UNCTAD X HEARS ADDRESS BY PRIME MINISTER OF VIET NAM, TWENTY SPEAKERS BEGIN GENERAL DEBATE

Press Release
TAD/1906

UNCTAD X HEARS ADDRESS BY PRIME MINISTER OF VIET NAM, TWENTY SPEAKERS BEGIN GENERAL DEBATE

(Received from UN Information Officer.)

BANGKOK, 13 February -- As they tried to reform and modernize their policies, developing countries were caught in a double bind, the representative of Brazil told the tenth United Nations Conference on Trade and Development (UNCTAD X), beginning its general debate in Bangkok this afternoon. They must live up to the standards of the twenty-first century, but still faced the problems of the nineteenth. A rule-based trading system was essential for their success.

Dreams of a new economic order, based on ethical or political considerations rather than the market, were gone, he added, but the minimum poor nations might expect is that developed countries delivered on their promises to open their markets to competitively produced goods.

The Minister of Commerce and Industry of India, Shuri Murasoli Maran, said nobody debated any more about the market versus the State. The question was not whether the State or the market should dominate; each had a unique role to play. The issue was one of balance. Where that balance was might depend on the country, the capacity of the government and the institutional development of markets.

It was also shocking that the assets of the world’s three richest countries were more than the combined gross national product (GNP) of 26 of the world’s poorest countries, he said. The balance sheet of globalization was that poverty and deprivation persisted and that people were denied their entitlements.

The Prime Minister of Viet Nam, Phan Van Khai, explained that in a world of swift changes, developing countries needed assistance from developed countries so as to participate on an equal footing in international economic activities.

Special attention must be given to extending globalization’s benefits to poor countries, he continued. The World Trade Organization (WTO) should give Any new WTO agenda must respond to the needs of developing countries and should preferential treatment to States in accordance with their levels of development. create an international environment more conducive to cooperation. Former UNCTAD Secretary-General Gamani Corea said new approaches should weave the valid and important elements of the earlier framework of international development cooperation with the changes that are under way in the global economic scene and the new elements that need to be incorporated.

That new formulation, he said, should embrace not only the evolving framework of international trade and its impact on developing economies but also issues such as capital needs, stability and strength of commodity markets, debt problems and various forms of regional and inter-regional cooperation.

The Minister for Foreign Trade of Cuba, Ricardo Cabrisas Ruiz, said the priority of any new multilateral round of trade negotiations must be structural transformations in favour of the weakest economies, rather than merely improved traditional trading terms. The international community owed a debt to the third world. Today more than ever, it was imperative to implement a global development strategy that would mitigate the increasing inequalities among and within countries.

Statements in this afternoon’s debate were also made by the representatives of Morocco, Portugal, Egypt, Bahrain, Pakistan, Saudi Arabia, Italy, Australia, Bangladesh, China, Switzerland, United States, United Arab Emirates, Germany, Spain, Belgium and Qatar.

UNCTAD X will meet at 9 a.m. tomorrow, 14 February, to hear a keynote address by Enrique Iglesias, former Executive Director of the Economic Commission of Latin America and the Caribbean (ECLAC), in its continuing series of interactive debates. It will then continue its general debate.

Statement by Prime Minister of Viet Nam

PHAN VAN KHAI, Prime Minister of Viet Nam: The four years since UNCTAD IX have shown the importance of strengthening unity and voluntary cooperation between UNCTAD members, of assistance for development and of increasing assistance to the least developed. The international community must pay special attention to ensure globalization’s benefits extend to poor and backward countries. In a world of swift changes, developing countries need effective assistance from developed countries so as to fully participate, on an equal footing, in international economic activities. South-South cooperation is also important to this, and the potential of reinforcing synergy among developing States should be developed.

More assistance should be given to national programmes to alleviate poverty and narrow the gap among countries. Viet Nam welcomes the initiative taken by developed countries in implementing debt relief and debt rescheduling for poor countries, to help them deal with the decline in official development assistance (ODA). Developed members of the World Trade Organization (WTO) should grant special and differential treatment to States in accord with their levels of development. Any new WTO agenda should respond to the legitimate needs and interests of developing and least developed countries, and should create an international environment more conducive to cooperation.

Viet Nam is doing its best to overcome its weaknesses and shortcomings on the path of development, mobilizing all social resources and at the same time broadening international cooperation. Peace, cooperation and development are ardent aspirations of all nations. Nations have become more interdependent, producing many opportunities and challenges. The prerequisite for the achievement of States’ three aspirations is mutual respect -- for independence, for national sovereignty and for the cultural traditions of all nations and the socio-political choice of all people.

Statement by Former UNCTAD Secretary-General

GAMANI COREA, Former Secretary-General of UNCTAD: Distortions in the new scenario of international trade flows and capital movements have given rise to some rethinking in both developed and developing countries. Some gaps that need to be filled have been identified. One of these is the need for a suitable arrangement for what has been called “global economic governance”, with the representation, hopefully, of both the developed and developing countries. Another is the need to accommodate the interests of the developing nations in the thrust towards trade liberalization. The efforts that the developing countries are called upon to make need some differentiation relative to what is asked of developed countries –- a differentiation that goes beyond extended time periods for implementation.

Efforts must also take account of the varying situations in developing countries and allow for a degree of flexibility. Above all, there must be an identification of the characteristics of a world trade system that reflects the goals and interests of the developing countries and that could contribute to negotiations among all countries. There is also growing recognition of the need to pay attention to social processes in the process of globalization and liberalization. Liberalization must not undermine or neglect social imperatives. All these new approaches relate to the manner in which globalization and liberalization should evolve in the future.

New approaches should weave the valid and important elements of the earlier framework of international development cooperation with the changes that are under way in the global economic scene and the new elements that need to be incorporated. The new formulation should embrace not only the evolving framework of international trade and its impact on developing economies but also issues such as capital needs, stability and strength of commodity markets, debt problems and various forms of regional and inter-regional cooperation. It should also reach out to issues in the social and environmental field, to the changes that are unfolding in technology and communication and to the questions of national autonomy in domestic policy-making.

Statements in General Debate

MOHAMMED BENAISSA, Minister for Foreign Affairs and Cooperation of Morocco, speaking on behalf of the “Group of 77” developing countries and China: Globalization has undoubted benefits, but it has not yet delivered them to all. It cannot be left to its own devices. There must be enhanced cooperation to establish an enabling environment to allow developing countries to achieve their potential. Current global thinking does not live up to the needs of development. The international architecture must be looked at closely, and more emphasis given to development, and to developing States’ participation in the decision-making processes.

The decline of ODA is of great concern. For many, especially the least developed, ODA will remain a key resource for development. It should not compete with emergency aid or other forms of assistance. Due consideration should be given to the proposal to establish an independent body to examine African debt, with a view to writing off unpayable debt.

Foreign direct investment has become important factor in development, but it is directed at only a few developing countries. UNCTAD should assist in ensuring that all benefited from such investment. The Group of 77 believes that more favourable treatment of developing countries in the financial arena should be supported through support for capacity-building. UNCTAD has a role to play in assisting developing countries in their engagement in the WTO. On environmental issues, a balance should be sought with the needs of development. Commodities continue to be important to developing countries. Globalization and liberalization have unleashed competitive forces. It must not be allowed to run wild. Its benefits must be spread equitably and developing countries must have a say in the governing of the process.

VÍTOR RAMALHO, Secretary of State for Economic Affairs of Portugal, on behalf on behalf of the European Union and the associated States of Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, Malta and Turkey: The Union’s development cooperation aims at contributing to the reduction of poverty, as well as to social progress, sustainable development, environmental protection and consumer health. It is also greatly committed to the integration of developing countries into the world economy. It favours special and preferential treatment for developing countries and reiterates its commitment to allow duty- and quota-free market access for essentially all products originating from lesser developed countries. It urges other developed countries to adopt the same course and the more advanced developing countries to contribute.

The European Union is committed to continuing ODA with special emphasis on physical infrastructure and capacity building. While ODA will continue to be an important source of funding for many developing countries, particularly least- developed countries (LDCs), private sources of funding have become increasingly important in recent years for many developing countries. It is also essential that developing countries continue their efforts to promote investment regimes which attract foreign investment. UNCTAD should also aim at enhancing the capacity of developing countries to promote their own development.

While the Conference is not a forum for the negotiation of multilateral trade rules, it has an important role to play in the promotion of the full participation of the developing countries in WTO negotiations and in the pre- and post-negotiation phases, notably in then post-Seattle process. When addressing the implications of globalization on sustainable development, the European Union considers it important that UNCTAD’s analytical work focus on key areas such as institutional reforms and capacity-building. In this context, the social and environmental dimensions of development and the gender perspective should be duly kept in mind. The specific problems of LDCs make them a special concern for the Union. UNCTAD should also continue to put LDCs at the centre of its activities. YOUSEF BOUTROS GHALI, Minister of Economy and Trade of Egypt: The tenth UNCTAD is taking place as the international economic order is undergoing change, and as discussions on changing international financial mechanisms are taking place. This places a great responsibility on the Conference. All people and countries are partners in the international economic system, so it must assist in meeting the aspirations of all. UNCTAD is an essential forum which can play a decisive role in this context, and it is the main framework in the United Nations system dealing with economic matters. By increasing coordination between trade, financial and monetary policies, and by accounting for them, it could contribute to ensuring they are of benefit to both developed and developing countries.

In recent times there have been a series of problems, such as deteriorating terms of trade, fluctuations in commodity prices and falling levels of ODA. There is an increasing gap between developed and developing countries. Substantial reform of the international institutions, such that everybody feels involved, is important, as is the development of an early warning system to avoid crises. In recent years the world has become a small village through globalization. Some think this phenomena is not new, but what is new is technology that reduces distances and reiterates patterns of human behavior in distant areas. Globalization brings possibilities and imposes new challenges. Undoubtedly, all members of the international community have a shared responsibility to deal with it. Trade is an engine of growth and an effective tool, but the parameters of the international trading system’s foundations must be clearly defined and fair to all. Protectionist measures against developing countries’ exports complicate the task of implementing WTO agreements. The impending WTO negotiations must be realistic and provide immediate measures for institutional reform and transparency.

The international community must learn the lesson of recent years and lay down a strategy based on positive effective participation for managing the world economic system. This must be reflected in UNCTAD’s workplan for years to come, so it can be a forum for solutions.

SHURI MURASOLI MARAN, Minister of Commerce and Industry of India: the twentieth century is ending with failure to resolve two major problems -- mass unemployment and growing inequality. It is shocking that the assets of the world’s three richest people are more than the combined gross national product (GNP) of 26 of the world’s poorest countries. Poverty and deprivation persist and people are denied their entitlements. This is the balance sheet of globalization. This is why the rules of the game of international trade should be fair and equitable. This is why international rule-making must not encroach on the sovereignty of national governments and permit flexibility and autonomy to developing countries to pursue their material development on the basis of the needs and aspirations of their people.

Nobody debates any more about the market versus the State. The question is not whether the State or the market should dominate; each has a unique role to play. The issue is one of balance. Where the balance is, may depend on the country, the capacity of the government and the institutional development of markets. The former General Agreement on Tariffs and Trade (GATT) and the new WTO look like a one-way street. You can drive down it from the North but the road is normally blocked from the South. While the developed countries continue to press for greater access for their goods, services, capital and intellectual property rights in the world markets, the same is largely denied in areas where developing countries enjoy a comparative advantage. Even the traditional and indigenous knowledge of the developing countries is not given minimum protection. Trade measures in developed countries have also significantly eroded the market access granted to developing countries in the Uruguay Round Agreements.

The WTO process needs to be reformed. The fear, anxiety and insecurity of the developing nations should be appropriately addressed. Moreover, any attempt to insulate first world markets from the third world competition should be stopped. The WTO should therefore be given a much narrower, trade-oriented remit. Non-trade issues can be properly addressed by the appropriate international institutions –- more competent and better equipped than the WTO. Because the WTO is empowered with the Rule of Law of Bretton Woods institutions such as the World Bank and the International Monetary Fund (IMF), the WTO has generated suspicion and invited resistance. While cooperation among international organizations may be good, we should be careful that in the name of coherence, we do not create a “networking behemoth” that pressures developing countries through cross-conditionalities.

SALMAN BIN KHALIFA AL-KHALIFA (Bahrain): The conference is charged with a great responsibility to devise and nurture effective strategies to facilitate the integration of developing countries into the global economy. Globalization and liberalization have thus far failed to deliver the anticipated prosperity for all. There has been no significant narrowing of the income gap between developing and developed States. Many developing countries remain highly dependent on a single commodity or non-renewable resources and therefore dependent on the vagaries of the international financial markets. Most at risk of marginalization were small island developing States, such as Bahrain.

UNCTAD should play a role in facilitating a more effective participation of small island developing States in the multilateral trading system. UNCTAD’s efforts could be focussed on three areas -- facilitating more effective participation of such States in the multilateral trading system; assessing the characteristics of small island State vulnerability; and developing and implementing effective strategies to allow small island developing States to overcome the handicaps they face.

A dominant force in the globalization of the world economy has been the startling pace of developments in the field of information technology. These offer the possibility of improving the lives of millions. Small island developing States cannot afford to be left out of the information age and the accompanying growth of technology-based industries. It provides an opportunity to further ties with other developing countries through electronic integration . UNCTAD should support an intensification of this process.

MUNIR AKRAM, Special Envoy of the President of Pakistan: The process of globalization has often been marked by “Darwinian struggles” for survival between major international companies. The ebb and flow of capricious financial flows often determine the fate of peoples in developing nations. The imposition of trade sanctions sought by some interest groups will merely stifle exports and economic dynamism in the developing countries and choke off global growth and trade. The whole world will thus sacrifice progress and prosperity merely to preserve a few thousand non-competitive jobs in such sectors as textiles, steel and agriculture in a few advanced countries.

A solution to the negative implications of globalization will have to be global in nature, encompassing all nations and institutions. There is no reason why a constructive consensus cannot emerge from an active international endeavour to address the problems of the weak and vulnerable, who are being marginalized in the globalized “new economy”. Equity in the distribution of the benefits of growth is essential for development, for social cohesion and for poverty alleviation.

The international community should develop an “agenda for global equity” which should redress the inequalities in the world trading system, even as the process of liberalization is being pursued. This would involve, for example, the elaboration of cooperative mechanisms to stabilize and strengthen primary commodity prices and the integration of agricultural trade into WTO disciplines. Further, the international community must launch a concerted attack on poverty and undertake a conscious effort to enhance the capacity of poorer countries to produce and compete in the globalized economy.

OSAMA J. FAQEEH, Minister of Commerce of Saudi Arabia: Unfolding developments underpin the enhanced role of UNCTAD in devising a realistic strategy to gradually integrate the developing and LDCs into the world economy. Furthering such objectives can be achieved by adhering to certain principles. UNCTAD has to be preserved as the forum where serious dialogues and the exchange of ideas to effectively manage the globalization process and analyse global interdependence can be conducted. The Conference should provide member States with effective services in such areas as technical cooperation and technological advice. It should also contribute to carrying out an in-depth study on the spectrum of e-commerce uses, its impact on national trade policies and the formulation of a legal and regulatory framework in developing countries.

UNCTAD must help developing nations to work out realistic and constructive work programmes to enhance their skills and capabilities to effectively participate in the forthcoming WTO negotiations. Impediments facing the developing nations in obtaining their equitable and fair share of the benefits accruing from the system, as a result of failure on the part of developed countries to meet their obligations, should be clearly identified and effectively addressed. UNCTAD should demand that interested countries are granted accession to the WTO under fair terms and conditions that take into account their legitimate developmental needs and respect their established religious, social and cultural heritage and values.

The Conference should also highlight the detrimental economic and trade effects of measures taken against developing countries, especially those imposed with the aim of curbing competitiveness. We are not advocating retreat from liberalization. We are simply calling for an objective and constructive dialogue aimed at formulating a process of fair and “codified globalization”. Such a system must be based on principles of justice and transparency. Saudi Arabia has also called for an international conference to address the correlation between the transfer of technology and globalization. The purpose will be to enable the developing countries to keep pace with the accelerated pattern of economic globalization and to maximize its utilization within agreed organizational and behavioral structures. RINO SERRI, Under-Secretary of State for Foreign Affairs of Italy: Economic growth and social growth must go hand in hand. Only recently have we started to realize that we have underestimated the second element in this relationship. The issue of debt must be tackled with considerable commitment and consistency by Western countries. Moreover, increasing attention must be paid to environment issues, as developing countries are among the most threatened by environmental disasters. Italy supports the efforts being undertaken by UNCTAD aimed at encouraging the transfer and spreading of environment-friendly technologies.

Promoting the private sector through foreign direct investment represents a fundamental element for the development of an emerging economy and a necessary step for integration in a global system. Italy fully supports UNCTAD in its efforts to pursue real and effective policies of sustainable development both at the national and international levels. Trade competition in a globalized economy must not result in a race downwards in the fields of social and environmental protection. Safeguard measures in these areas must not be used for protectionist purposes.

UNCTAD must be encouraged to continue to analyse the implications of the technological revolution in developing countries and develop ways to assist them so that they can derive maximum benefit from technological innovations.

MARK VAILE, Minister of Trade of Australia: The WTO must revisit the unresolved issues of Seattle and show flexibility so that a balanced and equitable trading system can be put in place as soon as possible. Developed countries bear a particular responsibility to show flexibility and exercise the will to launch new multilateral trade negotiations in the WTO. A trade round securing the liberalization of agriculture, manufactures and services offers the best opportunity to rectify imbalances in the trading system.

A more focused UNCTAD has a valuable role to play in assisting and promoting the integration of trade and development policies. With success will come improved investment and technology flows and enhanced trade performance, along with accelerated opportunities to advance other important development objectives, such as sustainability, poverty alleviation, social development and equality.

UNCTAD should develop a programme to give priority to helping developing countries draw up a positive agenda for future WTO negotiations; focus on formulating approaches which deepen the interaction between trade and development policies; and give higher priority to improving the capacity of developing countries to participate in the multilateral trading system and to pursue sustainable development.

MOHAMMAD ABDUL JALIL , Minister of Commerce of Bangladesh: There are a number of areas where well-designed rules and policies would be extremely helpful to LDCs. Institutions to address the economic and social dimensions of poverty are still new. Strong support for efforts to address this issue was needed. The special needs of LDCs must be taken into account in the balanced implementation of WTO agreements, particular in the special and differential provisions, the extension of transitional periods, technology transfers and easier movement in the factors of production.

Also necessary is the simplified accession to the WTO by LDCs, free access to LDC exports, capacity-building and a decisive reduction in the debt of LDCs. Bangladesh endorses the Saudi Arabian proposal for an international conference to initiate a constructive dialogue to address the correlation between the transfer of technology and globalization, with a focus on economic, technical and scientific spheres.

There is a universal appreciation of the problems of LDCs and of the people living in them. The Conference must now move from rhetoric to concrete action. Decisions to implement the proposals made at UNCTAD would improve the conditions of millions now living in poverty.

ZHOU KEREN (China): Economic globalization is a double-edged sword, delivering opportunities, but also challenges and risks. The array of advantages possessed by developed countries mean developing countries face great challenges. In trade, their meagre exports face tariff and non-tariff barriers and anti-dumping actions. They have experienced a downward trend in foreign direct investment, despite efforts to open markets and formulate preferential policies. And the financial crisis has dealt a heavy blow to the financial system of emerging markets while developed countries reap benefits. A sound international finance system and multilateral trading system are needed.

The trade preferences accorded developing countries by the original multilateral trading system have been seriously eroded. Hopes that the Seattle meeting of the WTO would direct the trading system towards greater fairness were shrouded because the outcome of the meeting was not conclusive. The lesson in Seattle is that items linked to the interests of developing countries must be fully considered in any new round of negotiations, and a balanced agenda would be the first step to their success. The starting point for new multilateral trade negotiations should be development-oriented. They, and globalization itself, are only means to serve one purpose -- that of development.

Developing countries know full well that they must rely mainly on themselves for the development of their national economies but, as the biggest beneficiaries of globalization, developed States should shoulder responsibilities and obligations. UNCTAD’s importance is self-evident, and it has made positive contributions in recent years. In the new century, globalization and liberalization should not result in the pushing aside of the United Nations system in the areas of economic trade and development. An important task of the present meeting is to strengthen UNCTAD so it can fully use its advantages in policy review, analysis and technical cooperation.

DAVID SYZ, Secretary of State for Switzerland: There are many misunderstandings about the causes of failure in Seattle. First, we must strengthen communication with citizens and the organizations through which they express themselves on the challenges of globalization. In this regard, UNCTAD X is well poised to promote discussion of these issues. It offers lively interaction by international, governmental and non-governmental organizations. Second, we must show greater consistency in our policies and have an integrated vision on trade, investment, protection of the environment, and socio-political issues. There is need for a global forum to analyse all these issues and UNCTAD must be the think tank.

Third, we must also restore confidence in the multilateral trade system. An overwhelming number of developing countries want to participate in globalization, but as actors. The necessary action is clear -- integration of these countries into the world trading system is an effective way of combating world poverty. There must, therefore, be substantial improvement to market access by LDCs. We must assist developing countries to improve the efficiency of their trade institutions and there must also be better distribution of foreign direct investment flows. UNCTAD must also continue its efforts to enhance the investment climate in developing countries.

However, for external assistance to be fruitful, reforms also have to be implemented domestically. UNCTAD should encourage good governance in its work plans and also continue its work in a priority setting. UNCTAD must also give up areas of activity that are no longer a priority. A considerable increase in efficiency will be achieved if UNCTAD plays to its comparative advantages. Switzerland will continue to be a source of extra-budgetary finance for programmes in the future. UNCTAD X should not be another number but the beginning of a shared vision to address the globalization that is unavoidable for the future.

HARRIET C. BABBITT (United States): The global community could not reverse the technological changes that have brought globalization, even if it wanted to. However it can and should try to channel those forces so that developing countries have a real opportunity to participate and benefit. Trade is a powerful instrument for achieving economic growth, and growth is essential for, although not sufficient to guarantee, sustained human development. Development also requires investment in people, and a sound policy framework that will allow the private sector to flourish while guarding against exploitation. It requires good governance, accountability and transparency, protection of human rights, the rule of law and sustainable environmental practices. Development strategies must engage both governments and civil societies in developing countries, working together with international donors and multilateral organizations.

Accountability and transparency are critical to building confidence and deterring corruption. Good governance is a part of trade-capacity development. Development priorities must give weight to the need for institutions of good governance and, at the same time, recognize that needs and capacities are different for each country. The scarcity of concessional resources for financing development is part of the reason why priorities must be carefully selected. It is clear that substantial increases in ODA are unlikely in the near future, and that private resource flows will continue to exceed assistance by a wide margin. They remain concentrated, but a small percentage change in investment patterns could bring far more resources for development than any foreseeable increase in ODA. More is required to attract private capital, and UNCTAD can play a helpful role in that effort.

One of UNCTAD’s greatest strengths is that developing countries have confidence in its research, analysis and related technical assistance. The United States favours a concentration of UNCTAD’s resources in work that builds on its analytical strength and contributes to the capacities of developing countries to help themselves.

FAHIM BIN SULTAN AL QASSIMI, Minister of the Economy and Commerce of the United Arab Emirates: In the developing world, adoption of globalization varies from one country to another. As far as trade is concerned, the developing countries need special help to assist them in overcoming obstacles and to provide them with a suitable grace period in which to achieve their objectives.

The United Arab Emirates has adopted an open policy based on the freedom of investment and trade. It also applies an open policy that aims at liberalizing external trade in the country. It does not impose restrictions on imports or restrict economic freedom. The country also permits a liberal monetary and credit policy.

As far as trade negotiations are concerned, there is no need to include certain subjects in future WTO negotiations. Labour standards and the environment, for example, have their own specialized agencies. UNCTAD also has an important role to play and it needs to be strengthened.

GUNTER ALTENBURG (Germany): That the third WTO Ministerial Conference in Seattle did not result in a further round of trade talks was regrettable. A new round is in the interest of all, as it will generate global growth and employment from which industrialized and developing countries will gain. But before another ministerial conference can usefully be called, the primary causes of the Seattle failure must be overcome. To do this, the interests of developing countries -- now three quarters of the WTO membership -- must be given due consideration, as only if the pressing problems facing developing countries are addressed will there be a chance to improve the world trade regime.

To assist developing countries to better use the opportunities provided by globalization, their export potential should be improved. The initiative whereby almost all goods from poor countries should be allowed duty free into developed countries should be taken up by the main industrialized countries and by all key developing countries. The link between trade and investment, competition and the environment must be examined more closely and the interplay between trade and social standards should not be ignored.

Even if globalization has brought a degree of uncertainty to many countries, this should not lead to pessimism, but rather to a search for ways to ensure that countries at risk are given the opportunity to compete in world trade on an equal footing. There is no blueprint for this, but intense dialogue and cooperation to establish a recognized viable world order can significantly improve the chances of rewards for all. While creating the internal conditions for increased integration of developing countries is primarily the concern of each country, the international community must provide concrete support. The UNCTAD programme for the next four years should serve the goal of assisting developing countries to deal with issues related to liberalization of trade and direct investment. It should focus on its comparative advantages and step up cooperation with other players in the field of development cooperation, including those in the United Nations system, but also other multilateral and bilateral donors.

CELSO AMORIM (Brazil): Developing countries have been adjusting themselves and their policies to a system that they have not shaped but which they rightly feel entitled to influence –- even if to a limited degree. Is it not fair for developing countries to expect that the momentous efforts they have undertaken, brought about in many instances at such high political cost and with great social cost, be matched by concrete actions on the part of the developed nations?

Gone are the dreams of creating a new economic order based on unrealistic demands or on the expectation that ethical or political considerations rather than the operation of market laws become the keystone of international economic relations. But at a minimum, the poor nations of the world might expect that developed countries would deliver on their repeated promises to open their markets to the goods they produce competitively. If protectionism was the evil so often decried in relation to policies followed by many nations in the South, why is it that most developed countries persist with their protectionist practices precisely in areas with greatest potential opportunities for developing nations -- agriculture, textiles and steel?

As they try to reform and modernize their policies, developing countries are caught in a double bind: they have to learn how to operate their businesses competitively in the age of the Internet while they struggle to overcome the obstacles to their more traditional exports. In other words, they need to live up to the standards of the twenty-first century, even as they continue to face the problems of the nineteenth. A rule-based trading system is essential for their success.

RAIMUNDO PEREZ-HERNANDEZ (Spain): The tenth UNCTAD had a duty to review traditional growth and development strategies to adapt to a new dynamic but volatile reality. The last conference launched internal reform. UNCTAD could not and would not replace the WTO, but in no way could it be alien to what happened in Seattle. The social dimension of the recent financial crisis must be highlighted. While ODA has declined, Spain has devoted growing resources to international cooperation.

The eradication of poverty, a legacy of the last century, is the main challenge of the twenty-first century. Micro-credit was a key and effective weapon against poverty. Natural disasters have an effect on development, particularly where structures are weak. Spain places importance on the second phase of assistance in natural disasters.

UNCTAD has a role as a challenging and implementing agent for technical assistance. The economic reality at the start of the millennium meant cooperation programmes must be adapted with cooperation of recipient countries. A scale of development must be developed, on the subject of which Spain would finance a study.

Spain is willing to contribute financially to UNCTAD’s efforts for development just as it contributes to many other development efforts. It shares many concerns about problems and challenges of globalization. The past is experience, the present is practice and the future is imagination. All needed to be combined.

RICARDO CABRIZAS RUIZ, Minister for Foreign Trade of Cuba: The large transnational companies, whose economic leverage by far exceeds the power of many governments, are the main beneficiaries of the open markets that have favoured the trade among the major economies. The issue of tariff and non- tariff barriers has been compounded by increasing unilateral measures against small countries as a means of political pressure. This is happening in the face of supine international agencies, particularly the WTO, thus illustrating the fragile nature of its rules. The existing Section 301 under the Omnibus Trade Act of the United States, and other coercive and extraterritorial laws designed to step up its blockade policy on Cuba, reflect the current structure of the power-play in the world at present.

What trade liberalization are we talking about? What assurances can be offered by a multilateral trading system that sits idly by while pieces of legislation in breach of international law are passed? The third world cannot be condemned forever to a situation of unsatisfied human needs. If this situation prevails, social turmoil will break out as a just response to the neo- liberalization process. Solving the adverse impact of globalization must be a priority. There is therefore need for international cooperation initiatives that correct the imbalances and asymmetries leading to the marginalization of the underdeveloped countries. The justified concern of these countries, both before and during the Seattle Conference, demonstrated the significant differences in priorities and interests between the third world and the industrialized countries and the steadfast position of the former in defense of their legitimate positions.

This is why the priority of any new multilateral round of trade negotiations must be structural transformations in favour of the weakest economies, rather than merely improved traditional trading terms. The international community owes a debt to the third world. Today, more than ever, it is imperative to implement a global development strategy that mitigates the increasing inequalities among and within countries. UNCTAD may pursue this work by acting consistently with all the developmental dimensions, and in particular, with the urgent need to end injustices and inequities in the existing world economic order. Transforming this existing order means imposing common sense over force and cooperation over confrontation.

EDDY BOUTMANS (Belgium): Without respect for culture, there was no peace or sustainable development. Globalization and market liberalization are not unshakable truths that cannot be changed. Any economic system is a human creation and it can and must be tailored to needs. Developing countries are not condemned to subordinate their priorities to financial markets. A new round of trade negotiations must reflect developing country concerns. They must also take place in transparency and efficiency.

Belgium emphasizes the importance of international cooperation, which is always a force for progress. As UNCTAD is a priority, it plans to make a tangible contribution to UNCTAD’s activities. As part of the launching of a new cycle of trade negotiations, Belgium supports the European Union proposal for free market access for all major products from developing countries without duty. The recent renewal of the Lome convention in Brussels has given them preferential access to the European market.

Trade can be a strong driving force for development, if it is equitable and allows all to draw on their comparative advantages. UNCTAD can support globalization with a human face. Efforts to integrate developing countries into the global economy must be effective. In its activities to coordinate assistance to increase its efficiency, UNCTAD must play a role from its comparative advantage. Its capacity could be strengthened by reducing the areas it examines, by combining projects thematically and by mobilizing extrabudgetary resources.

Poor people suffer most from the pollution of air and water, and other effects of environmental degradation, so protecting the environment must be part of any campaign against poverty. Thai non-governmental organizations made that statement very strongly in a parallel meeting to this Conference. Developed countries must live up to their commitments to reduce pollution.

ABDEL RAHMAN BEN HAMID AL-ATIYAH (Qatar) said the Conference was taking place at the dawn of a new millenium and as the world confronted the huge challenges caused by globalization. It was also taking place after the failure of the Seattle WTO Conference. The most important reason for that failure was the marginalization of developing countries in the WTO decision-making processes. All must be taken into account if the aim was to create a new world economic order. Cooperation was a most important element of creating a secure world.

The debt burden faced by developing States was the main obstacle to obtaining economic and social development. Debt caused deep concern as considerable percentages of gross domestic product are used to service that debt, at the risk of political, economic and social instability. The wide gap between developed and developing countries in the use and possession of advanced technology necessitated increases in development assistance and technology transfers to effect sustained world development.

It was important to assist developing and least developing countries to meet the challenges of globalization. A specific portion of the gross domestic product of developed countries should be devoted to assistance. A balance must be struck between globalization and free markets, and political, economic and social stability. UNCTAD should participate in reevaluating the new agreements that emerge from multilateral institutions and organizations, such as the WTO, before countries must enter into obligations under them.

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