GA/EF/2855

ASSEMBLY ASKED TO SEEK ADOPTION OF NATIONAL POLICIES TO AID RECOVERY OF COUNTRIES HIT BY GLOBAL FINANCIAL CRISIS

1 December 1998


Press Release
GA/EF/2855


ASSEMBLY ASKED TO SEEK ADOPTION OF NATIONAL POLICIES TO AID RECOVERY OF COUNTRIES HIT BY GLOBAL FINANCIAL CRISIS

19981201 Adequate IMF Resources also Urged; Other Economic Committee Texts Deal with Range of Development, Environment and Related Issues

The General Assembly would call on all countries to adopt and pursue policies to promote a favourable external economic environment for the recovery of countries effected by the global financial crisis, according to one of 12 draft resolutions approved without a vote by the Second Committee this afternoon as it concluded its work for the session.

By the draft on the financial crisis and its impact on growth and development, the Assembly would also call on the international community 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. The text would also have the Assembly stress the need to endow the International Monetary Fund (IMF) with adequate resources to provide emergency financing to countries affected by financial crises.

By another draft, on the triennial policy review of operational activities for development of the United Nations system, the Assembly would:

-- urge developed countries to increase substantially their official development assistance;

-- call for the further simplification, harmonization and rationalization of procedures for operational activities of the United Nations development system at the field level;

-- urge the funds and programmes to put in place specific measures and timetables to advance the simplification and harmonization of procedures; and

-- decide that the United Nations system should use to the fullest extent possible and practicable available national expertise and indigenous technologies in the implementation of operational activities.

The General Assembly would urge developed countries to continue to support the commodity diversification and liberalization efforts of developing

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countries, by another draft approved by the Committee. Also by that text, the Assembly would invite the United Nations Conference on Trade and Development (UNCTAD), to provide assistance to developing countries on the financing of commodity diversification and to include issues related to commodities in the provision of analytical support and technical assistance to developing countries.

The draft resolution on the role of the United Nations in promoting development in the context of globalization and interdependence would have the General Assembly stress the importance, at the national level, of maintaining sound macroeconomic policies and developing effective institutional and regulatory frameworks and human resources. It would also strongly underline the importance of an enabling environment for investment, particularly foreign investment, market access, good governance, increasing the volume and effectiveness of official development assistance and tackling of unsustainable debt burdens to achieve sustainable development in all African countries.

By another draft resolution, the Assembly would decide to hold biennially a high-level renewal of the dialogue on strengthening international economic cooperation for development through partnership to provide impetus for the promotion of international economic cooperation for development.

The draft on the United Nations Conference on Environment and Development would have the Assembly stress the need to accelerate implementation of Agenda 21, and call on the Commission on Sustainable Development to continue to complement and provide interlinkages to the work of other United Nations organs, organizations and bodies acting in the field of sustainable development.

The draft on the Governing Council of the United Nations Environment Programme (UNEP) would have the Assembly emphasize that UNEP had been and must continue to be the principal United Nations body in the field of environment, and that its role was to be the leading global environmental authority that sets the global environmental agenda. It would also encourage the Executive Director of UNEP to continue with the ongoing reform of the Programme.

The General Assembly would call upon Governments to use science-based analyses, to study and monitor closely the evolution of new technologies to prevent possible adverse effects on the conservation and sustainable use of biological diversity, which might have an impact on farmers and local communities, by another text approved by the Committee.

The Committee also approved two draft resolutions on the topic of environment and sustainable development. By the first, the Assembly would recognize its role in fostering progress in the implementation of environment- related conventions and of the commitments contained in them. By the second draft, the Assembly would call upon all States and other actors to contribute to the successful outcome of the second session of the Conference of the

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Parties to the Convention to Combat Desertification. It would also call upon all countries that are not yet parties, to ratify or accede to the Convention, as soon as possible.

By another draft resolution, developed countries would be called upon to strengthen their efforts to achieve as soon as possible the agreed target of 0.7 per cent of their gross national product for overall official development assistance. The Assembly would further call for strengthened efforts at all levels to implement fully and effectively the relevant resolutions and decisions of the United Nations related to poverty eradication. The international community would be called upon to create an enabling economic environment and to further assist developing countries in their efforts to combat the negative impact of globalization, fight marginalization and pursue their development.

By a draft resolution on international trade and development, the General Assembly would recognize the importance of the expansion of international trade as an engine of growth and development and the need for expeditious and complete integration of developing countries and countries with economies in transition into the international trading system. The Assembly would also request United Nations Conference on Trade and Development (UNCTAD) to continue 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.

In a concluding statement, Bagher Asadi (Iran) Chairman of the Second Committee, said the Committee had worked tirelessly to achieve consensus on the elements of its programme of work, rather than settle for voting on issues. Committee members could overcome differences of view, of opinion and of analysis "with the help of big hearts, open minds and even hearty laughter".

Concluding statements were also made by the representatives of Austria (on behalf of the European Union), Indonesia (on behalf of the Group of 77 developing States and China), the Russian Federation, China and Venezuela.

The Second Committee's draft resolutions will go to the plenary of the General Assembly for action on Tuesday, 15 December.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to take action on its remaining draft resolutions, on a wide range of issues, and to conclude its work for the session.

Draft Resolutions

The Committee planned to take action on the following draft resolutions:

A text on the role of the United Nations in promoting development in the context of globalization and interdependence (A/C.2/53/L.57) was submitted by the Vice Chairman of the Committee, Odyek Agona (Uganda) on the basis of informal consultations held on draft resolution A/C.2/53/L.20. By its terms, the General Assembly would reaffirm that the United Nations has a central role to play in promoting international cooperation for development and in providing guidance on global development issues, including in the context of globalization and interdependence.

Further, the Assembly would re-emphasize the importance of recognizing the needs of developing countries, particularly the special needs of least developed countries and the small island developing States. It would also urge the international community, including the World Trade Organization, to continue to grant more preferential treatment to those countries.

Also by the draft, the Assembly would stress the importance, at the national level, of maintaining sound macroeconomic policies and developing effective institutional and regulatory frameworks and human resources. The Assembly would also strongly underline the importance of an enabling environment for investment, particularly foreign investment, market access, good governance, increasing the volume and effectiveness of official development assistance and tackling of unsustainable debt burdens, to achieve sustainable development in all African countries and to encourage the participation of all African countries in the global economy.

The Assembly would also stress the need for continued and constructive dialogue in the appropriate forums among developed and developing countries on issues related to strengthening and reforming the international financial architecture. The Assembly would invite the Economic and Social Council and the Bretton Woods institutions in the spring of 1999 to also address, in their high-level dialogue, the ways and means to optimize the benefits and minimize the negative consequences of globalization and interdependence, particularly for developing countries.

Under the terms of the text, the Assembly would request the Secretary- General to prepare an analytical report, in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and in consultation with

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relevant organizations -- the World Trade Organization, the International Monetary Fund (IMF), the World Bank and the regional commissions -- for submission to the fifty-fourth session of the Assembly so as to facilitate better understanding of globalization. The Assembly would then make recommendations on the role of the United Nations in promoting development, and on promoting coherence, complementarity and coordination on economic and development issues at the global level, to optimize the benefits and limit the negative consequences of globalization and interdependence.

A draft resolution on international trade and development (A/C.2/53/L.26/Rev.2) would have the General Assembly recognize the importance of the expansion of international trade as an engine of growth and development and the need for expeditious and complete integration of developing countries and countries with economies in transition into the international trading system.

The draft -- sponsored by Australia, Austria (on behalf of the European Union), Canada, Indonesia (on behalf of the Group of 77 and China), Japan, Mexico, New Zealand, Republic of Korea, Russian Federation and the United States -- would have the Assembly renew the commitment to uphold and strengthen an open, rule-based, equitable, secure, non-discriminatory, transparent and predictable multilateral trade system and it would deplore any attempt to bypass or undermine multilaterally agreed procedures on the conduct of international trade by unilateral actions inconsistent with the multilateral trade rules and regulations.

Also by the text, the Assembly would request UNCTAD to continue, on the basis of the outcome of its ninth session, to identify and analyse 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.

The Assembly would also reiterate the importance of continued trade liberalization in developed and developing countries by means of: substantial reductions in all tariffs, the rolling back of tariff peaks and the removal of tariff escalation; the elimination of trade-distorting policies, protectionist practices and non-tariff barriers in international trade relations; ensuring that the resort to anti-dumping duties, countervailing duties, phyto-sanitary and technical standards are subjected to effective multilateral surveillance; the improvement and renewal, by preference-giving countries, of their generalized system of preference schemes with the objective of integrating developing countries into the international trading system.

The Assembly would reiterate that it is an ethical imperative for the international community to arrest and reverse the marginalization of the least developed countries and to promote their expeditious integration into the world economy. Also, it would invite the relevant international organizations

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to provide enhanced technical assistance to help strengthen the supply capacity of the least developed countries so as to help them take the fullest possible advantage of trading opportunities arising from globalization and liberalization.

The urgent need to facilitate the integration of the African countries into the world economy would be stressed by the Assembly. In that context, it would request the UNCTAD to continue its contribution to the implementation of the United Nations New Agenda for the Development of Africa in the 1990s, taking into account the agreed conclusions of the Trade and Development Board at its forty-fifth session. It would stress the need to give special attention to the implementation of the many international development commitments geared to meeting the special development needs and problems of small island developing States and of landlocked developing States, and to recognize that developing countries that provide transit services need adequate support in maintaining and improving their transit infrastructure.

The Assembly, by the text, would further reiterate the importance that the momentum towards increased trade liberalization, particularly with regard to products of interest to developing countries, be maintained and given attention in the work leading up to the third Ministerial Conference of the World Trade Organization. It would also invite UNCTAD to provide analytical support and technical assistance to developing countries for their effective participation in multilateral trade negotiations and in their formulation of a positive agenda for future trade negotiations.

The Assembly would stress the need for improved measures to address the effects of the financial crisis on the international trading system and the development prospects of developing countries and the countries affected by the crisis. It would emphasize that keeping all markets open and maintaining continued growth in world trade are key elements in overcoming the crisis and it would reject the use of any protectionist measures.

The need for technical assistance to developing countries for taking the fullest possible advantage of the dispute settlement mechanism of the World Trade Organization would be strongly underlined by the Assembly. In this context, it would emphasize the importance of enabling UNCTAD to provide technical assistance to developing countries, in particular the least developed countries and small island developing States, in this area.

The draft would also have the Assembly request the Secretary-General of the United Nations, in collaboration with the secretariat of the UNCTAD, to report to the General Assembly at its fifty-fourth session on the implementation of the present resolution, developments in the multilateral trading system and the implementation of the ministerial communiqué on market access adopted by the Economic and Social Council on 8 July 1998.

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A draft resolution on the financial crisis and its impact on growth and development, especially in the developing countries (A/C.2/53/L.55) was submitted by the Vice-Chairman of the Committee, Mr. Agona, on the basis of informal consultations held on draft resolution A/C.2/53/L.4. By the text, the General Assembly would 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.

The Assembly would invite the IMF to facilitate the dialogue among relevant actors to consider the possibility of establishing a regulatory framework for short-term capital flows and trade in currencies. The IMF would also be invited to consider as quickly as possible additional regulatory and disclosure measures to ensure greater transparency of financial market participants, including international institutional investors, particularly of highly leveraged operations.

The draft would also have the Assembly stress the need to endow the IMF with adequate resources to provide emergency financing to countries affected by financial crises. It would stress the need to strengthen the international and national financial systems through a more effective national, regional and international surveillance of both public and private sectors, based upon the improvement of the availability and transparency of information.

By the text, the Assembly would stress the importance of having an enabling international environment and a strong cooperative effort by all countries and institutions to support crisis-hit countries and to prevent further contagion. It would also call on all countries, particularly major industrialized countries, to adopt and pursue policies conducive to economic growth and to promote a favourable external economic environment for the recovery of the affected countries and countries in a critical economic situation.

The Assembly would also stress the importance at the national level of sound macroeconomic policies and policies aimed at strengthening the institutional capacities and regulatory frameworks, especially the regulatory and supervisory systems of the domestic financial and banking sectors. It would also emphasize that the international financial institutions should ensure that they are sensitive to the specific circumstances of the concerned countries and to the special needs of developing countries and work towards the best possible outcome for the economies concerned.

By the text, the Assembly would stress the need for the international community to continue to work together in formulating a global approach towards financial crisis, and in this regard welcome the efforts undertaken to

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strengthen further the cooperation and collaboration among the United Nations system, the IMF, the World Bank, the regional development banks, the World Trade Organization and other relevant international economic institutions in the areas of common and complementary objectives.

By the text, the Assembly would encourage the Interim Committee of the Board of Governors of the IMF and other relevant forums to expedite work relative to the greater involvement of the private sector in preventing and resolving financial crises. Also, it would recognize that it was important to address the need to mobilize resources for such goals as poverty eradication, human resources development, and health and education.

The Assembly would request the Secretary-General to analyse the current trend in global financial flows and modalities to improve early warning prevention and response capabilities for dealing with the emergence and spread of financial crises in a timely manner, taking a comprehensive and long-term perspective, while remaining responsive to the challenges of development and the protection of the most vulnerable countries and social groups. The Secretary-General would also be requested to report to the General Assembly at its fifty-fourth session on the implementation of the present resolution.

The draft resolution on commodities (A/C.2/53/L.51) was submitted by the Vice-Chairman of the Second Committee, Mr. Agona, on the basis of informal consultations held on draft resolution A/C.2/53/L.5. By the text, the Assembly would urge developed countries to continue to support the commodity diversification and liberalization efforts of developing countries, especially African countries, in a spirit of common purpose and efficiency. That should be done by providing technical and financial assistance for the preparatory phase of their commodity diversification programmes. It would also urge producers and consumers of individual commodities to intensify their efforts to reinforce mutual cooperation and assistance.

Also by the text, the Assembly would emphasize the need for developing countries that are heavily dependent on primary commodities to continue to promote a domestic policy and an institutional environment that encourages diversification and liberalization of the trade and export sectors and enhance competitiveness. It would also express the urgent need for supportive international policies to improve the functioning of commodity markets through efficient and transparent price formation mechanisms and through the use of commodity price risks management instruments.

The Assembly would invite UNCTAD to provide assistance to developing countries on the financing of commodity diversification and to include issues related to commodities in the provision of analytical support and technical assistance to developing countries. UNCTAD would also be invited to consider issues related to commodities in the preparation for its tenth session, to be held in Thailand in the year 2000. The Secretary-General of UNCTAD would be

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requested to report to the General Assembly at its fifty-fifth session on world commodity trends and prospects.

Also by the draft, the Assembly would reiterate the importance of maximizing the contribution of the commodity sector to economic growth and sustainable development, while continuing with diversification efforts, in developing countries. It would also encourage the Common Fund for Commodities, in cooperation with other relevant bodies, to direct its commodity development programmes more towards commodity sector diversification projects, as well as to promote commodity market development in developing countries.

The draft resolution on renewal of the dialogue on strengthening international economic cooperation for development through partnership (A/C.2/53/L.49) was submitted by the Vice-Chairman of the Committee, Burak Özügergin (Turkey), on the basis of informal consultations held on draft resolution A/C.2/53/L.36.

By the text, the General Assembly would decide to hold biennially a high-level renewal of the dialogue of the General Assembly on strengthening international economic cooperation for development through partnership to provide impetus for the promotion of international economic cooperation for development. It would also request the Secretary-General to propose themes for the promotion of international economic cooperation for development for the second high-level dialogue for consideration by the General Assembly at its fifty-fourth session.

Also by the draft, the Assembly would reaffirm the continued need to strengthen constructive dialogue and genuine partnership in order to promote further international economic cooperation for development. It would stress that such dialogue should be conducted in response to the imperatives of mutual interests and benefits, genuine interdependence, shared responsibility and the partnership for achieving development. The United Nations system should reinforce its activities in order to facilitate such a dialogue in accordance with relevant resolutions of the General Assembly.

The draft on environment and sustainable development (A/C.2/53/L.59) was submitted by the Vice-Chairman of the Committee, David Prendergast (Jamaica), on the basis of informal consultations held on draft resolution A/C.2/53/L.17.

By the text the General Assembly would emphasize that policy decisions under various conventions on environment and sustainable development are undertaken by their respective conferences of the parties, which are autonomous governing bodies, and would note that various conventions related to environment and sustainable development are at different stages of implementation. It would also recognize the role of the General Assembly in

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fostering progress in the implementation of those conventions and of the commitments contained therein.

The text would also have the Assembly reaffirm the need, as stipulated in section IV of the Programme for the Further Implementation of Agenda 21, for greater coherence in various intergovernmental organizations and processes through better policy coordination at the intergovernmental level, as well as for continued and more concerted efforts to enhance collaboration among the secretariats of relevant decision-making bodies.

The Assembly would encourage the conferences of the parties and the permanent secretariats of three conventions to examine appropriate opportunities and measures to strengthen their complementarities and improve scientific assessment of ecological linkages between the conventions. (The conventions are: the United Nations Framework Convention on Climate Change, the Convention on Biological Diversity, and the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa.)

The Secretary-General would be requested to prepare a report for submission to the General Assembly at its fifty-fourth session, and identify actions undertaken to implement the Programme for the Further Implementation of Agenda 21, as well as the areas requiring further consideration and work, taking into account the roles of relevant organizations and institutions of the United Nations system.

The draft on the report of the Governing Council of the United Nations Environment Programme (UNEP) (A/C.2/53/L.58) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis of informal consultations held on draft resolution (A/C.2/53/L.21).

By the draft, the General Assembly would emphasize that the United Nations Environment Programme (UNEP) has been and must continue to be the principal United Nations body in the field of environment, and that its role is to be the leading global environmental authority that sets the global environmental agenda, that promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system, and that serves as an authoritative advocate for the global environment.

The Assembly would also encourage the Executive Director of UNEP to continue with the ongoing reform of the Programme and recognize, as reflected in the Nairobi declaration, that in order to operationalize its mandate, a revitalized UNEP needs adequate, stable and predictable resources and cost effectiveness in programme delivery and an increase in the ability of the programme to attract funding.

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The Assembly, by the text, would further encourage the Executive Director of the Programme to intensify his efforts to mobilize additional financial resources from other donor sources to support the implementation of the priority areas of UNEP, in line with the Nairobi Declaration on the agency's role and mandate.

The draft on implementation of and follow-up to the outcome of the United Nations Conference on Environment and Development (in Rio de Janeiro), and the nineteenth special session of the General Assembly (A/C.2/53/L.53) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis of informal consultations held on draft resolution A/C.2/53/L.25.

By the draft, the General Assembly would stress the need to accelerate the full implementation of Agenda 21 (adopted at the Rio de Janeiro conference) and the Programme for the Further Implementation of that agenda. It would recognize that the Commission on Sustainable Development will continue to provide the central forum for reviewing progress on that implementation, and other commitments made at the conference.

The text would also have the Assembly call on the Commission on Sustainable Development to continue to complement and provide interlinkages to the work of other United Nations organs, organizations and bodies acting in the field of sustainable development. The Commission should also play its role in assessing the challenges of globalization as they relate to sustainable development, and to perform its functions in coordination with other subsidiary bodies of the Economic and Social Council and with related organizations and institutions, including making recommendations, within its mandate, to the Economic and Social Council, bearing in mind the interrelated outcomes of recent United Nations conferences.

The Assembly, by the text, would emphasize that to achieve more substantive results by the next review of the implementation of Agenda 21 in 2002 will require concerted efforts at all levels, including by Governments, and would call upon all countries to fulfil their commitments of Agenda 21, and in this context calls upon developed countries to fulfil their commitments undertaken with respect to financial resources and the transfer of environmentally sound technology.

The Assembly would request the Secretary-General to submit to future sessions of the General Assembly for its consideration, through the Economic and Social Council in view of its coordination function, an analytical report on the measures taken within the United Nations system to accelerate implementation of Agenda 21 and of the Programme for the Further Implementation of Agenda 21, including identification of constraints and recommendations on how to address those constraints.

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The Assembly would stress the importance of high-quality preparations for the forthcoming 10-year review of Agenda 21 and the Programme for the Further Implementation of Agenda 21, and would request the Secretary-General to submit to it for consideration at its fifty-fifth session a report on possible ways and means aimed at ensuring effective preparations for this review.

The draft on the Convention on Biological Diversity (A/C.2/53/L.54) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis of informal consultations held on draft resolution A/C.2/53/L.29. By the draft, the General Assembly would call upon Governments, in cooperation with the Conference of the Parties, to use science-based analyses, to study and monitor closely the evolution of new technologies to prevent possible adverse effects on the conservation and sustainable use of biological diversity, which might have an impact on farmers and local communities.

By the text, the Assembly would recognize the importance of the adoption of a protocol on bio-safety at the extraordinary meeting of the Conference of the Parties in 1999, or as soon as possible thereafter. It would also welcome and reaffirm various decisions adopted by the Conference of the Parties at its fourth meeting.

The text would have the Assembly recognize the importance of the implementation of the Convention at all levels, including through the preparation and implementation of national strategies, plans and programmes, taking into account the need for financial resources to support the implementation activities, in particular those of developing countries, in accordance with the provisions of the Convention and decisions of the Conference of the Parties. It would encourage those States that have not yet ratified the Convention to do so as soon as possible.

It would recognize the importance of national action to conserve biological diversity in many habitats, including forests, wetlands and coastal areas, in accordance with the relevant provisions of the Convention. It would also recognize the utility of information exchange, and encourage the development of biodiversity information networks at the national, regional and international levels. The Assembly would invite all funding institutions and bilateral and multilateral donors, as well as regional funding institutions and non-governmental organizations, to cooperate with the secretariat of the Convention in the implementation of the programme of work.

States parties to the Convention would be called upon to urgently settle any arrears and pay their contribution in full and in a timely manner. The Assembly would invite the Executive Secretary of the Convention on Biological Diversity to report to the General Assembly on the ongoing work of the Convention.

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The draft resolution on environment and sustainable development: implementation of the United Nations Convention to combat desertification in those countries experiencing serious drought and/or desertification, particularly in Africa (A/C.2/53/L.52) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis of informal consultations held on draft resolution A/C.2/53/L.16.

By the draft, the General Assembly would call upon all States and other actors to contribute to the successful outcome of the second session of the Conference of the Parties at Dakar. It would also call upon all countries that are not yet parties to ratify or accede to the Convention as soon as possible.

The Assembly would invite the host Government and the Convention secretariat to contribute fully to the relocation of the secretariat and its effective functioning at Bonn, and would invite the secretariat to continue its efforts with a view to finalizing the relocation as soon as possible.

The Assembly would also urge all Parties to the Convention to pay promptly and in full, in the first month of each year, starting on 1 January 1999, the contributions required for the core budget of the Convention. It would also call upon Governments, regional economic integration organizations and other interested organizations, as well as non-governmental organizations and the private sector, to contribute generously to the General Fund, the Supplementary Fund and the Special Fund to be established by 1 January 1999, in accordance with the relevant paragraphs of the financial rules of the Conference of the Parties.

The Assembly would also call upon developing country parties to the Convention to accelerate the process of elaboration and adoption of national action programmes, and would call for the implementation of those adopted through, inter alia, the conclusion of partnership agreements, including consideration of NGO contributions. The international community, in particular developed countries and the United Nations system, and the multilateral financial institutions and all other interested actors, would be invited to support the efforts of affected developing countries in the processes of elaboration and implementation of action programmes to combat desertification.

The Assembly would also invite the Conference of the Parties at its second session, at Dakar, to facilitate and launch the process of the elaboration and negotiation of an additional regional implementation annex to the Convention for the countries of the Eastern and Central European region. It would request the Secretary-General to report to the General Assembly at its fifty-fourth session on the outcome of the second session of the Conference of the Parties to the Convention, as well as on measures taken for the implementation of decisions adopted by the Conference at that session.

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The draft resolution on triennial policy review of operational activities for development of the United Nations system (A/C.2/53/L.56) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis of informal consultations held on draft resolution A/C.2/53/L.8.

By part I of the text, the General Assembly would stress the need for all organizations of the United Nations development system to focus their efforts at the field level on priority areas in order to avoid duplication, and enhance the complementarity and impact of their work. It would further stress that, in the context of the reform of the United Nations Secretariat and the restructuring and revitalization of the intergovernmental process, the mandates of the separate sectoral and specialized entities, funds, programmes and specialized agencies should be respected and enhanced, taking into account their complementarities.

The Assembly would note, with regret, that although significant progress has already been achieved on the governance and functioning of the United Nations development funds and programmes, there has not been, as part of this overall change process, any increase in core resources for operational activities for development on a predictable, continuous and assured basis. It would also express serious concern at the persistent insufficiency of resources for the operational development activities of the United Nations, in particular the decline in contributions to core resources.

Also by the text, the Assembly would strongly reaffirm that the impact of the operational activities of the United Nations system must be enhanced by, inter alia, a substantial increase in their funding on a predictable, continuous and assured basis, commensurate with the increasing needs of developing countries.

The text would also have the Assembly urge developed countries to increase substantially their official development assistance, including contributions to the operational activities of the United Nations system. It would stress that other countries that are in a position to do so should strive to augment their assistance in the framework of development cooperation.

The Assembly would emphasize that the United Nations Development Assistance Framework (UNDAF), which is currently in a pilot phase, should promote a country-driven, collaborative and coherent response by the United Nations system to achieve greater impact at the country level. Also, it would stress the importance of ensuring full Government participation in the formulation of UNDAF and its full ownership through the agreement of the recipient Governments concerned to the finalized Framework, bearing in mind that the responsibility for coordination of all assistance and developmental activities rests with the national Government.

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The Assembly would request the Secretary-General to continue to make the resident coordinator system more participatory in its functioning at the field level by, inter alia, making greater use of thematic groups and adopting a more consultative approach within the United Nations system. The Assembly would also request the United Nations system, including the funds and programmes, specialized agencies and the Secretariat, to provide support to the resident coordinator system.

The Assembly would urge the United Nations Development Group to work in a fully transparent and accountable manner towards a more coherent United Nations performance in the development field, while respecting the specific mandates and identity of its members.

By part II of the draft resolution, the Assembly would decide that with the agreement of the host country, the United Nations development system should assist national Governments in creating an enabling environment in which the links between national Governments, the United Nations development system, civil society, national NGOs and the private sector are strengthened with a view to seeking new and innovative solutions to development problems. It would call for the further simplification, harmonization and rationalization of procedures for operational activities of the United Nations development system at the field level, where possible, and for developing common databases, in consultation with national Governments.

Also by the text, the Assembly would urge the funds and programmes to put in place specific measures and timetables to advance the simplification and harmonization of procedures, and to report on these to their respective governing bodies. It would also call for the United Nations development system to promote greater consistency in the presentation of budgets at the headquarters level, and, at the field level, the sharing of administrative systems and services.

The Assembly would reaffirm that capacity-building and its sustainibility should be explicitly articulated as a goal of technical assistance provided by the operational activities of the United Nations system at the country level, with the aim of strengthening national capacities in the fields of, inter alia, policy and programme formulation, development management, planning, implementation, coordination, monitoring and review.

The Assembly would express concern at the growing number of natural disasters and environmental emergencies which often strike countries that lack the resources to cope with them adequately. It would also recognize that the phases of relief, rehabilitation, reconstruction and development are generally not consecutive but often overlap and occur simultaneously, and it would note the urgent need to develop a comprehensive approach to countries in crisis which involved national authorities.

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The Assembly would stress, by the text, the growing need for incorporating the regional and subregional dimension in United Nations operational activities for development, and encourage the resident coordinators, in close consultation with Governments, to secure greater involvement of the regional commissions.

The Assembly would also request the United Nations system to take appropriate measures to improve the effective incorporation of technical cooperation among developing countries into their programmes and projects, and to intensify efforts towards mainstreaming the modality of technical cooperation among developing countries. It would also stress that South-South cooperation, including technical and economic cooperation among developing countries, offers viable opportunities for the development of developing countries. In that context, it would request the executive boards of the funds and programmes to review, with a view to considering an increase, the allocation of resources for technical cooperation among developing countries activities.

The Assembly would request, by the text, that the Secretary-General and the United Nations development system take all measures to ensure gender balance when making appointments, including at the senior level and in the field. Also, it would stress the need for gender mainstreaming in operational activities of the United Nations system in all fields, in particular in support of poverty eradication.

The draft text would have the Assembly decide that the United Nations system should use, to the fullest extent possible and practicable, available national expertise and indigenous technologies in the implementation of operational activities. It would also call upon all funds and programmes to consider ways to increase the procurement of goods and services from developing countries, both as a mechanism to promote South-South cooperation and for enhancing national execution.

It would also call for further work on the development of common guidelines at the field level for the recruitment, training and remuneration of national project personnel, including national consultants, in the formulation and implementation of development projects and programmes in order to enhance the coherence of the system. It would request the organizations and bodies of the United Nations system to continue to work on promoting, improving and expanding national execution.

By part III of the resolution, the Assembly would recognize that the monitoring and evaluation process of operational activities, including joint evaluations, should be impartial and independent, under the overall leadership of the Government. It would emphasize the importance of disseminating the experience of effective and efficient cooperation within the United Nations development system. Also, the Assembly would request that the United Nations

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system strengthen its efforts, in consultation with recipient countries, to ensure that the lessons learned from both monitoring and evaluation exercises are systematically applied into programming processes at the operational level and that evaluation criteria are built into all projects and programmes at their design stage.

By part IV of the resolution, the Assembly would request that the executive heads of United Nations funds, programmes and specialized agencies submit a yearly progress report to their governing bodies on measures taken and envisaged for the implementation of the present resolution, as well as appropriate recommendations. It would also invite the executive boards of the United Nations funds and programmes to ensure that the heads of these funds and programmes include in their annual reports to the Economic and Social Council a thorough analysis of problems encountered and lessons learned.

The text would also have the Assembly request the Secretary-General to present a progress report to the Economic and Social Council at its substantive session of 1999 on an appropriate management process, containing clear guidelines, targets, benchmarks and time-frames for the full implementation of the present resolution. It would invite the Council, during the operational activities segment of its substantive sessions of 1999 and 2000, to examine the operational activities of the United Nations system. It would further invite the Council to consider the issues of poverty eradication and capacity-building at its 1999 substantive session. At its year 2000 substantive session, the Council would be invited to consider harmonization and simplification, including programming, and resources.

Also by the text, the Assembly would decide, as an integral part of the next triennial policy review of operational activities, in consultation with Member States, to conduct an evaluation of the impact of the United Nations Development Assistance Framework in the field of operational activities. It would also request the Secretary-General to report, through the Council at its substantive session of 2001, on the results of such an evaluation, including lessons learned and recommendations made, for consideration by the General Assembly at its fifty-sixth session. It would also request the Secretary-General to report annually to the Council on the United Nations Development Assistance Framework.

Further by the text, the Assembly would request the Secretary-General to submit to the General Assembly at its fifty-sixth session, through the Council, a comprehensive analysis of the implementation of the present resolution in the context of the triennial policy review, and to make appropriate recommendations.

The draft resolution on the implementation of the first United Nations Decade for the Eradication of Poverty (1997-2006) (A/C.2/53/L.48) was submitted by the Vice-Chairman of the Committee, Mr. Prendergast, on the basis

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of informal consultations held on draft resolution A/C.2/53/L.27. By the text, the General Assembly would decide that the themes for the International Day for the Eradication of Poverty in 1999 and 2000 shall be, respectively, "Women and poverty eradication" and "Globalization and poverty eradication".

By the text, the Assembly would call upon the developed countries to strengthen their efforts to achieve as soon as possible the agreed target of 0.7 per cent of their gross national product for overall official development assistance and, where agreed, within that target, to earmark 0.15 to 0.20 per cent of gross national product for the least developed countries. It would also call upon the international community, including multilateral financial institutions, to implement fully and effectively all initiatives taken regarding debt relief for developing countries. The Assembly would further call for strengthened efforts at all levels to implement fully and effectively the relevant resolutions and decisions of the United Nations related to poverty eradication.

The draft would also have the Assembly call for continued action by the international community to create an enabling economic environment and to further assist developing countries in their efforts to combat the negative impact of globalization, fight marginalization and pursue their development.

It would also reaffirm that, within the context of overall action for the eradication of poverty, special attention should be given to the multidimensional nature of the problem, and the national and international framework conditions and policies that are conducive to poverty eradication. The social and economic integration of people living in poverty should be fostered, thus empowering them to participate in decision-making on policies that affect them.

The Assembly would stress the importance of tackling the root causes of poverty and the necessity of meeting the basic needs of all and, in this context, emphasize the fundamental role in the eradication of poverty of economic growth that favours the poor and creates employment and promotes equitable income distribution. It would also recognize that the process of globalization brings with it opportunities but also poses new challenges, in particular for the developing countries and the least developed among them in their efforts to eradicate poverty.

The draft would have the Assembly recognize the importance of appropriate policy responses to the challenges of globalization at the national level, in particular by pursuing sound and stable domestic policies. It would also reaffirm that all Governments and the United Nations system should promote an active and visible policy of mainstreaming a gender perspective into strategies and programmes on poverty eradication. The Assembly would also emphasize the importance of increasing the control of the

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poor over resources, including land, skills, knowledge, capital and social connections.

By the text, the Assembly would emphasize the role of microcredit as an important anti-poverty tool that promotes the generation of productive self-employment and empowers people living in poverty, especially women. It would therefore encourage Governments to adopt policies that support the development of microcredit institutions and their capacities, and calls upon the international community, in particular the United Nations system, and others, to support and explore the incorporation of the microcredit approach in their programmes and the further development of other microfinance instruments.

The Assembly would reiterate its call to all donors to give high priority to the eradication of poverty in their development assistance programmes, on both a bilateral and multilateral basis, and invites the relevant funds, programmes and agencies of the United Nations system to support developing countries. It would also reaffirm the importance of agreeing on a mutual commitment between interested developed and developing country partners to allocate, on average, 20 per cent of official development assistance and 20 per cent of the national budget, respectively, to basic social programmes.

The draft text would also have the Assembly request the Secretary-General to report to it at its fifty-fourth session on the progress made in the implementation of measures, recommendations and activities related to the first United Nations Decade for the Eradication of Poverty, including recommendations for possible action and initiatives towards the new millennium and proposals for better coordination of action taken by the United Nations system.

Action on Draft Resolutions

The draft resolution on the role of the United Nations in promoting development in the context of globalization and interdependence (A/C.2/53/L.57) was orally corrected by the Committee Vice Chairman Burak Özugergin (Turkey). The orally corrected draft was approved without a vote. Draft resolution A/C.2/53/L.20 was withdrawn by its sponsors.

The representative of The former Yugoslav Republic of Macedonia announced that it would withdraw the draft resolution on globalization and liberalization of the world economy -- prevention of the marginalization of weak or vulnerable economies (A/C.2/53/L.14).

The draft resolution on the financial crisis and its impact on growth and development, especially in the developing countries (A/C.2/53/L.55) was approved without a vote. Draft resolution A/C.2/53/L.4 was withdrawn by its

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sponsors. The representative of Chile said that some editorial changes needed to be made before the text was submitted to the General Assembly.

The Chairman of the committee, BAGHER ASADI (Iran), then proposed a draft decision that would have the Assembly take note of reports of the Secretary-General on net flows and transfer of resources between developing and developed countries; and on global partnership for development. The draft decision was approved without a vote.

The draft resolution on renewal of the dialogue on strengthening international economic cooperation for development through partnership (A/C.2/53/L.49) was approved without a vote and draft resolution A/C.2/53/L.36 was withdrawn by its sponsors.

Mr. Asadi then proposed a draft decision which would have the General Assembly take note of a letter from the Permanent Representatives of Japan and Senegal to the United Nations, transmitting the report of the First Preparatory Committee Meeting for the Second Tokyo International Conference on African Development; the report of the Secretary-General on the utilization of the development dividend; and the report of the Secretary-General transmitting the report of the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) on communication for development programmes in the United Nations system. The draft decision was approved without a vote.

Mr. Asadi further proposed a draft decision which would have the General Assembly take note of document A/53/512, report of the Secretary-General on a comprehensive and in-depth assessment of the United Nations Centre for Human Settlements. The draft decision was approved without a vote.

The draft resolution on environment and sustainable development: international institutional arrangements related to environment and development (A/C.2/53/L.59) was orally amended by Committee Vice-Chairman David Prendergast (Jamaica). The orally amended text was approved without a vote. Draft resolution A/C.2/53/L.17 was withdrawn by its sponsors.

The draft resolution on the report of the Governing Council of the United Nations Environment Programme (UNEP) (A/C.2/53/L.58) was orally amended by Mr. Prendergast. The orally amended text was approved without a vote and draft resolution A/C.2/53/L.21 was withdrawn by its sponsors.

The draft resolution on implementation of and follow-up to the outcome of the United Nations Conference on Environment and Development, and the nineteenth special session of the General Assembly (A/C.2/53/L.53) was approved without a vote. Draft resolution A/C.2/53/L.25 was withdrawn by its sponsors.

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Mr. Asadi then proposed a draft decision which would have the General Assembly take note of a note by the Secretary-General transmitting the report of the Executive-Secretary of the United Nations Framework Convention on Climate Change on the results of the third session of the Conference of the Parties to the Convention. The draft decision was approved without a vote.

The draft resolution on the Convention on Biological Diversity (A/C.2/53/L.54) was orally corrected by Mr. Prendergast. It was then approved without a vote and draft resolution A/C.2/53/L.29 was withdrawn by its sponsors.

The draft resolution on environment and sustainable development: implementation of the United Nations Convention to combat desertification in those countries experiencing serious drought and/or desertification, particularly in Africa (A/C.2/53/L.52) was approved without a vote and draft resolution A/C.2/53/L.16 was withdrawn by its sponsors.

The representative of the United States said her country remained committed to combating desertification and would work bilaterally and multilaterally in that regard. It continued to have deep concerns about the reiteration of last year's call to fund the secretariats of the three environmental conventions through the regular United Nations budget. Her delegation was opposed to the regular budget being used to fund those secretariats. Once the Convention passed through its interim period, the costs must be born by the parties to the Convention.

Mr. Asadi proposed a draft decision which would have the General Assembly take note of the report of the Secretary-General on products harmful to health and the environment. The draft decision was approved without a vote.

The draft resolution on triennial policy review of operational activities for development of the United Nations system (A/C.2/53/L.56) was orally corrected by Mr. Prendergast. The orally corrected text was approved without a vote and draft resolution A/C.2/53/L.8 was withdrawn by its sponsors. The representative of China said his delegation hoped that the Chinese translation of the text was corrected, before it was presented to the plenary.

Mr. Asadi then proposed a draft decision which would have the General Assembly take note of the report of the Secretary-General on the triennial review of operational activities for development of the United Nations system as well as the report's four addendums. It would also take note of the Secretary-General's note transmitting the report of the Joint Inspection Unit (JIU); and the Secretary-General's note transmitting information on the activities of the United Nations Development Fund for Women. The draft decision was approved without a vote.

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The draft resolution on the implementation of the first United Nations Decade for the Eradication of Poverty (1997-2006) (A/C.2/53/L.48) was approved without a vote. Draft resolution A/C.2/53/L.27 was withdrawn by its sponsors. The representative of China said there were again a number of corrections to be made in the Chinese translation of the text.

Mr. Asadi then proposed a draft decision which would have the General Assembly take note of a report of the Secretary-General on the role of microcredit in the eradication of poverty. The draft decision was approved without a vote.

The draft resolution on international trade and development (A/C.2/53/L.26/Rev.2) was approved without a vote.

The representative of Saint Lucia said his delegation reluctantly joined the consensus on the draft resolution on international trade and development. While it appreciated that the text was an improvement over last year's, there was room for further improvement. In order for it to be a balanced text, operative paragraph 20 -- on the dispute mechanism of the World Trade Organization -- should be corrected. That mechanism ought to be acknowledged and its weaknesses should be addressed. Such a mechanism must take into account the consequences of the implementation of its rulings and consider the impact of its decisions on developing countries. Trade must be about the development of people. If the World Trade Organization were to be of any value, there must be fundamental reform of its dispute settlement mechanism. The real challenge was to make the dispute settlement process fair for all parties. World Trade Organization criteria for settlement must take into account the social concerns of the people. Next year's text should reflect the concerns of Member States.

The representative of Indonesia, on behalf of the Group of 77 developing countries and China, said his delegation welcomed the text adopted. The delegation of Norway also joined the co-sponsorship of the resolution. He hoped to strengthen the resolution in the future for the benefit of all Member States.

The representative of Fiji Islands said his country was deeply concerned over the serious erosion of trade preferences as one of the adverse consequences of trade liberalization. For small island economies, as for all developing countries, the retention of trade preferences must be a sine qua non and a commitment by preference-giving countries to ensure that economic development was to take place in developing countries during globalization. His country supported the report of the Economic and Social Council high-level session which addressed the importance of improving market access of developing countries. His country would also have wished that the references to the marginalization of a large number of developing countries, as well as the specific reference to trade preferences contained in the draft

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globalization resolution, would have been reflected in this draft since they were directly related to trade and development.

The representative of Libya said the Arabic translation had a number of errors and those should be corrected.

Mr. Asadi proposed a draft decision that would have the General Assembly take note of the reports of the Trade and Development Board on its sixteenth, seventeenth, and eighteenth sessions. It would also take note of the report of the Secretary-General on the follow-up to the agreed conclusions of the Economic and Social Council on fostering an enabling environment for development. The draft decision was approved without a vote.

The draft resolution on commodities (A/C.2/53/L.51) was orally amended by Mr. Ozugergen. The orally amended text changed operative paragraph 9(c) to read: In light of the process of multilateral trade liberalization, which has led to the diminution of differentials accorded by preferred trade regimes, there is a need to take measures, as appropriate and consistent with international obligations, to address that diminution in particular by strengthening technical assistance to, and by addressing supply-side constraints faced by, commodity-dependent developing countries, in order to improve the competitiveness of their commodity sector and to overcome difficulties encountered in their diversification programmes.

The representative of Côte d'Ivoire made other changes to the text.

The draft was approved without a vote, and draft resolution A/C.2/53/L.5 was withdrawn by its sponsors.

The Committee then approved its biennial programme of work for 1999 and 2000, as orally amended by the Committee Secretary. That document will be contained in document A/C.2/53/L.50.

Concluding Remarks

The Chairman of the Second Committee, BAGHER ASADI (Iran), said he was unaware exactly how much time delegates had saved as a result of their punctuality, or how much money that the United Nations may have been saved, but starting and finishing meetings in a timely fashion was the type of conduct the entire Organization would do well to pursue.

He said the Committee had worked tirelessly to achieve consensus on the elements of its programme of work, rather than settle for voting on issues, and this record indicated the completion of a successful session. Holding joint meetings with the Fifth Committee, he added, had allowed issues of economic and development rights to be properly discussed within the overall realm of human rights.

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He looked forward to the adoption of the resolution on finance and development being brought to the General Assembly. During the debate on globalization, he added, at a time when its harsh effects were causing concern about conditions in their home countries, the Committee had a unique opportunity to reach the conclusion that "all were in the same boat".

He said Committee members could overcome differences of view, "with the help of big hearts, open minds and even hearty laughter".

SUTJIPTOHARDJO DONOKUSUMO (Indonesia) on behalf of the Group of 77 developing States and China, said the committee had proceeded expeditiously through the full slate of items on its agenda. While it was recognized that globalization presented the international community with both opportunities and risks, it had been stressed that measures should be taken to maximize the benefits and minimize the negative aspects of the phenomenon. He spoke of the serious risks of marginalization, as well as the exclusion of many developing countries from the globalization process, and said it was important, therefore, that the international community work together to mitigate the negative impacts of the process.

He said another major and continuously troubling issue for the Group of 77 was that of financing for development. He said there were various policy options to address the acute constraints which blocked sustained financial flows for growth and development. He referred to official development assistance (ODA) which had become a crucial source of development funding for the majority of developing countries, and also noted the need to explore ways to help developing countries attract part of the enormous international capital flows to invest in their development.

HANS-PETER GLANZER (Austria), on behalf of the European Union, pointed out the importance of respecting the deadlines for the submission of draft resolutions. He said it was important to avoid any congestion in the negotiation process toward the end of the year. The extension of deadlines should be the exception. The committee should try to have fewer resolutions and they should be shorter, more focused and more current. The added value the Committee could provide to intergovernmental deliberations on a specific subject should be better recognized. This was particularly true for resolutions on environmental matters, which should be treated in a more coordinated way in the Committee's deliberations.

NIKOLAI TCHOULKOV (Russian Federation) said that despite what many had predicted, the current financial crisis had not impacted the work of the Second Committee. There was no reduction in the number of resolutions and the number of "side events". The influence of the crisis could be seen, however, in the solid quality of the resolutions passed this year. He said the resolutions on the triennial review of operational activities, on economic

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policy, on integration of transition countries in the world economy and on environmental questions had great significance.

YU QINGTAI (China) said his delegation hoped the flexibility and constructive spirit that dominated this session would continue to prevail in future work of the Committee. One of the major achievements of the session was the in-depth discussion on globalization. Relevant resolutions on that topic were adopted and those would have an effect on the world's approach to globalization.

ROSSANNA FIGUERA (Venezuela) said there was a need to celebrate the success of the Committee's session and her delegation would host a closing party for the Committee next week.

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For information media. Not an official record.