COMMITTEE ON REVIEW OF TECHNICAL COOPERATION AMONG DEVELOPING COUNTRIES OPENS ELEVENTH SESSION AT HEADQUARTERS

1 June 1999

Press Release
DEV/2210

COMMITTEE ON REVIEW OF TECHNICAL COOPERATION AMONG DEVELOPING COUNTRIES OPENS ELEVENTH SESSION AT HEADQUARTERS

19990601 Speakers Address Role of UN System, Triangular Funding Arrangements; UNDP Administrator Says Developing Country Cooperation New Wave of Development

The High-level Committee on the Review of Technical Cooperation among Developing Countries began its eleventh session this morning, with speakers emphasizing the important role of technical cooperation among developing countries (TCDC) in the United Nations development system and the part developed countries could play, in particular through triangular funding arrangements.

The Administrator of the United Nations Development Programme (UNDP), James Gustave Speth, said cooperation among developing countries was the new wave of development. Developing countries in general were interested in excellent examples provided by other developing countries. The United Nations could promote South-South cooperation enormously through its offices all over the world, as could the donor community by committing resources into trilateral assistance.

Opening the session, the Committee's President told the Committee that the growing number of donor countries to TCDC indicated the value of triangular cooperation. Further, the TCDC modality had assumed an important role in the activities of the United Nations system. It also played an important role in both the bilateral and multilateral activities of developed and developing countries.

Speaking on behalf of the European Union and associated States, the representative of Germany said that while triangular funding arrangements for TCDC were particularly important, such funding should not compromise the integrity of TCDC initiatives, which needed to be managed and implemented by the developing countries. The target of all technical cooperation was to enhance local capacities. Developing countries had the primary responsibility for taking the initiative, making decisions and ensuring implementation and financing.

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Guyana's representative, speaking on behalf of the "Group of 77" developing countries and China, said the increased differentiation among developing countries would not undermine their ability to engage in effective cooperation. Members of the Group remained united by a common sense of deprivation and exclusion from the benefits offered by the international economic system. It was paradoxical that those who wished to deny increased cooperation among developing countries were themselves seeking to strengthen patterns of cooperation among themselves.

The representative of Bangladesh said triangular cooperation had enormous potential in enriching the content, dynamics and resource base of South-South cooperation. Systematic documentation and information sharing on TCDC triangular arrangements was vital. The upcoming South Summit in Havana next April would be an important opportunity to explore the potential and opportunities of greater South-South cooperation.

Also speaking this morning were the representatives of Jamaica, India, Brazil, Tunisia, Cuba, Grenada and Japan.

Statements were also made by the Associate Administrator of UNDP and the Director of the Special Unit for TCDC, as well as by the representative of the Food and Agriculture Organization (FAO).

The High-level Committee will meet again at 3 p.m. today to continue its general debate.

High-level Committee Work Programme

The High-level Committee on the Review of Technical Cooperation among Developing Countries met this morning to begin its eleventh session. The theme of the session, "The Role of Technical Cooperation among Developing Countries (TCDC) in Accelerating Growth and Equitable Development through Broad-Based Partnership", was selected by the Committee during its organizational meeting of 4 May (see Press Release DEV/2207). (For background, see Press Release DEV/2209 of 28 May).

In addition to reports previously summarized, the Committee also had before it a report concerning the Administrator of the United Nations Development Programme (UNDP) (document TCDC/11/3) relating to implementation of the guidelines for the review of TCDC policies and procedures by the United Nations development system, as well as organizational and supportive structures for TCDC.

Regarding implementation of the guidelines, the report states that the movement towards a more liberalized trading regime resulting in the globalization of markets and production structures has underlined the continued validity of TCDC as an instrument enabling developing countries to participate fully in the newly emerging economic order. Against the backdrop of an altered global economic and political environment, the revised guidelines for the review of policies and procedures concerning TCDC provide a strengthened framework for the expansion of South-South cooperation.

According to the report, the overall goal of the revised guidelines is to mainstream the TCDC modality into the operational activities for development of the organizations and agencies of the United Nations system. Among the key elements of that objective is the necessity for a system-wide policy to promote closer operational integration between TCDC and economic cooperation among developing countries (ECDC) to ensure that TCDC serves as a strategic instrument in the service of wider schemes among developing countries.

With regard to organizational and supportive structures, the report says that the operational integration between TCDC and ECDC has made significant strides in nearly all development areas, including food and agriculture, health, gender in development education, trade, and investment and research. Organizations of the United Nations system are assisting developing countries to articulate national policies on ECDC/TCDC and have received substantial contributions from a number of developing countries in support of ECDC/TCDC activities.

The report states that in the 1997-1998 biennium, the Special Unit, working within the framework of the new directions strategy, adopted a more focused approach, emphasizing longer-term partnerships with such entities as

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the South Centre and the Third World Academy of Sciences. It has continued initiatives to strengthen the use of information technology. Of particular interest is the re-tooling of the TCDC information referral system to facilitate greater access to experiences, skills and know-how available in developing countries.

According to the report, the UNDP Executive Board, by decision 95/3, allocated 0.5 per cent of the agency's core programme resources to the promotion of TCDC during the current programme period (1997-1999). The Special Unit also had approximately $1.3 million carried over from the previous programming cycle (1992-1996). However, due to UNDP's overall resource situation, it was subsequently decided that the allocations should cover the period 1997-2000. Those resources enabled the Special Unit to formulate a distinct programme beginning in 1997.

In addition, the report states, $8 million was made available by the Japan Human Resources Development Fund for the promotion of TCDC; $300,000 was provided by the Government of the Republic of Korea to the Voluntary Trust Fund for the Promotion of South/South Cooperation; and the Government of Ireland made a project-specific contribution of approximately $40,000. Actual expenditures during 1997 were $4.53 million; projected expenditure levels for 1998 and subsequent years of the cycle are expected to adhere to that trend.

Statements

PATRICIA DURANT (Jamaica), President of the High-level Committee, said technical cooperation among developing countries had evolved as an integral part of an effective mechanism facilitating the exchange of know-how, skills, technology and best practices among developing countries. Last year, at the commemoration of the Buenos Aires Plan of Action, the General Assembly had reaffirmed the validity of the Plan with the singular message that utilization of the TCDC modality should be expanded in development cooperation. South- South cooperation was thereby recognized as an important element of international cooperation and an essential foundation for national and collective self-reliance.

In recognition of the increasing relevance of technical cooperation among developing countries, she continued, the "new directions" strategy, with its emphasis on strategic priorities such as trade and macroeconomic management, had served as a stimulus for use of the TCDC modality. The Special Unit for TCDC had taken up the challenge and had expanded the use of the TCDC modality throughout the United Nations system. Funding continued to be of vital importance for the Unit, since it was the only area ensuring a United Nations role in the building of partnerships in the South.

The strategy of capacity and partnership building for the expansion of TCDC had been a major focus over the past two years, she continued. The TCDC

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modality had facilitated the exchange of expertise and the strengthening of operational networks among developing countries in the priority areas recommended by the new directions report. It had deepened South-South policy dialogue, enhanced South-South channels of communication and the sharing of best practices. It had mobilized broad-based support for TCDC and ECDC. It had been utilized in a broad array of networks in Asia, Africa, the Pacific, Latin America and the Caribbean, and partners in South-South cooperation had taken a keen interest in the modality through the concept of triangular cooperation.

The growing number of donor countries indicated the value of triangular cooperation, she concluded. The TCDC modality had now assumed an important role in the activities of the United Nations system, and in the bilateral and multilateral activities of developed and developing countries.

ZEPHIRIN DIABRE, Associate Administrator of UNDP, said that as the century was ending, a new era of globalization had begun, marked by increased integration of world markets fuelled by liberalization and the information revolution. The phenomenon had raised hopes that greater openness and the freer movement of factors of production would create increased opportunities for trade, capital flow and technological development, and that those would result in economic expansion and higher living standards worldwide. Those hopes were yet to be realized. One fifth of humanity, for example, still survived on $1 per day.

The basic principles of TCDC -- solidarity, collective self-reliance, international cooperation for development and concerted efforts to build an equitable global economic order -- were more important than ever, he continued. What the world had learned of the "contagion effect" of financial crises in recent months demonstrated the interdependence of the new global economy. The raison d'être of TCDC was stronger than ever, as the South continued its search for collective self-reliance and effective integration into the global economy. It was encouraging that South-South technical and economic cooperation had made considerable progress during the past two years.

As developing countries acquired and consolidated development capabilities, he continued, they were taking the lead not only in participating in externally supported TCDC activities, but also in initiating and funding such activities under national budgets. Also, most TCDC activities had moved from "single-type" training or study tours to more sophisticated and complex forms of exchange. Cooperation among developing countries was changing from mostly bilateral or intraregional to more interregional and global cooperation. Institutional support was giving way to private sector-oriented activities and conventional horizontal TCDC cooperation was being enriched by more dynamic and vibrant South-North-South triangular cooperation arrangements. Also, TCDC had moved from spontaneous or ad hoc interventions to more deliberate and long-term initiatives. Finally,

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monotypic one-to-one TCDC activities were increasingly being replaced by more concentric circles, with one country or one centre of excellence serving many others.

All those tangible examples constituted testimony of the continued relevance of the objective of the Buenos Aires Plan and the validity of the new directions strategy, he stated. The progress could not have occurred without the commitment of the United Nations system. The UNDP remained the most significant source of funding for TCDC. The UNDP had also refined its corporate strategy to ensure that TCDC was a first consideration in designing and implementing programmes, one against which senior managers were held accountable.

In conclusion, he said, South-South cooperation was not just a concept or an end in itself. It was an important means of freeing people from poverty, isolation and joblessness, and from environmental degradation. The success of TCDC required the collective efforts of all development partners, with developing countries in the driver's seat and with the strong support of the donor community and the entire multilateral system. Finally, global support for TCDC, especially by the multilateral system, could be sustained only through support that was provided on a systematic and predictable basis.

JOHN OHIORHENUAN, Director of the Special Unit for TCDC, introducing the documentation submitted for the High-level Committee's consideration, said that in preparing the reports, the Special Unit had drawn on three primary sources: information received in response to questionnaires sent to all member governments, United Nations system organizations and agencies, including regional commissions as well as relevant intergovernmental and non- governmental organizations; information generated from Special Unit-sponsored activities; and other relevant information obtained from the public domain through formal and informal contacts.

He said that altogether, replies had been received from 60 developing countries, four developed countries, 23 United Nations organizations and agencies and nine intergovernmental and non-governmental organizations. Although the responses had fallen short of expectations, they did reflect a significant increase, in quantity and quality, as compared to previous years. Accordingly, while not exhaustive, the documents shed considerable light on TCDC activities since the High-level Committee's tenth session.

During the reporting period, the UNDP remained the most significant source of funding for the TCDC activities, accounting for more than 50 per cent of the United Nations system's total estimated annual expenditure of $100 million on such activities. A recent internal review also revealed that more than 50 per cent of UNDP's regional and country programmes had included TCDC either as an implementation strategy or as specific project components. There was good reason to believe that trend would continue to

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grow, as senior managers were expected to apply TCDC as a viable programme delivery tool across all programmes.

SAMUEL R. INSANALLY (Guyana), speaking on behalf of the "Group of 77" developing countries and China, noted that some critics had argued that the increased differentiation among developing countries had undermined their ability to engage in effective cooperation. That argument could not be sustained, however, since the Group continued to function as a dynamic entity. The reality was that its members remained united by a common sense of deprivation and exclusion from the benefits offered by the international economic system. It was noteworthy and paradoxical that those who wished to deny increased cooperation among developing countries were themselves seeking to strengthen patterns of cooperation among themselves.

He said ECDC and TCDC reflected the continuing commitment of the developing countries to strengthen their solidarity for the dual purpose of supporting their national development efforts and also of ensuring their effective participation in the international economic system. Developing countries recognized their primary responsibility for promoting TCDC and ECDC. They were, therefore, determined to explore the possibilities of such cooperation in order to maximize the prospects of their individual and collective development.

Nevertheless, the developing countries needed and, therefore, welcomed the support of the United Nations system and interested developed countries. Those countries attached great importance to initiatives carried out within the framework of triangular cooperation, in which developed countries provided bilateral and multilateral financing to facilitate cooperation among developing countries. That should not imply, however, that the developed countries should participate in TCDC and ECDC on the same basis, since that would distort the meaning of South-South cooperation, which was distinct from, but complementary to, North-South cooperation.

Developing countries welcomed the support provided by the United Nations system and developed countries and looked forward to receiving information on their efforts on a continuing basis, he said. However, the Administrator of the UNDP and the Special Unit for TCDC should systematically collect information on activities undertaken on the initiative of the developing countries themselves and make such information available on an annual basis. That step would be a useful way of informing developing countries about the various TCDC activities that had been carried out.

He said developing countries were aware that the promotion of TCDC depended on the provision of adequate funding for that purpose. Governments were urged, therefore, to provide increased contributions to the Trust Fund on South-South cooperation established by the Administrator of UNDP at the request of the General Assembly and also the Perez Guerrero Trust Fund

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established to provide funding for small-scale projects geared to the promotion of South-South cooperation.

RAINALD ROESCH (Germany), spoke on behalf of the European Union and the Central and Eastern European countries associated with the Union, as well as Cyprus and Iceland. He said South-South cooperation through TCDC/ECDC was an important complement to traditional development cooperation. The best way to maximize the potential and impact of TCDC was to make it an integral part of national and international strategies. Developing countries had the primary responsibility for taking the initiative, making decisions and ensuring implementation and financing. TCDC's progress was largely dependent upon the commitment of concerned governments making it their priority in national programmes.

The target of all technical cooperation was to promote and enhance local potential and capacities, he continued. It was a sign of broad-based partnership that experts from developing countries had been assigned with growing success under official development cooperation. The objective was to ensure national responsibility and ownership and to use the resources available in partner countries. Also, it was a recognition of including other developing countries, with the consent of the respective partner country, into suitable technical cooperation programmes, the so-called triangular cooperation.

The Union supported the use of TCDC/ECDC in such areas as: the promotion of intergovernmental institutions in developing countries; programmes that had importance in terms of TCDC for other developing countries; technological cooperation with developing countries; and training in other developing countries, as well as in financing experts from developing countries. While triangular funding arrangements for TCDC were particularly important, it was important that such funding not compromise the integrity of TCDC initiatives, which needed to be managed and implemented by the developing countries.

The Union supported multilateral institutions, especially the United Nations system, in the case of TCDC, he said. The TCDC/ECDC modality should be mainstreamed, so that it was not regarded as a separate area of activity. Efforts should be intensified to improve developing country access to communication technology and its use of it, and the guidelines for enhancing and accelerating the use of the TCDC modality should be implemented.

DIANE QUARLESS (Jamaica) said she recognized there were certain constraints, such as insufficient awareness of TCDC's full potential and its importance for countries, the need for further coordination among various agencies involved in TCDC and the fact that effectiveness was often limited by inadequate human and financial resources. Developing countries must continue to formulate national policies and strengthen national focal points and make

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greater use of the TCDC Web of Information for Development (TCDC/WIDE). She welcomed the expansion of the Information Referral System into a multidimensional Web of Information for Development and hoped it would be the gateway through which developing countries would be able to share their capacities and successful development practices.

She said she could not stress strongly enough the impact of the inability of some government agencies to provide supportive financial resources to TCDC exchanges. The present economic reality of scarce resources had reduced the ability of ministries to finance those activities, in light of pressing national demands on their regular capital and recurrent budgets.

Emphasizing the importance of strengthening the Special Unit for TCDC, she thanked the Unit for its support of a number of initiatives in respect of small island developing States. The Unit had responded to the development challenges shared by those States. The Special Unit had assisted in: the preparation of the small island developing States technical assistance programme; the assessment of unmet technical cooperation needs and priorities in various small island developing States regions; and the launching of a pilot small island developing States information network. The small island developing States would continue to work closely with the Unit.

ANWARUL KARIM CHOWDHURY (Bangladesh) said the relevance of TCDC was strongly reaffirmed by the General Assembly last year when it requested the United Nations system to take measures to improve the effective incorporation of TCDC into programmes and projects and to intensity efforts to mainstream the TCDC modality. An essential element of the TCDC plan of action had been its regular biennial review by the High-level Committee, which helped identify and update measures to strengthen TCDC. The new directions strategy, emphasizing the need for a more strategic and substantive orientation for TCDC, had been a relevant step in responding to the challenges of the global economy.

The experience achieved in promoting TCDC in social development areas should be elaborated by the Secretariat in order to illuminate possible opportunities for collaborative arrangements there, he said. Also, governance issues were fundamental to the success or failure of the TCDC modality. Broad-based partnerships in South-South cooperation and in utilizing the TCDC modality should enhance sustainability and the substance of development efforts. Triangular cooperation had enormous potential in enriching the content, dynamics and resource base of South-South cooperation. Systematic documentation and information sharing on TCDC triangular arrangements was vital.

Resources for TCDC activities should be increased, especially in the emerging social development area, he concluded. The upcoming South Summit in Havana next April would be an important opportunity to explore the potential

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and the opportunities of greater South-South cooperation. The United Nations system and the TCDC Unit should be closely involved in that event.

S.T. DEVARE (India), associating himself with the position of the Group of 77 and China, said a broad consensus appeared to be evolving on what economic policies were likely to work, with a much greater acceptance of the role of markets and the private sector, as well as the desirability of open trade and investment policies. The process of globalization, facilitated by the adoption of more open economic policies by most countries, had accelerated the process of integrating developing countries into the global economy. Financial deregulation had unleased a flood of private capital flows across borders, adding a new dimension to the concept of international interdependence.

He said that, as a longstanding, strong and committed proponent of South-South economic cooperation, his country was keen to reaffirm its desire to be at the forefront of international efforts at revitalizing that crucial aspect of South-South relations. His country's support for the efforts of the United Nations system in promoting South-South cooperation, of which TCDC occupied a prime position, had been unwavering. That commitment was further underscored by the longstanding bilateral programmes it had pursued to promote South-South cooperation.

LUIZ TUPY CALDAS DE MOURA (Brazil), associating himself with the statement of the Group of 77 and China, said the Special Unit's Web Information for Development had a strategic role to play in creating a dynamic network among focal points in developing countries and with donor countries. That network was essential in promoting contacts and disseminating experiences and lessons learned.

He was concerned by the overall decline in voluntary contributions to development activities. That trend challenged the universality of the United Nations and endangered the integration of the least developed countries into the world system, he said. It was necessary to identify new sources of financing for development, including from non-traditional and non-core resources. New partnerships were needed involving national institutions, civil society, the private sector, regional integration organizations, regional banks and the World Bank.

He said it was essential to give concrete meaning to paragraph 43 of General Assembly resolution 53/192, which mandated the executive boards of United Nations system funds and programmes to "review, with a view to considering an increase, the allocation of resources for technical cooperation among developing countries activities".

NACEUR GHARBI (Tunisia) said his country's participation in the session demonstrated its commitment to TCDC and South-South cooperation in general.

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Even before the Buenos Aires Programme of Action, Tunisia had established a structure for the promotion of TCDC in 1972 to mobilize Tunisian skills and to assist other countries to carry out development studies. It was important to note, however, that although being a donor country in technical assistance, Tunisia still needed technical cooperation, not only to help it master technology, but also to teach it how to transfer technology to other countries.

RAFAEL DAUSA CESPEDES (Cuba) said it was not a waste of time to repeat and emphasize the need for enhancing technical cooperation among developing countries. South-South cooperation, with attention to the particular circumstances of the countries involved, was the way for developing countries to enter the field of technological progress and the way to integrate technological progress at the global level.

Cuba delivered aid to other developing countries not only bilaterally, but also multilaterally, he continued. He cited a number of United Nations programmes in which Cuba participated, such as a programme of the Food and Agriculture Organization (FAO), and said TCDC among developing countries was not a luxury. It was an imperative, for implementation now. South-South cooperation was so particularly vital that Cuba would be hosting the South Summit next spring.

Interactive Exchange

Ms. DURRANT, President of the High-level Committee, opened the floor for an exchange of comments.

Mr. OHIORHENUAN, Director of the Special Unit of TCDC, said he had noted with interest the comment made by the representative of Germany regarding the mainstreaming of TCDC, which was a priority. Also important had been the same representative's point stating that the integrity of TCDC was an important factor to consider. "It must not be forgotten that the developing countries need to be in the driver's seat with regard to TCDC."

Also significant had been the observation that many TCDC activities, especially at the country level, were not being reflected in reports, he continued. One of TCDC's priority tasks was to improve the reporting mechanism without taking the reporting responsibility away from the countries themselves. Also, the information referral system was being retooled to make it Internet based.

In response to an issue raised by the delegate of Bangladesh, he said a population effort involving Columbia University and the World Bank had been so successful that the project had been able to mobilize its own resources outside the TCDC modality, notably from the Turner group. TCDC had been trying to take a more robust assessment of its activities over the years, such

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as through country visits. TCDC would continue a tightening of its focus and effectiveness.

Mr. RAMADHAR, Representative of the Food and Agriculture Organization (FAO), said the TCDC modality should be integrated with technical cooperative activities. The use of TCDC experts had been a first consideration for FAO. More than 1,400 experts had been used over the past 3 years. Mainstreaming of the TCDC modality would occur when all partners adhered to the TCDC modality and implemented it.

Mr. CHOWDHURY (Bangladesh) said he would like information on how the TCDC guidelines been incorporated into the United Nations system.

LAMUEL STANISLAUS (Grenada) said he had learned from the statements. The statement made by the representative of Cuba indicated that Cuba had put into effect what TCDC should be doing. Cuba was to be thanked for having helped Grenada in such areas as health.

Ms. DURRANT, President of the High-level Committee, summarized the statements made thus far. She highlighted observations of particular note, such as the need for multilateral cooperation to make better use developing country skills, the need to strengthen the mechanisms around focal points and the calls for increased financing of TCDC activities.

JAMES GUSTAVE SPETH, Administrator of UNDP, said that in the developing world and in the countries with economies in transition, there were outstanding examples of countries that were solving development challenges. It was really a question of learning about what was being done and making access to that information generally available. Cooperation among developing countries was the new wave of development. Developing countries in general were interested in excellent examples provided by other developing countries.

He said the United Nations could promote South-South cooperation enormously through its offices all over the world. That was not to say that the donor community was not important. The leadership of Austria, Finland, France and other donor countries that were committing resources into trilateral assistance was acknowledged.

It was hoped that the Secretary-General's reform initiatives would go ahead with the High-level Committee's full agreement and that it could add its weight to reform, which was essential to making United Nations development programmes work. It was also hoped that development assistance programmes fully reflected the potential of TCDC and South-South cooperation.

Mr. INSANALLY (Guyana), thanking Mr. Speth on behalf of the Group of 77 and China, said that during the outgoing Administrator's six-year tenure, he had been an articulate spokesman for developing countries and had never

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hesitated to warn against reduction in assistance. The Human Development Report sponsored by UNDP was a barometer for the success of development programmes. The UNDP was recognized in all developing countries as the face of the United Nations, since it was the world's largest multilateral provider of international assistance with a portfolio of $72 billion.

TAKUJI HANATANI (Japan) said the importance of TCDC was stronger than ever before. The new development strategy of the Organisation for Economic Cooperation and Development (OECD) called for addressing development issues in a spirit of partnership.

He said his country had long been a strong supporter and promoter of South-South cooperation and TCDC, as they were the most effective means of realizing development. His Government had earmarked $4 million for multilateral assistance last year through UNDP and would continue to contribute both bilaterally and multilaterally. It was hoped that the UNDP's Special Unit for TCDC would continue to play an important role in facilitating South-South cooperation.

On the multilateral level, he said, Japanese experts and volunteers had been sent to Cambodia to help refugees undertake integrated rural development, in collaboration with such member States of the Association of South-East Asian Nations (ASEAN) as Indonesia. Japan had also provided assistance to Ghana and the United Republic of Tanzania. Japan intended to support South- South cooperation through Asia-Africa cooperation, especially in human resource development.

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