SEVENTEEN STATES ADDRESS UNCTAD X IN CONFERENCE"S CONTINUING GENERAL DEBATE
Press Release
TAD/1910
SEVENTEEN STATES ADDRESS UNCTAD X IN CONFERENCES CONTINUING GENERAL DEBATE
20000215(Received from a UN Information Officer.)
Bangkok, 15 February -- The Tenth United Nations Conference on Trade and Development (UNCAD X) heard presentations by 17 member states this afternoon, as it continued its general debate. Prior to the debate, it received recommendations for UNCTAD from a caucus of non-governmental organizations that was held in Bangkok last week.
Markets, although effective tools, could not perform essential functions of governments and civil society, the representative of Canada told the Conference. Markets would not better redistribute wealth or ensure everyone shared the benefits of globalization. Nor would they be patient enough to help developing countries acquire the skills necessary to keep pace.
Economic liberalization is no guarantee of economic growth or poverty reduction, he added. While welcoming the endorsement by governments of country- owned poverty reduction initiatives from the World Bank and the International Monetary Fund, what were the commitments those governments would bring to such strategies? he asked.
Kenyas Minister for Tourism, Trade and Industry said the benefits of the multilateral system eluded most developing countries. Unfair competition from subsidized industrial imports had led many domestic industries to close and others to operate below capacity. Unemployment, reduced investment, low incomes and high poverty levels had followed.
To help the effective integration of Africa into the global economy, the anomalies of the multilaterally trading arrangements must be removed, and the support of the international community, both financially and technically, must be forthcoming, he added.
The representative of Costa Rica affirmed to the Conference that free trade was an excellent vehicle for development, and that the World Trade Organization (WTO) was a democratic organization where small countries could make their concerns heard. In adopting a development policy based on free trade some 10 years ago, Costa Rica had hoped insertion into the world economy would make it stronger, and that had, in fact, happened. Free trade and the multilateral trading system had improved his countrys quality of life. Costa Ricas exports had increased by 300 per cent in nine years, and its literacy rate now exceeded 95 per cent. The Conference also heard from the Minister of Foreign Affairs of Madagascar, Singapores Minister of State for Foreign Affairs, the Secretary of State in the Ministry of Foreign Affairs of Tunisia, the representative of Turkey, the Deputy Prime Minister of Jamaica, Luxembourgs Minister of Cooperation and Humanitarian Action, the representatives of Israel and the United Republic of Tanzania, the Minister of Industry and Primary Resources of Brunei Darussalam, the Secretary of State for Peace of Guatemala, the representatives of Mauritania, Senegal and Ecuador, and the Minister of Foreign Affairs of Cape Verde. The representative of Palestine addressed the Conference, as did the Deputy Executive Director of the United Nations Environment Programme (UNEP).
The Conference will meet again at 9 a.m. tomorrow, 16 February, to hear a keynote address by Mike Moore, the Director General of the World Trade Organization, as apart of the Conferences continuing interactive dialogue, before resuming its general debate.
Statement by NGO Plenary Caucus
MUTHONI MURIU, on behalf of the NGO Plenary Caucus (Bangkok from 7-8 February): The caucus calls for a new deal for developing countries in the areas of agriculture and food security, in debt and reparations, in finance and in labour. It challenges UNCTAD to play a critical role in shaping a more equitable and democratic world. While it has already played a key role in exposing the negative effects of globalization, its approach should now be made more fully consistent with its development mandate.
Specifically, the caucus calls on UNCTAD to monitor and assess the impact of globalization and trade liberalization and formulate policies to address problems; undertake independent impact assessments of intellectual property regimes; undertake a comprehensive assessment of the impact of the World Trade Organization's Agreement on Agriculture and its Agreement on Subsidies and Countervailing Measures; undertake analysis of new proposals for labour finance investment, government procurement and competition; ensure its work on foreign direct investment, transnational corporations and financial flows is more independent and critical; approach with extreme caution proposals for any multilateral, regional or bilateral investment agreement; educate and encourage member States to frame national anti-trust policies and laws to empower small and medium-sized enterprises; promote improved corporate governance and corporate transparency by encouraging the use of acceptable standards; address imbalances in, and inequities of, exiting trade agreements and problems relating to their implementation; monitor the compatibility of trade agreements with other obligations undertaken by governments under United Nations treaties; establish an intergovernmental group of experts to discuss issues pertaining to consumer policy; conduct an audit of the origins of the financial debt of developing countries and a comparative study of the social and ecological debt owed by the North to the South; and encourage member States top submit a formal request to the International Court of Justice for an advisory opinion on the legality of external debts of developing countries.
Statements in General Debate
LILA HANITRA RATSIFAMDRIHAMANANANA, Minister for Foreign Affairs of Madagascar: Women are the main victims of the social insecurity caused by globalization. Women were the first to be concerned when their children died of disease and hunger due to shortfalls in health and education. Africas need for financial resources was one of the main obstacles to its development plans. Nevertheless, African countries have undertaken reforms pursuant to United Nations Development Agenda Framework programmes. However, commitments entered into by the international community to support African development have hardly been attained.
There are two categories of imbalance that need to be corrected: the structure of the current international trade system in trade and development flows and poverty. We are guided by various non-governmental organizations to take a firm stand against the current conditions of trade liberalization. It is expected that this Conference will identify the avenues for solution. Development levels must be evened out for our countries to benefit from globalization.
Official development assistance (ODA) should be increased in a display of international solidarity and the debt burden must be alleviated if not totally cancelled by creditors. We must foster foreign direct investment (FDI) and be given the chance to access the technologies to make countries more competitive. On the eve of the launch of new negotiating cycle of the World Trade Organization (WTO), a summit gathering is necessary to avoid failure. UNCTAD is duty-bound to be the beacon of the worlds conscience. We must express the wish that this will shape the new paradigm for development.
OW CHIN HOCK, Minister of State for Foreign Affairs of Singapore: In the pursuit of freer competition, developing countries have accepted more stringent conditions of multilateral trading rules, but ironically, they are left with fewer options and economic choices, particularly in pursuing a policy of infant industry protection. Nevertheless, globalization and the advance in information and telecommunication technology have forced the pace to change. But the challenges of globalization are not confined to the developing countries alone. The dislocation of the sunset and high cost industries such as textiles and steel in the developed economies have given rise to workers concerns about job loss and competition from cheaper imports from the developing world. Such sentiments could and have been easily mobilized to become protectionist forces. If not properly managed and contained, they could have severe consequences for the exports of the developing countries.
Developing countries now have fewer economic choices and development options. They are, in fact, facing a systemic crisis on how to pull themselves out of their economic dilemma and pursue a sustainable growth path in a stable and conducive international environment. Undoubtedly, developing countries deserve a pause and some breathing space. But re-writing international trading rules is not a viable solution, nor is insulating ones economy from the vagaries of the international marketplace. But we could at least ensure that there should be a rules-based multilateral trading system to provide a stable and predictable international trading environment where even the smallest are protected from discrimination and unilateral actions.
Developing countries should be able to leapfrog the development process by developing a niche in the production chain and by providing the right basics. In this respect, FDI remains vital in gaining access to modern technology as well as markets in order to plug into the international economy. TAHAR SIOUD, Secretary of State, Ministry of Foreign Affairs of Tunisia: Globalization has been a powerful force for global integration but it has also been a vector of marginalization. The financial crisis showed the need for action by the Bretton Woods institutions to set up mechanisms to help developing countries avoid the cyclical upheavals which undermine their economies. Tunisia supports efforts to reform the international economic architecture. The setting up of the G20 is a first step in the right direction that should be encouraged. There should be effective implementation and respect of commitments made by the international community at the World Summit for Social Development in Copenhagen. Global debt is a heavy burden, and Tunisia is pleased at the initiative in favour of least developed and heavily indebted countries, but such initiatives should be expanded to cover medium-income countries to ensure they can continue to grow.
The lack of success of the Seattle WTO conference should not mask the importance of negotiating a multilateral trade system which is equitable and balanced. The implementation of provisions adopted in the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) cycles is of crucial importance. Access to markets for developing countries is important. The areas of agriculture and services are of importance for the world economy and for the economies of developing countries. No future regulations will be credible if they do not take into account the views of all parties. The WTO should operate on a consensus rule. Economic cooperation between developing countries is a strategy for development. Tunisia supports, under UNCTADs auspices, a new cycle of negotiations on the global system of trade preferences among developing countries.
KIPYATOR N.K. BIWOTT, Minister for Tourism, Trade and Industry of Kenya: The liberalization of intentional trade under WTO rules is a powerful and dynamic force for accelerated growth and development, but the benefits of the existing multilateral system continue to elude most developing countries. The unfair competition from dumped and subsidized imports of industrial products have led to the closure of many domestic industries while many are operating below capacity. This has led to increased unemployment, drastically reduced investment, low incomes and high poverty levels.
Market access for agricultural products from Kenya continues to be adversely affected by high tariffs, the arbitrary implementation of tariff rate quotas and export reduction commitments, as well as non-tariff barriers used for protectionist purposes. In order to ensure the effective integration of African countries into the global economy, the international community must address the anomalies inherent in existing multilaterally trading arrangements; build a strong supply capacity; develop human resources; improve the competitiveness of local enterprises; modernize transport, communications and energy sectors; diversify the export base; and strengthen regional economic cooperation and integration.
Kenya calls for technical assistance from UNCTAD to bring Kenyas trade and trade-related legislation into conformity with WTO standards. UNCTAD needs to play a more decisive role in integrating developing countries into the world economy and assist in improving investment flows. No development and prosperity is possible without peace and stability. In seeking lasting solutions to the problems of the sub-region, the support of the international community in both financial and technical terms cannot be overstated. MURAT SUNGAR (Turkey): A widespread feeling is that globalization is a phenomenon over which people have no control. The need for more inclusive economic development on a global scale as well as within our own societies is more urgent than we are generally prepared to accept. Globalization should not be considered as an ideology, but as an unavoidable and undeniable fact from the point of view of technological advancement. Conditions must be created under which the developing countries can benefit from the advantages of globalization and Turkey appreciates the efforts of UNCTAD in this respect.
A proper and balanced functioning of the multilateral trading system can only be achieved by ensuring full participation of all countries, including the least developed countries (LDCs), in the system. Rather than amplifying the advantages or disadvantages of globalization, it is important to develop a rules-based system for the current process of globalization. While we are designing development strategies, globalization could be used as an effective leverage for sharing prosperity and bridging the income gap among nations of different levels of development.
Capacity-building, particularly in terms of the development of the human resource base of developing countries, will remain the central element for sustained growth. Investment in human capital through broad-based educational systems, backed with information technology and technical training programmes, will be crucial for the achievement of development aspirations. UNCTAD has an important role to play in this respect.
SEYMOUR MULLINGS, Deputy Prime Minister and Minister for Foreign Affairs and Foreign Trade of Jamaica: Developing countries need foreign capital on terms and conditions that contribute to sustained growth and development. Regrettably, these flows continue to be concentrated in relatively few developing countries. There is now consensus on the need to strengthen international cooperation and Jamaica strongly supports the proposal for the convening of a high-level event on the financing for development in 2001. It also supports the view that without a more comprehensive and focussed programme for relief from unsustainable debt, many of the well-conceived plans we make will no doubt be compromised.
The debt burden borne by the heavily indebted poor countries and the impediments this burden imposes are similarly reflected in the experience of many middle income countries. There is therefore an urgent need for broader and more creative approaches, inclusive of an expanded initiative for debt relief. UNCTAD can play a leading role in this regard. The changing international environment has brought with it new demands and challenges. UNCTADs competence to adequately deal with these issues must be reinforced, both in terms of mandate and capacity. It must be strengthened so that it can expand training in a variety of areas critical to developing countries. Technical assistance programmes also remain essential to the development of goals of many developing countries.
Jamaica urges that the programmes and activities related to small island developing States be given due attention. It also emphasizes that there are structurally weak, vulnerable and small economies whose particular problems require UNCTADs analysis and attention. Developing countries will require UNCTADs analytical and technical support in order to participate effectively in the negotiations in agriculture and services now launched as part of the Uruguay Rounds built-in agenda, and also in the mandated reviews and implementation of WTO agreements. UNCTAD X must be the juncture where new strategies are formulated to ensure the full integration of developing countries in the global economy in a manner that will foster sustainable development.
CHARLES GOERENS, Minister of Cooperation and Humanitarian Action of Luxembourg: Globalization is a process that calls for thinking. The problem of development should cut a swathe through the interdependent world. Luxembourg contributes 0.7 per cent of its gross domestic product as ODA and it aims to increase that to 1 per cent over time. Its cooperation efforts are targeted on 10 countries, only one of which is a country of emigration to Luxembourg. It also has an active civil society supporting development.
UNCTAD is a good place for North-South dialogue. Its offer of training for developing countries for international trade negotiations must be better targeted. Cooperation among institutions and agencies concerned with globalization is necessary for the equitable integration of all into the world economy. UNCTAD has been trying to deal interactively with trade and development in such fields as access to credit and Luxembourg supports the virtual market for micro-finance. In the absence of such external support, micro-businesses can only ever become micro-solutions.
UNCTAD X cannot function as a catch-up for the Seattle WTO conference, but it can place globalization firmly into the perspective of sustainable development. Those yet to benefit from globalization need to be supported, and those which benefit from globalization must be brought on board.
BRIAN MORRISEY, Director-General of the Economic Policy Bureau in Canadas Department of Foreign Affairs and Foreign Trade: Economic liberalization is not a guarantee of either economic growth or poverty reduction. Markets, effective as they are as tools, cannot perform other essential functions that governments, non-governmental organizations and citizens must do. Markets will not help better redistribute the wealth created in a globalized world or make sure that everyone shares in the benefits. Markets will not be patient enough to help developing countries on their own to acquire the skills necessary to enable them to keep pace. At the international level, there is a need to promote what some have called globalization with a human face - policies with the necessary social structure and institutions to address the needs of citizens.
Canada welcomes the decision of governments at the International Monetary Fund (IMF) Committee meeting last September to endorse the efforts of the World Bank and the Fund in setting up a common country-owned approach to development assistance - the Poverty Reduction Strategy Papers. We must ask, however, what commitment the member governments of the Bank and the IMF are prepared to bring to these strategies? How can we make the Integrated Framework for technical assistance to the least developed countries support these strategies? How can the Poverty Reduction Strategy Papers form a basis for coordinated action with the United Nations development organizations. What role can we agree on for UNCTAD to play in supporting these country-owned strategies? How can the WTO, with its Trade Policy Review Mechanism, be reinforcing? In short, we must also ask ourselves how we might better bring trade to development?
UNCTADs work should be demand-driven and based on the identified needs of developing countries. There is a tendency, however, especially in the sections on market access, to emphasize the benefits of exports, while ignoring the role of imports in economic growth. Certainly exports generate foreign currency and are a source of employment; but the real welfare benefit of trade is to import products that are either impossible or difficult to produce domestically. An open economy - one built on exports and imports - is likely to be more efficient and more competitive and more likely to attract foreign investment. We need to ensure that, when the current draft plan of action is translated into a specific work programme, it focuses on the core competencies of UNCTAD, and concentrates on areas where it has a real comparative advantage with clearly identifiable value added.
DAVID PELEG (Israel): However beneficial globalization may be, there are also risks and significant social costs. Poverty, perhaps the greatest challenge of the times, is still prevalent and creates immense misery. On the one hand, there are people who are excluded and cannot reap the benefits of globalization, and on the other hand, there is growing anxiety and uncertainty, even in the developed world. It is up to the international community to address these problems. The solutions must be based on the values of solidarity and care for the weak. UNCTADs work is very important in this respect, as it has the mandate to look at the process of development and globalization from a wide perspective, taking into account the interrelations between development, trade, finance, currency and technology.
A rule-based multilateral system is certainly a prerequisite if we want to change the level of world trade. The system has to promote the active participation of all countries in a transparent rule-making process, and in this respect UNCTADs role in capacity-building is very important. Special attention should be given to the needs of LDCs in order to ensure that they secure a share of growth in international trade that is commensurate with their needs of economic development. While Israel attaches great importance to the respect of core labour standards and environment standards, the comparative advantage of low-wage countries should not be jeopardized, nor should labour standards or environmental measures be used as a non-tariff barrier.
In recent years, Israel has been seeking to create partnerships with international organizations so we can work together in a multilateral framework in addition to the development cooperation that is being channeled through the bilateral framework. In June 1998, Israel signed a memorandum of understanding with UNCTAD, as it has done with other United Nations agencies. UNCTADs technical assistance programmes should be guided only by professional considerations and should not in any way be politicized. It is therefore high time to implement this memorandum of understanding.
RONALDO SABORIO SOTO (Costa Rica): The mandate given to UNCTAD in Midrand, South Africa, at UNCTAD IX sought to give it the means to deal with investment phenomena and globalization. It has borne fruit. The subsequent institutional reform has adapted the organization to enable it to met new requirements. Costa Rica has benefited from UNCTADs technical assistance. We must now ask what UNCTAD can do in the future to help developing countries derive the best benefit from globalization. It must play a complementary role to the WTO. UNCTADs studies are an obligatory reference source for developing countries. UNCTAD must play a key role in training.
But it is not UNCTADs job to define and design domestic policies or positions for negotiations and it should not become a forum for trade negotiations. Cost Rica acceded to GATT a few years after adopting a development strategy based on free trade. It hoped to be strengthened by its insertion into the world economy, and we can now confirm that we have benefited, and that the international trade system is beneficial for developing countries. The WTO is democratic, and a small country can make its concerns heard. It guarantees to the developing countries their rights through a system of rules that gives them security and predictability. Costa Rica used its system for the settlement of disputes to resolve conflicts with the two biggest trading Powers in the world, and received satisfactory results. It is a system that enables a small country to defend itself with legal arguments against a big country, and therefore it is both democratic and fair.
Free trade is a vehicle for development and the multilateral trading system is the surest path for that vehicle. It has brought a real improvement in Cost Ricas quality of life. Over time, Costa Ricas exports have changed from a single agricultural product, to high-tech trade. Its exports have increased by 300 per cent in nine years and it is now the biggest per capita exporter in Latin America. However, economic measures only paint a partial picture of development. Costa Ricas literacy rate now exceeds 95 per cent and it has excellent environmental policies that have meant it has the highest percentage of protected territory in Latin America. Costa Rica affirms that free trade is an excellent tool that can make a key contribution to development.
ALI S. MCHUMO (United Republic of Tanzania): It is expected that this UNCTAD will identify a compendium of critical measures to be undertaken on an urgent basis to ensure the revival of development processes in developing countries. These processes should focus on the specific problems of Africa and the LDCs and thus turn globalization into a source of opportunities rather than one of risk. There is thus an urgent need to enhance the development process in developing countries through the improvement of infrastructure, building an industrial and agricultural base for the production of tradable goods and services, manpower development and improvement of social services. This implies enhanced mobilization of resources at both domestic and external levels.
The debt crisis facing most developing countries should also be urgently addressed. Debt relief measures entailing debt rescheduling and the Heavily Indebted Poor Countries (HIPC) Initiative are commendable, but the debt issue needs to be tackled in a more comprehensive manner. Deeper and broader relief packages should form part of a comprehensive framework, including debt cancellation measures. Although many developing countries have created a conducive environment to attract investments, most FDI flows go to well-to-do countries and only a small amount of the these investments is flowing to LDCs. Studies and measures should be undertaken to remove obstacles to the flow of FDI. We support the proposal to review existing international financial arrangements to create a new international financial architecture emphasizing the provision of financing for development on more concessional terms.
The issue of commodities is still crucial for many developing countries, particularly LDCs, which still depend on them as the main source of their revenue. It is regrettable that commodities have not been included in the WTO system. Ways should also be found to facilitate the transfer of technology to developing countries on a concessional and grant basis. It is important to review the multilateral trade agreements to address embedded imbalances that cause discontent among developing countries and hinder their quick integration into the world trade system. In this context, we urge the expeditious implementation of the special and differential treatment measures contained in WTO ministerial decisions.
NABIL RAMLAWI, Permanent Observer of Palestine: UNCTAD X is a new opportunity for developed and developing countries to redress the deterioration among the poorer segments of society and reduce the gap between developed and developing countries. When I speak of the problems and troubles suffered by Palestine, the burden is harsher than any other country here today. Palestines problems can be considered national, but they are also directly related to all the problems expressed here today by delegations from other countries.
There are those who fear foreign economic occupation and thus fear for their sovereignty. Economic and military occupations are not different. They are comprised of the same elements - both seek to control the fate of people by keeping the occupied in a state of backwardness and dependency. The occupation serves the interests of one or more States and is economic and political in nature. Land is the most important factor in production. Israel has confiscated Palestinian land for the establishment of its settlements in violation of international law. The result of such actions has also been the destruction of the fabric of the Palestinian economy.
By stifling the Palestinian economy, controlling crossing points, withholding goods and services and seeking to tie us to the Israeli economy, this country has violated the principle of non-discrimination. However, despite all these difficulties, Palestine has gone into a transitional stage to formulate the necessary laws within the framework of several free trade agreements that will encourage the market. It has concluded agreements with the European Union, the European Free Trade Association, Canada, Egypt and Jordan. We now need to release ourselves from Israeli occupation to catch up to the world trade system. Access to the international trade system would allow Palestine to liberate itself from foreign occupation. Palestine therefore intends to apply for accession to membership of the WTO as an observer.
ABDUL RAHMAN TAIB, Minister of Industry and Primary Resources of Brunei Darussalam: Cooperation in adjusting to the strengthened multilateral trading system should receive urgent attention, but such cooperation is still lacking.
UNCTAD, working closely with other international organizations, should continue to provide technical assistance, for example by helping developing countries in enhancing their international competitiveness through the improvement of customs administration and industrial standards, among others.
UNCTAD could also contribute to the development of electronic commerce through policy-oriented analytical work and seminars.
RUBEN CALDERON, Secretary of State for Peace of Guatemala: The so-called new paradigms of development are not really so terribly new. For example, since the early 1990s, the United Nations Development Programme (UNDP) has been publishing the Human Development Report. Efforts to reshape the paradigm have also taken place in the major United Nations conferences. The major works to forge commitments from governments to the elements of the new paradigm have already taken place. Growth, stability and equity are the three pillars of development. Trade liberalization is a means to meeting the needs of people. We must continue to work to maintain growth but it should be of quality and shared, and structured so as to ensure they do not adversely affect the poorest strata of our society. The new action plan under discussion at this Conference does not yet adequately reflect the so-called new paradigm, but it is the political will, not the promises, that are missing.
Guatemala has emerged from an armed conflict through negotiation and is beginning a major national dialogue on globalization. Resources of the State alone are insufficient for development and we need to deal with the private sector and its resources to be effective. The Guatemalan Government is working to clearly define the duties and obligations of both the State and its citizens, with regards to taxation. A fiscal covenant is being sought to act as the driving force of social harmony. This is a means to consolidate peace. Shortly we will hold national workshops to discuss the issues of globalization. Citizens and the international community have to do their bit. Now is the time for the major threats to the stability of the contemporary world to be addressed.
MOHAMAD SALEK OULD MOUAAMED LEMINE, Minister of Commerce, Handicraft and Tourism of Mauritania: UNCTAD, from the outset, understood development in its totality. Had we been guided by its instructions, the global situation might not be what it is today. Globalization and the unification of markets are irreversible. However, this must not preclude the fact that millions have not benefited from the process. As the Secretary-General of UNCTAD said, there is a need for a true partnership and an act of solidarity to address the problems of those who are in detrimental situations.
UNCTAD X offers a unique opportunity to re-launch dialogue on the multilateral trade system. It should correct the errors of the past and give balance to globalization and development. It must also confront the challenges facing the less developed countries and assist those with futures that are gloomy. UNCTAD X must show greater determination in combating under development and poverty. This Conference is the best investment for our common future at the dawn of the new millennium.
ABSA CLAUDE DIALLO (Senegal): The multilateral trade system and UNCTAD are at a crossroads following the failure of the Seattle WTO conference. It is an appropriate time to draw lessons from Seattle and to look at globalization and discuss how its benefits can be shared in an equitable manner. There is an urgent and vital need to strengthen technical assistance to developing countries, not only for moral and legal reasons, but also because of the supreme needs of people at the domestic level. We have to note the worrying reduction in ODA, which is a vital source of funding for our development.
Assistance from UNCTAD has made it possible for the members of the G15 group to sign a number of agreements, which is a good example of South-South cooperation. The West African Monetary Union States are also aware of the need to work together to attract more investment. Everybody recognizes that the technological gulf between developed and developing countries is tremendous, so we have to strengthen the capacity of developing countries to take part in electronic commerce, and Senegal supports initiatives aimed at this.
At the present time, financial and commercial liberalization has contributed to growth of some States but not at all for others. The weakest have not benefited but have suffered from liberalization, and it has added to their marginalization. Even though there is now stabilization and recovery following the recent financial crisis, we should not lose sight of the instability the world was exposed to. Actions to relieve the debt burden are welcome, but there is an urgent need to find general measures to eliminate indebtedness and ways to avoid the development of external debt. UNCTAD must be the voice of the people of Africa, who have the right to development.
LUIS GALLEGOLOS CHIRIBOGA (Ecuador): The world financial crisis is being resolved in Asia but not in my country. In fact, it has worsened because of the effects of the phenomenon known as El Niño. Protectionist policies still prevent access to markets by developing countries. There seems to be a double standard at play. On the one hand there is the promotion and demand for economic and trade liberalization, while on the other, obstructionist policies are being put in place.
Ecuador calls for proper implementation of WTO standards. The banana dispute shed light on the fact that the law is only respected when its suits certain people. Until we hold new multilateral rounds, there is need for a special and differential treatment clause for developing countries to be out in place.
The burden of debt is one of the most limiting factors crippling our countries. The external indebtedness of Ecuador is the most serious constraint to its development. It cannot be acceptable for a country to earmark 4 per cent of its GDP for social payments while having to allocate 8 per cent for debt repayments. Nevertheless, Ecuador is putting together programmes and projects to address social issues, including poverty and employment generation.
RUI ALBERT FIGUEIREDO SOARES, Minister of Foreign Affairs of Cape Verde: Cape Verde is convinced UNCTAD X will help bring about more just and balanced relations between States. This session is important, and we must not to miss this opportunity to give thought to the dualistic and contradictory effect of globalization on development. If we want to see justice for landlocked, island and archipelago countries, innovative policies and positive discrimination in official development assistance and trade relations must support them. This will allow consolidation of the results they have achieved thus far. In addition, the time has come to join forces to find consensus on a definition of a vulnerable country.
Cape Verde welcomes the valuable contribution of UNCTAD to least developed countries, and has confidence in it as an essential partner and as a forum for the interests of developing countries. It is legitimate to hope that UNCTAD will fully realize the central objectives underlying its establishment, by supporting integration into the world economy and trade liberalization, for development.
The failure in Seattle means the intervention capacity of UNCTAD must be strengthened. The Third LDC conference is a welcome initiative and will provide a third opportunity to draw up a balance sheet and see what has to be done. I hope the new paths for dialogue that have opened at UNCTAD X will lead to a world that is more just and where all possess the spirit of solidarity. SHAFQAT KAKAKHEL, Deputy Executive Director of the United Nations Environment Programme (UNEP): Expansion in the scale of economic activity and changes in the pattern of production and consumption associated with globalization are increasingly impacting local and global ecosystems, and depleting natural resources. It is clear that poverty and environmental degradation must be simultaneously addressed. To achieve this, the international community has to develop a better understanding of the environmental and social implications of economic development policies, including trade policies, and of the economic and trade implications of environmental protection policies. Only then can policy makers formulate and implement coherent trade and environment policies that jointly support sustainable development.
At the national level, UNEP has already undertaken five country studies, which helped interested States assess the environmental effects of trade and trade liberalization policies on specific economic sectors. By more accurately identifying the benefits and costs of trade flows, such studies enable countries to identify, design and implement policies, which maximize the net economic, social and environmental benefits of trade. UNEP believes that there are clear and immediate benefits to be secured from these projects: countries can increase their revenues from exports and their net benefits from foreign investment and put their domestic economies on a more sustainable footing. UNEP looks for more countries to volunteer to host such studies, as we believe that many donor States have considerable interest in funding such activities.
UNEP is now seeking to expand its capacity-building activities to support greater use of the sustainability assessments in the private sector of developing countries, through a joint initiative. The initiative will establish an environmental assessment facility to conduct environmental impact assessments.
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