SECOND COMMITTEE RECEIVES DRAFT RESOLUTIONS ON DEBT PROBLEMS, FINANCIAL CRISIS AND COMMODITIES
Press Release
GA/EF/2827
SECOND COMMITTEE RECEIVES DRAFT RESOLUTIONS ON DEBT PROBLEMS, FINANCIAL CRISIS AND COMMODITIES
19981016 The General Assembly would urge the international community to consider measures and mechanisms, involving private creditors, that would allow debtor countries the breathing space of a temporary suspension of debt payments, while maintaining their access to interim finance, according to a draft resolution introduced this morning in the Second Committee.The Committee heard the introduction of three draft resolutions by representatives of Indonesia on behalf of the "Group of 77" developing countries and China on the topic of macroeconomic policy questions. By the draft on enhancing international cooperation towards a durable solution to the external debt problem of developing countries, the Assembly would strongly urge that a comprehensive review of the Heavily Indebted Poor Countries (HIPC) Debt Initiative should occur no later than the middle of 1999 and should include consideration of debt sustainability criteria as well as a comprehensive study of the impact of traditional relief efforts.
By the second draft resolution on the financial crisis and its impact on growth and development, especially in the developing countries, the Assembly would call on the international community to pursue national and international efforts to minimize the excessive volatility of global financial flows, and to distribute, in a more equitable manner, the costs of systemic adjustments between the public and private sectors.
By the third draft resolution on commodities, the Committee would request that the Assembly urge producers and consumers of individual commodities to intensify their efforts to reinforce mutual cooperation and assistance, to diversify their exports and to undertake required restructuring of their commodity sector.
Also this morning, the Committee considered operational activities for development. In that discussion, a number of representatives stressed the need to strengthen the resident coordinator system. The representative of Benin said his Government put great importance on the residential coordinator system, and called for it to be strengthened. He added that cooperation between the Bretton Woods institutions and United Nations organizations should be strengthened and intensified as well.
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The representative of Cuba said her country supported coordination activities among the various actors; however, it was concerned about too much emphasis on coordination, which resulted in not giving due consideration to the real priorities of Member States on the question of operational activities for development. The United Nations Development Assistance Framework (UNDAF) was an example of that situation. Despite it being only in the pilot phase, it had been treated as a panacea for all the problems of the activities of the United Nations system.
The representative of Libya said the United Nations activities in the field of development should be at the forefront of its actions. The United Nations Charter was not limited to peace and security issues, but encompassed development work as well. Developing countries were in tremendous need of assistance and had been greatly harmed by globalization. Declining development assistance would have a detrimental effect on the work of the United Nations.
Statements were also made on operational activities by the representatives of Romania, Democratic People's Republic of Korea, Angola, Belarus, Morocco, Yemen, Tunisia, Venezuela, Iran and the Czech Republic.
Representatives of the International Labour Organization (ILO), and the World Health Organization (WHO) also spoke.
The Committee will meet again at 3 p.m. today to observe the International Day for the Eradication of Poverty in a joint meeting with the Third Committee (Social, Humanitarian and Cultural). The joint meeting will include a panel discussion on poverty, human rights and development.
Committee Work Programme
The Second Committee (Economic and Financial) met this morning to resume its consideration of operational activities for development. (For background information see Press Release GA/EF/2824 of 14 October.)
Statements
SORIN TANASESCU (Romania) said any resolution adopted regarding the triennial policy review should reconfirm and restore the confidence both of donor and programme countries in the United Nations operational activities system. There was a need for mutual confidence between those two major groups of Member States, as well as between the States and all the United Nations programmes and funds, as a prerequisite for future cooperation. Also, there should be new measures to strengthen all the components of the United Nations reform process in the field of operational activities, based on one year of experience of the activity and the operation of the United Nations Development Group (UNDG), the United Nations Development Assistance Framework (UNDAF) and others.
He added that coordination at the country level and coordination at Headquarters were equally important and mutually reinforcing. Imbalances between the coordination at both levels could become detrimental for the operation of the UNDG and the resident coordinator system. Also, minimal standards concerning personnel, logistic facilities and the use of common premises by the resident coordinator system should be adopted. Minimal standards were also necessary for the periodic evaluation of coordination at the country level.
SIN SONG CHOL (Democratic People's Republic of Korea) said that the most important factor in the activities of the development-related bodies of the United Nations was to make their assistance activities on the ground more productive and efficient. In order to do that, priority areas must be clearly defined, and programmes must be set up which provided training to technicians. Also, the role of the resident coordinator must be strengthened in order to improve cooperation and to help ensure that Member States of the United Nations complied with their commitment to provide 0.7 per cent of gross national product (GNP) to official development assistance (ODA). He also expressed his country's appreciation for the agricultural assistance of United Nations agencies and organizations.
MARGARIDA IZATA (Angola) said globalization and liberalization of world trade had some negative consequences for her country, especially given the dangerous turn in the peace process there over the last months. Given the current crisis, Angola was ranked as one of the poorest countries in the world. The social situation in her country was alarming. As a result of instability 5 million people had become displaced and more than half of the children remained out of school due to a lack of facilities. Reduction in
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development assistance was a serious concern for Angola. While it was not part of the UNDAF process, Angola hoped that it would be included in the future.
VALERY ZHDANOVICH (Belarus) said his country commended the process of reforming the work of the funds and programmes for development undertaken by the United Nations. Expanding programmes and improving national execution and other new and innovative approaches were important, especially for the countries of the Commonwealth of Independent States (CIS). Strengthening the position of resident coordinators was one of the most valuable actions in the United Nations system. When the system cooperated in monitoring and evaluating programmes, operational activities became more effective. There should be greater cooperation and a stronger relationship between the resident coordinators and the host countries.
AHMED AMAZIANE (Morocco) said that, by transferring know-how and combating extreme forms of human degradation, the will of the international community was carried out by the United Nations organizations. The resident coordinator was the cornerstone of this process.
The reports before the Committee showed that improved coordination with the Bretton Woods institutions could assist United Nations programmes. When properly set up, those programmes added to the viability of United Nations operations. Success, he noted, depended on reducing the complexities of the procedures. He added that his country hoped that serious negotiations were undertaken to ensure financing of operational activities, particularly for Africa.
ALI AL-DAILMI (Yemen) said the essential needs of the programme country must be met, especially in regard to emergency assistance. Coordination and cooperation were now well rooted in the programmes and operations of the United Nations. The resident coordinator's role had grown in importance. There should be greater efforts to improve the relationship between programme coordinators and governments in order to support national efforts and recognize the role of governments in the process itself. Children were the future of their nations and they should enjoy their full rights. Yemen was working tirelessly for stability for its citizens; however, it suffered from a number of development challenges.
ALI AUJALI (Libya) said the United Nations development activities should be at the forefront of its actions. The United Nations Charter was not limited to peace and security issues, but encompassed development work as well. Developing countries were in tremendous need of assistance. They had been greatly harmed due to globalization of the world economy, which had hampered development efforts. Declining development assistance would have a detrimental effect on the work of the United Nations. The United States, the richest country in the world, had decreased its contributions over time. The
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donor countries, whose contributions were declining, should increase voluntary contributions without any conditions.
RICHARD ZACHARIE AKPLOGAN (Benin) said that the current reduction in the resources of the United Nations would have grave consequences on development operations. Referring to the reform programme, he said it was aimed at strengthening cooperation between components of the system in the field, and was necessary to enable beneficiary countries to achieve the best possible results. Benin placed great importance on the resident coordinator system, and called for it to be strengthened as well. Cooperation between the Bretton Woods institutions and United Nations organizations should be strengthened and intensified as well.
Benin had set up a national committee for monitoring coordination between its Government and the United Nations in regard to operational activities for development. An evaluation committee, he said, was to meet once a year and was to conduct mid-term and final assessments. He added that, in line with the desire to group United Nations programme activities in a common location, Benin had decided to build a United Nations House with the help of its development partners, Japan and Scandinavian countries.
CECILIA ROSE-ODUYEMI, of the World Health Organization (WHO), said that concerted efforts of governments, with international support, had contributed to saving the lives of millions of children through achieving a wider coverage of immunization for measles and other childhood diseases, the promotion of simple treatments such as oral rehydration therapy for children with diarrhoea, the identification of cases of pneumonia, and progress towards eliminating polio. Global childhood mortality rates were falling.
However, progress had been extremely uneven. Only one third of developing countries were on track to achieve the year 2000 goals of the World Summit for Children, she added. In some countries, childhood mortality rates were actually increasing. The children most likely to die of their illness were those of the most vulnerable and underprivileged populations. The new strategy, the integrated management of childhood illness, now under way in 51 countries, aimed to improve the skills of health workers to identify and treat sick children, to improve health systems and promote family and community practices that supported the health of children.
ABDERRAZAK AZAIEZ (Tunisia) said the national reports his country had prepared showed its commitment to improving the status of women, children and the environment, among other crucial world issues. The periodic review of operational activities was important in refining programmes and improving their efficiency. The implementation of the UNDAF could improve the coordination of programmes and funds in the field. However, those tools would have no positive impact unless they addressed the cost-effectiveness of the programmes. The primary goal of the UNDAF should be to harmonize the operation of development activities. Capacity-building was at the centre of
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world concern on development. Capacity-building activities, however, must be undertaken with the support and cooperation of national governments; they should remain at the core of development activity.
MARIO GUGLIELMELLI VERA (Venezuela) said the difference between rich and poor around the world had worsened, and that was true for his country as well. His Government counted on United Nations bodies, which had been an irreplaceable factor in the design of development programmes. Resources provided by the United Nations Development Programme (UNDP) were the seed capital for improving technical capacities. There was a need to strengthen and consolidate operational activities for development. The UNDAF would enable programmes to achieve better results and might attract greater funding for development. His country had made major efforts to compensate for a reduction in basic resources; however, basic resources were still necessary. Donor countries should be made aware of the needs of countries in the Latin American region. Development projects should meet both regional and national needs.
ALI REZA EGHLIM (Iran) said coordination and cooperation was vital to respond to the crisis in the world economy. The major priority for developing countries was poverty eradication, but financial constraints had limited the scope of related activities. The emphasis on the necessity of active follow-up and implementation of the outcomes of recent major conferences and summits was incompatible with the decline in ODA. The effectiveness of operational activities should be enhanced, including through substantial increase in contributions to core resources on a predictable and assured basis.
Priorities of recipient countries should be taken into account in the strengthening of operational activities, he said. All initiatives at Headquarters and field levels, from planning to implementation, should be in keeping with the specific needs of developing countries, he added.
JANA SIMONOVA (Czech Republic) said her country had gone through its transition period relatively successfully, but not without difficulties and missed opportunities. Privatization, liberalization and development of the financial sector proved to be insufficient. It was learnt that the role of government, good governance, enforcement of the law and development of reasonably sustainable industrial and export policies must not be underestimated. The Czech experience confirmed that without internal capacity-building capable of meeting the challenges of globalization, a country could not get on the track of sustainable development.
The United Nations system, in cooperation with the Bretton Woods institutions, should pay more attention to such issues as the role of government in globalization, good governance and the creation of an enabling environment for private domestic sector development and foreign direct investment. The United Nations also had the capabilities to focus
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multilateral development assistance on capacity-building as a cross-cutting goal encompassing all operational activities. The Czech Republic agreed that capacity-building should be aimed both at human resources development and institutions building.
STEPHEN SHAFFER, of the International Labour Organization (ILO), said his organization was dedicated, on the one hand, to the application of international labour standards and other international instruments. On the other hand, it was committed to demonstrating how such normative and promotional standards could be put into practice through operational activities in the form of technical cooperation programmes. In line with the conclusions of the triennial review of operational activities, the ILO would not miss opportunities for joint collaboration with United Nations agencies and other development partners in areas where joint action could result in added value for its constituents. Such opportunities existed in the field of: abolition of child labour, promotion of urban employment and slum upgrading, increasing the impact of investment policies on employment, and poverty alleviation through informal sector support.
MIRTHA HORMILLA CASTRO (Cuba) said that, faced with the drastic reduction in resources, numerous reform measures had already been adopted by Member States and by the Secretariat itself, in order to focus on efficiency and coordination. Cuba supported coordinating activities among the various actors; however, it was concerned about too much emphasis on coordination which resulted in not giving due consideration to the real priorities of Member States on the question of operational activities for development. The UNDAF was an example of that situation. Despite it being only in the pilot phase, it had been treated as a panacea for all the problems of the activities of the United Nations system.
My country, she added, would follow the evolution of UNDAF quite closely, especially on the issue of whether or not it responded to the priorities of the national governments. An initiative such as UNDAF, which was genuinely constructive at its origin, could not be redrawn, nor could there be attempts to identify new priorities. She stressed that Cuba was against the introduction of conditionalities in the system of cooperation for the operational activities of the United Nations. The universality and neutrality of the United Nations must be respected, with the receiving countries establishing the priorities for international cooperation.
Summary of Draft Resolutions
RADEN BAGAS HAPSORO (Indonesia), on behalf of the "Group of 77" developing countries and China, introduced a draft resolution under the item macroeconomic policy questions.
By the draft resolution on commodities (document A/C.2/53/L.5), the General Assembly, among other things, would urge producers and consumers of
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individual commodities to intensify their efforts to reinforce mutual cooperation and assistance. It would stress the need to avoid trade- distorting policies and practices and erosion of trade preferences as they had negative effects on efforts of developing countries to diversify their exports and to undertake required restructuring of their commodity sector.
The Assembly would stress that governments should ensure that trade and environmental policies were mutually supportive. Those with a potential trade impact should not be used for protectionist purposes.
Also, by the text, the Assembly would emphasize the need for developing countries that were heavily dependent on primary commodities to continue to promote a domestic policy and an institutional environment that encouraged diversification and liberalization of the trade and export sectors and enhance competitiveness.
Further, the Assembly would request the United Nations Conference on Trade and Development (UNCTAD) to include in its preparation for the upcoming multilateral trade negotiations issues related to commodities, as well as financing of commodity diversification.
PRIANTI GAGARIN DJATMIKO-SINGGIH (Indonesia), also on behalf of the "Group of 77" developing countries and China, introduced two draft resolutions under the same item.
By the draft resolution on the financial crisis and its impact on growth and development, especially in the developing countries (document AC.2/53/L.4), the General Assembly would, among other things, call on the international community to pursue national and international efforts, at the intergovernmental and inter-agency levels, to contribute to minimizing the excessive volatility of global financial flows, and to distribute in a more equitable manner the costs of systemic adjustments between the public and private sectors.
By the text, the Assembly would also stress the importance of the open high-level dialogue between the Economic and Social Council and the Bretton Woods institutions, and invite the Secretary-General to consider the possibility of convening a high-level dialogue in 1999 immediately before the spring meeting between the World Bank and the International Monetary Fund (IMF), and it would stress the urgent need to endow the IMF with adequate resources to provide emergency financing to countries affected by financial crises as a result of the high volatility of international capital flows.
The Assembly would also request the Secretary-General, in close cooperation with the Bretton Woods institutions and UNCTAD, to analyse the current trends in global financial flows and make recommendations in the World Economic and Social Survey 1999, and the Trade and Development Report, 1999,
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on the ways and means to prevent and respond to the systemic crisis in a comprehensive manner.
By the draft resolution on enhancing international cooperation towards a durable solution to the external debt problem of developing countries (document A/C.2/53/L.2), the General Assembly would urge the international community to consider measures and mechanisms, involving private creditors, that would allow debtor countries the breathing space of a temporary suspension of payments, while maintaining their access to interim finance. In that regard, the Assembly would recommend wider application of the IMF policy of lending into arrears.
It would also call upon bilateral and multilateral donors to contribute to the Heavily Indebted Poor Countries (HIPC) Debt Initiative in order to help the African Development Bank meet its share of Initiative-related costs.
The Assembly would strongly urge that a comprehensive review of the HIPC Debt Initiative should occur no later than the middle of 1999 and should include consideration of debt sustainability criteria as well as a comprehensive study of the impact of traditional relief efforts in order to ensure that the Initiative provided for a lasting exit from unsustainable debt burdens. It would urge that the comprehensive review should have an external and independent input from relevant international organizations, such as UNCTAD, among others.
It would also invite creditor countries, private banks and multilateral financial institutions, to continue the initiatives and efforts to address the commercial debt problems of the least developed countries and the requests for continued mobilization of resources through the Debt-reduction Facility of the International Development Association in order to help least developed countries reduce their commercial debt.
The Assembly would call upon the international community, including the United Nations system, and would invite the Bretton Woods institutions, as well as the private sector, to take appropriate measures and action for the implementation of the commitments, agreements and decisions of the major United Nations conferences and summits organized since the beginning of the 1990s that were related to development and external debt problems.
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