FOR DEVELOPING WORLD, GLOBALIZATION MEANS NOT INTERDEPENDENCE BUT OVERDEPENDENCE ON AID, MARKETS OF WEALTHY

Press Release
GA/EF/2881

FOR DEVELOPING WORLD, GLOBALIZATION MEANS NOT INTERDEPENDENCE BUT OVERDEPENDENCE ON AID, MARKETS OF WEALTHY

Second Committee, Winding up Globalization Debate, Hears Calls for Reform of Global Economic Architecture

Globalization was fragmenting production processes, labour markets, political entities and societies, the representative of Iran told the Second Committee (Economic and Financial) this morning as it concluded its consideration of globalization and interdependence.

It was dividing nations and regions into those that were integrated and those that were excluded, he said. The contraction of time and space was creating new threats to human security via the risk of sudden disruption in the patterns of daily life, in jobs and livelihood, in health and personal safety, and in the social and cultural cohesion of many societies. The impact of globalization, especially in the area of finance and trade, was so strong and overwhelming that national governments, particularly in developing countries, could do little if anything to contain the adverse effects of the process.

Far from leading to increased interdependence, globalization had resulted in overdependence of developing countries on the aid and markets of developed countries, said the representative of Mozambique. Overall, the benefits of the globalization process were enjoyed by developed countries at the expense of developing countries. By liberalizing trade and finance, the process had exposed poor countries to powerful external forces and had driven them to marginalizaiton from the world economy. In reforming the current unjust international economic system, it was necessary to pursue the globalization of development. That entailed the creation of an enabling international economic environment, reform of the global financial architecture, a comprehensive solution of the external debt of developing countries, provision of adequate aid for developing countries and a fair trade agenda.

South Africa’s representative called for people-centred development and humane globalization, characterized by improved living standards for all, which meant eradicating poverty, fulfilling people's basic needs and actively promoting human rights. It should recognize

Second Committee - 1a - Press Release GA/EF/2881 25th Meeting (AM) 28 October 1999

the need to promote democracy, human dignity, social justice and cohesion and solidarity at national, regional and international levels. "The highest calling for all of us is to make globalization and interdependence now and in the future a beginning of hope, redemption and enlightenment for the hungry, the poor and the wretched of the earth", he said.

The unbalanced system, the representative of Saint Lucia said, was inherently self-destructive. It could only end in devastation, unless there was global participation and benefits to all, based on equity, ethics, inclusion and the development of all countries. To address peace, stability and poverty eradication seriously, one should do away with all the exclusive groupings -- like G7, G8 and G22 -- and instead have a G188, where all concerns and interests could be addressed in the context of an evolving global economy. There should be fairness in the World Trade Organization (WTO), and those benefiting from globalization should reverse the decline in official development assistance (ODA) and provide assistance in real terms through capacity- building and the transfer of technology. If globalization continued to go unchecked, it would result in instability and chaos, and the sovereignty of states and rights and liberties of people would be undermined.

Also this morning, three draft resolutions were introduced by the representative of Guyana (on behalf of the Group of 77 developing countries and China) with regard to sustainable development and international economic cooperation.

Statements were also made by the representatives of Uruguay, Democratic People's Republic of Korea, Haiti and Tunisia. The representative of the World Health Organization (WHO) also spoke.

The Committee will meet again at 11 a.m. tomorrow to begin its consideration of women in development.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to conclude its consideration of globalization and interdependence. For background on the Secretary-General’s report, see Press Release GA/EF/2880, issued on Wednesday, 27 October.

Also this morning the Committee had before it two draft resolutions in connection with its consideration of sustainable development and international economic cooperation. The text on preparations for the special session of the General Assembly for an overall review and appraisal of the implementation of the Habitat agenda (document A/C.2/54/L.12) is sponsored by Guyana, on behalf of the Group of 77 developing countries and China. By its terms, the Assembly would endorse the decisions of the Preparatory Committee, in particular regarding its rules of procedure and the dates, venue and provisional agenda for its first substantive session.

The second text, also sponsored by Guyana, on behalf of the Group of 77 developing countries and China, is on implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) (document A/C.2/54/L.13). By its terms, the Assembly would call on Governments to ensure the provision of sufficient financial support to the United Nations Centre for Human Settlements (Habitat). It would request the Secretary-General to ensure that the staffing of the new organizational structure is completed as a matter of urgency in accordance with the principle of equitable geographical representation and gender balance, in accordance with relevant United Nations rules and regulations. It would also request him as a matter of urgency to appoint a full-time Executive Director for the Centre in accordance with Assembly resolution 53/242. Further, he would be requested to provide additional resources from the regular budget to the Centre, in accordance with current budgetary practices and procedures.

Introduction of Draft Resolutions

DONNETTE CRITCHLOW (Guyana), speaking on behalf of the Group of 77 developing countries and China, introduced the draft resolution on the implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II), which sought to address issues pertinent to the implementation of the Habitat agenda.

Next, she introduced the draft resolution on preparations for the special session of the General Assembly for an overall review and appraisal of the implementation of the Habitat Agenda. The session was of particular importance to the Group, as well as to the entire international community, since it would provide an opportunity to consider further progress in the area of human settlements.

Also, she introduced the draft resolution on international migration and development, including the convening of a United Nations conference on international migration and development (document A/C.2/54/L.11). By its terms, the Assembly would call on all relevant bodies, agencies, funds and programmes of the United Nations system and other relevant intergovernmental, regional and subregional organizations, within their continuing mandated activities, to continue to address the issue, and to provide appropriate support for interregional, regional and subregional processes and activities on the issue. It would also call on the international community to seek to make the option of remaining in one’s country viable for all people, to which end efforts to achieve sustainable economic and social development, ensuring a better economic balance between developed and developing countries, should be strengthened. Further, the Assembly would urge Member States and the United Nations system to strengthen international cooperation in the area of international migration and development to address the root causes of migration, especially those related to poverty, and to maximize the benefits of international migration to those concerned.

CECILIA ROSE-ODUYEMI, World Health Organization (WHO), said that making globalization work to improve the health and well-being of children, women and men left behind by recent economic developments was a common challenge. Health and education were key determinants of growth and development. Investment in people was the best use of limited development resources. The technical programmes of the WHO were actively engaged in addressing major areas of concern in globalization, trade and health. That included campaigns to prevent the promotion and consumption of harmful products, efforts to assure that trade agreements promoted equitable access to health services and products, and intensive efforts to promote policies and interventions to prevent and control major communicable and non-communicable diseases.

She said that there were three cross-cutting issues where the WHO, in cooperation with its major partners, was taking action to make globalization work for better health. Firstly, to work towards more effective global governance for health, not simply to address the new realities of global markets but also to secure the basic needs of people everywhere. Secondly, to generate and disseminate the best available health knowledge in order to inform decision-making and to promote measures to ensure that people everywhere had access to that knowledge. Thirdly, to support efforts at national and local levels to better understand the effects of globalization of health, and to design effective actions to promote and protect health, especially for those left behind in this globalizing world.

MOHAMMAD ALI ZARIE ZARE (Iran) said that globalization was fragmenting production processes, labour markets, political entities and societies. It was dividing nations and regions into those that were integrated and those that were excluded. The contraction of time and space was creating new threats to human security via the risk of sudden disruption in the patterns of daily life, in jobs and livelihood, in health and personal safety, and in the social and cultural cohesion of many societies. Especially in the area of finance and trade, the impact of globalization was so strong and overwhelming that national governments, particularly in developing countries, could do little if anything to contain the adverse effects of the process.

The need for coherence, complementarity and coordination in global policy and decision-making processes in areas of monetary, financial and trade policies should be acknowledged. Operational activities of the United Nations system could be planned and executed in such a manner as to contribute to the integration of developing countries in the global economy and help them, through capacity-building at the national level, to benefit from globalization and contain its negative impact.

SAMUEL S. SIBEKO (South Africa) said that in Africa the costs of globalization had so far outweighed the benefits. The agreements reached at the Uruguay Round of trade talks had not been implemented, and the decline in commodity prices, official development assistance (ODA) and foreign direct investment (FDI) had had a negative effect on the continent's development prospects. The debt problem had led to a channelling of resources away from development. Weak supply side capacity and deficient technology transfer had also hindered the continent's active participation in the global economy.

People-centred development and humane globalization were characterized by the improvement of the standard of living for all, which meant eradicating poverty, fulfilling people's basic needs and actively promoting human rights. They were based on commitment to the promotion of democracy, human dignity, social justice and cohesion and solidarity at national, regional and international levels. The United Nations, as a democratic forum, had an important role to play in making strategic interventions in areas dealing with globalization. "The highest calling for all of us is to make globalization and interdependence now and in the future a beginning of hope, redemption and enlightenment for the hungry, the poor and the wretched of the earth", he said.

BORIS SVETOGORSKY (Uruguay) said that globalization was a real fact of life. It represented the radical transformations the world had experienced over the past decade. It was characterized by three trends: advances in technology and communications; the formation of free trade areas and integrated economic blocks; and the interdependence of the financial markets of the world. The international community must now give serious thought to the economic and social repercussions of the phenomenon. Countries like Uruguay needed greater access to markets, without protectionist measures. No one wanted to remain outside the phenomenon of globalization, but the figures showed that the gap between rich and poor countries was growing. Many developing countries, especially least developed countries (LDCs), did not have adequate frameworks to benefit from trade or to foster sustained economic growth. Subjected to liberalized trade regimes, they were trying to widen their share of world trade. Multilateral financial institutions must enable those countries to join the beneficiaries of globalization.

Globalization meant that trade transactions and financial speculation could be undertaken without space or time limitations. But globalization also meant a lack of employment opportunities. That was in part due to irreversible technological advances which often obviated the need for human labour. There were more than 130 million unemployed people worldwide. Many countries were experiencing new growth without creating new jobs. Uruguay had undertaken the process of integration as a means of insertion into a globalized world. No economy could exist in isolation, he said.

RI KWANG NAM (Democratic People’s Republic of Korea) said that since globalization directly affected national socio-economic development, further evaluation of the possible implications of the trend should be undertaken. Joint efforts to cope with negative impacts should follow. Particular attention should be paid to a number of points. First, there must be a drive to rectify the unfavourable international economic environment. The current environment was driven by free-market forces and unpredictable fluctuating capital, which had been favourable to countries with a strong economy, technology and capital. However, it had proved unfavourable to most developing countries, whose competitiveness was relatively weak. An equitable international economic order must be established. In particular, full and effective participation of developing countries in the decision-making process was essential in forestalling the negative impact of globalization, and ensuring the sustained and sound growth of the world economy. The ongoing deliberations over structural reform of the international financial architecture, trade and investment should proceed in conformity with the needs and interests of developing countries.

Secondly, he said that the deep downswing in international development assistance should be reversed. It was important that each developing country take responsibility for its own development efforts by making maximum use of domestic financial potential. It was equally important that external financial support be secured, with a view to enabling developing countries to overcome the new situations and challenges of globalization and meet their development needs effectively. Unilateral economic sanctions and extraterritorial practices should not be allowed to continue. Unilateral economic sanctions were the product of power politics and impeded the development of trade and the economy of developing countries.

JEAN MAXIME MURAT (Haiti) said that abolition of frontiers and increased trade were the most important features of globalization. The perfection of new technologies had brought people together at the level of their economic, financial and cultural activities. The sense of living in one big village had permeated the human conscience -- but the inequalities were becoming shocking. Developing countries were negatively affected by globalization. Many countries were now marginalized. The result was considerable migratory flows, grave damage to the environment, and sometimes deadly conflicts.

It would be seriously irresponsible of the United Nations to accept the phenomenon with passive fatalism, he said. There must be collective effort to secure the benefits of globalization for everybody, and to mitigate its negative effects. No country could act alone. Global solidarity was vital. The planet was like a ship with first-class passengers, second-class passengers and those in the hold. To prevent that ship going down with all its passengers, collective action was necessary. The United Nations could be an important tool in that regard, and an active party to all actions taken. Its help in encouraging the transfer of technology to developing countries would do much to reduce the negative consequences of globalization.

SONIA LEONCE-CARRYL (Saint Lucia) said that whatever one called it –- globalization, liberalization or the internationalization of business –- the world economy as it currently operated stood on the three principal pillars of finance, monetary policy and trade. A mature system was in place, which had resulted in an increasing concentration of income, resources and wealth among a handful of people, corporations and countries -- while more than 80 countries still had per capita incomes lower than they were a decade ago.

In order to address peace, stability and poverty eradication seriously, one should do away with all the exclusive groupings – G7, G8 and G22 -– and instead have a G188, where all concerns and interests could be addressed in the context of an evolving global economy. There should be fairness in the World Trade Organization (WTO). Those benefiting from globalization should reverse the decline in ODA and give assistance in real terms through capacity-building and the transfer of technology. If globalization continued to go unchecked, the results would be the increased undermining of the sovereignty of states and of the rights and liberties of peoples followed by global instability and chaos. The present unbalanced system was inherently self- destructive. It could only end in devastation unless there was global participation and benefits to all, based on equity, ethics, inclusion and the development of all the people of the world.

FADHEL AYARI (Tunisia) said that globalization was the main challenge facing mankind. Globalization was creating opportunities -- but it also raised many risks, especially for developing countries. The costs of a global economic slow-down; for example; were borne primarily by developing countries. The international community should demonstrate the political will to honour its commitments, and the United Nations should work to ensure that globalization had a human face. Specific characteristics of individual countries should be taken into account in order to help their development.

It was important, he said, to set up an international trading system that would give developing countries access to the enormous markets of the developed countries, something which could be established during the upcoming meeting of the WTO. The destabilizing effect of globalization on developing countries often resulted from lack of financial control. The international community and the United Nations system should work together with the Bretton Woods institutions. Financial transactions should be organized on a solid and stable basis. The United Nations had an important role to play in promoting policies to help developing countries face the challenges of globalization and reap its benefits.

NUNO TOMAS (Mozambique) said that globalization had created new challenges, opportunities and risks for everyone, particularly for developing countries. It had provided new opportunities for those countries well prepared to take advantage of them, including developing countries. Overall, however, the benefits of the globalization process were enjoyed by developed countries at the expense of developing countries. Developing countries, particularly LDCs, were facing serious difficulties in their efforts to integrate into the world economy. By liberalizing trade and finance, the process had exposed poor countries to powerful external forces and had driven them to marginalization from the world economy. Far from leading to increased interdependence, globalization had resulted in overdependence of developing countries on developed countries’ aid, markets and finance.

Globalization had become the single most important challenge facing developing countries today, he continued. The current unjust international economic system must be reformed. In that regard, the globalization of development needed to be pursued. That was a process entailing the creation of an enabling international economic environment, reform of the global financial architecture, a comprehensive solution of the external debt problem of developing countries, provision of adequate aid for developing countries and a fair trade agenda. For developing countries to play a meaningful role in the globalization process, their development concerns and access to the world market should be properly addressed during the forthcoming WTO ministerial meeting in Seattle. The scourge of underdevelopment could shake the very foundations of the current international system if it was not carefully addressed.

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