HIGH-LEVEL COMMITTEE CONSIDERS CASE STUDIES ON TCDC'S ROLE IN ACCELERATING GROWTH AND EQUITABLE DEVELOPMENT THROUGH PARTNERSHIP

2 June 1999

Press Release
DEV/2213

HIGH-LEVEL COMMITTEE CONSIDERS CASE STUDIES ON TCDC'S ROLE IN ACCELERATING GROWTH AND EQUITABLE DEVELOPMENT THROUGH PARTNERSHIP

19990602 Way To Improve TCDC Effectiveness Is by Promoting Institutional Linkages and Triangular Cooperation, Committee Told

The way to improve the effectiveness of technical cooperation among developing countries (TCDC) was by promoting institutional linkages and triangular cooperation arrangements involving agencies, the High-level Committee on the Review of Technical Cooperation among Developing Countries was told this afternoon, as it met to consider four case studies related to the thematic issue of its eleventh session, "The role of TCDC in accelerating growth and equitable development through broad-based partnership".

That view was expressed by Brahm Dutt, the Joint Secretary of the Department of Small-scale Industries and Agro and Rural Industries in the Ministry of Industry of India, during his presentation of a case study on collaboration among small- and medium-scale enterprises in stimulating growth and reducing poverty in developing countries.

Small-scale industries had registered very impressive growth in India as a result of the Government's policies and programmes, Mr. Dutt continued. It was a highly cost-effective way of generating employment, and it impacted directly on industrial growth and poverty reduction. Small-scale industries could integrate TCDC with economic cooperation among developing countries (ECDC) to demonstrate that close operational integration between the two significantly added to the success of both.

Joeli Veitayaki, of the Marine Studies Programme, University of the South Pacific, said, in his presentation on cooperation among small island developing States in the area of marine biodiversity, that under various regional initiatives, the island States had cooperated with each other for 52 years, sharing limited expertise, experience, facilities, infrastructure, resources and markets.

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He said that the number of initiatives undertaken collectively in the South Pacific to safeguard marine biodiversity were in the areas of training, education, research, policy-making, implementation, resource use, management and development. Lessons learned about the problems of cooperation included the high cost of meetings and dependence on external funding. Nevertheless, the future of TCDC in the field of marine biodiversity was bright if it rested on cooperation.

Roberto Bouzas, Principal Researcher at the Facultad Latinamericana de Ciencias Sociales, said in his presentation on the promotion of trade and investment in the Southern Common Market (MERCOSUR) of South America, that MERCOSUR was a cooperative effort fostering economic integration among a group of developing countries. Cooperation occurred through working groups in a process that served as a laboratory for negotiations aimed at technical cooperation and was reflected in the sharing of knowledge, facilities and resources.

Sophie Mukasa Monico, Executive Director of Uganda's The AIDS Support Organization, said, in her case study on reducing the impact of HIV/AIDS on development prospects, that HIV/AIDS programmes and activities in sub-Saharan Africa were utilizing the TCDC modality and instruments in programme implementation and advocacy through stronger partnerships with institutions. The Joint United Nations Programme on HIV/AIDS (UNAIDS) had helped create technical resource networks that served to improve response at the national and regional levels. The international community must realize that its investments might be obliterated unless more was invested in fighting HIV/AIDS, the single greatest threat to global development today.

The High-level Committee will meet again at 3 p.m. on Friday, 4 June, to conclude the work of its eleventh session.

Committee Work Programme

The High-level Committee on the Review of Technical Cooperation among Developing Countries (TCDC) met this afternoon to continue its eleventh session with presentations of four case studies related to the session's theme, "The Role of TCDC in Accelerating Growth and Equitable Development through Broad-Based Partnerships". (For background, see Press Release DEV/2209 of 28 May.)

Statements

MOHAMMAD ALI ZARIE ZARE (Iran), High-level Committee Vice-President, moderated the presentation of the case studies.

BRAHM DUTT, Joint Secretary, Department of Small-scale Industries and Agro and Rural Industries, Ministry of Industry of India, presented a case study on collaboration among small- and medium-scale enterprises in stimulating growth and reducing poverty in developing countries, the Indian experience in promoting technical cooperation.

Small-scale industries (SSIs) had registered very impressive growth in India during the four decades since independence, he said. Over 3 million SSI units directly employed more than 17 million persons. The small sector had consistently outperformed the large since 1991. The sector was highly competitive, and it had not developed overnight. It was a result of the Government's deliberate policies and programmes. It was a highly cost- effective way of generating employment, and it impacted directly on industrial growth and poverty reduction.

Technical cooperation was very important for improving the competitive edge of the SSI sector, he said. As part of the International Cooperation Programme under the Ministry of Industry, technical cooperation among developing countries (TCDC) focused on expanding technical cooperation between India and the developing countries of Asia, Africa and Latin America. The National Small Industries Corporation, which was the central agency for implementing the Indian Technical and Economic Cooperation programme, was supported by national institutions promoting TCDC. The thrust was to provide technical assistance from India for development of SSIs in the other countries.

Visits of foreign official delegations to the National Small Industries Corporation and Indian SSIs created awareness about India's strengths in technologies, policies and programmes relevant to SSIs, he continued. Other TCDC-related activities included surveys and studies by National Small Industries Corporation experts for establishing support facilities and training, as well as technical centres in selected countries; training to upgrade skills and develop entrepreneurial potential; technology expositions

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to expose entrepreneurs to SSI projects, followed by actual setting up of project sites and handing them over to trained entrepreneurs; and export of machinery and equipment through funding of commercial banks.

That last project was an example of integrating TCDC with economic cooperation among developing countries (ECDC), he said. Institutional linkages and promotion of triangular cooperation arrangements involving agencies improved TCDC effectiveness. Combining commercial activities such as project export with promotional activities such as surveys, studies and training, contributed to the success of exposure to technology. It also demonstrated that close operational integration between TCDC and ECDC significantly added to the success of both.

ROBERTO BOUZAS, Principal Researcher at the Faculdad Latinamericana de Ciencias Sociales, speaking on the promotion of trade and investment in the Southern Common Market (MERCOSUR) region, said that MERCOSUR's approach to regional cooperation had been characterized by a high level of flexibility and a relatively low degree of institutionalization. The Framework Treaty of Asuncion combined a few operative, well-defined targets, regarding tariff cuts and the common external tariff, with broad strategic orientations to provide a sense of direction.

The Treaty created a small number of organs scheduled to operate on a periodic basis, which translated into intergovernmental institutions and procedures, consensus decision-making and the absence of an independent jurisdictional body, he said. The MERCOSUR's approach emphasized the regular involvement of political authorities at the presidential and ministerial levels to maintain political commitments and the consistent engagement of high- and medium-level bureaucracies to ensure consistency between decisions and implementing capacities.

He said the MERCOSUR was essentially a public sector-led cooperation process. The main role played by the private sector was to take advantage of opportunities to increase trade and investment created by the agreement, behaving like a follower rather than a leader in the process of subregional economic integration. The MERCOSUR had contributed significantly to increasing the communication and networking of the private sector. Industrial organizations, chambers of commerce, consumer organizations and labour unions had increased their interactions and exchanges, meeting regularly to consider issues of mutual interest.

He said MERCOSUR was a cooperative effort to foster economic integration among a group of developing countries that had demanded parallel and significant development of national technical capacities. Most of that cooperation had taken place in working groups which had carried the burden of technical negotiations, acting as a laboratory for developing countries' technical cooperation, reflected in the sharing of knowledge, facilities and

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resources by all member States. That process had also contributed to human- resource development in a wide array of public sector agencies.

SOPHIE MUKASA MONICO, Executive Director, the AIDS Support Organization, Uganda, presented a case study on reducing the impact of HIV/AIDS on development prospects -- Uganda's experience with others.

In addition to the profound human tragedy that HIV/AIDS already presented, she said, the disease was a threat to economies and to the very fabric of societies. It was a medical, social and developmental problem. The focus of fighting the disease had at one time been solely on personal behaviour; today it was known that factors beyond individual control and encouraging of risky behaviour were part and parcel of the traditional development concerns.

The impact of HIV/AIDS on population and economic growth would be relatively small compared to other factors, she continued, noting that HIV/AIDS would reduce growth rates in many countries, but would cause no absolute decline in any of them. However, a factor likely to have a significant effect on the size of the macroeconomic impact was the cost of HIV/AIDS, which would exacerbate poverty and inequality, for example by increasing the number of children who lost one or both parents. That effect was greatest in the poorest families and greatly reduced the individual's ability to acquire skills enabling them to escape from poverty.

The Joint United Nations Programme on HIV/AIDS (UNAIDS) had reported that the AIDS epidemic in sub-Saharan Africa was wiping out the development gains of the past few decades, she said. Uganda had been one of the ten countries most affected and the Ugandan response had been characterized by a policy of openness. Clinics, hospices and home-based care had been devised. A limited but significant success story had been achieved with a 15 per cent decrease in the infection rate, especially in urban areas. The key components of the success were political leadership; community empowerment; value-added partnerships; strong collaboration with civil society; and mobilisation of the private sector and non-governmental organizations.

The positive response in Uganda, she said, had minimised the stigma, discrimination and denial associated with the epidemic. Through its interventions, her organization had proved that hope could be restored and people could live positively. Stakeholders had learned that collaboration was critical. In addition, HIV/AIDS programmes and activities in sub-Saharan Africa were utilising the TCDC modality and instruments in programme implementation and advocacy -- for example through strengthening of partnerships with institutions. The UNAIDS had helped create technical resource networks that served as a regional resource to improve response at the national and regional levels.

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The international community must realize that its substantial investments might be obliterated unless more was invested in fighting HIV/AIDS, the single greatest threat to global development today, she concluded. Future success meant strengthening partnerships and increasing resources to counter the HIV/AIDS epidemic, which was like a time bomb. Battling the AIDS epidemic was not just a challenge, but an opportunity to resolve traditional development concerns at the root level.

Question and Answer Session

J. CARMICHAEL, a Representative of UNAIDS, said the AIDS Support Organization had done an excellent job and the Government of Uganda was to be congratulated for giving a non-governmental organization such as TASO the space to operate successfully. Over twenty million were affected in Africa and 150 million were affected overall by HIV/AIDS. There was much to be done with regard to recognizing its full impact.

He said HIV/AIDS was a creator of poverty. Family income had dropped by 60 per cent and children dropped out of school when a bread-winner was stricken with HIV/AIDS. The numbers of HIV/AIDS orphans would explode, especially in Africa, in the near future. In what ways could governments respond with regard to HIV/AIDS orphans? he asked.

Ms. MONICO said her organization could only do the minimum for the 200,000 orphans it was now caring for. It could pay the school fees for less than 300 students. There was no solution yet, but TCDC and the High-level Committee could do a lot to secure the future of those orphans.

Mr. ZARE, the moderator of the case study session, asked what the international community could do about HIV/AIDS.

Ms. MONICO said the international community could build onto what nations were already doing. External donors or partners should only reinforce the national mechanisms. It was not just a question of money, but also of technical assistance -- a matter of joining hands from all angles to give momentum to the effort. Government had contributed little in Uganda because of limitations, but it had enabled the effectiveness of HIV/AIDS-assistance efforts, 90 per cent of which came from outside actors.

JOELI VEITAYAKI, of the Marine Studies Programme, University of the South Pacific, speaking on cooperation among small island developing States in the area of marine biodiversity, gave an overview of initiatives in the South- Pacific region. He said that the map of the region portrayed the reality that its tiny island nations were both divided and united by the vast Pacific Ocean. Under various regional initiatives, the island States had cooperated with each other for 52 years, sharing limited expertise, experience, facilities, infrastructure, resources and markets.

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He said that the number of initiatives undertaken collectively in the South Pacific to safeguard marine biodiversity were in the areas of training, education, research, policymaking, implementation, resource use, management and development. For example, the University of the South Pacific's marine studies programme was addressing the region's human resource development needs by coordinating through a number of activities. Through the Forum Fisheries Agency, regional countries were managing their tuna resources and had earned the respect and cooperation of distant water fishing nations active in the region. In the area of environmental management, the South Pacific Regional Environment Programme had become the leading organization spearheading the management of environmental resources. In 1997, the Year of Coral Reefs had been observed, and the Programme was about to produce its first environment report.

On lessons learned, he said some of the problems of cooperation involved the high number and cost of the required meetings; the inability of member countries to provide the operating funds and human resources required for their operations; reneging by some countries on their financial contributions; and dependence on external funding. In some instances, project funds were donor-driven and not reflective of needs in the recipient countries. Nevertheless, the future of TCDC in the field of marine biodiversity was bright if it rested on cooperation. The support of such regional developed countries as Australia, New Zealand and Japan, as well as the United States, was welcome.

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