MINISTERS OF ASIAN COUNTRIES MEET IN BEIRUT TO PREPARE FOR UNCTAD X
Press Release
PI/1165
TAD/1893
MINISTERS OF ASIAN COUNTRIES MEET IN BEIRUT TO PREPARE FOR UNCTAD X
19990817Meeting Adopts Lebanon Declaration and Ministerial Statement on Economic Cooperation among Developing Countries
BEIRUT, 12 August (UN Information Centre) -- Managing globalization; trade liberalization; and the United Nations Conference on Trade and Development's (UNCTAD) engagement in helping developing countries were the main issues of the Lebanon Declaration adopted by the Asian Countries Ministerial Meeting, which was held in preparation for next year's session of the Trade and Development Conference (UNCTAD X) at the headquarters of the Economic and Social Commission for Western Asia (ESCWA) -- United Nations House -- in Beirut on 11 and 12 August. The Meeting also adopted the Ministerial Statement on Economic Cooperation among Developing Countries.
Concluded by a press conference held at the UN House to announce the Declaration and the Ministerial Statement, the Asian Ministerial Meeting was opened on Wednesday by its Chairman, Lebanon's Minister for Economics and Trade-Minister of Industry, Nasser Saidi. Speakers at the opening session were the Executive Secretary of ESCWA, Hazem El-Beblawi; the Secretary-General of UNCTAD, Rubens Ricupero; the Chairman of the Asian Group, Minister of Trade of Iran, Mohamed Shariatmadari; the Prime Minister of Lebanon, Selim El-Hoss; and the Deputy Prime Minister of Thailand -- host country of UNCTAD X -- Supachai Panitchpakdi. The message of the Secretary-General Kofi Annan, which has been issued separately, was delivered by the Executive Secretary of ESCWA.
Mr. El-Beblawi said it is perhaps no exaggeration to consider the history of mankind a history of expanding markets. There has been a historical trend of sorts towards ever-greater expansion from the local to the national to the regional economy, and we are now entering the era of the global market. A word of caution is in order, however. Globalization is more a trend than a fact, and is characterized more by its potential than by its existence. Moreover, globalization affects everyone differently. The winners and losers in the globalization process are not distributed proportionally among nations, "we in the Group of 77 are perhaps among the least favoured", he noted. Human experience has shown that, if it is futile to oppose or hinder historical trends, it is equally dangerous to submit to them blindly or passively. They need to be managed and domesticated, civilized and humanized. "It is not surprising, given the extent to which we are all touched by these new developments, that managing globalization constitutes one of the major themes for discussions", he said.
Mr. El-Beblawi noted that the Asian Group of the Group of 77 is in a privileged position to discuss the future of the world economy. Collectively, the nations that make up this Group cover the largest land area in the world and rank first in terms of total population. Separately, the members of the Group exhibit a rich spectrum of differences: large states co-exist with small ones, newly industrialized countries with less industrialized nations, market economies with state-controlled systems, and export-oriented economies with those dominated by domestic production, the list goes on. "With such variety, we can expect a most stimulating debate", he said.
In his statement, UNCTAD Secretary-General Rubens Ricupero said that a sober leadership transforms the nation's prospects and people regain their dignity, faith and human decency. The transformation of Lebanon is a cause for celebration. It is a source of inspiration from which the Asian region can draw energy to move ahead united in their commitment to their region and in an abiding faith in their people. The only message that can go from the Meeting is therefore one of a promise and hope of a better future, he underlined.
Mr. Shariatmadari praised the excellent facilities provided to delegations in every respect despite the extremely short time available for preparations, adding that the very large and complicated Ministerial Meeting was moving smoothly to achieve its objectives. Mr. Shariatmadari also noted how greatly obliged participants were to Mr. Ricupero, who complemented the work of the Asian Group of the Group of 77 with his insight and wisdom and the efficient secretarial support. "We have always relied on Mr. Ricupero's personal intellectual capacity and vision and the expertise of his team in our collective efforts in UNCTAD, especially for the formulation of a new development paradigm", he said.
The Prime Minister of Lebanon and keynote speaker in the Meeting, Selim El-Hoss, appealed to the developed nations to increase their aid to developing countries to help them cope with globalization. He underlined that developing countries need more time to reform their economic systems, urging the developed nations to transfer advanced technology to developing countries that enjoy most favoured nations status. "The existence of a proper international climate must pave the way for the achievement of real and perpetual economic growth", he said.
Pronouncing the demise of traditional economic theories, Hoss said that powerful economic blocs are emerging at the expense of countries, which do not have the means to compete with industrialized nations. "One of the ways to cope with the new economic bloc is to create duty-free zones which would allow developing countries to market their goods without restrictions", he noted.
Considering that the Arab free zone, which is expected to take shape in 2007, is the answer to the strong economic blocs in Europe and North America, Hoss announced that Lebanon is in the process of creating a duty-free zone with 12 Arab countries, which enables traders to market their goods to more than 100 million people. He added that Lebanon is working on removing barriers in order to attract foreign direct investment by amending some of the existing investment laws.
Mr. Panitchpakdi said that the relevance and credibility of UNCTAD was clearly vindicated during the Asian financial crisis. UNCTAD was at the forefront in addressing this global issue. It may be recalled, he noted, that UNCTAD was among the first to alert Asian countries to the crisis, and also subsequently, to the contagion effect on the global economy. In the face of the then prevailing call for a "disciplined" and restrictive approach to addressing the crisis, UNCTAD was bold in its counter-call for policy changes from deflation to reflation of the international economy.
Moreover, Mr. Panitchpakdi added, in the midst of the crisis, UNCTAD did not lose faith in Asia and, instead, offered a balanced analysis of the crisis -- again, in the face of the widespread attribution of causes of the crisis solely to the failure of domestic management. The Secretary-General, on behalf of the Organization, spared no effort in addressing this issue, particularly at the General Assembly and the Bretton Woods institutions forums. UNCTAD's work on the financial crisis culminated in the High-Level Segment of the Trade and Development Board held last October. "I would venture to say that UNCTAD's approach to the financial crisis was perceived as trend-setting, and has continued to be well received by various quarters of the international community", he underlined.
In the Lebanon Declaration, participants in the Ministerial Meeting, who considered globalization as a powerful and dynamic force for strengthening cooperation and accelerating growth and development, called on the international community to consider a new approach to international development cooperation based on growth, stability and equity with the full participation and integration of developing countries in the globalizing world economy. They noted that the success of the Asian countries national efforts requires supportive international frameworks, premised on a new development policy consensus which incorporates lessons learned from recent experience. This new policy should aim at the creation of more equitable and effective international economic structures in finance, trade and transfer of technology, as well as, adequate development cooperation to address the endemic problems of the developing countries, especially debt and transfer of resources, financial vulnerability, declining terms of trade, particularly in primary commodities, and restricted access to developed country markets. To this end, there is a need for greater coherence in global economic policy-making and more participatory decision-making. There is also a need for greater coordination, coherence and concerted action among international institutions, particularly in times of crisis, to promote growth and development in developing countries.
Drawing "the way forward", participants stated that the international community must act together to better manage the process of globalization. Sustained growth in the world economy requires stimulation of growth in the developed economies. Expressing conviction that developing countries can also make significant contributions to sustaining international trade and sustainable growth of the world economy, they further stated that whereas many of their countries are liberalizing their trade regimes to that end, they do not see a similar trend among their developed trading partners, especially in products of export interest to the developing countries, particularly in the area of textiles and clothing. They, therefore, called for the full implementation of the Uruguay Round Agreements in letter and spirit, particularly the Agreement on Textiles and Clothing and the Agreement on Agriculture; the special and differential treatment of developing countries; and the resolution of problems encountered by developing countries in implementing certain other agreements.
Participants also requested that implementation issues should be urgently addressed and resolved by the Seattle Ministerial Conference or the soonest thereafter, adding that any new negotiations should be in the interest of developing countries. In this regard, participants recommended further restraints on the abuse of such measures as anti-dumping, countervailing duties and safeguard actions, and on the use of voluntary export restraints and other new protectionist trends and barriers in the guise of environmental and social standards. They noted that there should also be a redressal of the imbalances and asymmetries that have become evident in the course of implementation of the World Trade Organization (WTO) Agreements. These include undue demands on developing countries' administrative and institutional capacities, non-realization of special and differential treatment provisions, and the excessive curtailment of developing countries' ability to pursue policy instruments that promote development.
The universality of the WTO was one of the Meeting's concerns. The participants considered that it should be realized as soon as possible in order to strengthen the multilateral trading system. They strongly believed that appropriate assistance should be made available to countries seeking accession, and urge that all WTO members refrain from placing excessive or onerous demands on their applications. Non-WTO member countries should be given every opportunity to achieve rapid accession on terms which do not exceed the commitments of developing country members and least developed countries (LDCs) members of WTO. A fast-track accession process, particularly for the LDCs, is needed.
The participants reiterated the importance of expanding the opportunities and channels for transfer of technology and know-how to developing countries, noting that there is a need to analyse the impact of existing multilateral trade agreements on access to technology. There is also a need to implement commitments, embodied in existing international agreements, related to transfer of technology and the building of technological capabilities in developing countries. In this context, they urged the developed countries to fulfil the obligations undertaken in the relevant Uruguay Round Agreements.
The international community should also consider establishing facilities to assist developing countries in assessing their technology needs, identifying technology suppliers, and concluding mutually beneficial technology deals and partnerships, in such areas as information technology, biotechnology and environmentally sound technologies. In addition, there is a need for continuing analysis of technology issues, including the implications of legal protection of the results of biotechnological research and the effects of the proprietary nature of telecommunication standards for transfer and diffusion of technology and scientific information. The participants in the Meeting believed that transfer of technology should not be restricted on an arbitrary or discriminatory basis, especially to developing countries. Rather, the international community should establish principles and guidelines for the sharing of knowledge and technology for development.
Concerning the engagements of UNCTAD, the participants stated that the capacities of the Conference should be brought to bear in defining a new paradigm based on sustained economic growth and sustainable development and providing orientations for development strategies and policies of the future. The increasingly knowledge-based global economy and information age are making new demands on developing countries, with respect to enhancing competitiveness and supply capacity. Market access is becoming more complex, requiring supportive investment policies and trade efficiency measures. International rules and technical standards are evolving, and not necessarily, in conformity with the development needs and objectives of developing countries. They, therefore, considered that UNCTAD should contribute to more effective and coherent responses to the changes under way in the global economy that have potentially profound implications for development.
In conclusion, the Ministers of the Asian Group of the "Group 77" said that UNCTAD has a vital role to play in shedding light on emerging trends and shaping policies in the increasingly interrelated areas of trade, investment, technology and finance, and on such issues as providing greater market access, easing the debt burden, and promoting financial flows, FDI, technology and capacity-building for human resources. They noted that UNCTAD should continue to provide assistance to developing countries in the analysis of international trade issues and the formulation of their positive agenda for deliberations in the WTO, adding that UNCTAD should also provide analytical inputs to the discussions of the reform of the international financial architecture and measures to deal with future crises, including mechanisms for monitoring short-term capital flows. The analysis could also cover the role of international financial institutions, particularly the need for proper coordination among these institutions in dealing with financial crisis. Such contributions facilitate the effective participation of developing countries in multilateral discussions and negotiations.
In the Ministerial Statement on Economic Cooperation among Developing Countries (ECDC), participants in the Asian Ministerial Meeting emphasized the importance of ECDC as a strategy for development and the common prosperity of the region, which has become all the more relevant in the face of the challenges of a globalizing world economy.
Noting that trade among developing countries has expanded significantly, the participants reconfirmed the need for further strengthening ECDC in all its forms, modalities and geographic spheres in order to pool their countries' human, technological and capital resources. They invited all developing countries involved in the ECDC process to design and launch new initiatives to deepen and widen existing schemes.
In the light of the recent Asian financial crisis, the participants proposed an exchange of experiences, and called for the establishment of a working group to recommend actions, and suggest policy proposals regarding mechanisms for crisis management and prevention. They noted that these measures should include, among others, a mechanism to improve financial supervision and regulation, and measures to address problems of volatility of short-term international capital flows. The working group's mandate should also include consultations with the concerned international institutions, such as, the International Monetary Fund, the World Bank Group and the Bank for International Settlements.
Reaffirming their determination to cooperate closely with the Non-Aligned Movement in order to strengthen economic cooperation among developing countries, the participants appreciated the special trade preference schemes introduced by some developing countries in favour of the least developed countries (LDCs) within the Generalized System of Trade Preferences (GSTP); subregional arrangements; and specific LDC schemes. They encouraged other member States to introduce and promote similar LDC preference schemes as a meaningful manifestation of solidarity within the Group of 77 in favour of its poorest members. Furthermore, they called upon all Member States to participate actively in the preparatory process for the Third United Nations Conference on the LDCs and in the Conference itself, to be held in the year 2001.
In conclusion, the Asian Ministers considered that intensified economic relations among developing countries help stimulate the world economy, thereby contributing to the growth of the developed countries, and called upon the developed partners, in a spirit of shared responsibility, to support ECDC in the form of increased technical and financial support for the developing countries.
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