BANGKOK TRADE, DEVELOPMENT FOLLOW-UP ROUND "DEFINING MOMENT" IN INTERNATIONAL DEVELOPMENT COOPERATION, COMMITTEE HEARS

Press Release
GA/EF/2893

BANGKOK TRADE, DEVELOPMENT FOLLOW-UP ROUND ‘DEFINING MOMENT’ IN INTERNATIONAL DEVELOPMENT COOPERATION, COMMITTEE HEARS

Upcoming Seattle Ministerial-Level Meeting Of World Trade Orgaization Also Weighed by Representatives

The Tenth United Nations Conference on Trade and Development (UNCTAD X) would be the defining moment at which the road map to new international development cooperation would be charted, Sukhumbhand Paribatra, Deputy Foreign Minister of Thailand, told the Second Committee (Economic and Financial) this morning as it began its consideration of trade and development.

Briefing the Committee on the Conference, which will be held in Bangkok from 12 to 19 February 2000, he said it would offer the world community an opportunity to review the successes and pitfalls of different development strategies, and to forge a consensus on a new approach to cooperation in international development. Such an approach should be broad-based, involving the participation of all segments of society. It should also be oriented towards the simultaneous achievement of growth, stability and equity, with a view to facilitating the full integration of developing countries into a more prosperous and equitable global economy. He also highlighted some of the important events to be organized prior to, or in parallel with, the Conference.

Rubens Ricupero, Secretary-General of UNCTAD, said the Conference would provide opportunities for high-level reflection on the experiences of development in the last few decades. Development was a complex phenomenon, which required flexibility, respect for others’ opinions and evaluation of the difficulties facing other regions. It was from the exchange of ideas and the presentation of experiences that the ground for moving ahead would be prepared. The UNCTAD X could set the tone at the very beginning of a new century and organize the agenda for future trade and development discussions.

With regard to the upcoming Seattle World Trade Organization (WTO) meeting, he said that in order to do real justice to the title of “development round”, Seattle must address the concerns of developing countries, who had been waiting for almost 50 years to see the areas where they had their strongest competitive advantages included in the rules of the international trading system.

Second Committee - 1a - Press Release GA/EF/2893 37th Meeting (AM) 11 November 1999

Introducing the reports of the Trade and Development Board, its President, Philippe Petit, said that development was one of the most fundamental challenges of the next century. While it could be approached from different angles, the Board had approached the issue from a trade and development perspective. It was not insignificant that UNCTAD X would be devoted to development. While the Conference would be shorter than previous ones, that would not prevent it from being the most productive one. It would provide a good opportunity to undertake firm and decisive steps towards a more equitable distribution of the fruits of globalization.

During an exchange of views, the representatives of the Philippines, Guyana (on behalf of the “Group of 77” developing countries and China), Egypt, Belarus, Costa Rica and the observers of the European Community and the Organization of African Unity (OAU) offered comments and raised questions.

The Committee will meet again at 3 p.m. to consider implementation of the Programme of Action for the Least Developed Countries for the 1990s.

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to hear introductory statements by the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) and the President-elect of the Trade and Development Board. It was also expected to hear a briefing by the Deputy Foreign Minister of Thailand on UNCTAD X, the tenth follow-up to the Conference.

Before the Committee were the reports of the Trade and Development Board on its nineteenth, twentieth, twenty-first and twenty-second executive sessions, as well as its forty-sixth session (document A/54/15, Parts I-V). Among the items considered during those sessions were the draft provisional agenda for UNCTAD X, UNCTAD's contribution to United Nations-New Agenda for the Development of Africa (UN-NADAF), the report of the Secretary-General of UNCTAD on the outcome of the Partners for Development Summit held in Lyon, France, from 9 to 12 November 1998, as well as reports of the Board's subsidiary bodies.

The Committee also had before it a report by the Secretary-General on international trade and development (document A/54/304) highlighting developments in the multilateral trading system.

The report was prepared in pursuance of General Assembly resolution 53/170 of 15 December 1998, in which the Assembly requested the Secretary-General, in collaboration with the UNCTAD Secretariat, to report to the Assembly at its fifty-fourth session on developments in the multilateral trading system and on implementation of the ministerial communiqué on market access adopted by the Economic and Social Council on 8 July 1998, as well as on other issues raised in the resolution.

The report states that the joint analysis carried out by the Secretariats of UNCTAD and the World Trade Organization (WTO) on current market access issues suggests that substantial improvement of market access, especially for exports of goods and services from developing countries, should be considered a major priority for the third Ministerial Conference of WTO and new multilateral trade negotiations.

According to the report, the concerns of developing countries are threefold. First, they stress that the Uruguay Round and its implementation process did too little to improve market access for developing country exports. Second, many developing countries consider that the new WTO rules are unbalanced in several important development-related areas, such as the protection of intellectual property rights and the use of industrial subsidies, while special and differential treatment for the developing countries in the WTO agreements has been inadequate and needs revision. Third, weaker human and institutional capacities, as well as lack of financing, have not permitted many developing countries to use the WTO system to pursue their trade interests, in particular its dispute settlement mechanism, or to comply fully with their multilateral obligations.

The report notes that significant tariff barriers in the form of high tariff peaks (exceeding 12 per cent but, in some cases, reaching 300 per cent and above) continue to affect agricultural and industrial exports to developing countries. Tariff escalation continues to affect trade in such sectors of export interest to developing countries as metals, textiles and clothing, leather and rubber products and, to some extent, wood products and furniture. Accordingly, the removal of such high tariff protection in industrial countries should be given priority and seen as an integral part of future liberalization measures, if such liberalization is to have credibility and political support. In addition, duty-free access should be extended to all imports from the least developed countries, as has been proposed by the European Union in the WTO preparatory process.

The report also notes that abuse of anti-dumping actions as well as other trade contingency measures and their concentration in specific sectors of export interest to developing countries are viewed by those countries as tending to compromise their benefits from trade liberalization. Although the WTO agreement provides for exploration of constructive remedies before applying anti-dumping measures to the exports of developing countries, there is no evidence that this has been translated into practice.

In agriculture, the report continues, trade by developing countries remains severely hampered by the massive domestic support and export subsidy programmes in developed countries, peak tariffs and difficulties in the implementation of the tariff quota system. The recent signs of renewed export subsidy competition call for much more stringent disciplines than those contained in the Uruguay Round commitments, leading to the full elimination of export subsidies. The continued reform of agricultural trade will also have to take account of non-trade concerns such as food security and specific problems faced by net food-importing developing countries.

Given the major difficulties confronted by developing countries in implementation of the Trade-related Intellectual Property Rights (TRIPs) Agreement, the report recommends consideration of the following matters: a) extension of the transitional period to provide additional time for domestic industries to adjust, given the broadness and complexity of the reforms of laws on intellectual property rights; b) lack of technical and financial support to develop rules on intellectual property rights adapted to domestic circumstances and stages of development, and to develop the necessary institutional infrastructure; c) adoption of specific measures facilitating the use of compulsory licensing as a means of ensuring the transfer of technology, and of meeting public health concerns; d) shortening the term on patents, thus bringing the TRIPs Agreement into line with the Convention on Biodiversity; and e) inclusion of new provisions in the TRIPs Agreement, relating to the protection of traditional and indigenous knowledge and works of folklore.

The report states that the WTO Committee on Trade and Environment has an important role to play in promoting a balanced approach to the trade and environment debate, by ensuring that the issues involved receive adequate attention. To help avoid adverse trade effects on developing countries, there is a need to ensure adequate provision of information, capacity-building and access to and transfer of environmentally sound technologies. Bilateral and multilateral cooperation should assist developing countries in establishing or improving supportive infrastructure. In addition, the rules and principles of the multilateral trading system must ensure that environmental policies and measures do not have unnecessarily adverse effects on trade, in particular exports from developing countries.

The report also lists other issues rising from General Assembly resolution 53/170, such as: coherence, complementarity and coordination of global economic policy-making; investment agreements; landlocked countries; small island developing States; and UNCTAD's contribution to the implementation of the United Nations New Agenda for Development of Africa in the 1990s.

The Committee also had before it a report of the Secretary-General on unilateral economic measures as a means of political and economic coercion against developing countries (document A/54/486). The report was prepared in response to General Assembly resolution 52/181 of 18 December 1997, which expressed grave concern that the use of unilateral coercive economic measures adversely affects the economy and development efforts of developing countries, and has a general negative impact on international economic cooperation and on worldwide efforts to move towards a non-discriminatory and open multilateral trading system.

The Secretary-General has invited the Governments of all States to provide their views. In addition, relevant organizations, programmes and agencies inside and outside the United Nations system are invited to provide information and analyses concerning recent developments in the subject area. Moreover, the Department of Economic and Social Affairs has convened an ad hoc expert group meeting to seek the views of internationally renowned think-tanks on the subject.

As of 15 October 1999, 13 States had replied. Cuba once again condemns the use of unilateral coercive economic measures as a means of exerting political and economic pressure on developing countries. In its view, legislation that promotes the use of unilateral economic measures in the pursuit of political objectives is a flagrant violation of the rules of international law and, in particular, of the principles, objectives and rules that govern trade between nations.

The United States believes, the report continues, that there needs to be a foreign policy tool for situations when the community of nations must band together against threats to peace and international norms, situations in which persuasion does not work but where force should be used only when all else has failed. It is important that the international community keeps the potentially valuable tool of sanctions, including economic sanction, at its disposal. Multilateral sanctions are preferable, according to the United States. Nevertheless, there will come times when a nation must be prepared to act unilaterally if important national interests or core values are at issue and if attempts to build multilateral sanctions have been unsuccessful. Consequently, the United States reserves the right to use sanctions unilaterally when necessary.

The ad hoc expert group, according to the report, observed that in most cases developing countries have been the targets of coercive economic measures, and noted the low level of effectiveness of unilateral coercive economic measures. Such measures are often counter-productive in bringing about the desired policy changes, may entail unwelcome political risks and excessive economic costs, give rise to serious humanitarian and ethical concerns, run counter to development goals and limit the scope for diplomacy, positive economic measures and international cooperation. The use of unilateral economic measures as a means of political and economic coercion, especially the practice of secondary boycotts against third-party States, should be strongly discouraged.

According to the report, the expert group reviewed options to minimize the adverse effects of coercive economic measures on the general population, particularly its most vulnerable groups. These options include sparing use of unilateral coercive economic measures; mandatory humanitarian exemptions from trade embargoes; employment of "smart" or targeted sanctions, designed to penalize directly those individuals or policy makers responsible for an objectionable action; and combining sanctions with incentives or inducements for cooperation and compliance.

The expert group agreed that the multifaceted problems raised by the imposition of coercive measures, including their economic, social, humanitarian, legal and political implications, deserve sustained attention by the international community and multilateral bodies concerned. Within the United Nations, continued intergovernmental deliberations should be supported by an enhanced monitoring and analytical capacity of the Secretariat. The monitoring function will require an improved mechanism for collating and coordinating information within the United Nations system and in cooperation with the relevant international and regional organizations.

Also before the Committee was a note by the Secretary-General transmitting a report prepared together with the Secretary-General of UNCTAD on specific actions related to the particular needs and problems of landlocked developing countries (document A/54/529) on the implementation of General Assembly resolution 52/183 of 18 December 1997. In that resolution, the Assembly requested the Secretary-General to convene in 1999 another meeting of governmental experts from landlocked and transit developing countries and financial and development institutions to review progress in the development of transit systems, with a view to exploring the possibility of formulating specific action-oriented measures. That meeting was held at Headquarters from 24 to 26 August, and the conclusions and recommendations of the meeting are contained in the report.

The report states that the landlocked and transit developing countries themselves are encouraged to take the steps needed to implement programmes such as further simplification, harmonization and standardization of transit procedures and documentation, including the improvement of custom transit systems; efficient operation of border posts; and consolidation and extension of customs and transport information systems. At the same time the international donor community, including financial and development institutions, is invited to consider giving high priority to programmes addressing such constraints and granting increased financial and technical support.

The report recommends that the authorities in landlocked and transit developing countries, in consultation with each other, should identify and take measures designed to reduce transit costs. To that end, they may seek assistance from the international community and UNCTAD in undertaking feasibility studies and analyses of specific conditions prevailing in regional/subregional contexts, as and when requested by concerned States. Those studies could include analyses of: bottlenecks to overcome in particular transit corridors; changes in transit costs and delays in the recent past and those projected for the next few years; and present costs and times of delay on particular major corridors, which could be contrasted with benchmarks of best practices on routes of comparable distance and terrain in other developing and developed countries.

The report also highlights UNCTAD activities, which include review of progress made in the development of transit systems in landlocked and transit developing countries; assistance in drafting or negotiating bilateral or regional transit transport agreements or arrangements; customs modernization and reform; the multimodal, transit and trade facilitation project in Nepal; transport of perishable foodstuffs in West and Central Africa; and the Advance Cargo Information System (ACIS), which is a logistics information system designed to improve transport efficiency by tracking equipment on all transport modes (rail, road, and lake/river) and at the interfaces (ports and inland clearance depots) and providing information in advance of cargo arrival.

Once installed at the national and subregional levels, according to the report, the ACIS could provide data for macroeconomic planning to foster the optimal modal distribution patterns. It enables transport operators to communicate, through modes and interfaces and over borders, the vital information they require to improve their efficiency, thus reducing the costs and time of carriage along transport corridors.

The report also describes actions by individual countries and international and intergovernmental organizations on behalf of landlocked developing countries. It concludes that although most international financial and economic organizations do not have programmes tailored to address the particular needs and problems of landlocked developing countries as a category, most such countries are eligible for "soft window" facilities, since they are amongst the poorest countries. Transport costs are a determining factor in any country's external trade performance. It is thus necessary to enhance the capacity of landlocked developing countries to participate effectively in the globalized world economy and international trading systems through increased market access, technology transfer and foreign investment, as well as through human resource development and institution-building.

RUBENS RICUPERO, Secretary-General of UNCTAD, said he wanted to dwell both on recent developments and on the challenges of the next few months in terms of major meetings. The UNCTAD X, to be held in Bangkok, would offer a unique opportunity. What was expected from that meeting was not just a regular UNCTAD conference, but an opportunity to look at certain crucial factors. First, Bangkok would be the first international conference at the start of a new century and a new millennium. The second factor was the venue itself. The region and Thailand had been examples of development success stories. Then Thailand had become the epicentre of the economic earthquake that hit not only that region but the rest of the world. Now Thailand and the other countries of that region were coming out of that difficult period very strongly. Thailand and Asia had faced and conquered the crisis. They were examples of how a country could face and overcome very serious challenges in the development path. Thus, UNCTAD X would be a conference within a conference.

The Conference would also provide opportunities for high-level reflection on the experiences of development in the last few decades, he continued. It would be a chance to take stock of those experiences with three goals in mind -- to see what went right and wrong and why, to see what had been missing in the first place when the discussions on development issues began, and to consider the challenges ahead. For that purpose, the Conference was organizing a number of major events, including a round table of Heads of States who would bring the experiences of their own regions. There would also be a round table of the heads of the United Nations agencies, as well as a discussion on the regional dimension of development with the directors of the United Nations regional economic commissions. In addition, some of the world’s leading economists had been invited to discuss the state of development theory. To culminate the process, the heads of some of the major international economic institutions had also been invited to address the Conference.

He hoped that the Conference would result in providing strong inputs to the Millennium Assembly, he added. Development was a complex phenomenon, which required flexibility, respect for others’ opinions, and evaluation of difficulties of other regions. It was from the exchange of ideas and the presentation of experiences that the ground for moving ahead would be built. The UNCTAD X could set the tone at the very beginning of a new century and organize the agenda for discussions to be continued in New York in the Millennium Assembly and other forums.

With regard to the Seattle WTO Meeting, he said part of the WTO’s agenda, such as problems of trade and investment, was very close to that of UNCTAD. The process of preparations for Seattle had experienced a difficult start. Yet he was not pessimistic about the possibility of an agreement at or before Seattle. Although the document to be discussed and adopted at Seattle was called a declaration, it was not a declaration in the generally understood sense. The Seattle Declaration would not be of a declaratory nature, but rather a binding document which set the stage for trade negotiations by stating what issues were and were not to be negotiated. Also, it would set clear rules about the targets to be set. One of the important points he hoped to see fully expressed in the Declaration was the concerns of developing countries. To do real justice to the title of “development round”, Seattle must address the concerns of developing countries. Those countries had been waiting for almost 50 years to see areas where they had their strongest competitive advantages, such as agriculture and textiles, included in the rules of the international trading system.

Drawing attention to the fact that the world was witnessing far- reaching changes in the positions of the major international economic institutions, he wondered if people realized just how deep those changes were. Now poverty reduction would be central to the policies of the Bretton Woods institutions. It was still necessary to assess the implications of such policy changes and to discuss how poverty eradication efforts would be evaluated, and how they would find expression in the lending policies of the International Monetary Fund and the World Bank. That had been a historic change, which must be debated to consider its long-term implications. Now he saw that many of the positions UNCTAD had been trying to defend for years were finding growing expression in the discourses of its sister organizations.

Finally, he said that after the fall of the Berlin Wall, UNCTAD had been the only contributor to the 1990 Trade and Development Report to say that the decade ahead would be characterized by the tendency, frequency and destructive impact of monetary and economic crises. The UNCTAD had seen two phenomena that would lead to that situation. First was the explosion in finance and in dealing with currency exchanges. Second was the fact that many countries which lacked the solidarity and the appropriate banking and finance institutions were imprudently undergoing financial integration at too fast a pace. What counted with regard to integration was not quantity but its quality and sustainable character.

PHILIPPE PETIT (France), President of the Trade and Development Board, introduced the Board's reports. The question of development, he said, was one of the most fundamental challenges of the next century. It could be approached from different angles. Respecting the expectations of Member States, the Board had approached the issue from a trade and development perspective. Recently, however, UNCTAD had focused primarily on UNCTAD X, which would be the first significant international meeting of the twenty-first century. It was not insignificant that it would be devoted to development.

Discussing the reports on the nineteenth through twenty-second executive sessions of the Board, he drew attention to the fact that the twentieth session had been dedicated to the development of Africa. The UNCTAD attached the greatest importance to that development, which was why a whole executive session between two normal ones had been devoted to that subject.

The forty-sixth session of the Board had been devoted to the interdependence of global economical questions and trade and development. Dicussions had focused on the advantages and dangers of globalization, primarily its impact on multilateral trade and, to a lesser extent, on the global financial system. Representatives of developing countries had pointed to the inequality in the distribution of the fruits of globalization, and the dangers of marginalization facing certain countries.

He described the Board's efforts to address activities of the Least Developed Countries (LDCs), which consisted of providing analyses for and technical assistance in future negotiations. The Board had evaluated the state of preparedness of the Third United Nations Conference for LDCs. Discussions of Africa had focused on transport infrastructures, trade and competitiveness. The transport sector was one of the essential infrastructures, suffering from a lack of maintenance due to a deficient resources.

The Board had launched preparations for UNCTAD X, he said. It had established a Preparatory Committee which had started its work. The Preparatory Committee had heard the Deputy Foreign Minister of Thailand, had received a text from the Group of 77 developing countries and China on a programme of action, and had registered several amendments to that text.

In the spirit of realism, he said, UNCTAD X would be shorter than preceding conferences. But that would not prevent it from being the most productive one. The UNCTAD X would be a good opportunity to undertake firm and decisive steps towards a more equitable distribution of the fruits of globalization.

SUKHUMBHAND PARIBATRA (Thailand) briefed the Committee on UNCTAD X, to be held in Bangkok from 12 to 19 February 2000. He said that the Conference would be the first international conference at the highest level at the dawn of the twenty-first century. It would provide a forum for global policy-makers to address all aspects of development and globalization. More concretely, it would offer the world community an opportunity to review the successes and pitfalls of different development strategies, and to forge a consensus on a new approach to cooperation in international development. Such an approach should be broad- based, involving the participation, not only of governments and intergovernmental organizations, but also of non-governmental organizations (NGOs), the private sector and all segments of civil society.

The approach, he continued, should also be oriented towards simultaneously achieving growth, stability and equity, with a view to facilitating the full integration of developing countries into a more prosperous and equitable global economy. Thailand, as a country which had experienced first hand the perils of globalization, was now making efforts to manage the crisis and resume the path of sustained economic growth. Many lessons could be drawn from that experience to enable countries to equip themselves to meet the future challenge of globalization.

He highlighted some of the important events to be organized prior to, or in parallel with, the Conference. As a prelude to the Conference, a round table discussion of eminent economists on development strategies for the twenty-first century would be organized. A second high-level round table of the heads of the United Nations agencies would be held to discuss development issues and globalization. Also, heads of international organizations would engage in an interactive debate each morning before the general debate. Invited keynote speakers included the heads of the IMF, the World Bank, the WTO and the International Labour Organization (ILO). The highlight before the conclusion of the Conference would be the Special High-Level Meeting of the Heads of State and Government from developing and developed countries, whose objective would be to discuss new development strategies for the international economic system.

Apart from the Conference, he added that there would be other meetings of government officials, NGOs and members of the private sector. Among those was a meeting of Ministers of Trade of Least Developed Countries to address their development concerns. In addition, there would be ten exhibitions covering the themes of poverty eradication, information technology, and natural resources management. He hoped they would not only generate greater public awareness of the issues, but also give an opportunity for the countries of the South to share their views and experiences on those matters.

Following Thailand’s 1996 decision to host UNCTAD X, the Government had set up the National Preparatory Committee to oversee both the logistical and the substantive preparations to ensure the Conference’s success, he said. Last Wednesday, Thailand’s Prime Minister, Chuan Leekpai, opened the ceremony marking “the 100-day countdown to UNCTAD X”. He encouraged all UNCTAD member States to be represented at the highest possible level in Bangkok. The UNCTAD X would be the defining moment at which the road map to new international development cooperation would be charted. Thus, the Conference would offer not only an opportunity to inject political commitment into UNCTAD X deliberations, but also to enhance the long-term role of UNCTAD in bringing about shared progress and prosperity of all nations and peoples.

Statements in Debate

RICHARD J. WYATT, observer for the European Community (EC), said there had been a significant recovery from the recent financial crises. That recovery was due to the fact that there had been a multilateral trading system which had remained open, and that rules had been adhered to. It was also due to the fact that the mistakes of the 1930s, namely those of protectionism, had been avoided. Participants at the Seattle meeting would have to maintain the structures of multilateral trade and build on those structures to achieve liberalization, taking careful account of development needs. He asked how the Secretary-General conceived of further cooperation between the main international economic institutions in joint efforts to confront the new situation that would emerge from the Seattle meeting.

Mr. RICUPERO answered that cooperation between UNCTAD and the WTO was now imminent. Controversial problems had been addressed jointly in regular meetings between the two. Representatives of both organizations had worked frequently and harmoniously together. Staff of both institutions were very supportive of each other, for instance in areas of investment and competition, where UNCTAD had provided reports and studies for discussions in the WTO. The two organizations had held back-to-back meetings in order to facilitate participation by delegates.

He said that three years ago, UNCTAD had launched its Positive Agenda for Developing Countries in Trade Negotiations. Most developing countries faced difficulties in defining a trade agenda. The UNCTAD assisted in preparing sensible negotiating positions, based on the realities of their economic life. The results had been very encouraging, also thanks to support from the General Assembly, which had channeled some of the budget savings of the United Nations towards that project. The UNCTAD had organized workshops concerning that agenda, in Seoul and South Africa for example, and an inter-regional workshop in the Dominican Republic.

Some of the results of that programme were already evident, he said. By the last count of the number of proposals made to the preparatory process, developing countries had presented more that 50 per cent. It was evidence of a proactive attitude in those countries.

LIBRAN N. CABACTULAN (Philippines) said that it was gratifying to see recovery in so many of the developing countries that had experienced financial crises. Those countries, and developing countries in general, really depended on agriculture as the foundation for economic growth. In looking forward to UNCTAD X and Seattle, one key element stressed by developing countries was to see practical and early results with regard to their interests. He asked what UNCTAD could do to ensure such an outcome.

OMOTAYO R. OLANIYAN, observer of the Organization of African Unity (OAU), welcomed the decision of the IMF to place poverty eradication at the heart of its policies. He asked for elaboration on the long-term implications on the Fund’s policies of its involvement in poverty eradication issues.

GEORGE TALBOT (Guyana), speaking on behalf of the Group of 77 developing countries and China, asked for the Secretary-General’s perspective on UNCTAD’s role in the process of trade and development and on its contributions to the global debate on development.

AMANY M. FAHMY (Egypt) said that her country had always supported UNCTAD and had been involved with the organization since its inception. Egypt expected much from UNCTAD X, since that conference would be taking into account the interests of developing countries with regard to trade. In the context of UNCTAD’s contribution to the New Agenda for Africa, she asked what the organization had done to spur the continent's development. She also asked for the Secretary-General’s views on the final review of the Agenda.

While Egypt appreciated the flexibility displayed by development partners in dealing with development issues, she said, trade accords already entered into -- such as textile agreements and preferential trade treatment for developing countries -- needed further discussion. She stressed the nexus between development and trade. Did UNCTAD see a difference between its mandate and that entrusted to the WTO? She requested more insights from the Secretary-General on what to expect from the outcome of UNCTAD X, as far as the global agenda for trade was concerned.

Mr. MOZHUKHOV (Belarus) said his question was linked to issues that the Secretary-General had not raised but which had emerged from the UNCTAD report. While membership in the WTO was not universal, its decisions affected all States. One-fourth of the Member States of the United Nations were not members of the WTO. He asked how the Secretary-General thought that the interests of those countries would be represented in the WTO.

NURY VARGAS (Costa Rica) said that the human resources needed to ensure sustainable development were of great importance. When dealing with people living in extreme poverty, she said, it was clear that their negative self-image made them reluctant to accept challenges. There were many myths about poverty, including that poor people did not have the same level of intelligence as others. In the fight against poverty, the human element must be taken into account. That might be the first step in achieving the development so eagerly sought.

Mr. RICUPERO was asked what could be achieved in Seattle in terms of immediate results. He replied there were several ideas for so-called “early deliveries”. One was free-market access for the 48 LDCs, which would eliminate tariffs and barriers for their exports. Other ideas included making trade- related technical assistance a binding commitment; attempting to price out the cost of adapting developing countries to new agreements; and accelerating liberalization in the field of textiles.

Answering a question about poverty eradication and the lending policies of the Bretton Woods institutions, he said it would be interesting to discuss ways of assessing poverty-eradication efforts by individual countries. That would not be a simple matter, and the criteria to be followed must be carefully weighed.

Answering another question, he said that developing countries should form coalitions and take a proactive position in Seattle. Power did count, and power in Seattle would be market power. Alliances would create greater markets.

In the area of financing for development, UNCTAD had much to contribute, he said. The UNCTAD was a body of the General Assembly, not a specialized agency. It was the focal point of the United Nations for integrated treatment of issues of money, finance, trade and investment, always from the perspective of development. One of UNCTAD’s particular concerns was that, so far, discussion about the new financial architecture had addressed the concerns of 29 emerging markets that already had some access to the global market, but not the 140 countries that were not a part of those emerging markets.

The UNCTAD’s contribution to the United Nations Programme of Development for Africa had been extensive, he said. On trade issues, UNCTAD had worked with regional communities and had organized workshops to prepare countries for negotiations. It had also drawn attention to investment opportunities in Africa. He noted that, despite Africa’s unfavourable reputation in that area, many investments in Africa had shown higher returns than in other regions.

To another question, he suggested that one early Seattle deliverable would be to create a faster track for the admission of LDCs to the WTO. Twenty LDCs were not members yet. Other countries which had already started the process of admission to the WTO should be allowed to participate in negotiations.

He agreed with the representative of Costa Rica that in fighting poverty, the consideration of self-esteem was indispensable. One of the tools in that area was micro-credit, which enabled people to create their own small businesses. The UNCTAD had tried, with the assistance of Luxembourg, to create a private investment market, with major international banks participating. Most micro- credit banks depended on donations. The UNCTAD wanted to create conditions for commercially attractive investments in micro-credit.

Mr. PETIT, responding to the concern expressed by Belarus, said that non- members of the WTO would have a chance to express their views between the Seattle meeting and the Bangkok Conference. The preparations for Bangkok would depend largely on what did or did not take place in Seattle.

Turning to the comment made by the Philippines, he said that it must be remembered some agricultural subsidies were designed to limit the production of developed countries, and to make room for that of developing countries.

Finally, he noted Egypt’s proposal that UNCTAD extend its consideration to social questions, which many countries did not want to be left to the WTO alone.

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