CONCLUDING WORK FOR FIFTY-FOURTH SESSION, SECOND COMMITTEE APPROVES TEXTS ON GLOBALIZATION; FINANCING FOR DEVELOPMENT

Press Release
GA/EF/2907

CONCLUDING WORK FOR FIFTY-FOURTH SESSION, SECOND COMMITTEE APPROVES TEXTS ON GLOBALIZATION; FINANCING FOR DEVELOPMENT

The General Assembly would call for increased international cooperation to address the challenges of globalization through the enhanced participation of developing countries in the international economic policy decision-making process; integrated consideration of trade, finance, technology transfer and development issues by the relevant international institutions; and continuation of a wide range of reforms of the international financial system.

It would take that action according to the terms of a draft resolution approved this afternoon without a vote and as orally amended by the Second Committee (Economic and Financial), as it concluded its work for the fifty-fourth session.

The text on the role of the United Nations in promoting development in the context of globalization and interdependence would also have the Assembly call on all countries, particularly the major developed economies, to enhance coherence among their financial, trade and development cooperation policies, with a view to creating an enabling international economic environment supportive of development, particularly of developing countries.

Further, the Assembly would urge the international community to promote international development cooperation aimed at enhancing the participation of developing countries in the globalizing world economy; to adopt policies that promote equity in finance, trade and transfer of technology; and address the problems of developing countries in the areas of external debt and transfer of resources, financial vulnerability, declining terms of trade and market access.

By the terms of another draft resolution approved without a vote, as orally revised, the Assembly would decide to convene a high-level intergovernmental event of political decision makers on financing for development in 2001, which will address national, international and systemic issues relating to the issue in a holistic manner in the context of globalization and interdependence. By doing so, the event will also address development through the perspective of finance, as well as mobilization of financial resources for the full implementation of the outcome of major conferences and summits organized during the 1990s.

Second Committee - 1a - Press Release GA/EF/2907 51st Meeting (PM) 16 December 1999

The text on high-level international intergovernmental consideration of financing for development would also have the Assembly decide to establish an intergovernmental Preparatory Committee open to all States to carry out substantive preparations for the event; to constitute a Bureau of the Preparatory Committee of representatives of Member States of 15 members with equitable geographical representation, to be presided over by two Co-Chairs; and that the first organizational session of the Preparatory Committee should be held no later than January 2000 to elect the Bureau. Furthermore, the first substantive session of the Preparatory Committee should be held in May 2000.

The Chief of the Documentation, Programming and Monitoring Unit, General Assembly Affairs and Conference Services, introduced the draft biennial programme of work for the Committee for 2000 and 2001, which was also approved without a vote, as orally revised.

In concluding remarks, Committee Chairman Roble Olhaye (Djibouti) said that while it had been a somewhat difficult session, as far as the workload was concerned, it had also been a wonderful learning process, dealing with such issues as globalization, trade, financial flows and finance for development.

The representatives of Guyana (on behalf of the “Group of 77” developing countries and China), Australia, Cameroon, Suriname, Nigeria, Finland (on behalf of the European Union and associated States), United States, Russian Federation, Morocco and Mexico also spoke.

The Committee's reports will be taken up in the plenary, at 10 a.m. on Thursday, 23 December.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to conclude its work for the current session. It was expected to consider its draft biennial programme of work for 2000-2001, and to take action on draft texts concerning macroeconomic policy questions, and on the role of the United Nations in promoting development in the context of globalization and interdependence.

Biennial Programme of Work

Before the Committee was a note by the Secretariat on the draft biennial programme of work for the Second Committee for 2000-2001 (document A/C.2/54/L.65). The General Assembly, in resolution 39/217 of 18 December 1984, requested the Secretary-General to submit to the Committee for consideration and approval each year a proposed biennial programme of work. The Committee's draft biennial programme of work for 2000-2001, annexed to the note, has been prepared on the basis of existing legislative authority, and takes into account the draft proposals on which the Committee has taken action.

Macroeconomic Policy Questions

The Committee had before it a draft resolution, submitted by the Committee’s Chairman, Roble Olhaye (Djibouti), on the basis of informal consultations held on draft resolution A/C.2/54/L.25, on high-level international intergovernmental consideration of financing for development (document A/C.2/54/L.75). The text would have the Assembly decide to convene a high-level intergovernmental event of political decision makers, at least at the ministerial level, on financing for development, in the context of paragraph 20 of the report of the Ad Hoc Open-ended Working Group of the General Assembly on Financing for Development, to be held in the year 2001.

The Assembly would decide that the high-level intergovernmental event for the year 2001 will address national, international and systemic issues relating to financing for development in a holistic manner in the context of globalization and interdependence. By so doing, the event should also address the mobilization of financial resources for the full implementation of the outcome of major conferences and summits organized during the 1990s by the United Nations and of the Agenda for Development, in particular, for poverty eradication.

It would also decide to establish an intergovernmental Preparatory Committee open-ended to all States, to carry out the substantive preparations for the high- level intergovernmental event. It would further decide that the Preparatory Committee, at its resumed organizational session, based on the results of the consultations with all relevant stakeholders, should consider innovative ways and mechanisms to facilitate the active involvement of all relevant stakeholders in both the preparatory process and the high-level intergovernmental event.

Further, the Assembly would decide to constitute a Bureau of the Preparatory Committee of representatives of Member States to the United Nations of 15 members with equitable geographical representation, to be presided over by two Co-Chairs. It would also decide that the first organizational session of the Preparatory Committee should be held as soon as possible, and no later than the end of January 2000, to elect the Bureau, and, in this regard, requests the President of the General Assembly to begin consultations with Member States as soon as possible.

In addition, the Assembly would decide that the resumed organizational session of the Preparatory Committee will be held as soon as possible, and no later than March 2000, to consider the following, on the basis of the report of the Ad Hoc Open-ended Working Group of the General Assembly on Financing for Development and on proposals on modalities to be submitted by the Bureau: the form of the final event, including the possibility of a summit, international conference, special session of the General Assembly, or other high-level international intergovernmental forum on financing for development; the venue of the final event; the timing, duration and format of the final event; clarification of the agenda; modalities for the participation of institutional stakeholders, in both the preparatory process and the high-level intergovernmental event, notably the World Bank and the International Monetary Fund (IMF), as well as, in the case of the World Trade Organization (WTO), at the secretariat level and including member and observer States, the United Nations Conference on Trade and Development (UNCTAD) and the regional commissions; modalities for the participation of other stakeholders, notably non-governmental organizations and the private sector, in both the preparatory process and high-level intergovernmental event; and the programme of work of the Preparatory Committee.

By the terms of the same text, the Assembly would call upon the relevant entities of the United Nations system, including UNCTAD and the regional commissions, as well as the regional development banks and all other relevant stakeholders, to provide inputs for consideration by the Preparatory Committee.

The Assembly would further request the Secretary-General, in consultation with Member States, including within the context of paragraphs 20 and 21 of the report of the Ad Hoc Open-ended Working Group of the General Assembly on Financing for Development and paragraphs 17 and 18 of Economic and Social Council resolution 1999/51, to initiate preliminary consultations with all relevant stakeholders, in particular the World Bank, the IMF and the WTO, on the potential modalities of their participation in both the substantive preparatory process and the high-level intergovernmental event. It would request the Secretary-General to provide the results of these consultations to the Preparatory Committee for consideration at its first organizational session.

It would also request the Secretary-General, in close consultation with all Member States, to provide the Preparatory Committee and the high-level intergovernmental event with a secretariat commensurate with the level of the event, with adequate staff and other resources.

Role of United Nations in Promoting Development

Also before the Committee was a draft text submitted by Committee Vice- Chairman Giovanni Brauzzi (Italy), on the basis of informal consultations on draft resolution A/C.2/54/L.19, on the role of the United Nations in promoting development in the context of globalization and interdependence (document A/C.2/54/L.76). By the terms of the draft, the Assembly would call for increased international cooperation to address the challenges of globalization through the enhanced participation of developing countries in the international economic policy decision-making process; integrated consideration of trade, finance, technology transfer and development issues by the relevant international institutions; and continuation of a wide range of reforms of the international financial system.

The Assembly would call upon all countries, in particular, the major developed countries, to enhance coherence among their financial, trade and development cooperation policies, with a view to creating an enabling international economic environment supportive of development, in particular, of developing countries.

It would urge the international community to promote international development cooperation aimed at enhancing the participation of developing countries in the globalizing world economy. It would also urge the international community to adopt policies that promote equity in finance, trade and transfer of technology, and address the problems of developing countries in the areas of external debt and transfer of resources, financial vulnerability, declining terms of trade and market access.

The Assembly would request the Secretary-General to prepare, in close collaboration with UNCTAD and in consultation with other relevant organizations, a comprehensive report containing action-oriented recommendations on further promoting the role of the United Nations system in the transfer of information and communication technology to developing countries, and also on its role in promoting policy coherence, complementarity and coordination on economic, financial, trade, technology and development issues at the global level in order to optimize the benefits of globalization.

The Assembly would request the Secretary-General to convene, if possible from extrabudgetary resources, a meeting of a high-level panel of experts on information and communication technology, taking into account equitable geographical representation and in consultation with Member States, to prepare a report to be made available in early June 2000 and containing recommendations on the role of the United Nations in enhancing the integration of developing countries in the emerging global information network; facilitating access for developing countries to information and communication technology, including on preferential and concessional terms, where appropriate; and promoting the participation of developing countries, including through infrastructure facilities, in knowlegde-intensive sectors of the global economy.

The Committee also had before it documents A/C.2/54/L.77, submitted by Portugal, and A/C.2/54/L.78, submitted by Australia, containing amendments to the draft text.

Action on Drafts: Macroeconomic Policy Questions

The Chairman of the Committee, ROBLE OLHAYE (Djibouti), submitted draft resolution A/C.2/54/L.75, based on informal consultations held on draft resolution A/C.2/54/L.25, entitled "high-level international intergovernmental consideration of financing for development".

The representative of Mexico said that on the fourth line of operational paragraph 17, two words were missing. The words “and further” should be inserted at the beginning of the line.

The Committee approved the draft text, as orally revised, without a vote.

The representative of Guyana, speaking on behalf of the “Group of 77” developing countries and China, in anticipation of the programme budget implications, asked that full provision would be made in the programme budget implication. At present, there was no provision in the UNCTAD budget for any of the activities mentioned in the text. He, therefore, requested that provision for that could be made as well.

The representative of Peru proposed a correction to the Spanish text.

Draft resolution A/C.2/54/L.25 was withdrawn by its sponsors.

The Committee Secretary, MARGARET KELLEY, said that total costs estimated at full cost basis were $330,800. Should the General Assembly adopt the resolution, it was not anticipated that additional resources would be required.

The meeting was suspended at 4:52 p.m. and resumed at 5:54 p.m.

Role of United Nations in Promoting Development

Following deliberations, the representative of Guyana read out the new agreed text of operative paragraph 10: "Strongly underlines the importance of an enabling environment for investment, in particular for foreign direct investment, and of market access, governance responsive to the needs of the people based on efficient, participatory, transparent and accountable public service, policy- making processes and administration, an increase in the volume and effectiveness of official development assistance, tackling unsustainable debt burdens, including debt conversion measures and flexibility in the implementation of the enhanced Heavily Indebted Poor Countries Debt Initiative and, as recommended in the report of the Secretary-General, support for regional cooperation and integration as priority areas that need to be addressed in order to achieve sustainable development in African countries and to encourage the participation of all African countries in the global economy."

The representative of Australia said that his delegation could now join consensus on the proposed text.

The representative of Cameroon thanked the coordinator and facilitator of the informals, as well as his colleagues from the Group of 77 and the European Union. He would have wished that the debate might have been conducted on some other paragraph besides the one on Africa.

The Committee then approved the draft resolution contained in document A/C.2/54/L.76, entitled "the role of the United Nations in promoting development in the context of globalization and interdependence", with the orally amended operative paragraph 10, without a vote.

The representative of Suriname said that "small island developing States" should read as "Small Island Developing States (SIDS)" in the seventh and eleventh preambular paragraphs, as well as in operative paragraph 8.

Draft Biennial Programme of Work for 2000 and 2001

LIXIAN XIONG, Chief of the Documentation Programming and Monitoring Unit, General Assembly Affairs and Conference Services, introduced the draft biennial programme of work for the Second Committee for 2000-2001, and updated some of the items in the Annex, reflecting the work of the Second Committee.

Closing Remarks

Mr. OLHAYE said that it had been a somewhat difficult session as far as the workload was concerned, which had taken a lot of time and perseverance. But it had also been a wonderful learning process, dealing with such issues as globalization, trade, financial flows and finance for development. That last issue had now, for the first time, received some recognition. He thanked everyone for the show of goodwill and paid tribute to the Vice-Chairmen and the Rapporteur, who had all done a wonderful job. He thanked the Secretariat, the Under-Secretary-General for Economic and Social Affairs, Nitin Desai, and all the staff for their cooperation and help in providing documentation. He also thanked the Secretary, Ms. Kelley, for her very valuable service to the Committee.

He said that the consensus of the Committee had been broadly maintained, which was gratifying.

The representative of Nigeria expressed his profound gratitude for the leadership exhibited by the Chairman. "Nothing was lost, more was gained" when considering the work of the current session.

The representative of Guyana, speaking on behalf of the Group of 77 and China, expressed his appreciation for the Chair's leadership in what had been a challenging session filled with intense debate and negotiations. He thanked the members of the Group, the Bureau and his negotiating partners.

The representative of Finland, on behalf of the European Union and associated States, said that the Committee's agenda had not been an easy one, working under the shadows of other international events, such as the Seattle WTO meeting. One of the issues advanced during the session was that of financing for development. Much more work remained before all the necessary conditions for a successful final event were present. It was the first session at which globalization had been discussed as a separate item. The responsibility and accountability for globalization had to be globalized, as well. Good governance was of fundamental importance to the European Union. Last week, more than 70 States, along with the Union, had signed the post-Lomé Agreement. The Union would have liked to see a stronger reference to good governance in the resolution just adopted.

On the organization of the Committee's work, she said that the Committee had established an unfortunate record this year. Forty resolutions had been adopted, compared to 33 last year. She regretted that a vote had been necessary on the text on the international financial system. The Committee might consider rationalizing resolutions and decreasing the number of its agenda items. Also, environment-related resolutions should be treated in a more comprehensive manner. Since the Committee could not finish its work on time this year, it might be useful in the future to take measures to begin the negotiation process soon after the end of the debate, as well as adhering to deadlines for submission of draft proposals. She thanked the Secretariat, as well as all delegations who had participated in the deliberations.

The representative of the United States thanked the Chairman and the staff for all their hard work and said that he appreciated their patience. He especially thanked the facilitators. He said that the Committee had dealt with more and longer resolutions than last year. That fact highlighted the interest in the work of the Committee. More time for negotiations was needed and less for statements, he said. He regretted that no consensus could be reached on some issues. As long as the Committee addressed key issues, there would be differences of opinion.

The representative of the Russian Federation said that his delegation was satisfied with the work done by the Committee and the General Assembly as a whole. Because of the constructive atmosphere, the Committee could achieve remarkable results in many areas. The practical value of the resolutions was rooted in the fact that they had set very clear-cut guidelines for solving global problems in the interest of sustainable development. In the environmental field, important decisions had been taken as well. He thanked the Chairman and all the members of the Bureau, and also the translation services.

The representative of Morocco noted with concern the proliferation of informal informals, which were not geared towards ensuring the largest participation by the smaller delegations. While wanting to finish on time, the Committee must ensure, for the largest number of countries, the opportunity to participate. Otherwise the consensuses reached would represent an elitist consensus. The availability of the reports in all languages on time should also be given due consideration. In addition, he was astonished to see that a Vice-Chairman's text had been put to a vote. He hoped that that would not be repeated in the future, as it would be a dangerous deviation.

The representative of Mexico expressed his gratitude to the Chairman, the Secretariat and all delegations taking part in the Committee's work. The United Nations was the meeting place where international consensus could be built to tackle problems such as development. At the dawn of the new millennium, the United Nations, more than ever, had to play a part in producing understanding among nations. He pledged Mexico's full commitment to pursuing such efforts.

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