UNITED NATIONS REFORM, COOPERATION WITH BRETTON WOODS INSTITUTIONS, DEVELOPMENT ACCOUNT AMONG ISSUES DISCUSSED IN COUNCIL
Press Release
ECOSOC/5792
UNITED NATIONS REFORM, COOPERATION WITH BRETTON WOODS INSTITUTIONS, DEVELOPMENT ACCOUNT AMONG ISSUES DISCUSSED IN COUNCIL
19980727 United Nations reforms should achieve tangible results to ensure international support and understanding, the representative of Japan told the Economic and Social Council this afternoon, as it considered restructuring and revitalization of the Organization.The representative of Austria, speaking on behalf of the European Union and its associated States, said the proliferation of the subsidiary machinery of the Council had weakened its overall guidance and coordination role. Though the review process had not resulted in far-reaching institutional changes, the outcome, nevertheless, represented a first step forward in improving the efficiency and effectiveness of the intergovernmental structure.
Other representatives dwelt on the streamlining of cooperation between the United Nations and the Bretton Woods institutions, with the representative of Indonesia, speaking on behalf of the "Group of 77" developing countries and China, stating that further in-depth discussions, particularly on cooperation and coordination, were needed.
A number of speakers said the Council was not the proper forum for discussion of the Development Account and that the subject should be referred to the appropriate and more relevant intergovernmental bodies.
Statements were also made by the representatives of China, Norway, Republic of Korea, Mexico, United States, Belarus, Russian Federation, Egypt, Pakistan, Ghana, Cuba, Argentina and Vanuatu.
Rafeeuddin Ahmed, Associate Administrator of the United Nations Development Programme (UNDP), and Alfredo Sfeir-Younis, Special Representative of the World Bank, also spoke.
The Economic and Social Council will meet again at 10 a.m. tomorrow, 28 July, to begin its consideration of social and human rights questions.
Council Work Programme
The Council met this afternoon to consider implementation of the General Assembly resolutions addressing reconstruction and revitalization of the United Nations in the economic and social fields of May 1996; and implementation of the General Assembly 1997 resolution which endorsed a programme for United Nations reform.
In that regard, the Council had before it a report of the Secretary- General on cooperation between the United Nations and the Bretton Woods institutions (document E/1998/61). According to that report, a multifaceted, extensive and growing partnership exists between the United Nations and the Bretton Woods institutions.
The report examines ways to enhance the partnership through improved communication, cooperation and coordination in implementation of the results of United Nations conferences, collection and dissemination of data, analyses and reports. Efforts to coordinate the use of existing resources in the transition from emergency relief to rehabilitation and development and the provision of technical assistance in the field are also considered.
The recent review showed over 300 examples of cooperation. The record of collaboration between the two entities is based on specific activities within the contexts of sustainable development, macroeconomic policy dialogue, poverty eradication and environmental protection. In the global context, both partners agree that a strategy for strengthening the relationship between the United Nations and the Bretton Woods institutions must reflect the changing political and socio-economic environment in which they work.
The report notes that both entities must face global transformation. The report highlights the changing global political and economic situations; movement towards pluralism, democratic systems and decentralized government; the growing role of civil society and the private sector in socio-economic life; and the increased global focus on human rights, gender issues, and economic development. In addition, both bodies must reckon with the decline in official development assistance (ODA); the need to preserve the benefits of open financial markets while reducing crises; and advances in global communications and information technology.
Against this background, the World Bank and the United Nations have undertaken organizational reforms, including the decentralization of decision-making authority and staff, the Secretary-General reports. Also, the World Bank is giving more responsibility to its country missions.
Reform of the International Monetary Fund (IMF) is being driven by changes in the global economic environment and by changing needs of its members. Reforms of the Fund include a new emergency financing mechanism.
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New data dissemination standards and the liberalization of the capital account were more long-term initiatives being undertaken to strengthen surveillance and assistance.
The Secretary-General recommends that the Administrative Committee on Coordination (ACC) member organizations commit themselves to pooling policy approaches and to giving new impetus to collaborative actions of the United Nations system in the area of poverty eradication. Both the Bretton Woods institutions and the Organization could gain by an exchange of ideas and experiences on the link between human rights and development. The United Nations and the Bretton Woods institutions should seek to increase collaboration on information, especially in the developing countries.
The report also states that the United Nations and the Bretton Woods institutions should work with the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD) in the elaboration and use of standard socio-economic indicators for monitoring progress. They should also should continue to strengthen collaboration in humanitarian assistance, in reconstruction and in crisis and post-conflict recovery and development.
According to the report, the United Nations and the Bretton Woods institutions agree that they should collectively work with governments to encourage and support appropriate country-level initiatives. Specific country-level cooperation should result from the identification of priority needs by the concerned government. The United Nations Development Programme (UNDP) resident coordinator and senior country-level staff of the Bretton Woods institutions should provide leadership for mobilizing effective cooperation in aid coordination meetings. Also, systematic country-level consultation and coordination in planning and programming, technical assistance and capacity-building among United Nations funds and programmes and the Bretton Woods institutions should be strengthened.
A report of the Secretary-General on the utilization of the development dividend (document E/1998/81) contains proposals on the use of the funds available under a new section 34 of the programme budget for the biennium 1998-1999 to be submitted not later than 31 July.
The proposals, drawn up within $13 million appropriation, are built around the concept of networking for development. Proposals address the way the United Nations can facilitate the participation of developing countries in global and regional information networks. The specific proposals include promotion of electronic commerce and capacity-building in economic and social policy analysis in Africa.
The other proposals relate to computer and telecommunication system for international and national drug control; an Internet-based on-line development
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centre for information and discussion of development issues; research network for global policy analysis; and activities for the implementation of goals set at United Nations conferences.
The Council also had before it a report of the Secretary-General on the restructuring and revitalization of the United Nations in the economic, social and related fields (document A/53/137-E/1998/66), as outlined by General Assembly resolution 50/227.
Contained in the report are recommendations to promote further revitalization of the Organization's work in those areas. The Secretary- General recommends that the Assembly continue its informal sessions in the form of an open interactive dialogue, including with civil society, and that it explore ways of strengthening cooperation between its Second (Economic and Financial) and Third (Social, Humanitarian and Cultural) Committees, including the possibility of joint consideration of common issues, such as poverty, women and development, and the right to development. Texts of resolution could be further streamlined with submission of omnibus ones being encouraged by the Assembly.
The Economic and Social Council is urged to build on progress made on periodic meetings with the secretariats of the functional commissions, and to consider how further progress can be made on its organization and methods of work. Functional commissions should be encouraged to ensure that the agreed conclusions of the high-level and coordination segments of the Council's session are followed up systematically by the United Nations system. The Council is asked to consider further steps that could be taken to implement the Agenda for Development, specifically regarding inter-agency coordination, and to improve the effectiveness and efficiency of the Council's activities. Possible consolidation of reports requested every year should be further examined. The Council may wish to consider appropriate steps to strengthen cooperation between the United Nations and the Bretton Woods institutions, the report suggests.
Introductory Statements
NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, said the relationship between the Council and the Bretton Woods institutions was covered by the agreements between them. There had been a substantial strengthening of the relations, particularly between the Secretary-General and the heads of the World Bank and the IMF. He placed on record the excellent cooperation offered by the World Bank in the preparation of the recent special session of the Council. He said the World Bank had chaired one of the three task forces, that on an enabling environment. The linkages between the United Nations and the World Bank had become much more enhanced and effective. He had every hope and expectation that the cooperation would continue.
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RAFEEUDDIN AHMED, Associate Administrator of the United Nations Development Programme (UNDP), introducing the report on the joint exploratory review of cooperation between the United Nations and the Bretton Woods institutions, said preparation of the report was truly a joint effort. There existed an impressive history of collaboration at all levels and in many different areas which was, in the past, not well understood or appreciated. The report presented a wealth of examples that were indicative of the manner in which the United Nations and the Bretton Woods institutions cooperated in each of the six areas mentioned in General Assembly resolution 50/227. The areas included implementation of the results of United Nations conferences; collection and dissemination of data; use of existing resources; provision of technical assistance in the field; intergovernmental and secretariat consultations; and policy dialogue.
A major finding of the review concerned the fact that the varying emphasis that the Bretton Woods institutions and the United Nations bodies brought to the complex issues of economic and social development enriched both the global debate and the policy and programme support at the country level, he said. What was sought was an overall agreement on strategic objectives and a common understanding that all were moving towards the same goals while maintaining a healthy diversity of approaches and of policy choices. Coordination must also be centrally mandated.
He said the partners in the review agreed that a strategy for strengthening the relationship between the United Nations and the Bretton Woods institutions must reflect the changing political, economic and social environment in which they worked. Their response to the challenges posed by global change should be to build strategic partnerships that capitalized on each organization's intrinsic strengths, reflected shared goals and objectives, and built upon existing achievements. Such strategic partnerships should also take into account capacity-building that strengthened ownership of the policy agenda, and included all stakeholders.
The report concluded with a set of 17 concrete recommendations on how collaboration between the United Nations and the Bretton Woods institutions could be strengthened at both the global and country level, he said. The participating agencies were agreed that priority must be given to collaborative initiatives at the country level that could be undertaken without the establishment of elaborate new coordination mechanisms, but would contribute to building a constructive and productive partnership for the benefit of the countries they served.
ALFREDO SFEIR-YOUNIS, Special Representative of the World Bank to the United Nations, said the Bank had demonstrated its firm commitment to cooperation and partnership in a number of ways. It had been represented at each and every session of the Council. The Banks's interventions at those sessions were complementary to its direct collaboration with the Second
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Committee (Economic and Financial) of the General Assembly. The Bank truly valued the work of the Council, and in the next few months, it planned to significantly increase the dissemination of main findings at all levels of decision-making. As a development institution, the Bank believed it was essential to insert most of its actions and programmes within the comprehensive forum provided by the Council debate.
There was need for front-line cooperation, cost-effectiveness and reorientation of value systems, he said. The Bank believed that, in most places, effective cooperation was taking place. Inter-institutional adjustments must be sought as a necessary condition for becoming an integral part of a changing external environment. More importantly, the adjustments should be fully supported. The human factor should be at the centre of attention in all levels of cooperation.
SARBULAND KHAN, Officer-in-charge for Economic and Social Council Support and Coordination of the Department of Economic and Social Affairs, introducing the report of the Secretary-General on the implementation of General Assembly resolutions 50/227 and 52/12 B, said that is was turning out to be a banner year in terms of functioning, improvement and innovations in the Council. To ensure the implementation of the various outcomes of that body, the agreed conclusions of the high level and coordinating segments of 1997 were transmitted to agencies, funds and programmes. In deliberations and actions, long-term development must be given the same attention as long-term monetary and financial needs. The Council had also made major steps forward in reviewing its functional bodies.
He said the Council, however, needed to review the work of its functional commissions across the board so that it could carry out its managerial functions effectively. Its main aim should be to provide guidance to its subsidiary bodies. Commenting on the operational activity segment, he said that while it was well organized and functioned efficiently; its outcomes did not match the optimism embodied in resolutions 50/227 and 52/12 B.
Statements
PRIANTI GAGARIN DJATMIKO-SINGGIH (Indonesia), speaking on behalf of the "Group of 77" developing countries and China, said further in-depth discussions, particularly on cooperation and coordination with Bretton Woods institutions, were still needed. The Asian financial crisis and other events and crises showed the role that the Economic and Social Council could play in addressing core financial issues.
HANS PETER MANZ (Austria), speaking on behalf of the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Cyprus, said the proliferation over the years of the subsidiary machinery of the Economic and Social Council had resulted in
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weakening that body's overall guidance and coordination role. The Union, therefore, attached great importance to the review process mandated by resolutions 50/227 and 52/12 B. Though that process did not result in far-reaching institutional changes, the outcome, nevertheless, represented a first step forward in improving the efficiency and effectiveness of the intergovernmental structure.
He said the Union wanted to highlight the merger of the Committees on New and Renewable Sources of Energy, Energy for Development, and Natural Resources into a single expert body. In ensuring coherence between the respective work programmes of the Commission on Sustainable Development and the new Committee on Energy and Natural Resources, the output of the latter body should be of better use to the intergovernmental process. The new arrangement for the Committee for Development Planning should also help to bring the work of that body much more in line with the needs and interests of the intergovernmental bodies, particularly the Council. By concentrating on the needs of the Commission on Sustainable Development and the United Nations Conference on Trade and Development (UNCTAD), the work of the Commission on Science and Technology for Development should become more focused.
He said that each functional commission should be encouraged to adopt practices best suited for its particular mandate and responsibilities. The review process was not yet complete, and its completion should be pursued as soon as possible. On restructuring and revitalization, he said that there was still considerable scope for improvement. Efforts to achieve closer cooperation between the United Nations and the Bretton Woods institutions had to respect the relative competencies of both entities and make full use of the comparative advantages of the bodies involved. The Union reiterated its support for the Development Account. It believed that, in the long term, the elaboration of the activities financed by the Account should be guided by a bottom-up approach in order to reflect the priorities of developing countries.
SHEN GUOFANG (China) said United Nations reform concerned the entire membership of the Organization. Only measures adopted on the basis of broad consensus could withstand the test of time. There was no question that reform of the United Nations was a process, and that was why the item had constantly been on the General Assembly's agenda. Time should be allowed for the reform measures to be tested so that Member States could objectively sum up their experiences and decide on the best future course of action.
He stressed that the adoption of reform measures was only a first step in the efforts to achieve the objective of revitalizing the role of the Organization in the economic and social fields. No reform plan would achieve that objective without adequate resources.
OLE PETER KOLBY (Norway) said an important challenge for the United Nations system in the social and economic field was to translate, in
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cooperation with Member States, the mandates of global conferences into operational activities. In responding to that challenge, coherence and coordination within the system, based on clear understanding of the roles and division of labour, strengthened the relevance and impact of the Organization. The role of the Economic and Social Council had been invigorated. Consolidation of the work of its subsidiary bodies, particularly important in addressing cross-sectoral issues, should provide increased support to the Council in its coordination and policy-guidance roles.
He said that in continuing to strengthen the United Nations system, there was a need to build on the efforts to focus the deliberations and further strengthen the inter-linkages between the work of the Second Committee (Economic and Financial) and the Third Committee (Social, Humanitarian and Cultural) of the General Assembly. The Council must be empowered to carry out its coordinating role through such measures as improved and more timely reporting. Stronger linkages between the funds and programmes and the specialized agencies needed to be developed, as well as with the Bretton Woods institutions. A more coherent effort at the country level was necessary, where cooperation based on a thematic approach would serve recipient countries better in their development efforts.
SUH DAE-WON (Republic of Korea) said it was not sufficient to focus on only improving efficiency in terms of organizational streamlining and working methods. Efficiency should ultimately lead to enhancing the overall impact and effectiveness of United Nations development activities. The issue of funding for the Organization's development activities was very important in that regard, especially since recent declining trends in ODA were forcing Member States to take a hard look at the issue of resource mobilization.
He said his delegation believed that reform in the Organization would result in increasing the efficiency and effectiveness of the United Nations in dealing with areas such as natural resources, energy, science and technology. The Council should fully exercise its coordination and management functions on its functional commissions. Harmonization of their work programmes was essential in avoiding overlap and duplication. The regional commissions should remain vigilant in responding to the changing needs of Member States, taking into the account the shifting economic and social trends within a region, as well as the changing regional institutional landscapes.
MARTINEZ ARGUILAR (Mexico) reiterated the importance of cooperation between the United Nations and the Bretton Woods institutions, particularly in staving off the negative effects of the financial markets and in the formulation of macroeconomic policies that adequately reflected the priority needs for social development.
DEBORAH LINDE (United States) said the first priority was to ensure that discussions on further measures to restructure and revitalize the United
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Nations were ongoing. On the issue of the Development Account, the United States was pleased with the level of attention with which the Secretariat had addressed it. While it had no objection to the concept of information technology as outlined in document E/1998/81, the United States had some reservations about whether that was the most advantageous approach for developing countries which were the beneficiaries of those funds.
While the proposed projects in the report on the utilization of the Account complemented existing United Nations work in the development field, the United States questioned whether they were of a priority nature and whether a country-level approach could maximize the return on investment in that sector, she said. Further discussions on the Development Account would be useful. Her delegation was extremely pleased with the level of interaction and involvement of the Bretton Woods institutions in the United Nations system in the course of the past year, especially with the success of the recent high-level meeting of the Council with the institutions. Those productive exchanges should be continued in the future.
ULADZIMIR GERUS (Belarus) said his delegation would support the draft resolution on measures to revitalize the Organization. He called for an improvement in the holding of regular coordinating meetings of the Council Bureau. The regional commissions could become the catalyst for interaction with the UNDP and other relevant specialized agencies. Reforms should enhance capacity-building. Ways should be found to facilitate closer cooperation between the United Nations and the Bretton Woods institutions at the country level, as well.
YOSHITAKA KITAZAWA (Japan) said that it was important for the United Nations to strengthen the support and understanding it received from the international community by ensuring that present reforms being implemented achieved tangible results. Japan had urged the realization of the Development Account. Information technology was also important in the context of development and should be integral in development strategies.
He said his delegation strongly believed that developing countries should participate in the globalization of the world economy. As such, global networking for development was a process worth investigating. Japan supported the use of an online development centre as a means of advancing dialogue among developing countries. Information on how the system could be made accessible to participants, however, needed to be provided. There was also need for more complete detail on that project to be developed before its consideration by the General Assembly at a later stage.
ALEXANDRE PANKIN (Russian Federation) said new initiatives should not be rushed into before the proper implementation of relevant resolutions. Although the Economic and Social Council was more dynamic and scrupulous in its review of the coordination segment, it should not divide that process into several steps.
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The actual format of the Council's meetings and sessions was good, but it was still necessary to look at timing and structure. If the need arose, special sessions could be organized. It was also important to identify areas where joint efforts between the United Nations and the Bretton Woods institutions could be stepped up. Those organizations had to work out general strategic approaches with long-term goals in mind. The Council needed to think about thematic focusing in meetings -- themes need to be tied to common issues that were of interest to not just the United Nations system, but to other entities behind the scenes and the Bretton Woods institutions.
AMANY FAHMY (Egypt) said the role of the Economic and Social Council as stipulated in the Charter was to coordinate economic and social issues. Therefore, the inclusion of the Council in the report on the utilization of the Development Account was misplaced, unconstitutional and a disregard of the Charter. In addition, the Second Committee (Economic and Financial) and the Fifth Committee (Administrative and Budgetary) had responsibility for the Development Account budget. The Council had no mandate to become involved in that issue.
SYED AHMED MAROOF (Pakistan) expressed support for the statement made on 23 July by the representative of Indonesia on behalf of the Group of 77 and China. He said the report on the utilization of the Development Account should be considered by relevant intergovernmental bodies, namely, the Second (Economic and Financial) and Fifth (Administrative and Budgetary) Committees, in accordance with paragraph 6 of General Assembly resolution 52/235.
He noted that the Assembly, by its resolution 52/220, had decided to create a new section 34 in the regular budget for the biennium 1998-1999 on the Development Account. That was subject to the relevant financial rules and regulations governing programme planning.
HENRY HANSON-HALL (Ghana) also supported the Group of 77's statement, as well as the sentiments expressed by the representatives of Egypt and Pakistan. He said the matter should be deferred for discussion in the appropriate intergovernmental bodies.
DULCE BUERGO RODRIGUEZ (Cuba) said the Group of 77's statement reflected her delegation's position. Until the General Assembly reached a decision on the Development Account, the Council should not decide on the matter.
MARIANO ENRICO (Argentina) similarly supported the previous statements, adding that there were appropriate bodies in which the issue could be considered.
JEAN RAVOU-AKII (Vanuatu) also associated himself with the statements of the previous speakers. The issue should be considered in the appropriate intergovernmental body.
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Response to Questions
Responding to question from delegations, Mr. SFEIR-YOUNIS, Special Representative of the World Bank to the United Nations, said the Bank understood the relevance of human rights and its mainstreaming into its country economic development programmes. The Bank was currently using its resources to provide an enabling environment that sustained human and civil rights, and the right to development.
Responding to the issue of collaboration between the resident coordinator and the World Bank, he said his organization was increasing its decentralization process to be nearer to the country. In that way, the Bank would gain a better understanding of issues that had been difficult to comprehend in the past.
He said the inter-agency dialogue with the UNDP and the United Nations Development Group was providing the right environment for advancing cooperation between the Organization and the Bank in the field. The Bank was trying to make its current decentralization process as effective as possible.
He said the Bank was ready to assist the Council and its agencies in the development of indicators on issues such as poverty, the environment, and follow-up to international conventions. That would not be easy, however, as it was a very complicated endeavour. Agencies could not provide fractions of services. All concerns needed to be brought to the centre of projects and in a holistic manner. Even comparative advantages had to be looked at holistically.
The President of the Council then informed participants that Colombia had become a sponsor of the draft resolution on the international year of microcredit 2005.
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