CONFERENCE OPENS WITH CALLS FOR COOPERATION BETWEEN PUBLIC AND PRIVATE SECTORS TO SPUR PROGRESS IN LEAST DEVELOPED COUNTRIES
Press Release
TAD/1862
CONFERENCE OPENS WITH CALLS FOR COOPERATION BETWEEN PUBLIC AND PRIVATE SECTORS TO SPUR PROGRESS IN LEAST DEVELOPED COUNTRIES
19981109 France's Prime Minister, UNCTAD Secretary-General, Mayor of Lyon Urge Stable, Realistic Help for Marginalized Nations, Equal Access To Trade(Reissued as received.)
GENEVA, 9 November (UNCTAD) -- The four-day Partners for Development Conference opened this morning with calls from the Prime Minister of France and the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) for new and effective teamwork to help the world's poorest countries participate fully in the global economy, benefit from stable private investment, and have equal access to trade systems and electronic communications networks.
French Prime Minister Lionel Jospin said least developed countries were often marginalized in global trade. The support of new private enterprise in such countries should be strengthened, development assistance must go hand in hand with the lowering of tariffs, and such nations should benefit from waivers to facilitate their access to the markets of developed countries. For its part, France was reorganizing its assistance mechanisms to move beyond simple aid to "active partnerships". Mr. Jospin called for emphasis on social well-being, especially through efforts at the local level, for aid to countries with heavy foreign debt burdens, and for a more stable international financial and monetary framework. The partnerships that would be forged in the coming days would take on a life of their own and generate work and prosperity, the Prime Minister told the meeting.
Rubens Ricupero, UNCTAD Secretary-General, said most development aims could only be achieved with the help of civil society and the private sector. Even if official help for development was the most common channel, it was necessary for all of a country's people, at whatever social strata, to participate. The resources available in the private sector must be put to work aiding the economic development of all countries. The momentum that
would build would then become an unstoppable force, since the strengths of the market economy would be harnessed. The true energy of a society came from the private sector, not just in terms of resources, but in terms of professionalism, Mr. Ricupero said; however, that was not to say that international aid would not also be required. In the end the impetus for development must come from people, industry, Government, and, finally, from international organizations.
Opening the conference was Raymond Barre, Mayor of Lyon, who said the geopolitical context had changed in recent years, making new, cooperative approaches necessary and vital, especially for least developed nations. The financial crisis in South Asia and Japan was proof of the great interdependence that existed among nations, he said, and showed that although these extensive connections were a source of important economic growth, they also created great vulnerability. He expressed the hope that international institutions and banks could establish means and rules that would ensure economic stability without putting into question the free circulation of goods.
Also made available this morning were welcoming remarks sent by United Nations Secretary-General Kofi Annan, who termed this week's meetings "an example of the new United Nations in action: an Organization that is open as never before to the involvement of the private sector, non-governmental organizations, academic institutions and others among the increasingly robust forces of civil society".
The Partners for Development summit is intended to forge cooperative activities between businesses, Governments, international agencies and others to enhance development in the world's poorer nations. A series of meetings will take place on topics ranging from global electronic trade to micro-financing projects to investment regimes and sustainable development ideas.
Statements
RAYMOND BARRE, Mayor of Lyon, welcoming all to the Conference, said the geopolitical context had changed in recent years with the rapid globalization of economics and finance. The financial crisis in South Asia and Japan was proof of the great interdependence that existed among nations now. Although these extensive connections were a source of important economic growth, they also created great vulnerability. Institutions such as the International Monetary Fund (IMF) had reacted promptly to the crisis, but it was difficult to say at this stage the influence the events in Asia would have on economic growth. Mr. Barre expressed the hope that international institutions and banks could establish means and rules that would ensure economic stability without putting into question the free circulation of goods.
- 3 - Press Release TAD/1862 9 November 1998
People tended to put countries into two groups: developed and developing, Mr. Barre said. The reality was in fact very different -- more varied and complicated. Developed countries had assured with determination their intention of encouraging the structural adaptation of least developed countries. These and other considerations would help to determine the future of the world. For the same reason he was pleased to see the role the United Nations was taking on to enhance the dialogue between the public and private sectors. Technological evolution would help with this process, he added.
Mr. Barre said he was convinced that this week's dialogue between Government ministers, representatives of NGOs, and heads of enterprises was vital. All had different contributions to make. Public actors had a catalytic role to play; it was not conceivable that the private sector would take over the role of the public sector. Its role was one of cooperation. The impulse would always come from the public sector. A number of projects to assist developing countries had been and were being implemented. These included small projects and initiatives which were an integral part of the greater global vision of trade and development. In the days to come many of those present would be able to establish personal contacts and create partnerships for development.
RUBENS RICUPERO, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), said he hoped for continuing support and participation by Governments in the development process. He noted that most development aims, however, would only be brought about with the help of civilian society and the private sector. Even if official help for development was the most common channel, it was necessary for all of a country's people, at whatever social strata, to participate.
The resources available in the private sector must be put to work aiding the economic development of countries -- the momentum that would build would then become an unstoppable force, since the strengths of the market economy would then be harnessed. The true energy of a society came from the private sector, not just in terms of resources, but in terms of professionalism; however, that was not to say that international aid would not also be required. The impetus for development must come from people, industry, Government, and, finally, from international organizations.
At the dawn of the twenty-first century, the legacy of the twentieth century posed two main problems -- unemployment and inequality between countries and people. Globalization must now be not merely a word relevant to the economic issues of countries, but must come to mean the strengthening of links between people of different nations -- an improving of communication as well as trade. Including the private sector in the development process would show that profit and development, the market economy and social solidarity, were not antithetical, but complementary.
- 4 - Press Release TAD/1862 9 November 1998
Emphasis must be put on hope, which was vital for development, Mr. Ricupero said. All countries on all levels -- civil society, the private sector, and Government -- must participate. All the delegates of this conference must consider it a similar duty to participate. In fact the partnerships formed here in Lyon must show the way.
LIONEL JOSPIN, Prime Minister of France, said he was delighted to be able to lend support to the partnership for development concept. It was an ambitious project that had become reality thanks to much hard work, and this week's series of meetings showed the importance France granted to the question of development. Sustainable, fair and balanced development remained the utmost objective. To achieve it, the means should improve: it was necessary to stabilize the international economic financial framework and establish new institutions bringing together the different actors.
Mr. Jospin said standard overseas development assistance, or ODA, was indispensable, but did not meet all the needs of the world's less developed nations. France had long supported the North-South dialogue and the improvement of trade in favour of such countries. Previously the accent had been placed on public assistance and state policies, but that had proved to be insufficient. In recent years private capital flows had increasingly been geared towards developing countries. They now represented 95 per cent of the resources brought to those countries. But there were inequalities even here: these capital flows were concentrated on some 10 nations and excluded most of the poorest countries of the world.
There was a great need to regulate short-term capital flows, the Prime Minister said. Investors needed transparency and stability, including in the realm of taxes. Liberalization of capital flows should take place in a controlled and structured manner after the establishment of robust financial infrastructures. The Asian crisis underscored the problem of rapid development without necessary social infrastructures, he added. France would like to establish, in conjunction with the International Labour Office, a code of good practice concerning such social policies.
Mr. Jospin noted that the world's poorest countries were often marginalized in global trade. The support of new private enterprise in least developed countries should be strengthened. Development assistance must go hand in hand with the lowering of tariffs. Moreover, least developed countries should benefit from waivers to facilitate their access to the markets of developed countries. Least developed countries participated only rarely in the work of the World Trade Organization (WTO). France was following with great interest the joint initiative of the WTO and UNCTAD to strengthen technical assistance to least developed countries.
To reach development objectives, it was necessary to establish new measures and mechanisms, Mr. Jospin continued. France intended to continue to provide important development aid and to incite others to do so. It also was
- 5 - Press Release TAD/1862 9 November 1998
necessary to help the most indebted countries to benefit from new kinds of assistance. France was working on a debt conversion mechanism. The developing world also urgently needed a stable international financial and monetary framework. The introduction of the euro would help provide such stability.
France also had reorganized its assistance mechanisms, the Prime Minister said; it intended to move beyond simple assistance to active partnerships. Support for people in general, in particular involving health and education, required assistance to local programmes. Assistance should also be directed to the good functioning of administration so that waste and inefficiency did not sap the vitality of development programmes. Among other things there was a need for clear and consistent rules for all to protect enterprises and investors.
The partnerships that would be forged in the coming days would take on a life of their own and generate work and prosperity, Mr. Jospin said. It was important to support private initiatives to help the poor, such as that developed in Bangladesh through the micro-financing approach. And it was essential that developing countries actively participate in the work of the WTO on electronic commerce. A climate of trust should be encouraged between all the actors in these fields.
* *** *