UNITED NATIONS SEEN AS LESS RESPONSIVE TO DEVELOPING COUNTRY CONCERNS, MORE RESTRICTIVE IN DEVELOPMENT PROGRAMME ORIENTATION

Press Release
GA/EF/2869

UNITED NATIONS SEEN AS LESS RESPONSIVE TO DEVELOPING COUNTRY CONCERNS, MORE RESTRICTIVE IN DEVELOPMENT PROGRAMME ORIENTATION

Opening Debate On Operational Activities For Development, Second Committee Speakers Call Decline in Funding Heart of Problem

Deep concern was expressed this morning over current trends in United Nations development activities as the Second Committee began its consideration of operational activities for development. Those trends, said a number of speakers, threatened to undermine the very foundation and future of such activities.

The representative of Guyana, speaking on behalf of the Group of 77 developing countries and China, said that development activities of the United Nations had in the past distinguished themselves from those institutions such as the World Bank, which were seen as responding more to the interests of major shareholders than to the requirements of their clients in the developing world. Nowadays, however, organizations like the United Nations Development Programme (UNDP) were perceived as less responsive to the most urgent concerns of developing countries, more restrictive in their programme orientation and at risk of becoming irrelevant because of a patent lack of critical mass. The continued decline in funding for the core functions of the Organization was at the heart of the problem.

Funding for operational activities for development must be placed on a predictable, assured and continued footing, commensurate with the increasing needs of developing countries, said the representative of Antigua and Barbuda, speaking on behalf of the Caribbean Community (CARICOM). The CARICOM countries did not receive a large share of United Nations funding for operational activities, due to their relatively high per capita gross national product (GNP). However, vulnerabilities of both ecological and economic natures and the erosion of trade preferences had been overlooked. Thus, the criteria for concessional assistance must be revised so as to include vulnerabilities, openness of economies and other qualitative data.

The vital need to enhance Economic Cooperation Among Developing Countries (ECDC) had become more relevant in the face of the challenges of a globalizing economy, and in light of the improved economic policies and market-related reforms undertaken by some developing

Second Committee - 1a - Press Release GA/EF/2869 13th Meeting (AM) 15 October 1999

countries, he said. As ECDC contributed to both developed and developing countries, it was incumbent upon the developed countries to support ECDC through increased technical and financial assistance, and by encouraging greater Foreign Direct Investment (FDI) flows into developing countries. Technical Cooperation Among Developing Countries (TCDC) could be a tool to maximize the benefits derived from economies of scale, which in turn could enable countries of the South to participate effectively in the global market economy.

The representative of Finland, speaking on behalf of the European Union and associated States, said that success of the South-South cooperation modality was largely dependent on the commitment of Governments involved. It was for the developing countries to take the initiative and to manage the application of the TCDC modality. It was also their responsibility to formulate coherent national policies to advance TCDC/ECDC, including funding from national budgets, the establishment and strengthening of the focal point mechanism, and strengthening awareness of the value of that modality. In many cases, however, there was still lack of clearly defined national TCDC/ECDC policies, insufficient awareness of their full potential and importance, and inadequate provision of human and financial resources.

Also this morning, introductory statements were made by Noeleen Heyzer, Executive Director of the United Nations Development Fund for Women (UNIFEM), John Ohiorhenuan, Director of the Special Unit for Technical Cooperation among Developing Countries (TCDC) of UNDP, and Taye Zerihoun, Director of Africa One Division of the Department of Political Affairs.

Statements were made by the representatives of Ghana, United States, Russian Federation, Mexico (on behalf of the Rio Group), Norway, Benin, Mozambique (on behalf of the SADC), Ecuador, Myanmar, India, Pakistan, Czech Republic, Yemen and Lesotho.

The Committee will meet again at 3 p.m. to continue its consideration of operational activities for development.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to begin its consideration of operational activities for development, in particular those of the United Nations system, as well as economic and technical cooperation among developing countries.

The Committee had before it the report of the High-level Committee on the Review of Technical Cooperation among Developing Countries (document A/54/39, Supplement No. 39). The Committee’s eleventh session was held in New York from 1 to 4 June. The report contains statements by the Permanent Representative of Jamaica to the United Nations, as the President of the Committee, and the Associate Administrator of the United Nations Development Programme (UNDP). It also contains highlights of the progress reports introduced by the Director of the Special Unit for Technical Cooperation among Developing Countries (TCDC).

The review of the progress made in implementing the Buenos Aires Plan of Action, the decisions of the High-level Committee and the recommendations of the South Commission were among the reports examined, as well as a review of progress made in the implementation of the new directions strategy for technical cooperation among developing countries. In the review of progress made, great emphasis was placed on developing technical and scientific competence in developing countries, especially in frontier areas of technology. It was suggested that TCDC focus attention on science and technology development. It was also suggested that education, health, sanitation or housing are areas in which TCDC could be particularly effective. The report also gives a summary of the views expressed during the general debate.

Closing statements are included, from the Director of the Special Unit for TCDC, on behalf of the Administrator of the UNDP and the President.

Also before the Committee was the report of the Secretary-General on the state of South-South cooperation (document A/54/425), which provides a review of the recent developments and trends in South-South cooperation, with particular attention to regional and subregional cooperation, trade, investment and finance, industry, technology and enterprise development. It also examines the extent to which support by the multilateral system has contributed to such cooperation. Special focus is placed on building broad-based partnerships, enhancing collective capacities, knowledge networking, and integrating the modalities of technical and economic cooperation among developing countries into the operational activities of the United Nations development system. It underscores the importance of South- South cooperation in a globalization era, and offers some suggestions for improving such cooperation.

South-South cooperation is a broad concept, according to the report, and is often perceived, in operational terms, as having two dimensions –- economic cooperation and technical cooperation among developing countries. Generally, economic cooperation refers to intra-South cooperation in trade, investment and finance and is also used to cover collaboration in other economic sectors, such as industry, technology and communication. Technical cooperation, on the other hand, refers to the building, pooling and sharing of capacities –- to further enhance an enabling environment for socio-economic progress in developing countries. It can be said that both forms of cooperation are mutually reinforcing -– technical cooperation helps create the necessary conditions for economic cooperation, and economic cooperation provides the framework for technical cooperation.

South-South cooperation, says the report, is premised on the need for developing countries to strengthen both collective and individual capacities to deal with the multifaceted challenges and opportunities offered by globalization. It is, therefore, increasingly pursued by developing countries as both a policy and a practical strategy for sustainable economic growth through trade expansion, investment diversification, industrial complementation and technology transfer. The goal is to ensure effective participation by all countries in a rapidly integrating world economy, and to shield economically disadvantaged members from further marginalization.

The report goes on to say that South-South cooperation has gained new momentum in recent years, especially at the regional and subregional levels. However, despite progress, the historical commitment to traditional North-South linkages in trade, aid and finance, as well as established institutional infrastructures for North-South cooperation still hold back the potential of South- South cooperation. Above all, the lack of adequate funding for South-South cooperation remains a formidable challenge.

According to the report, the upsurge in South-South cooperation has continued despite the economic and financial setbacks observed during the recent Asian financial crisis. However, the crisis had demonstrated again that the global economy is interdependent, and that no country could remain unaffected by or could single-handedly provide solutions to emerging problems in a rapidly changing world economy. It stressed the need for the South to rely more heavily on the principles of solidarity and collective self-reliance and to develop adequate processes, mechanisms and policies for reaping the benefits of globalization.

The review in the report makes it clear that South-South cooperation is a powerful instrument for expanding the global economy in an equitable manner. It facilitates the inclusion of all countries, especially the disadvantaged ones, in a prosperous, integrated world. While the globalization process has expanded the opportunities for developing countries, it has also presented challenges requiring multilateral action to counter them successfully. South-South cooperation provides a formidable framework for collective action on all levels. It is an enterprise among the South, by the South and for the South. Its ultimate objective is enlarging people's choices and improving the well-being of the poor and the disadvantaged.

While external support remains crucial and, indeed, needs to be increased substantially, the extent to which the full potential of such cooperation can be exploited and unleashed depends largely on the South's own efforts, the report continues. The success of such efforts can contribute significantly to the sustainable economic growth and integration of developing countries in the world economy. More deliberate efforts must, therefore, be made to strengthen the collective self-reliance of the South. First, regional and subregional economic arrangements should seek regional integration more rapidly. Second, they should develop and coordinate common positions on global economic issues and be transformed into strong platforms of common interest. Third, their bargaining capacity should be strengthened through the building and consolidation of regional and global organizations, such as the Group of 77 developing countries, and through the provision of support to Southern think-tanks.

The Committee also had before it the report of the Secretary-General on cooperation between the United Nations and the Southern African Development Community (SADC)(document A/54/273). The General Assembly, in its resolution 52/204 of 18 December 1997, requested the Secretary-General, in consultation with the Executive Secretary of SADC, to continue to intensify contacts aimed at promoting and harmonizing cooperation between the United Nations and the Community; and to report to it at its fifty-fourth session on the implementation of the resolution. The report is based on information received from Member States and organizations and United Nations bodies as of 20 August 1999.

The report mentions actions taken by Member States China, India, Kuwait, Mexico, Norway, Thailand, the United States, and the European Union in rendering assistance to and cooperation with the SADC; assistance by member States of the European Union to the SADC and/or individual member States of the SADC on a bilateral basis; and assistance by the Commission of the European Union to individual Member States of the SADC.

The report also notes the cooperation between the United Nations system and the SADC as expressed in actions by the Department of Economic and Social Affairs (ECOSOC), the Department of Public Information (DPI), the Food and Agriculture Organization (FAO), the United Nations High Commissioner for Refugees (UNHCR), the International Civil Aviation Organization (ICAO), the International Labour Organization (ILO), the International Monetary Fund (IMF), the World Bank, the United Nations Educational, Scientific and Cultural Organization (UNESCO), the United Nations Children's Fund (UNICEF), the UNDP, the United Nations Conference on Trade and Development (UNCTAD), the Universal Postal Union (UPU), the United Nations University (UNU), the World Health Organization (WHO), the World Intellectual Property Organization and the United Nations Office for Drug Control and Crime Prevention.

Also before the Committee was a note by the Secretary-General transmitting the report on the activities of the United Nations Development Fund for Women (UNIFEM) (document A/54/225). The report gives an overview of the five core strategies for promoting its empowerment approach: building the capacity and leadership of women’s organizations and networks; leveraging political and financial support for women from a range of stakeholders in the development process; forging new synergies and effective partnerships among women’s organizations, Governments, the United Nations system and the private sector; undertaking pilot and demonstration projects to test innovative approaches to women’s empowerment; and building an operational knowledge base to influence gender mainstreaming.

On the question of strengthening women’s economic capacity as entrepreneurs and producers, UNIFEM focused on policy-level activities on the macro level, capacity-building of women’s organizations on the mesa level, and organizing women around the collection/growing, processing and marketing of products to enable them to take control of resources and improve their bargaining power on the micro level. The goal of engendering governance and leadership to increase the participation of women in decision-making processes was pursued by promoting women’s transformational leadership and political participation, facilitating gender- sensitive national planning, and promoting women’s participation in peace-building and conflict resolution.

The report notes that although some figures regarding basic health and education are encouraging, women continue to be the target of physical and psychological violence on a scale not known to any other group. In order to promote the realization of women’s rights and the elimination of all forms of violence against women, the Trust Fund in Support of Actions to Eliminate Violence against Women in 1998 had approved 29 new projects for implementation. The annual income for the Trust Fund doubled in 1998 in size over the year before to approximately $1.8 million. Some of the strategies implemented by UNIFEM are: sharing information on successful strategies; organizing a global training workshop on the Convention on the Elimination of All Forms of Discrimination against Women; and mainstreaming the human rights of women.

Other subjects covered in the report were: supporting the United Nations reform process to strengthen gender mainstreaming and women’s empowerment, and building a knowledge base on women’s empowerment and gender equality, as expressed in its strategy and business plan, 1997-1999. The report also gives an account of the Fund’s 1998 financial management.

Also before the Committee was a note by the Secretary-General transmitting the report of the Joint Inspection Unit on the United Nations Office for Project Services (UNOPS) document A/53/788 and Add. 1). UNOPS became operational as a self-financing, separate and identifiable entity, although not as a new agency, with effect from 1 January 1995, while remaining in partnership with the UNDP and other operational entities. Administrative support for UNOPS, including relating to financial and personnel matters, continued to be provided by UNDP Headquarters and its field network. The definitive mandate of UNOPS, and limitations placed on its role and scope, were intended to regularize its relationship with other United Nations system organizations, including the specialized agencies, in such a way as to mitigate, at least, certain misunderstandings and mistrusts that had ensued upon the creation of the Project Execution Division within UNDP in 1973.

UNOPS partnerships with United Nations system organizations have until recently been very largely restricted to a limited number of “traditional partners”, such as UNDP and International Fund for Agricultural Development (IFAD). More recently the diversification of the UNOPS clientele has increased significantly, although the new clients have been mainly from the United Nations Secretariat and entities under its purview. While some major specialized agencies have begun to work with UNOPS, such partnerships remain very limited, and more proactive development of this clientele offers a significant opportunity for making more effective use of UNOPS in the United Nations system.

The main objective of the report is to enhance this relationship for the benefit of programme countries by promoting more effective cooperation and partnership between UNOPS and the United Nations system organizations. It advocates a sharper and more distinctive division of labour between UNOPS and other United Nations system organizations based on their respective comparative advantages, thus optimizing their complementarities. The UNOPS would actively seek, identify and use the expertise prevalent in the United Nations system, and particularly, the specialized agencies. On their part, the organizations of the United Nations system, especially those who have not done so, would make more use of UNOPS for providing project services.

Statements

NOELEEN HEYZER, Executive Director of the United Nations Development Fund for Women (UNIFEM), said that at a time when the United Nations system was focused on results and preparing for the five-year assessment of the Beijing Platform for Action, there were two positive outcomes of the global consensus on gender equality. The first was a notable increase in the effort and willingness of governments to develop and support programmes on women’s empowerment and gender equality. In an era of decreasing development assistance, it was increasingly important that globalization and trade become pro-poor, pro-sustainability and pro- equality. In 32 countries, policies had been instituted to reserve a portion of legislative seats for women, or to enact some form of affirmative action to increase women’s political leadership. UNIFEM was supporting organizations developing training and capacity-building approaches that helped women to take advantage of those policies by building their skills in campaigning and in promoting gender-responsive development and legislation.

The second outcome, she continued, was that the Secretary-General’s reform agenda to strengthen the Resident Coordinator system and promote inter-agency collaboration and integrated follow-up to United Nations world conferences had yielded significant benefits for the cause of gender equality and women’s empowerment. The most significant was the United Nations inter-agency campaigns to end gender-based violence in Latin America and the Caribbean, Africa and Asia- Pacific, initiated by UNIFEM in 1998 in direct response to a call for greater United Nations coordination. Inter-agency efforts to incorporate a gender perspective in micro-finance activities had also benefited from increased collaboration.

However, in reflecting on progress achieved and critical gaps remaining, there were two issues that were frequently identified and could be of importance in the Second Committee’s deliberations. Those were the need for: expanded knowledge and gender expertise to support improved programming and policy formulation to further the agenda for gender equality and women’s empowerment at the country level; and improved mechanisms to assess progress, gaps and accountability, including resource allocations. The Committee could strengthen previous resolutions and recommendations by reaffirming the need for United Nations organizations to increase the network of gender expertise available to programme partners. In addition, encouraging the development of increased and improved mechanisms for analyzing resource allocations from a gender perspective –- by governments and by United Nations organizations –- would provide needed data on areas of work that were receiving increased support, and areas in which more concentrated effort and resources were needed.

JOHN OHIORHENUAN, Director of the Special Unit for Technical Cooperation Among Developing Countries (TCDC) of the United Nations Development Programme (UNDP), said that the High-level Committee on TCDC had observed that as development capacities of countries improved, more and more developing countries were financing their own TCDC activities. Episodic training activities were being replaced by more sophisticated forms of exchange. More vibrant forms of cooperation, such as triangular arrangements and enterprise-to-enterprise links, were giving new life and content to TCDC. The Committee had reaffirmed the continuing relevance and the great potential of TCDC and had urged the international community to increase support for it. It had also requested from the organizations and agencies a common framework for measuring progress and results in promoting TCDC/ Economic Cooperation Among Developing Countries (ECDC) and mainstreaming the modalities in the operational activities.

The Secretary-General’s report observed increased differentiation and sophistication among developing countries had opened up new opportunities for enhanced South-South cooperation. The resurgence of regional, subregional and inter-regional cooperation was a noteworthy trend. Many organizations of the United Nations system had invested heavily in creating various databases and information systems. To link them in order to provide better service to the South remained a challenge. Those efforts would go a long way towards fulfilling the Organization’s commitment to orient its operational activities increasingly towards South-South cooperation.

It was generally believed that developing countries were increasingly investing in other countries. However, a system was needed to disaggregate data on actual flows from South to South, in order to render future reports more robust, he said. The report concluded that South-South cooperation was a powerful instrument for expanding development choices at the national, regional and global levels. It emphasized that while external support for South-South cooperation needed to be substantially increased, the extent to which its full potential could be exploited depended largely on the South’s own efforts.

TAYE ZERIHOUN, Director of Africa One Division of the Department of Political Affairs (DPA), said that at the request of member States of the Southern African Development Coordination Conference Community (SADCC), the General Assembly had adopted a resolution in December 1982 stressing, among other things, that increased economic self-reliance by SADCC member States would contribute to the struggle against the apartheid policies of the minority regime of South Africa at the time. The Assembly had therefore requested the Secretary-General to take appropriate measures to promote and enhance cooperation between the United Nations system and SADCC and to submit to it annual reports. Subsequently, the Assembly decided in 1985 to consider the item on cooperation between the United Nations and SADCC every other year and requested the Secretary-General to submit his reports on that basis as well. The report of the Secretary-General on cooperation between the United Nations and the SADC contained the information received from member States, regional and other relevant organizations and bodies of the United Nations system on their cooperation with and assistance to SADC and its member countries in implementing programmes and projects for development cooperation and technical assistance.

GEORGE WILFRED TALBOT (Guyana), speaking on behalf of the Group of 77 developing countries and China, said that the operational activities for development of the United Nations system in many ways symbolized the value of the United Nations to the peoples of the developing world. Those activities had in the past distinguished activities of the United Nations from those of institutions such as the World Bank, which were seen as responding more to the interests of major shareholders than to the requirements of their clients in the developing world. There was, however, deep concern over the trends that characterized the United Nations’ development activities at the present time, which threatened to undermine the very foundation and future of those activities.

Nowadays, organizations like the UNDP were being perceived as less responsive to the most urgent concerns of developing countries, more restrictive in their programme orientation, and at risk of becoming irrelevant because of a patent lack of critical mass. The continued decline in funding for the core functions of the Organization was at the heart of that problem. The most recent effort to repair the compact between reform resources and results in UNDP and other funds and programmes, as represented by the Multi-year Funding Framework (MYFF) process, was now being put to the test -- with so far disappointing results. The necessary commitment on the part of donor countries was yet to materialize. The Group of 77 and China wished to place on record their concern over that situation.

South-South cooperation had progressed in key areas such as trade, investment and finance, he said. There had been a steady increase in intra-South trade throughout the 1990s, and an increasing share of intra-South trade in global trade flows. The Group of 77 and China attached continuing priority to the closer integration of ECDC and TCDC and to the strengthening of regional and sub-regional cooperation mechanism, and sought closer involvement of the business and private sector actors in the advancement of South-South cooperation. AIRA PAIVOKE (Finland), speaking on behalf of the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus and Malta, said that the success of the South-South cooperation modality was largely dependent on the commitment of Governments involved. It was for the developing countries to take the initiative and to manage the application of the TCDC modality. It was the responsibility of developing countries to formulate coherent national policies to advance the TCDC/ECDC, including funding from national budgets, the establishment and strengthening of the focal point mechanism and strengthening awareness of the value of that modality. In many cases, however, there was still lack of a clearly defined national TCDC/ECDC policies, insufficient awareness of their full potential and importance and inadequate provision of human and financial resources.

South-South cooperation had evolved from a country-to-country approach towards a more horizontal, multiple-country or regional cooperation, she said. The use of regional facilities for training and research, support for policy-making, resource use and management had enabled the countries of one region to network more effectively and learn from each other. The potential capacity-building benefits of that sort of cooperation were clear. The concept of multiple beneficiaries of TCDC interventions was an important new avenue to be explored, and could benefit inter- regional initiatives. Experience in recent years had shown that regional organizations and bodies were developing into efficient promoters of, in particular, ECDC in terms of trade, investment and finance. TCDC was a valuable tool for the developing countries in meeting the challenge of trade liberalization and globalization. It offered opportunities for socio-economic development and for greater participation and integration of developing countries into the world economy.

The European Union, she said, noted with satisfaction the efforts made by UNIFEM, after the approval of the business plan for the period of 1997-1999, to focus its activities, to progress towards becoming a learning organization by setting up a learning component and to strive towards forging and strengthening partnerships, both within the United Nations and outside it. The European Union commended, in that context, the important work UNIFEM had undertaken within the framework of the Beijing Platform for Action and the coordinated follow-up to other major United Nations conferences on implementation of recommendations related to women’s empowerment and gender mainstreaming. The European Union believed that capacity-building of women’s organizations was the way to achieve sustainability of actions and to accomplish social change.

KWABENA OSEI-DANQUAH (Ghana) said it was evident that regional, subregional and intra-regional cooperation agreements in the South reflected the same skewed pattern of distribution as, say, financial flows. Africa was less advanced in those processes than Asia and Latin America. Improved communications, especially through increased use of information technology, offered less developed countries cost-effective access to critical information in that connection, he commended efforts to provide hardware support for less developed countries to enable them to access the WIDE information System. The Special Unit for TCDC could also enhance the potential for accelerating economic and technical cooperation among developing countries, through further networking with pivotal countries and donor countries promoting triangular cooperation.

Developing countries had their own responsibilities, he said. They must, among other concerns, deepen their partnerships with their own private sectors, support linkages between them and those in other parts of the South, and encourage academic and information exchanges. The role of the United Nations development system, however, had to be strengthened through innovative fund raising, in order that the pace and scope of United Nations operational activity responded to the objective needs of development, not to the year-by-year moods in national capitals.

BETTY KING (United States) said the continued expansion of United Nations Development Assistance Frameworks (UNDAF) and common country assessments at the country level had reinforced cooperation and reduced duplication in operations. The UNDAF had brought a new sense of cohesion and unity of purpose to previously disparate development agencies. It had focused the attention of those agencies on their common mission of finding more effective ways to alleviate human poverty and widen the well-being of Earth’s inhabitants.

There were still areas where much more progress was necessary, she continued. Multiple conflicts in several regions of the world made clear the need to further solidify and integrate a coordinated process that moved the world from crisis situations to development. More needed to be done to improve coordination among the various United Nations actors, while a number of those actors needed to address their own role in internal organizations. The challenge now was for the United Nations to achieve agreement on the role of the Organization’s operational activities in promoting sustainable development, particularly in terms of focusing on the United Nations comparative advantage. While there was movement in the right direction, there was still a long way to go.

The UNDAF process continued to be an effective means of coordinating support to ECDC and TCDC, she said. The UNDP, and particularly its special unit for TCDC, as well as the regional commissions, should play the pivotal role in the multilateral sphere for the promotion and facilitation of TCDC. To continue expanding, TCDC must show its relative worth in producing results. In that regard, insightful and unvarnished analysis of TCDC programmes enhanced the credibility of TCDC and helped to justify TCDC funding. While TCDC success stories should be disseminated, so should stories of failure, for such stories held useful lessons as well.

NIKOLAI V. TCHOULKOV (Russian Federation) said that the task of strengthening interaction between the United Nations institutions and the World Bank and other partners in development remained topical, but in the final analysis, it ran counter to the interests of recipient countries. There must be closer harmonization of activities between the UNDAF and the World Bank Comprehensive Development Frameworks. The Russian Federation was greatly concerned about the continuing reduction of the regular resources of UNDP and the United Nations Population Fund (UNFPA), which not only led to curtailing programme activities in countries, but also undermined the ability of those organizations to perform their large-scale tasks efficiently, including implementation of the decisions of the United Nations global conferences.

The activities of the United Nations programmes and funds on assistance were vital to the countries of Europe and the Commonwealth of Independent States (CIS) in carrying out their democratic social and economic reforms. In view of current objective circumstances, the many countries in that group needed the particular attention of the international community and the United Nations system, in their drive for transition towards a new condition, one which would enable them to participate more fully in furthering the objectives of sustainable development throughout the world.

MAURICIO ESCANERO (Mexico), speaking on behalf of the Rio Group, said that operational activities for development must preserve their universal character, neutrality and multilateralism. Since it was the poorest countries and sectors that required most assistance, the principle of universality was vital. Each situation should be consistent with the needs of the region, and differentiated on geographical and sectoral levels. Operational activities in Latin America and the Caribbean represented an important catalyst for development activities. Their priorities and specific initiatives must encourage a response from the United Nations that was fully consistent with their needs.

International financial assistance to operational activities for development continued to decline. In 1997, official development assistance (ODA) represented only .22 per cent of Gross National Product (GNP), the lowest since the United Nations had adopted an ODA target of .7 per cent. The impact of that decline had been greatest on developing countries, and particularly the most vulnerable sectors of those countries. It was vital to reverse that declining trend and provide aid on a secure and predictable basis. The Bretton Woods institutions must be strengthened, and cooperation with them based on clear and well-defined links so as to mobilize the necessary resources for development. The Group supported those initiatives, which strengthened tapping into non-traditional sources of aid.

The Rio Group also reaffirmed the importance of South-South cooperation as an increasingly dynamic tool for the positive integration of developing countries in the new global environment, he said. In that context, the Group had carried out cooperation activities for commercial and economic integration, particularly in areas such as trade, agriculture and training in human resources. Cooperation in Latin America and the Caribbean took on two dimensions -- those of receiving countries, and those of countries offering cooperation to less developed countries. He also emphasized the importance the Group attached to strengthening operational activities in response to natural disasters, particularly to bolster the contribution of UNDP in areas of assistance in cases of natural disasters.

OLE PETER KOLBY (Norway) said that South-South cooperation was an essential means of sharing relevant development experiences, in order to better identify common areas of understanding and common responses to the challenges posed by globalization. Such cooperation would strengthen the developing countries’ ownership of development processes and reinforce national capacities. Broader international support, and the triangular-cooperation mechanism, had contributed to an effective use of available resources for the benefit of many developing countries. Regarding the more strategic orientation of TCDC, it was imperative that South-South cooperation be perceived as a priority area within the United Nations system, and properly mainstreamed into its activities. Involvement of the private sector and of non-governmental organizations (NGOs) was indispensable in fostering a viable business sector in developing countries.

The UNIFEM had made progress towards becoming a learning organization, he said and partnerships within and outside the United Nations system had been strengthened. The UNIFEM continued to play a catalytic role in promoting gender mainstreaming within United Nations operational activities. Norway supported the establishment of a trust fund in support of action to eliminate violence against women. His country also regarded SADC as a key regional cooperation partner in Southern Africa, and therefore welcomed the progress made in intensifying contacts between the United Nations and the Community, as well as increased cooperation with other countries and multilateral institutions.

AHO-GLELE EDOUARD (Benin) said that operational development activities were designed in response to development needs. They were guided by universality, neutrality, multilateralism, voluntary financing and commitments. Convinced of the need to better coordinate development activities in countries, Benin had devised a national strategy: improvement of living conditions and eradication of poverty; good governance and enhancement of civil society; and enhancing employment, job training and the development of small and medium-sized businesses and industries.

Despite its limited resources, Benin contributed to the development activities of the United Nations system, he said. Yet its programmes continued to suffer cruelly from the lack of resources. His Government was seriously concerned at the persistent inadequacy of resources for the United Nations. Those inadequate resources were also subject to complicated rules and regulations which delayed or even threatened programme implementation. His Government counted on solidarity, good will, and the political will on the part of the donor countries to provide resources needed to strengthen the development activities of the United Nations.

CARLOS DOS SANTOS (Mozambique), speaking on behalf of the Southern African Development Community (SADC), said that important progress had been made in cooperation between the United Nations and the Community. The region was working hard to develop a peaceful community of nations and peoples committed to balanced and integrated development, and hence to a better future for its people. Last August, SADC held its nineteenth Summit to review the political and economic situation in the Community, as well as the current stage of regional integration. The region continued to cultivate a culture of peace, democracy, respect for human rights and the rule of law. Increased popular participation in governance, and dialogue between Governments and the civil society in the development of national policies and strategies, was becoming a reality in the countries of the region. At the same time, Angola and the Democratic Republic of the Congo remained sources of great concern in the region. The international community was urged to take appropriate action, especially humanitarian assistance to prevent further suffering of the Angolan people.

There had been great strides towards regional integration, he said, including the signing and ratification of a series of protocols. By advancing regional integration and cooperation, it was hoped to create additional opportunities for facing and shaping the challenges ahead. But the current efforts for genuine regional integration could not succeed without the precious support of the international community. “The primary responsibility for our development is in our hands”. However, the Community was very conscious of its shortcomings, in terms of resources and skills. International cooperation and assistance, therefore, played an important role in that context. The economic, financial and technical assistance received so far had been instrumental in improving regional performance in fields such as education and health. At the same time, it needed enhanced international cooperation and assistance from the international community.

FERNANDO YEPEZ LASSO (Ecuador) said that cooperation for development was an essential aspect of Ecuador’s foreign-policy activities. The decreasing trend of ODA, however, was of real concern. So was the emergence of new policies that limited financial and technical aid. South-South cooperation designed to achieve authentic social benefits was a valid alternative. A positive result of that kind of cooperation was the joint efforts by Ecuador and Columbia, which had strengthened productive investments in areas such as education and the fight against drug-trafficking. Following the resolution of their territorial problems, Peru and Ecuador now looked to the future together with the determination to be authentic partners for development. As another example, Cuba’s achievements in the fields of health, research and sports deserved special mention, he said. Experiences with triangular cooperation had also been most positive. South-South cooperation had likewise proved its worth in the growing upsurge of interregional trade. That trend must be maintained. Cooperation among developing countries still needed buttressing by the United Nations, but the countries of the South should rely on their own capacities and intensify mutual aid. The next Havana summit would be an occasion for constructive dialogue and a chance to design new strategies for cooperation for development.

U THANE MYINT (Myanmar) said there was no question that help and assistance from the North accelerated and enhanced the development processes in the South. Without that help, development efforts would be frustrated. It was, therefore, necessary to maintain assistance levels so that the development process might continue. Assistance came in a number of ways. Financial assistance was not necessarily the only important factor in development. Transfer of appropriate technology, environmentally-friendly technology and new and economical sources of energy were critically needed in the South. Developing countries lacked the research and development capacity of the developed countries. Most, if not all of their meager resources, had to be allocated to the basic human needs of their people. Technical knowledge beneficial to humankind and the environment, found and utilized by developed countries, should be shared or given to the developing countries.

Although North-South relations were crucial, countries should not always depend on the good graces of the North for development, he said. In that context, he underlined the benefits developing countries could reap from cooperation with one another. The Buenos Aires Plan of Action and the Caracas Programme of Action were the two most important programmes in the field of South-South cooperation. Stepped-up implementation of the two programmes had brought about fruitful results, not only in bilateral cooperation, but also in furthering the advent of triangular cooperation, with a resultant increase in support from developed countries. Technical and economic cooperation among the nations of the South had brought substantial results in development. Apart from entering going into regional groupings, each and every developing country could benefit from mutual cooperation.

M. G. K. MENON (India) said the combined forces of rapid technological change and liberalization had led to a spate of financial crises and the continuing economic exclusion of vast sections of humanity. That underscored the need for developing countries to work together to overcome their shared vulnerabilities and disadvantages, and to maximize the benefits that could accrue to them from the process of globalization. What was required was the will and the investments to give effect and meaning to South-South cooperation in benefiting from those developments.

Traditional factors of production were today being rapidly overtaken by a single intangible asset, which was non-replicable, unique and proprietary -– knowledge. The problem was that knowledge was not allowed to flow easily from North to South, since it had the potential to create wealth. In order to be relevant, South-South cooperation must foster the transfer of usable knowledge, thus enhancing the productivity of the countries of the South. Otherwise, the failures which had so often accompanied cooperation between North and South would only be replicated. In an era of scarce developmental resources, promotion of South-South cooperation offered the most cost-effective manner for the utilization of available funds.

Developing countries could not thrive on a diet of advice and words alone, he said. It was essential that adequate resources become available to them for promoting their growth and development. Predictable and assured resource levels, commensurate with needs, were a key ingredient of effectiveness and impact.

PATRICK A. LEWIS (Antigua and Barbuda), speaking on behalf of the fourteen Member States of the Caribbean Community (CARICOM), said that there was a vital need to enhance ECDC. That need had become more relevant in the face of the challenges of a globalizing economy, and in light of the improved economic policies and market-related reforms undertaken by some developing countries. The ECDC contributed to both developed and developing countries. It was, therefore, incumbent upon the developed countries to support ECDC through increased technical and financial assistance, and by encouraging greater Foreign Direct Investment (FDI) flows into developing countries. The scope of TCDC had increased as a number of developing countries attained higher levels of technology and know-how. The TCDC could be a tool to maximize the benefits derived from economies of scale and complementarities, which in turn could enable countries of the South to participate effectively in the global market economy.

The international economic environment, he said, continued to be unfavourable for developing countries, especially small island developing States and least developed countries. The CARICOM countries had benefited from United Nations operational activities mainly through the presence of funds and programmes at the country level. Funding for operational activities had been steadily declining in recent years, however, which was of central concern to CARICOM. Funding for operational activities for development must be placed on a predictable, assured and continued footing, commensurate with the increasing needs of developing countries.

The CARICOM did not receive a large share of United Nations funding for operational activities, due to its relatively high per capita gross national product (GNP). Vulnerabilities of both ecological and economic natures and the erosion of trade preferences had been overlooked, however. The criteria for concessional assistance had to be revised so as to include vulnerabilities, openness of economies and other qualitative data.

MARIAM AFTAB (Pakistan) said that, as approved by the United Nations Development Programme (UNDP) Executive Board last year, the sole objective of the Multi-Year Funding Framework was to increase resources and provide funding for the UNDP/UNFPA on a secure and predictable basis, without introducing conditionalities or distortion of priorities. However, one year after that historic decision, it appeared that the Framework had not lived up to the high hopes attached to it. Core resources for the UNDP had actually declined and, programme countries had been informed that there would be a 20 per cent resource cut across the board. Immediate steps must be taken to address that very serious situation. All development partners must live up to the objectives of the Framework arrangement in order to collectively pull the United Nations development system back from the edge.

The need to involve the Bretton Woods institutions more closely in the development process had been increasingly recognized. She emphasized, however, that reinforcing cooperation between the United Nations development system and the Bretton Woods institutions should take place after full consultation with host countries, and with a clear recognition and respect for their distinct and separate mandates. The United Nations development agenda had become increasingly diverse and complex with each passing year. Still, billions of people lived in utter poverty. Until that stark reality changed, poverty eradication must remain at the top of the United Nations development priorities.

JANA SIMONOVA (Czech Republic) said that over and above the traditional challenges brought about by globalization, there was an additional requirement if individual countries were to succeed in globalized markets -- good governance. Since crises were likely to arise in the future, most developing countries and countries in transition must raise standards of governance to in order avoid or at least minimize foreign capital outflows in situations of extreme market volatility. There was an urgent need to improve governance for the protection of public goods, for making domestic markets truly competitive, and for development purposes in general. It was imperative to enhance the rule of law, strengthen law enforcement and promote democratization. In all those areas, knowledge and lessons learnt could and must be effectively shared. There was an enormous need for technical and development assistance in all areas of good governance in most developing and transition countries. The current concern should be whether that latest need was being adequately reflected in United Nations operational activities.

The UNDP had proved its unparalleled expertise and competitive advantage in the area of sustainable human development, she said. Its priority focus in the coming years should be on capacity building for good governance as the most important factor of future development. As a key player in United Nations operational activities, the UNDP was very well equipped for that role, thanks to its universality and neutrality, and its deeper understanding of country-specific needs and efficiency. Emphasis on a results-based approach would make the UNDP even more efficient and better prepared for addressing new development challenges, in closer cooperation with other development players.

ABDULLA AL-MONTASSER (Yemen) said that for many countries globalization and the information age presented substantial adaptation challenges. Globalization had become more powerful and no longer needed a permit from national authorities. But would the citizens of the whole world really be able to improve their quality of life? It was important that a global economy with a global face be established.

He expressed great concern about the decline in volume of resources for United Nations operational activities. Efforts to increase those resources must be maintained. It was fair to say that the UNDP had played a pioneering part in bringing about change in developing countries, and in least developed countries, such as Yemen. The UNDP was a familiar presence in his country, as it had supported many projects, including training of the handicapped, health-care programmes and education. The initiative to enhance coordination between donor organizations and between those organizations and recipients should be maintained and strengthened.

LISEMA W. RALITSOELE (Lesotho) said that the SADC operated as a cross- functional team, bringing together a variety of resources, skills and knowledge for the identification and resolution of a common overarching problem –- poverty. More than ever before, today’s international environment demanded the prerequisites of peace, transparency and the ability to forge mutually beneficial alliances for achieving progress towards sustainable economic development. The SADC was so structured and so ably led that it was bringing the goal of political unity and economic integration closer. Regional integration and cooperation were fostered through the deliberate apportionment of the various sectors, such as environment and energy. Indeed, SADC was poised to achieve internationally reputable subregional governance. Poverty was still a highly visible phenomenon in the subregion, he said. That situation was exacerbated by the fact that some countries within the sub-region continued to suffer from a high debt burden. He, therefore, requested the international community to continue to contribute substantially to the strengthening of the SADC economy, and to the efforts of member countries to achieve sustained economic growth and sustainable development.

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