GLOBALIZATION, EROSION OF TRADE PREFERENCES UNDERMINE SMALL ISLAND STATES COMMISSION ON SUSTAINABLE DEVELOPMENT TOLD

Press Release
ENV/DEV/508

GLOBALIZATION, EROSION OF TRADE PREFERENCES UNDERMINE SMALL ISLAND STATES COMMISSION ON SUSTAINABLE DEVELOPMENT TOLD

Meets as Preparatory Body for General Assembly Special Session to Review 1994 Barbados Action Plan for Small Island States

Globalization and the erosion of trade preferences had undermined the ability of small islands developing States to compete in the global market, the Commission on Sustainable Development was told this morning as it continued the high-level segment of its current seventh session.

The Commission was acting as the preparatory body for the General Assembly's special session, to be held from 27 to 28 September, where it will review implementation of the 1994 Barbados Programme of Action for Small Island Developing States. During its current session, which will conclude on 30 April, the Commission is also addressing consumption and production patterns, oceans and seas, and the impact and potential of tourism.

Speaking for the Alliance of Small Island States (AOSIS), Samoa's Minister of Lands, Survey and Environment and Tourism said that partnership had been the central message of the Barbados Conference. In the five years since then, however, official development assistance (ODA) had declined significantly. He called for the United Nations system to become more focused, for international partnerships to be strengthened, and links forged with civil society and the private sector.

The erosion of preferences in the global market place under World Trade Organization rules was a source of great concern, since the exports of small island States could not compete with those of large economies, the representative of Mauritius said. The global market was not a level playing field. Without differential treatment, the efforts of island States to attain a reasonable standard of living would suffer. He stressed the importance of developing a vulnerability index for such States, particularly by the international financial institutions, which were currently using only income measurements to determine eligibility for financing.

A speaker from the World Bank agreed that measuring aggregate income alone did not take into account the special circumstances of small island

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States. International financial institutions must exhibit greater flexibility and take into account aggregate income vulnerability; targeted vulnerability, such as that of specific groups within countries, and physical vulnerability, including weather and climate change.

The Director-General for Environment, Nuclear Safety and Civil Protection of the European Commission said the international community must ensure that small islands were able to participate more actively in the multilateral trading system. The European Union was working to provide small islands with secure market access for their products, through efforts including the Lome Convention, which linked it to 26 island States and recognized their special circumstances. Private investment in small islands must increase, and for that, appropriate economic and political conditions must exist. Since small islands could not respond to environmental and economic challenges alone, donor cooperation was crucial.

Statements were also made by the representatives of: Cuba, Marshall Islands, Maldives, Haiti, United States, Belgium (for the European Union), Guyana, Saint Lucia, Suriname, Jamaica, Grenada, Fiji, New Zealand and Barbados.

After the formal statements, the Commission held a dialogue, intended to refine elements for the Commission's contribution to the Assembly's draft decision, which will be adopted at the special session.

The representative of Antigua and Barbuda, who had been coordinating negotiations on the text, informed the Commission that a paragraph of the draft on, among other things, accepting the right of small island developing States to prohibit hazardous and radioactive wastes within their jurisdiction had been taken verbatim from the Barbados Programme of Action, yet its inclusion was being contested by some States.

The Commission's Chairman, Simon Upton (New Zealand), said the Commission should at the very least recommend adhering to the original document. However, Germany's representative, for the European Union, said that five years had passed since the Barbados Programme of Action had been adopted and there had been significant developments, including a new treaty on nuclear waste. The Barbados document must now be given perspective in the new document.

The United States representative said there were legal implications to including the paragraph. While the language was the same, its placement was not. Australia's representative said that the paragraph concluded with the phrase "consistent with international law". If developing island States felt it would be to their advantage to have the issue restated, then it should be done.

The Commission will meet again at 3 p.m. to conclude its high-level segment, with consideration of consumption and production patterns.

Commission Work Programme

The Commission on Sustainable Development met this morning as the preparatory body for the General Assembly's special session, to be held from 27 to 28 September, to review the Programme of Action for the Sustainable Development of Small Island Developing States, which was adopted in Barbados in 1994. It has before it a Secretary-General's report on implementation of the Programme and a report on a donors meeting held at Headquarters in February, aimed at mobilizing resources for sustainable development projects.

The report of the Secretary-General on progress in the implementation of the Programme of Action for the Sustainable Development of Small Island Developing States (document E/CN.17/1999/6 and Adds 1-16) states that the General Assembly, at its nineteenth special session, in 1997, decided to convene a two-day special session immediately preceding its fifty-fourth session, in 1999, for a full and comprehensive review and appraisal of the implementation of the Programme of Action. The Assembly also decided to request the Commission on Sustainable Development to carry out, at its seventh session, a full review of the Programme of Action in preparation for the special session.

With delicate ecosystems and economies that are vulnerable to world economic fluctuations, small island developing States share a variety of concerns, including: the impact of climate change and sea-level rise; marine pollution from sewage; spills and ship wastes; and shortages of fresh water as demands grow, especially from tourism.

According to the report, while much remains to be done to attain the objectives of the Programme of Action, since the Barbados Conference a great deal of effort has been made by small island developing States in implementation. Much of the effort, thus far, has centred on understanding the crucial role of sound environmental management for the sustainability of socio-economic development. Also, efforts have been made in the exploration of strategies, policies and measures for integrating environmental dimensions into socio-economic planning and development practices.

At the national level, small island developing States generally have taken steps to: formulate national environmental strategies, sector strategies, and action plans; carry out legislative reforms to meet desired environmental norms; reform policies and establish or revise regulatory regimes to induce behavioural changes; and establish national planning and policy-making institutions -- ministries, development councils, environmental units and so on -- with responsibilities for environmental management.

Small island developing States have encountered a number of problems that have impeded implementation, says the report. Since 1994, a number of small island developing States have been affected by adverse economic developments, which have impaired their financial capacity to implement even priority sustainable development measures. The need for carrying out adjustment measures, combined with the recent economic and financial crisis in

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Asia, have affected domestic output, prices of export commodities and export earnings, incomes from tourism and foreign investments.

In addition, the report continues, drought conditions have appeared in several Pacific small island developing States and, in several instances, that has not been sufficiently relieved by annual wet seasons. As a result, annual droughts have become progressively more severe. Although not necessarily to the same degree, all small island developing States experience constraints in the following areas: finance; skilled human resources for the implementation of sustainable development measures; and sustainable development institutions and administrative capacity. A common hurdle faced by small island developing States in all regions is the insufficiency of financial resources, relative to the enormity of the tasks to be accomplished.

The report states that small island developing States are profoundly concerned about the impact of climate change and sea level rise. As witnessed in recent years by a number of small island developing States, particularly in the Pacific, climate change and climate variability can have devastating effects on their economies. To ensure the sustainable development of small island developing States -- and even the survival of some -- concerted action at the international level to reverse the trend of climate change needs to be supplemented by adequate measures to allow those States to adapt to such change.

Looking to the future, the report goes on to say that the implementation of major measures takes considerable time and, even if resources were available, major goals could be attained only over the long term. What is important, therefore, is not to aim for rapid results, but for consistency in implementation. That will require that the Programme of Action be firmly placed on the political agenda at the national, regional and international levels. Further, it must be fully recognized by all as the framework for sustainable development activities in small island developing States.

The report is complemented by 16 addenda, each focusing on one major theme of the Programme of Action. The addenda deal with such topics as: waste management; national institutions and administrative capacity; regional institutions and technical cooperation; science and technology; energy resources; telecommunications; and maritime transport.

The report on the meeting of representatives of donors and small island developing States, 24-26 February 1999 (document E/CN.17/1999/18) states that the meeting, held at Headquarters, was intended to consider ways and means of assisting small island developing States in mobilizing resources to implement a range of sustainable development projects. At that meeting, there was consensus on a number of issues, such as the fragility and vulnerability of those States, the handicaps of small economies, and the need for comprehensive approaches to sustainable development planning in those States. It was also agreed that the informal consultations between the focal points of small island developing States and prospective donors should continue, with a view to discussing the issues raised during the February meeting.

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The Commission will also have before it the report of the Ad Hoc Working Group on Oceans and Seas and Small Island Developing States (document E/CN.17/1999/17). (For a summary of that report see Press Release ENV/DEV/500 of 19 April.

Statements

TAULA SALE TAGALOA, Minister of Lands, Survey and Environment and Tourism of Samoa, on behalf of the Alliance of Small Island States (AOSIS), said that the message of the Programme of Action for the Sustainable Development of Small Island Developing States was heard like a trumpet call for his delegation. It served as a rallying cry and a framework for determining strategies at the national, regional and international levels. Small island States had adopted strategies under the international coral reef initiative and South Pacific countries had set new fisheries policies and plans for coastal zone management. Also, a number of countries had drawn up master tourism plans and new regulations. Caribbean nations, for example, had set a joint strategy for sustainable tourism.

Small island communities were the custodians of large areas of the world's oceans, he said, and they had been placed at the front line to confront the threats of climate change and the resulting rise in sea level. The exposure and predicament of small island States underlined the urgency and it gave special authenticity to the concerns that they voiced. The solutions that small islands identified for implementation would point the way for larger countries. In essence, the small island agenda was the agenda for all. While responsibility for implementing the Programme of Action remained with small islands, they could not implement it alone. The problems they faced, and their origins, called for global response.

Since the Barbados Conference, the challenges of globalization and trade liberalization, in particular the erosion of trade preference, had seriously undermined the ability of small islands to compete effectively within the international trading system, he said. The threat of marginalization, compounded by vulnerabilities, including fragile environments and susceptibility to natural disasters, had hampered efforts to achieve sustainable development. The need for international support was crucial. Small island efforts must be supplemented by effective technical and financial support from the international community and the need for more focused action

at all levels, particularly with regard to capacity-building and the transfer of environmentally sound technology.

He added that the need for a partnership approach was the central message of Barbados, but his delegation feared that that message was not always being heard. Since the Conference, there had been a significant decline in overall disbursements to small islands. In that regard, there was a need for more effective existing partnerships and for a United Nations system that was more focused and able to support small islands. New partnerships were also needed, with better links with civil society and to the

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private sector. Also, benchmarks needed to be adopted at all levels to measure progress, and to help focus efforts. Such benchmarks should carry time frames within which performance must be assessed.

ROSA ELENA SIMEON NEGRIN, Minister of Science, Technology and Environment of Cuba, said positive advances had been made in her country's national strategies and actions, and in the coordination and support links between islands. Financial and technological support, however, had not reached the same levels. The Commission's themes for the session were of the highest priority. In Cuba, the annual average growth rate of visitors over the last seven years had reached almost 20 per cent. Cuban society had had to exert real efforts to minimize the negative effects.

In Barbados, in 1994, there had been concern about funding for national and regional efforts, she recalled. In the face of globalization and increased polarization between rich and poor, how was the world to feel? she asked. There were enormous differences in consumption rates between developed and developing countries. The richest, 20 per cent of the world's population, was responsible for 86 per cent of all private consumption. That same 20 per cent ate 45 per cent of all meat and fish, used 58 per cent of the energy, 84 per cent of the paper, 87 per cent of the vehicles and 74 per cent of the telephone lines. In contrast, the poorest 20 per cent was responsible for only 1.3 per cent of the world's private consumption, ate only 5 per cent of the meat and fish, did not consume energy or have vehicles and used only 1 per cent of telephone lines. Those irrational patterns of consumption must cease.

She said that in Barbados four years ago, Fidel Castro had said that consumer societies had ruined the environment, annihilated millions of plant and animal species, poisoned the world's waters and air and depleted its oil, coal and natural gas deposits. In return, such countries had left underdevelopment, poverty, dependency and debt. The principal problem was not growth, but rather distribution. Humanity was one family. It shared the same destiny.

While suffering from constant aggression and a lasting blockade, Cuba stood proud and sure of the path it had chosen, she said. It would continue its national efforts and continue to offer its experiences and support in the global search for ways that small island developing States, and humanity as a whole, could achieve a cleaner world that was economically more fair and socially just.

JACKEO RELANG (Marshall Islands) said his country would establish an inter-ministerial working group to prepare for its second Economic and Social Summit. That Summit would draw together all interested citizens and government officials to build national consensus for sustainable development and seek views on what sort of projects could be implemented. One outcome being sought was a revitalized National Commission on Sustainable Development, with broad participation. That Commission was envisioned to promote the principles of the Barbados Programme of Action. It would further endorse

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three main facets of the new policy thinking on priority areas for sustainable development: fisheries; tourism; and agriculture.

Any success achieved by his Government and people in addressing the country's development needs could only be fostered by continued international support, he stressed. The current decline in official development assistance (ODA) was disheartening. He hoped it did not indicate that donor countries were losing interest in the sustainable development concerns of small island developing States. The concerns of the Marshall Islands ran the full gamut of those expressed in the Barbados Programme of Action, and it would continue to be involved, in particular, with work on oceans, biodiversity and climate change.

On oceans governance, he said his delegation was aware of the controversy that seemed to be emerging. As the Marshall Islands was almost completely dependent on the oceans for significant aspects of its livelihood, it supported efforts aimed at strengthening the current management regime. While it was active regionally and nationally, his country was very concerned at possible duplication of efforts, and the undermining of initiatives due to a lack of coordination at the global level. For that reason, it fully supported the South Pacific position paper on the matter, as well as the statement made yesterday by the Solomon Islands.

Financial and resource constraints impeded the efforts of many small island developing States, he added. Such States did not want to duplicate processes, but rather to bring together the threads of what constituted sustainable development, in the current case as they related to ocean issues. He called on the Commission to produce tangible and better results, and to move forward with will and cooperation.

ISMAIL SHAFEEU, Minister of Home Affairs, Housing and Environment of the Maldives, said that indicators were needed to measure progress in sustainable development. Commonly used indicators, however, such as gross domestic product (GDP), had proven to be woefully inadequate, especially in measuring the sustainability of development and especially in small island developing States. The uncertainty and the lack of security in a rapidly changing world compounded the challenges faced in small islands. Small islands could not fully realize opportunities unless major global challenges were overcome. No challenge was more imperative than that of climate change.

He added that no discussion and no debate on sustainable development of small islands would be complete without taking into consideration their special vulnerabilities. In that context, there was a crucial need for the development of a vulnerability index. The implementation of the Barbados Programme of Action lagged far behind. Donor countries and multilateral agencies must reaffirm the commitments made in Barbados.

PIERRE LELONG (Haiti), on behalf of French-speaking countries, said small islands developing States were often made up of many tiny islands and that posed greater challenges for transportation and infrastructure. Small

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islands had an abnormal degree of vulnerability to natural disasters, as well as economic fluctuations. Many of them experienced strong population pressures on a limited amount of resources. Small islands also housed a number of unique species that were threatened with extinction, which should be of special interest to the international community if it wanted to preserve biodiversity.

He added that coral reefs were the marine equivalent of tropical forests, and their protection should also be of concern. Action should be taken in that regard, in particular through the international coral reef initiative. Small islands also housed some of the few reservoirs of fish stocks that had not been overexploited. International efforts must be taken to aid small islands in protecting their environments.

Small islands had made great efforts towards the implementation of the Programme of Action, he said. They were limited, however, in what they could do. Many environmental and economic problems were due to factors beyond their control. To enable them to adapt to challenges, they must have access to technical information for sustainable development. The international community should develop existing technical assistance programmes for small islands. There was also a need to: set up improved early warning systems to prepare for disasters; improve the treatment facilities of waste water; and regulate foreign ships that dump in the area of small islands.

FRANK LOY, Under-Secretary of State for Global Affairs of the United States, said island States had shown commendable commitment to the principles of sustainable development. The international community must respond to their commitment with equal resolve to implement the Barbados Plan of Action, and to explore creative ways to strengthen partnerships. The United States had long recognized the importance and the unique nature of small island developing States. It had historically maintained strong relationships with such States, and would continue to nurture those relationships.

The draft co-chairs statement pointed out a number of areas of the Barbados Programme of Action for special consideration, he said. Regarding climate change, it was undeniable that the small island developing States faced an extreme threat from the effects of climate change. It was not surprising that those States had been at the forefront of calling for a reduction of greenhouse gases. He looked forward to working with those countries to find ways that the clean development mechanism could be used to their advantage, once its details had been elaborated by the parties to the United Nations Framework Convention on Climate Change.

Regarding energy, he said the improper use of fossil fuels would damage fragile island environments and leave their infrastructure more vulnerable to weather events. Islands possessed wind, surf and sun in abundance, which were more resilient to natural disaster and did not contribute to global warming. Turning then to fisheries, he stressed the need to manage them sustainably and urged all countries that had not yet done so to ratify or accede to the United

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Nations Agreement on Straddling Fish Stocks and Highly Migratory Fish Stocks, the Food and Agriculture Organization (FAO) compliance agreement and implement fully the code of conduct for responsible fisheries. Only nine countries were needed to ratify the Agreement on Fish Stocks for it to enter into force.

Coral reefs were suffering from ecological disaster, he said. Five years ago, in Barbados, his country had proposed the International Coral Reef Initiative, which had since become an important international forum for addressing coral restoration and management. Continued focus on corals was needed, as they were a vital part of small island States sustainable development, and essential aspects of the earth's biological diversity. That point should be reflected in the Commission's decisions on oceans and seas. The upcoming General Assembly special session should focus on improving donor coordination and strengthening partnerships in mainstreaming development activities. He looked forward to continued collaboration on the issues involved.

MARC GEDOPT (Belgium), on behalf of the European Union, said his delegation recognized the vulnerability of small island developing States. They were particularly vulnerable to negative environmental impacts caused by human activities, as well as to natural disasters and climate change. During the donors conference, the European Union learned about the many efforts by small islands for sustainable development. National and regional efforts were needed, as well as financial resources, to help them carry out such activities.

Small island initiatives for development must promote full participation of all relevant groups of civil society. Their success required the full cooperation with neighbours at the subregional and regional levels. The Union would continue to support such cooperation and their respective institutions. Also crucial was helping small islands create the human and technical capacities for development. Indicators and benchmarks were also needed to provide the framework for evaluating progress and strategies for sustainable development.

JAMIE CURRIE, Director-General for Environment, Nuclear Safety and Civil Protection of the European Commission, also on behalf of the European Union, said that 26 island States were linked to the European Union through the Lomé Convention, which recognized their special circumstances. For the period 1996 to 2000, the Community had committed more than 1 billion euros to those islands for development assistance. Such donor cooperation was crucial for small islands, which could not alone respond to many environmental and economic challenges. His delegation welcomed efforts to increase dialogue between the international financial institutions and the United Nations agencies for development cooperation.

The General Assembly special session on small islands must provide a good basis for donor cooperation. The Union would work to provide small islands with secure access to markets for their products. Also, trade and investment policies in relation to small islands must be improved. The

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international community must ensure that small islands were able to participate more actively in the multilateral trading system. The flow of private investment to small islands must be increased and sound maroeconomic and political conditions must exist to encourage such investment.

A.P. NEEWOOR (Mauritius) said the erosion of preferences in the global market place under the World Trade Organization (WTO) rules generated concerns for his small island country. Given the vulnerabilities of small island developing States, it was unrealistic to assume that their exports could compete with those from large economies. Such States faced many disadvantages and the global market place was not a level playing field for them, in view of their vulnerabilities and fragile economies. Without special and differential treatment in the international trade system, the efforts of small island developing States to attain a reasonable standard of living were bound to suffer in the processes of globalization and liberalization. The Commission must address the issue.

Small island States were, over the foreseeable future, condemned to depend heavily on imports and must generate the necessary foreign exchange to ensure that they were in the business of exports as well, he said. The contrary scenario was one of eternal borrowing and indebtedness, deprivation, tensions and unsustainable consumption patterns. In the post-General Agreement on Tariffs and Trade (GATT) era, small islands were unable to compete for foreign direct investment.

The development of a vulnerability index for small islands required priority attention by the international community, particularly by the international financial institutions, which currently used GDP alone to determine the eligibility for access to concessional financing. One must question whether GDP correctly reflected living standards in countries burdened by vulnerability factors. The Commission should address: the impact of globalization and liberalization; the need for special and differential treatment in the WTO; the early development of a vulnerability index to facilitate access to concessional finance for development; and assistance for environmental protection and related projects.

NAVIN CHANDARPAL, Adviser to the President of Guyana on Science, Technology and Environment, said that small islands had a limited capacity to respond to natural disasters and that resulted in serious consequences for their people. Small islands could not be treated in the conventional form of relations between States. Nations must help them, through additional financial resources as well as facilitate the transfer of environmental technology. Small islands were battling against the clock for survival and immediate steps must be taken to promote development in those States.

He added that special approaches were needed to improve cooperation to promote sustainable development for small islands. Small islands in the region had proposed making the Caribbean a special area in the context of sustainable development. The vulnerable and endangered peoples of small islands were hoping that the Commission would provide the basis for a General

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Assembly special session that addressed the crucial problems facing small island developing States.

SONIA LEONCE (Saint Lucia) said the international community had recognized that small islands must grapple with a special array of difficulties, due to their remoteness, problems of transportation and communication and their vulnerability to natural disaster. The Lome Convention provided for special trade preferences for small islands to aid their development. However, it was in contravention to the rules of international trade, because such rules prohibited trade preferences. In that regard, international trade exposed the weak and vulnerable to the full blast of economic integration and globalization. While her delegation did not disagree with free trade principles, such principles should not exclude or discriminate against vulnerable groups.

She added that some countries believed that the international economic system should be allowed to progress unchecked. However, that progress would eventually be halted if the system degraded and discriminated against peoples. The world financial structure should have a human face, based on moral values, not on dollar signs. Islands took responsibility for their development and were trying to bring reality to the dream of sustainable development. However, they needed genuine partnership with other nations. That meant having a respectable level of ODA. Also international financial institutions, such as the World Bank and the International Monetary Fund (IMF), should recognize the special vulnerability of small islands.

SUBHAS MUNGRA (Suriname), associating himself with the statements by the AOSIS, the "Group of 77" developing countries and the Caribbean Community (CARICOM), said that although his country was not an island, the same characteristics of vulnerability that had compelled the international community to address the specific needs of small island developing States also applied to Suriname. Based on its low-lying coastline, where the majority of the population lived and economic activities were concentrated, the consequences of global warming and the ensuing global climate change and rise in sea level would have a tremendous, if not fatal, impact on Suriname's ability to attain sustainable development and even to survive.

Moreover, he added, a rise in sea level would also have as a consequence the disappearance of Suriname's mangrove forest, a major spawning and nursing ground for shrimp, fish and other marine life in the Caribbean region. Such a disaster would seriously hamper Suriname's efforts to achieve sustainable development.

He said Suriname remained optimistic with regard to the outcome of the special session in September. However, Suriname was concerned by the lack of political will shown by some of its partners in fulfilling the commitments made at the Barbados Conference. That was one of the main reasons why little progress had been made in the overall implementation of the Programme of Action. Although he welcomed the general acknowledgement by the international community of the specific vulnerability of small island developing States,

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that was not enough. The international community must urgently provide the necessary resources to significantly reduce the threats to which small island developing States were exposed.

PATRICIA DURRANT (Jamaica) said that the Barbados Programme of Action represented a clear commitment by the small island developing States to pursue sustainable development in a comprehensive manner. At the national level, Jamaica had systematically pursued the articulation of modern legal and institutional frameworks to provide the basis for development in an environmentally sustainable manner. In the past four years, Jamaica had defined and implemented several key national policies in that area.

National activities had been supported and supplemented by action at the regional level, she continued. The effort to implement the Programme of Action had heightened sensitivity to wider issues of sustainable development and had given momentum to major new initiatives pioneered by Caribbean organizations. Jamaica was pleased with progress made on the development of the small island developing States information network and the Technical

Assistance Programme, which had been initiated by the United Nations Development Programme (UNDP). There was, however, scope for much more.

The inadequacy of resources had been identified as the single most important factor hindering implementation of the Programme of Action, she said. Along with limited support from the international community, it had undermined progress in a number of key areas integral to the development of the indigenous capacity of small island developing States. In order to assist those States in overcoming those constraints, a meeting with the donor community had been held in February this year. Jamaica viewed that meeting as an opportunity for a practical review of national and regional implementation of the Programme of Action and for reaffirmation of the international support for it.

LAMUEL A. STANISLAUS (Grenada) said he wished to focus on one aspect of the sustainable development of small island developing States -- such natural disasters as floods, hurricanes, earthquakes, typhoons, volcanoes and tidal waves, among others. In the Caribbean region in the past four years, the tiny island of Montserrat was a perfect example of mankind's helplessness in the face of intermittent volcanic eruptions. Recent hurricanes in Saint Kitts and Nevis, Antigua and Barbuda, Santo Domingo and Cuba, among others, pointed to the need for the sustainability of the small islands, lest they be wiped off the face of the map by destructive forces over which they had no control. The destruction of life and property, including the destruction of the banana plantations -- the life blood of some -- was appalling.

Rebuilding was a most difficult and frustrating exercise, he said. Some of the small island developing States built and rebuilt, without knowing how soon a natural disaster would again strike. He hoped the General Assembly special session in September would result in the establishment of a permanent disaster relief fund for the sustainable development of the small island

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developing States. The February donors conference for small island developing States, in reviewing the many project proposals submitted, should give the creation of a permanent disaster relief fund the highest consideration and priority.

SAKIUSA RABUKA (Fiji) associated his country with the statement made previously by the representative of Samoa. The emerging differences among principal actors over the implementation of the outcomes of the Barbados Programme of Action and Agenda 21 had dampened Fiji's enthusiasm and compelled it to question exactly what agreements had been reached. The Barbados Programme of Action recognized specific constraints faced by small island developing States. As identified by the Secretary-General, those included narrow ranges of resources, over dependence on international trade and overuse of natural resources. Such factors, combined with low ODA levels and skewered foreign direct assistance, had impaired the ability of States to implement their commitments.

The globalization of trade and financial markets had threatened to marginalize those States further, he said. The WTO decision on Caribbean bananas had created anxiety among African, Caribbean and Pacific States and called into question the ability of international institutions to consider the interests of small and vulnerable developing States. As international trade was the only engine for long-term sustainable development, trade preferences should be retained to provide the foundation for the development of small island States. Trade preferences had also contributed to increased national income, job creation and international competitiveness.

He urged that more help be provided to small island States to develop infrastructure. As the ocean was the principal resource for many South Pacific Forum countries, exploitation of deep sea minerals offered potential funding for sustainable development. He called on the international community to assist in the establishment of institutional capacity, the assessment of resource information and the development of policies and legislative regimes. He agreed with the United Kingdom's statement yesterday that governments must face their responsibilities. If the international cooperation and partnership envisaged in Barbados and Rio were to be meaningful and genuine, it was incumbent on all governments to transform rhetoric into deeds.

MICHAEL POWLES (New Zealand) said that small States needed to take full advantage of the rapid globalization of trade and finance. They could not opt out of the system nor, with the global downward trend in tariffs, expect long-term preferential support from the industrialized world. They did need to establish a sound policy environment to encourage private sector investment. On the other hand, however, the special circumstances of small island developing States needed to be taken into account in the next phase of trade negotiations under the WTO. Adjustment was inevitable, but it had to be recognized that small island developing States faced costs in making that transition, before the longer term gains could be realized.

RAWLE EASTMOND, Minister of Environment, Energy and Natural Resources of

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Barbados, speaking on behalf of CARICOM, associated himself with the statements by the "Group of 77" developing countries and China, and AOSIS. He said progress within CARICOM of the Barbados Programme of Action had been hampered by the lack of adequate human and financial resources. In particular, declining external resource mobilization had reflected the sharp downward trend of ODA and had become a serious constraint to the Programme's implementation. More generally, globalization and trade liberalization, while offering potential opportunities, had had negative consequences for small island developing States, given their limited resource base and lack of economic diversity.

Implementation of the Programme of Action had reached a critical stage, he said. One of the most significant tasks before the current session of the Commission was its role as the preparatory committee for the General Assembly special session in September. In reaffirming their own deep commitment to the Programme of Action, CARICOM would wish for a similar affirmation and renewal of support for the Programme by the international community. The vulnerability of small island developing States was now better understood, thanks in part to the ongoing technical work within the United Nations system and other key international institutions, particularly work in developing the methodology for a vulnerability index.

He said the question of resources was also of crucial importance. What were the prospects for arresting a resource trend that had brought the performance of ODA to its lowest level ever? he asked. How could such global programmes as the Barbados Programme of Action be successfully implemented given the erosion of critical financial support? Capacity-building remained an area of priority for all small island developing States. More generally, to what extent could international support be mobilized to help small island developing States cope with the transitional costs of globalization and trade liberalization, as they sought closer integration into the global economy? With new resolve and the continued cooperation and support of international partners, the implementation of the Barbados Programme of Action could be strengthened and its long-term viability ensured.

Dialogue

The Commission then reverted to its dialogue format, focusing on its role as the preparatory body for the General Assembly's upcoming special session to review implementation of the Programme of Action for Small Island Developing States, adopted in Barbados in 1994.

The representative of Antigua and Barbuda, who had overseen the drafting of the draft text being considered, introduced it and reported on negotiations so far. The major issue was section D, which dealt with trade. Discussions were ongoing, and the present text had already been overtaken by negotiations. Another issue that required guidance was paragraph 11, sub-paragraph 13, on the transboundary movement of hazardous waste. The language of that sub-paragraph had been taken directly from the Barbados Programme of Action, yet there was controversy over including it.

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On language concerning sexual tourism and its connotations, he said that some felt the issues were important, but that they should be dealt with in the Commission's consideration of sustainable tourism, rather than the current document. Regarding resource mobilization, he said there was disagreement on how gross national product (GNP) should be included and three alternatives were listed. Resource mobilization and the decline of ODA were other areas requiring guidance. Whether or not there should be a comprehensive review of the Barbados Programme of Action in five years time was another issue.

The Commission CHAIRMAN said the paragraph on hazardous waste was exactly that of the Barbados Programme of Action. The Commission should recommend at least adhering to the original document, which had to be the bottom line in the review.

The United States representative, however, said that the issue was also being dealt with in the document on oceans. In the current document, the language was indeed the same but its placement was not, so the implications were different. The issue could not be concluded before a full discussion was held in the context of oceans and seas. There were legal implications. Also, the language was internally contradictory since the right asserted at the beginning of the action was inconsistent with other aspects of international law.

[The disputed paragraph reads:

[(xiii) accept the right of Small Island Developing States to regulate, restrict and/or ban the importation of products containing non-biodegradable and/or hazardous substances and to prohibit the transboundary movement of hazardous and radioactive wastes and materials within their jurisdiction, consistent with international law.]]

The representative of Germany, speaking for the European Union, asked for further consultations on the issue. The Union hesitated to take language verbatim from the Programme of Action, since five years had passed and there had been significant developments. One example was the new treaty on nuclear waste. The Barbados Programme of Action should be given perspective in the new document. He endorsed the view of the United States.

China's representative said the issue was of utmost importance and must be reflected. As to how and where, it could not be resolved today.

The representative of Australia said the provision did not sound threatening, and the United States had not provided a substantive argument to omit it. The last four words of the proposed paragraph were: "consistent with international law". Since it was consistent with international law, and if developing island States felt it would be to their advantage to have the issue restated, then it should be done.

Next, the Commission turned to the matter of trade.

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The representative of the Marshall Islands asked about the decisions of the WTO. Fiji and New Zealand had put it in better perspective.

From the World Bank, a speaker said he supported the debate on vulnerability. Aggregate income was not a sufficient measurement. While GDP was a useful indicator, it did not measure the kinds of vulnerability and the special circumstances that small island States faced. Other factors should be considered. The first was aggregate income vulnerability, where trade shocks and other factors could affect aggregate income levels. The second was targeted vulnerability. Poor people in poor countries were most vulnerable to such shocks and systems must be in place to direct assistance accordingly.

The third issue was physical vulnerability, he said, including emerging concerns over weather change and climate issues. International financial institutions must respond with more flexibility. Developing island States were small, which meant that they became specialized, and that in turn rendered them more vulnerable. A greater array of financial efforts were needed, with more strategic and targeted investment for those who were genuinely more vulnerable.

The representative of Norway said he supported strongly efforts to examine the vulnerability of small island States and his country would work in that regard to create a vulnerability index.

The representative of Mauritius said the special session should focus on the issues of trade and vulnerability. He added that small islands had not had adequate participation in the creation of trade standards and that had led to disadvantages for them in the international system.

The representative of Saint Lucia asked the World Bank if small islands were to be involved in discussions on vulnerability.

The representative of the World Bank said those discussions would include small islands.

The representative of the Bahamas asked if vulnerability indicators would be based on a country's GNP or GDP.

The World Bank representative said GNP was more vulnerable to shifts in tourism and commodity prices. The challenge was to examine ways to reduce the risks and fluctations to GNP.

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, said the criteria for determining least developed country status rested on a number of factors, such as social and physical infrastructure, and it was not only based on GNP and GDP.

India had more than 1,300 small islands, its representative said. In that regard it attempted to implement the Barbados goals and 30 small islands were covered under India's development assistance programme. The special

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session should identify concrete constraints to the development of small islands and find answers to address them.

A speaker for the Marshall Islands asked if GDP was used as the first cut off point for determining least developed country status.

Mr. DESAI said that a whole string of factors were used to determine least developed countries status. However, GDP was used as a cut off. He added that there were only three or four island countries classified as least developed.

The CHAIRMAN said there could be some discussion on the issue of sexual tourism. He said that some countries seemed to think there should be specific reference to it in the small island text, while others believed it should be left only to the text on tourism.

Delegations made no comments on that issue.

The representative of China said sustainable development of small islands was an important part of development of the world at large. The assistance of the international community was needed and it should pay greater attention to the development of small islands -- particularly in regard to financial resources. The Commission should encourage efforts in that regard.

The representative of Saudi Arabia said his delegation could not agree with the provision in the Commission's draft text that would have small islands promote standards and guidelines for energy efficiency and conservation. Such measures could be applied to developing countries in general.

A representative of the Small Island Developing States NGO Caucus said he was concerned that the language approved and commitments made in Barbados five years ago was now being placed in brackets by some countries. Some of the most serious bracketed text was on the question of transshipment of hazardous and nuclear materials and the commitment of financial resources.

The representative of Australia said he disagreed with the statement made by Saudi Arabia. Small islands should be encouraged to promote standards and guidelines for energy efficiency and conservation. He added that the Commission should stress the use and creation of benchmarks for development, to test whether efforts were successful.

The representative of Norway said the special session should strengthen implementation of the Barbados Programme of Action. His delegation would hate to see a weakening of its commitments.

A Green Peace representative said the transport of nuclear and hazardous waste was a concern and there was an increase of that in the Caribbean. The Commission should support the right of small islands to prohibit such practices.

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The representative of the Bahamas said the Commission should avoid efforts to place such qualifiers as "where appropriate" in the text of its draft resolution on the special session. Those efforts were attempting to change the priorities of the Barbados Programme of Action.

The representative of Samoa said that the vulnerability of small islands was considered a priority in the Barbados Programme of Action. A vulnerability index should be used not only by the United Nations, but by international financial institutions, as well. Also, he said the special session should focus on just a handful of issues that needed priority attention. There was a tendency for countries to overload the special session with considerations that were best kept elsewhere.

The speaker for Guyana said there was a need to ensure that the Commission re-emphasized the Barbados Programme of Action and recommitted to its fundamental principles.

The representative of Mauritius said attention should be paid to the issue of the review of the Programme of Action. To ensure implementation, five-year reviews should be continued.

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