MECHANISMS UNDERPINNING GLOBAL ECONOMY SHOULD BE RETHOUGHT TO ENSURE RAPID ECONOMIC GROWTH OF LEAST DEVELOPED COUNTRIES, ASSEMBLY TOLD

Press Release
GA/9597

MECHANISMS UNDERPINNING GLOBAL ECONOMY SHOULD BE RETHOUGHT TO ENSURE RAPID ECONOMIC GROWTH OF LEAST DEVELOPED COUNTRIES, ASSEMBLY TOLD

"As we enter the century of globalization, let all governments ask the question: are we globalizing prosperity, or are we globalizing poverty? Are we striving for the kind of political correctness that eschews affluence and poverty, or that which manufactures euphemisms for poverty -- pretending it will go away?" Benjamin William Mkapa, President of the United Republic of Tanzania, asked the General Assembly this afternoon as it continued the first day of its general debate.

The community of nations, he stressed, should rethink the mechanisms and policies that underpinned the functioning of the global economy to create an international environment conducive to rapid economic development of the least developed countries. The process of liberalization and globalization of the world economy had profound implications for Africa and other less developed countries in terms of their position in the world economy, their development, the nature of their economic policies, and their impact on economic sovereignty. The United Nations had a vital role to play to ensure that there was equity of response to the challenges facing Africa,as well as those facing other parts of the world.

Marc Forné Molné, the Prime Minister of Andorra, said globalization would not develop its potential if it was not accompanied by both principles and political action at the highest levels. Those would allow for the establishment of new "post-national" communities, with different cultures but similar characteristics, which together could work towards a world of peace and economic progress. That would never be realized without the United Nations, which was indispensable.

Kjell Magne Bondevik, Prime Minister of Norway, said globalisation presented many political and moral dilemmas. While there had been remarkable progess in technological innovation, economic and democratic development, and poverty and pollution, violent conflict and violations of human rights continued to haunt far too many people around the world. Combating those issues were the main challenges at the top of the global agenda for the next century. "We must ensure that globalisation benefits all", he said. To achieve that, Member States must strengthen the multilateral system.

Arnoldo Aleman Lacayo, President of Nicaragua, said the international community must face the "difficult and painful transition to a new globalized world with a market economy devoid of barriers" together, with political will. It would be lamentable and dangerously explosive for the great opportunities that globalization offered not to be translated into innovative and tangible changes that effectively promoted the improvement of living standards and opportunities for the great majorities in the world. That should be achieved within models of sustainable development.

Addressing the issue of East Timor, Jorge Sampaio, President of Portugal, expressed indignation and revulsion at the tragic events that had befallen the people of the Territory. He paid tribute to the courage and admiration of the Timorese people and their leader, and energetic reaction of the international community to the wave of violence terror that had struck East Timor over the last weeeks.

Statements were also made by the President of Colombia, the Prime Ministers of Bangladesh, Cambodia, Fiji, and the Ministers for Foreign Affairs of Cote d'Ivoire, United Kingdom and Bosnia and Herzegovina.

The General Assembly will meet again tomorrow at 10 a.m. to continue its general debate.

General Assembly Plenary - 2 - Press Release GA/9597 5th Meeting (PM) 20 September 1999

Assembly Work Programme

The General Assembly met this afternoon to continue its general debate. It was expected to hear statements from: the Presidents of the United Republic of Tanzania, Nicaragua, Colombia and Portugal; the Prime Ministers of Bangladesh, Norway, Cambodia, Andorra and Fiji; and the Ministers for Foreign Affairs of Côte d'Ivoire, United Kingdom and Bosnia and Herzegovina.

Statements

BENJAMIN WILLIAM MKAPA, President of the United Republic of Tanzania, said that, despite positive macro-economic achievements in recent years, the average African household consumed less than it had 25 years ago. Other critical challenges facing Africa included conflicts, and the urgent need to consolidate the rule of law, human rights and democratic governance. The United Nations in the coming century would be measured, among other things, by the degree to which those issues, particularly the development dimension, were addressed. By virtue of its global reach, its universal membership and its impartiality, it had a vital role to play to ensure that there was equity of response to the challenges facing Africa as to those facing other parts of the world. "We reiterate the need for broadening and strengthening the participation of developing countries in international decision-making", he said.

On the issue of trade, he said that the process of liberalization and globalization of the world economy had profound implications for Africa and other lesser developed countries (LDCs) in terms of their position in the world economy, their development prospects, the nature of their economic policies, and their impact on economic sovereignty.

The community of nations, he said, should rethink the mechanisms and policies that underpinned the functioning of the global economy, in order to create an international environment conducive to the rapid economic development of the least developed countries. He hoped that the Seattle World Trade Organization ministerial meeting would give further impetus to the implementation of measures to assist LDCs integrate into the international trading system in a meaningful way.

The debt burden was one of the main obstacles to the achievement of economic and social development objectives in Africa and other LDCs, he said. This year, Tanzania's debt-service ratio was about 35 per cent, compared to the heavily indebted poor countries' acceptable range of 20-25 per cent. The ratio of debt stock to budget revenue was forecast to be 400 per cent compared to the heavily indebted poor countries' ceiling of 280 per cent. Under those circumstances, it would be impossible to eradicate poverty or accelerate the development process. While welcoming the debt-relief initiatives undertaken

by the donor community, he said that more far-reaching measures, including debt forgiveness, were urgently needed.

On Official Development Assistance (ODA), he was disturbed by the decline to less than one third of the internationally agreed target of 0.7 per cent of the gross national product (GNP) of donor countries. For 1992-1997, aid as a percentage of GNP in the Organisation for Economic Cooperation and Development (OECD) had fallen from a combined average of 0.33 per cent to an all-time low of 0.22 per cent. That trend needed to be reversed as a matter of policy.

Continuing, he said the United Nations, and the international community at large, should facilitate and finance access to and transfer of technology, including new and environmentally sound technologies for developing countries, on favourable, including concessional, or grant terms.

He said his country was working closely with other countries to find a peaceful resolution to conflicts in the Great Lakes Region, particularly Burundi and the Democratic Republic of the Congo. Arms dealers should stop supplying weapons to conflict areas and countries should adhere to the international conventions prohibiting the arms trade, especially between non-State entities. It was immoral and unacceptable, he continued, that natural resources which should be exploited to build a better future for African children were being used to buy weapons from rich countries that maimed and killed those very children and their parents. His country had always received refugees out of humanitarian concern. "Yet, even for us, the time comes when we must appeal for more help to give us the capacity to provide succour and refuge to these people", he said. A lasting solution, however, lay in resolving the root causes in the refugee-generating countries.

Regarding East Timor, he said the international community must assume its responsibility to see that process to a successful conclusion and to ensure that the wishes of the majority of East Timorese were unequivocally met.

He said his Government was striving to make sure that women were given the opportunity to fully participate in all levels of decision-making, to get equal access to education and to have access to credit on a preferential basis. "We have also taken measures to protect women, girls and children from sexual harassment and abuse."

He said there was a ray of hope for a more equitable and dynamic system of international development cooperation, through the smart partnership approach of a "win-win" outcome for all players. "As we enter the century of globalization, let all governments ask the question: Are we globalizing prosperity, or are we globalizing poverty? Are we striving for the kind of

political correctness that eschews affluence and poverty, or that which manufactures euphemisms for poverty -- pretending it will go away?"

ARNOLDO ALEMAN LACAYO, President of Nicaragua, said the international community must face the "difficult and painful transition to a new globalized world with a market economy devoid of barriers" together, with political will. It would be lamentable and dangerously explosive for the great opportunities that globalization offered not to be translated into innovative and tangible changes that effectively promoted the improvement of living standards and opportunities for the great majorities in the world. This should be achieved within models of sustainable development.

He reviewed the problems his country had faced in recent years, as it pursued a program of reordering and structural adjustment. These included fratricidal violence and confrontation, deterioration of all the indicators of human development and the accumulation of a gigantic external debt burden, compounded by the devastating effects of Hurricane Mitch. The International Monetary Fund (IMF) acceptance last week of Nicaragua into the Heavily Indebted Poor Countries (HIPC) Initiative, which would represent a substantial pardon of its external debt, would substantially improve the quality of life for Nicaraguans.

Nicaragua appreciated and valued the sustained efforts of the United Nations system in such areas as governance, local development, promotion of a healthy environment, reduction of extreme poverty, improved access of less favoured populations to public services, modernization of democratic institutions, promotion of population policies, demobilization of ex- combatants and the search for solutions through dialogue to conflicts over property. Likewise, it acknowledged the Organization's efforts to strengthen the administration of justice and prison systems and the creation of a human rights court.

He said that the Republic of China continued "lamentably and unjustly not to be represented in this Organization".

ANDRES PASTRANA ARANGO, President of Colombia, stressed the importance of the obligation of States under the charter to refrain from interfering, directly or indirectly, in the affairs of other States.

Over the last year, Colombia had made extraordinary efforts to end a 40- year civil conflict, he said. There was now an agreed agenda for negotiations between the government and the largest of the guerrilla groups, but the negotiations were occurring amid conflict and without a ceasefire so that killings, kidnappings and attacks by guerrilla and the other illegal groups known as "auto-defense" groups took their human, social and economic toll.

The past year had been tough, he said, but the lesson learned was that peace was paramount. It must be the genuine peace that strengthened democracy, preserved territorial unity and offered every Colombian a fair place in the country's future. He described Plan Colombia, a synthesis of economic, political and social concepts to defend the country from the assault of narcotrafficking, strengthen its democratic institutions and guarantee the security and free exercise of rights and freedoms for citizens. The solidarity and contribution of the international community were essential for Plan Colombia, and the increasing and baseless rumours about alleged military interventions in Colombia, with the supposed purpose of helping the country in its battle, were of great concern.

Colombia rejected any foreign interference or intervention in its domestic affairs, the President stated. "The times of intervention are over. These are times of cooperation". The peace process was essential for winning the fight against the worldwide problem of drugs. Colombia had wiped out major cartels, but the business of narcotrafficking had become like the Hydra, more fractured, more international, less public and more difficult to defeat. Increased efforts were needed to take profits from traffickers and to fight contraband smuggling of industrial products to Colombia, as that was a way of laundering drug money and asphyxiating Colombian industries.

The hypothesis of capital flows accelerating sustained economic growth had faded in view of the facts, he concluded. Instead, enormous sums of virtual money and their uncontrolled transfer had created economic turbulence, unemployment, poverty and political instability. Latin America needed a new financial structure. And because the technological means that promoted interdependence and development also supported world networks of organized crime, drug trafficking, money laundering, terrorism and arms trafficking, international cooperation was needed to promote the best of globalization and to distribute its benefits more evenly. It was time for development and peace to complement each other in an efficient and productive manner. "Revitalized cooperation is not an option, it's a duty", he said.

JORGE SAMPAIO, President of Portugal, expressed indignation and revulsion over the tragic events that had befallen the people of East Timor. He paid tribute to the courage and determination of the Timorese people and their leader, and to the energetic reaction of the international community to the wave of violence and terror that had struck east Timor over the last weeks.

The arrival of the multinational task force in East Timor opened a "horizon of hope", he said, for "we must now take care of the living and save whatever can be saved". In this regard, there were several essential priorities, including: the guarantee of security that would ensure the respect of the individual rights of the East Timorese and allow them to live in peace; urgently channelling humanitarian aid to feed, treat, and shelter the tens of thousands of displaced people scattered throughout East Timor; and accelerating the transfer of authority in the territory to the United Nations.

It was also important, he said, to define a timetable for a quick and complete withdrawal of Indonesian forces from the territory. That was the only way to restore peace and stability in the region and to launch full and healthy relations between the future state of Timor and Indonesia.

There needed to be an enormous restructuring effort in East Timor, the President said. The territory was totally devastated by looting, pillaging and destruction and the generous commitment of the international community would be indispensable. He expressed Portugal's willingness, acknowledging its responsibilities to the brotherly people of East Timor, to contribute to all these tasks.

Concluding, he hoped that as soon as possible, the General Assembly might hear "the free and sovereign voice of Timor Lorosae".

SHEIKH HASINA, Prime Minister of Bangladesh, thanked the Secretary- General and Member States for their support and assistance in helping to overcome the aftermath of the disastrous floods that had hit her country last year. She hoped that the development cooperation between Bangladesh and United Nations agencies would be expanded and strengthened. Recognizing the recent decline in commitments by donor countries, she stressed that now was the time for them to make more resources available for the Organization's valuable development programmes.

She said that democracy had taken root in Bangladesh. Nationally and internationally, it had taken peace and development as two vital and integrated objectives. It had also taken steps to foster peace regionally. Immediately after coming to office, her Government had taken the initiative to solve the Ganges water-sharing issue with neighbouring India. She had also visited India and Pakistan following the nuclear test in South Asia and urged "that we must all do our utmost to preserve peace in our region and to devote our limited resources for economic and social development".

She described her country's development programmes as being targeted to rapid poverty alleviation. Furthermore, Bangladesh had in place concrete policies to ensure equality between men and women. Laws had been promulgated, and institutional mechanisms set up, to promote women's rights. The effectiveness of micro-credit in empowering women had been phenomenal. Women had also been brought into decision-making at all levels. She noted that her Government was required by the constitution to base Bangladesh's international relations on the principles of the Charter.

Peace was a fundamental human right to be attained, sustained, promoted and carried forward at all times, she said. Without development, there could be no peace, and without cooperation, no development. There was no option then but to have genuine cooperation between the developed and the developing countries for the eradication of poverty and fulfilment of the people's aspirations for development. Special measures should be taken by the international community to help the less developed countries in their efforts to develop and participate fully in the global economy.

Human rights were also the essence of peace, she concluded. "Unless we ensure that citizens live a life of dignity where their rights are secure, we cannot have a just and peaceful world." The world needed the Organization. It was equally true, however, that the United Nations needed the world. All countries must do their best to fulfil their commitments to make the Organization strong and durable.

KJELL MAGNE BONDEVIK, Prime Minister of Norway, said that the recent tragedy in East Timor had shown that when war erupted, the world community turned to the United Nations for the resolution of conflicts and the preservation of peace. It looked to the United Nations for hope and solutions, and for the protection of human dignity and shared values in a world of injustice and conflict. "This is why the United Nations is indispensable", he said.

Globalization presented member states with many political and moral dilemmas, he said. While there had been remarkable progress in technological innovation and in economic and democratic development, poverty and pollution, violent conflict and violations of human rights continued to haunt far too many people around the world. Combatting those issues were the main challenges at the top of the global agenda for the next century. "We must ensure that globalization benefits all." To achieve this, Member States must strengthen the multilateral system and support the United Nations and its work for global peace, security and sustainable development. "We must put the United Nations first", he said.

He called for a global partnership aimed at eradicating poverty. Member States possessed the knowledge and financial resources to realize the target of cutting global poverty in half by the year 2015. "It can be done", he said. "There is no alternative."

The Prime Minister also called on the international community to do more to create economic opportunities for the developing world. He cited steps that would have major impact in this regard, including the transfer of Official Development Assistance (ODA) from the North to the South; facilitating the entry of developing countries into the global market, and creating partnerships that would enable national governments to determine their own priorities.

SANDEGH HUN SEN, Prime Minister of Cambodia, said that his country had finally put behind the darkness of its recent history. It was now a fully integrated country, without rebels or separatists and internal strife or conflict for the first time in many decades. The last remnants of the Khmer Rouge were in custody pending their trial for the crimes of genocide. Cambodia was committed to pluralist democracy and to upholding and protecting human dignity and human rights. On the economic front, it would continue with market-oriented policies, providing safety nets for the vulnerable sections of society.

On the global level, he continued, humankind had vastly denuded natural resources, destroying the forests, depleting oceans, polluting such essentials for its very survival as air and water. Social tensions and hatred abounded, caused by religious and other differences. The rich and the mighty imposed their agenda on the poor and forced the weak to follow them. Scientific and technological research had been conducted without moral responsibility. Most of the discoveries had been made by the developed countries, but produced a destructive impact on poor developing countries.

It was necessary to forget differences and devote attention to the essentials needed to set the planet on the correct course for the future, he said. In that spirit, Cambodia strongly supported the Millinnium Summit in 2000. The overarching need was to ensure what the Buddhist concept of Dharma or its equivalent in every religion and what the past messiahs had demanded of humankind. That was, in essence, a balanced and tolerant life, in adjustment and harmony with oneself, with one's neighbours, with other beings, with nature and with the cosmos.

Of top priority was the need to eradicate poverty, he continued. Already the group of seven industrialized countries and Russia (G-8) nations had agreed to forgive the debts of poorer nations. That trend needed to be continued, and future assistance should be primarily through well-monitored grants, rather than loans. It was also necessary to stop generation of waste or contain its levels at the source. Last but not least, it was necessary to re-evaluate the roles of international institutions and focus on their positives.

The United Nations had served the international community well, he said. It had been a platform for defining common goals, but it was necessary to show more determination to rid it of those functions, committees and forums, which had lost relevance or usefulness. When undertaking reforms, the world body would be required to improve recruitment criteria for staff in various agencies, especially for posting in member countries.

MARC FORNE MOLNE, Prime Minister of Andorra, said that globalization would not develop its potential if it were not accompanied by both principles and political action at the highest levels, allowing for the establishment of new "post-national" communities, with different cultures but similar characteristics, which together could work towards a world of peace and economic progress. That would never be realized without the United Nations, which was indispensable.

It was impossible to ignore the fact that 20 per cent of humankind lived in conditions of extreme poverty, he continued, with many millions of others very close to that state. There were more than 1,500 million people without access to potable water and sanitation, and largely illiterate. The World Social Summit had traced a path, which now must be followed with a firmer step. If United Nations policy were not applied to economic organizations, such as the World Trade Organization (WTO), the International Monetary Fund (IMF) and the World Bank, globalization could not be more than what it presently was: a dictatorship of the financial world over people and their legitimate representatives.

The conflict in East Timor was a good example of both the possibilities and the dangers that the United Nations must face, he said. On the one hand, there had been a long but productive process, engendered by popular vote and accepted by all of the parties, which would bring an unequivocal resolution of a long-standing problem. On the other hand, once that democratic process had been effectively realized, violence had broken out and it had been necessary to act quickly to contain a massacre. Thus, the capacity for reaction on the part of the United Nations, and the mobilization of the forces of Member States, were essential. That aspect of the Organization must become more effective: more powerful mechanisms of intervention, better organized and allowing for rapid reaction, were needed.

He said Andorra's participation was increasing. In 1998, its per capita contribution to the United Nations had been about $6. It was not an enormous contribution, but it was much greater than that of the biggest countries with higher incomes. A good part of Andorra's contributions was earmarked for disarmament. His country would continue to contribute to United Nations initiatives in order to express its solidarity with the Organization's actions for peace.

MAHENDRA PAL CHAUDHRY, Prime Minister of Fiji, said that he hoped the current session of the General Assembly would focus particular attention on the responsibilities of Member States of the United Nations for promoting world peace, security and development. In that regard, he thanked and congratulated the Government of Indonesia for its foresight and magnanimity in giving the people of East Timor the freedom to choose their political future. He appealed to the Government of Indonesia to facilitate the peaceful and orderly transition of East Timor to full nationhood and independence.

He also reaffirmed his country's commitment to the international peacekeeping operations within the Pacific Islands, as well as elsewhere. The guiding principle of Fiji's participation, he said, was its respect for the sovereign rights of all the countries concerned and the maintenance of the democratic rights and freedoms of their peoples.

He noted that the sacrifices made by the different multi-ethnic and multi-cultural communities of Fiji had helped the nation succeed in constructing an economic framework for peace and prosperity. Fiji's newly adopted constitution had led to free and democratic elections last May. The People's Coalition, which had decisively won the election, promised policies on development that were specifically focused on addressing the basic needs of the people.

He said he fully supported the efforts of the Secretary-General to reform the United Nations. To be meaningful, reform must include a revision of the United Nations Charter to reflect the realities of today, he stressed.

Finally, he urged all Member States to work together to encourage the resolution of disputes and conflicts through dialogue and the pursuit of consensus. Peace could only be real and enduring, when all cooperated closely to create conditions for a life of freedom and security with justice and dignity

AMARA ESSY, Minister for Foreign Affairs of Côte d'Ivoire, said that new dysfunctions manifested themselves in the life of the international society everyday. Almost 10 years after the end of ideological antagonism, machinery for political, financial and economic monitoring still had not been set up, and force often prevailed over the rule of law. However, the principles of the Charter of the United Nations still remained intact.

The United Nations was committed to reform and renewal, and the Millennium Summit would commemorate the launching of the Organization into the next century, he said. By enlarging the number of both permanent and non-permanent members of the Security Council, in which Africa should have its share, the Organization would be able to correct the deficit of political visibility of that body. The Kosovo crisis had demonstrated the necessity to reaffirm the primacy of the Council and of the United Nations on the whole. The General Assembly with its representatives must be at the heart of the activities of the United Nations.

Conflicts besetting Africa had received special attention at the Organization lately, he continued. African States, too, were sparing no effort to prevent conflict situations and to act, when needed. However, peace would be achieved only if the Organization mobilized its efforts and provided assistance to the efforts of Africa. Noting initiatives by the United Nations in Sierra Leone, the Democratic Republic of the Congo, Guinea-Bissau, Western Sahara, among others, he said that the United Nations had acted at various stages of the crises, joining the efforts of regional and subregional organizations. Many issues were at stake in Africa, and dialogue should prevail over the use of force. In that respect, efforts of the OAU, the SADC and the ECOWAS towards increasing cooperation on the continent should also be emphasized.

Continuing, he noted discriminatory treatment of the crises in Africa as compared with other regions of the world. What had been possible in Kosovo should have also been implemented in Angola, the Congo and Sierra Leone. However, reluctance of great Powers to get involved in complex conflicts was understandable, and such political prerequisites as ceasefire were necessary. Chapter VIII of the United Nations Charter on cooperation with regional organizations needed further clarification. If priority were given to regional efforts, it should not be a pretext for the lack of involvement on the part of the Security Council.

Africa should have a major role in the world financial architecture, he said. Actions of various United Nations agencies should be harmonized, which meant a greater streamlining of activities and better funding of projects. A continued precipitous fall in financial development assistance was a cause of concern, as the question of debt was of major importance for African countries. As there was an urgent need to define a global strategy for providing assistance for development and guaranteeing financing, he supported the convocation of a global conference on that subject. He also appealed to donor countries to increase their contribution to the United Nations in general and development assistance, in particular.

ROBIN COOK, Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom, said the concept that responsibility for the security, freedom and development of the people did not belong solely to each State acting individually, but to all the nations of the world acting as a united body, was revolutionary. For the past 50 years, the United Nations had done much to discharge that responsibility. "We should take pride in these achievements", he said, "because it will help give us the confidence to tackle the challenges that remain".

"But we must also be frank about where we have failed", he went on. The United Nations had failed to deliver peace to many peoples of the world. "We have averted world war," he said, "but we have not averted a world with too much war".

He stressed the duty of Member States to replace the failure to halt war with success in preventing conflict. In light of recent conflicts, such as in Kosovo, Sierra Leone and East Timor, there was an urgent need, he said, to improve performance in preventing conflicts and in stopping them when they had started.

He proposed several priority areas for action including tackling the root causes of conflict; promoting human rights and good governance; curbing the supply of weapons that fueled conflict and countering the culture of impunity. In order to respond satisfactorily when conflict broke out, the United Nations needed to develop three strengths -- credibility, consensus and capacity, he added.

If the United Nations was to have credibility to press the parties to conflict to a solution, it must be more representative of the modern world, he said. Greater credibility would be pointless without consensus on when the authority of the United Nations should be invoked. Intervention must be the last resort, he stressed. Credibility would also require the United Nations to demonstrate the capacity to act.

JADRANKO PRLIC, Minister for Foreign Affairs of Bosnia and Herzegovina, said his country was slowly and surely starting to depart from political, humanitarian, economic and almost every other type of stagnation. That was proof that it was also moving away from the state of deep internal mistrust, doubt and reserve, which had existed for a long time between the two entities, different nations and political leaders. Such positive results and developments were evidence of the growing will to find an exit out of the difficult and depressing state of which Bosnia and Herzegovina had been a prisoner for almost a whole decade.

There were, however, still many issues which needed to be worked on regarding the peace agreement implementation and implementation of the Conclusions of the Peace Implementation Council contained in the Bonn and Madrid documents, he said. Nevertheless, this year, common institutions of Bosnia and Herzegovina had been working with greater effectiveness, intensity and coordination. Furthermore, 272,000 displaced persons and 343,000 refugees had returned to both the entities. Still, the returns, especially the minority returns, were some of the most difficult and painful humanitarian, economic and political issues. The minority return was still being slowed down, manipulated, blocked and politically manipulated, he added.

He said the reform of the judicial system had also been initiated and was aimed at complete professionalization, modernization and independence of judges and prosecutors, in accordance with the norms and standards of the democratic societies of contemporary Europe and the world. Beginning this year, children in the schools of Bosnia and Herzegovina were attending class in accordance with new programmes. Those programmes excluded content which could present a threat and danger to fragile confidences and understanding among the younger generation. Significant measures had been undertaken in the sphere of economic reform and preparations for privatization of larger companies and industrial conglomerates which were the inheritance from the socialist period were under way.

He said, the speeding up of activities in the areas mentioned reflected a strong orientation towards the building of a democratic society, an open market economy, expanded human rights and civil liberties, as well as meeting the conditions for admission to the Council of Europe and getting closer to the European Union and trans-Atlantic institutions. The presence of the international community in Bosnia and Herzegovina was still indispensable and was a guarantor that life in the two entities would move towards normalization, he noted.

He said that one of the most convincing pieces of evidence in the assertion of progress had been the organization and hosting of the Stability Pact for the Southeast Europe Summit, which had taken place on 29 and 30 July in Sarajevo. The Pact of Stability and the Declaration adopted had jointly opened new perspectives for Bosnia and Herzegovina, as well as for other countries in the region. It had also given birth to a fast, stable and definite solution to the series of catastrophic events and the fast recovery of peoples and countries which had paid an extremely high price for ignorance, political and military adventurism and the flagrant violations of the norms of international relations and international humanitarian law.

He said the guarantees and the goals of the Stability Pact which were peace, prosperity and security "for our part of the world" lay with the determination and preparedness of the European Union, the Organization for Security and Cooperation in Europe (OSCE), the Council of Europe, the United Nations, the North Atlantic Treaty Organization (NATO), as well as other international organizations, institutions and regional initiatives. Bosnia and Herzegovina was determined to embrace the Pact, to build on it and to accomplish objectives through concrete contributions to its success.

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