topic on financing for development, which will be submitted to the fifty-fourth session of the General Assembly.

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The Assembly would further decide to consider at its fifty-fourth session the convening of a summit, an international conference, a special session of the General Assembly or other appropriate high-level international intergovernmental forum on financing for development to further the global partnership for development, not later than the year 2001.

Action

ADEL ABDELLATIF (Egypt), Vice-Chairman of the Committee, introduced the draft resolution on international trade and development (document A/C.2/52/L.24/Rev.1). He said Mexico should be listed as a co-sponsor, and read out the following amendment:

-- operative paragraph 36, line 2, the word "orally" should be inserted after the word "report".

SETH WINNICK (United States) said the United States would like to be listed as a co-sponsor of the resolution.

J. KISIRI (United Republic of Tanzania) said minor editorial changes had been made in operative paragraphs 4, 5, 7, 8, 9 and 15. They were different from what had been agreed upon in informal consultations.

OSCAR DE ROJAS (Venezuela), Chairman of the Committee, said that when Secretariat editors "cleaned" the text, they sometimes made small grammatical changes.

The Committee then approved the draft resolution, as orally revised, without a vote.

Mr. ABDELLATIF (Egypt) then introduced the draft resolution on specific actions related to the particular needs and problems of landlocked developing countries (document A/C.2/52/L.39).

The Committee approved the draft resolution without a vote.

In light of the adoption of draft resolution A/C.2/52/L.39, draft resolution A/C.2/52/L.26 was withdrawn by its sponsors.

Mr. ABDELLATIF (Egypt) then introduced the draft resolution on science and technology for development (document A/C.2/52/L.47).

MOHAMMAD REZA HADJI KARIM DJABBARI (Iran) read out the following amendments to the draft text:

-- tenth preambular paragraph, line 5, "UNCTAD" should be inserted after the word "including"; and

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-- thirteenth preambular paragraph, line 2, the word "within" should be omitted.

JEAN-CLAUDE MEYER (Luxembourg) read out the following additional oral amendments to the draft, upon approval by the representative of Iran:

-- operative paragraph 2, lines 2 and 3, the clause "with the support of the secretariat of the United Nations Conference on Trade and Development" should be deleted; and

-- operative paragraph 2, line 6, the phrase "encourages support for those undertakings" should be changed to "encourages support to those undertakings".

The Chairman asked the representative of Iran to verify the amendments to the text.

Mr. DJABBARI (Iran) said the representative of Luxembourg was correct in suggesting those corrections to the text.

The Committee then approved the draft resolution, as orally revised, without a vote.

In light of the adoption of draft resolution A/C.2/52/L.47, draft resolution A/C.2/52/L.3 was withdrawn by its sponsors.

HANS-PETER GLANZER (Austria), Vice-Chairman of the Committee, introduced the draft resolution on implementation of the Programme of Action for the Least Developed Countries for the 1990s (document A/C.2/52/L.38).

MARGARET KELLEY, the Committee Secretary, read out a statement on the financial implications of the above draft resolution, according to which the 1998-1999 proposed programme budget currently under consideration by the Fifth Committee (Administrative and Budgetary) includes resources for holding the preparatory work for the proposed Third United Nations Conference on Least Developed Countries in the year 2001. Regarding the requirements for the Conference itself, a statement of programme budget implications would be prepared and submitted to the Assembly's fifty-third session. As regards the inclusion in the draft of the statement that the preparatory activities be carried out within the budget level proposed by the Secretary-General for the next biennium, she recalled the provisions of resolution 45/246, part B, section VI, regarding the procedures that apply in respect of administrative and budgetary matters, and that those matters were the responsibility of the Fifth Committee.

ZHU GUANGYAO (China) said there was a serious translation mistake in the Chinese version of the draft which would make "least developed countries" read "most developed countries".

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Mr. WINNICK (United States) said that although bodies needed to be informed of costs of programme budget implications before taking action, he believed that the Committee had done nothing to infringe upon the responsibilities of the Fifth Committee.

The Committee then approved the draft resolution without a vote.

Mr. WINNICK (United States) said while his Government had consistently opposed new global conferences because of the great financial strain they placed on the United Nations budget, it recognized the broad consensus in support of a third review of the implementation and results of the Programme of Action for the Least Developed Countries in the 1990s and the acceptance that that review was an important continuation of the activities and work of UNCTAD. The resolution did not address the question of modalities and funding for the conference itself. Every effort should be made to obtain extrabudgetary funding for such a conference or to hold the conference as part of a scheduled United Nations meeting, such as the UNCTAD Trade and Development Board, and to otherwise minimize the administrative burden on the United Nations system of holding the review.

In light of the adoption of draft resolution A/C.2/52/L.38, draft resolution A/C.2/52/L.12 was withdrawn by its sponsors.

Mr. ABDELLATIF (Egypt) then introduced the draft resolution on a high- level international intergovernmental consideration on financing for development (document A/C.2/52/L.51). He read out the following amendment:

-- sixth preambular paragraph, line 4, the word "development" should be deleted.

Ms. KELLEY, Committee Secretary, reading out a statement of programme budget implications of draft resolution A/C.2/52/L.51, said the requirements at full cost for reconvening the Committee were estimated at $119,500 for Conference Services and $22,000 for support services. The extent to which the Organization's permanent capacity would need to be supplemented by temporary assistance resources could be determined only in light of the calendar of conferences and meetings for the biennium 1998-1999. However, provision was made under sections 27D - Support services, and 27E - Conference services of the proposed programme budget for the biennium 1998-1999 not only for the requirements of the meetings at the time of budget preparation but also for the requirements of the meetings authorized subsequently, provided that the number and distribution of meetings were consistent with the pattern of meetings of past years.

She said the conference-servicing requirements of the ad hoc open-ended working group would be met from the overall allocation of resources for the Assembly's fifty-third session. Therefore, no additional appropriation would

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be required in the 1998-1999 programme budget, should the Assembly decide to adopt the draft resolution.

PATRICIA CHAVES (Costa Rica) said there were several mistakes in the Spanish version of the text and it should be reprinted, preferably today.

The Chairman said a reprinted version would be made available today.

Mr. MEYER (Luxembourg) said that in operative paragraph 6, in the first line, the word "and" should read "an".

MUBARAK RAHMTALLA (Sudan) said a reprinted version of the Arabic text should also be distributed.

The CHAIRMAN said the draft resolution would be reprinted in all languages, taking into account all comments made by delegations.

HUSSAM-EDIN A'ALA (Syria) said there were many errors in operative paragraph 7 in the Arabic text.

The Committee then approved the draft resolution, as orally revised, without a vote.

KAMALESH SHARMA (India) said finance for development was of crucial importance for developing countries. In the changing international context, it was even more imperative that the international community address that complex, multidimensional issue in a systematic, comprehensive, constructive manner that built on existing processes and commitments, reviewed existing institutional and other mechanisms, while seeking to address the new challenges arising from the growing significance of new stakeholders. India was encouraged by the constructive spirit that had made it possible to launch the process, to which developing countries had long attached the highest significance. Thorough preparation was needed to rise to the challenge. India would participate actively in all stages of the preparatory process to ensure that all the required documentation from all actors within the United Nations system were made available.

In light of the adoption of draft resolution A/C.2/52/L.51, draft resolution A/C.2/52/L.2/Rev.1 was withdrawn by its sponsors.

MUHAMMED ALI SORCAR (Bangladesh) introduced the draft resolution on the role of microcredit in the eradication of poverty (document A/C.2/52/L.27/Rev.1) and read out the following correction to the draft text:

-- operative paragraph 11 should read: "Requests the Secretary-General to submit a report, at its fifty-third session, in collaboration with relevant organizations of the United Nations system, including funds and programmes, and the World Bank, on the follow-up to the resolution on the first United

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Nations Decade for the Eradication of Poverty and the role of microcredit in the eradication of poverty;"

The Committee then approved the draft resolution, as orally revised, without a vote.

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