ECOSOC HOLDS PANEL DISCUSSION ON REGIONAL COOPERATION

AND DEVELOPMENT DIMENSIONS OF TRADE NEGOTIATIONS

Concludes Discussion on Situation of Countries Emerging from Conflict;

Speakers Express Support for Creation of Ad Hoc Advisory Group on Burundi

(Reissued as received.)

GENEVA, 18 July (UN Information Service) -- The Economic and Social Council (ECOSOC) this morning held a panel discussion with the Executive Secretaries of its regional commissions on the theme of “development dimensions of trade negotiations -– a regional perspective”.  The panellists focused on the specific circumstances of their regions, and also addressed their concerns in the context of the international trade regime.

Brigita Schmognerova, Executive Secretary of the Economic Commission for Europe (ECE), said that regional cooperation in the UNECE region was very advanced and these trade arrangements had increased the prosperity of member countries and their integration within the world economy.  In the context of accession to the World Trade Organization, she raised several issues specifically affecting UNECE members such as the fact that the formerly centrally planned economies had virtually no markets for goods and services and their regulatory structures were underdeveloped.

Kim Hak-Su, Executive Secretary of the Economic Commission for Asia and the Pacific (ESCAP), said that in an interdependent and globalized world, what happened in one part of the world affected each and every corner of the world.  While the Asia and Pacific region was known for its resilience, industriousness and long-term development strategies, it was keenly aware that amid the many immediate challenges of globalisation, the more enduring and enormous opportunities must be quickly seized or fall into oblivion.

José Antonio Ocampo, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), said that the Latin American and Caribbean countries, while having experienced large increases in external trade, had not benefited from generalized growth and increased gross domestic product (GDP).  This gap between export growth and GDP growth needed to be addressed by the international community.  He also noted that the proposed changes to agricultural policy in the European Union were encouraging, but insufficient.

Mervat Tallawy, Executive Secretary of the Economic Commission for Western Asia (ESCWA), said it was evident that the Arab countries faced a dramatically different international economic environment in the new millennium than the one that was in place in the 1980s and 1990s.  The noticeable and relatively rapid increase in the number of Arab countries joining the World Trade Organization signified a radical new regional approach.

K.Y. Amoako, the Executive Secretary of the Economic Commission for Africa (ECA), in a statement read out on his behalf by Cornelius Mwalwanda, said that trade had the potential to provide African countries with much needed foreign exchange to fund imports of capital equipment, allow them to reap the benefits of economies of scale, boost domestic productivity through competition in the global market and spur foreign direct investment.  Since 1995, there had been a policy shift in the region in favour of more open trade policies.

During the interactive dialogue that followed the panel’s presentations, delegations requested further elaboration from the panellists on issues related to their expectations for the upcoming World Trade Organization Ministerial Conference in Cancun, the reason for the slow economic growth of countries in the ECLAC region, capacity-building for legal and trade knowledge, and migration as an agent for development.  Participating in the interactive dialogue were representatives of Peru, Argentina, Jamaica and Colombia.

Following the conclusion of its interactive dialogue, the Economic and Social Council resumed and concluded its general discussion on the situation of countries emerging from conflict, with particular emphasis on the situations in Guinea-Bissau and Burundi.

Addressing the Council on this topic were representatives of Morocco (on behalf of the "Group of 77" developing countries and China), Italy (on behalf of the European Union), Sudan, Japan, Russian Federation and Cape Verde.  Many speakers expressed their support for the creation of an Ad Hoc Advisory Group on Burundi, and extending the mandate of the Ad Hoc Advisory Group on Guinea-Bissau.

The Council will meet again today at 3 p.m. to continue its consideration of regional cooperation.

Documents

Before ECOSOC is the report of the Secretary-General on regional cooperation in the economic, social and related fields (E/2003/15).  The report updates ECOSOC on actions undertaken by the regional commissions during the period of review with respect to the guidance given on their contributions and relevance to the reform process of the United Nations.  In addition, the report explores the theme for the regional cooperation item at ECOSOC’s substantive session of 2003 “development dimensions of trade negotiations; a regional perspective”.  It also provides the report of the Executive Secretaries.  The resolutions and decisions adopted by the regional commissions during the spring of 2003 that require action by the Council or are brought to its attention are contained in an addendum (E/2003/15/Add.1).

There is a summary of the economy survey of Europe, 2002 (E/2003/16) which states that the global economic developments in 2002 are disappointing and that the dynamics and sustainability of world output growth continue to be strongly dependent on economic developments in the United States.  The short-term outlook for the Economic Commission for Europe region is a moderate strengthening of growth forces in late 2003, leading to a more pronounced cyclical recovery in 2004.  The persistent economic weakness in the first months of 2003 point to the need for a continued accommodative policy stance in the United States and the need for greater reliance on domestic sources of growth in Japan and Western Europe.  This requires, notably, a more expansionary orientation of economic policy in the euro area.

There is a summary of the economic and social situation in Africa, 2002, (E/2003/17) which states that the economic performance of African economies fell short of expectations in 2002, with economic growth slowing from an average pace of 4.3 per cent in 2001, to 3.1 per cent in 2002.  The modest overall performance in 2002 reflects the impact of a weaker global economy and a slower-than-expected rebound in the world trade.  Africa’s growth prospects were further weakened by the continued negative effects of low commodity prices in 2001, incidents of drought in various parts of southern and eastern Africa, and the intensification of political, as well as armed conflicts in some parts of the region.  In the near term, growth prospects for African countries will depend mainly on the strength of recovery in global economic activity, the outlook for commodity prices, progress in reducing political and armed conflict, and the commitment of African leaders to macroeconomic stability and the principles of good governance.

There is a summary of the economic and social survey of Asia and the Pacific, 2003 (E/2003/18) which states that although the global economy lost momentum in 2002 in the face of weak investment activity in the private sector, compounded by mounting geopolitical uncertainties, the region remained largely unaffected.  Developing economies of the region exceeded 2001 gross domestic product growth by nearly two percentage points in 2002.  Developed economies of the region also improved upon their 2001 performance in 2002, although Japan remained in recession.  For 2003, prospects are uncertain, principally as a result of the threat of military action in Iraq and the situation in Korea.  Along with the economic and social challenges facing the region, governments also had to deal with environmental problems and the environment-poverty nexus.  While rapid economic growth is seen as a central element in achieving poverty reduction, experience shows that growth is often accompanied by environmental deterioration that hurts the poor.  Despite an array of policies and programmes used to attain these twin objectives, the track record thus far is not satisfactory.  Greater effort is needed in building environmental awareness, decentralizing responsibilities and improving coordination between agents, policy makers and institutions to improve the effectiveness of environmental policies.

There is a summary of the economic survey of Latin America and the Caribbean, 2002, (E/2003/19) which states that economic activity in Latin America and the Caribbean contracted by 0.6 per cent in 2002.  The region-wide average was influenced by the South American economies, especially those of Argentina, Uruguay and Venezuela, but activity was slack in almost all countries.  Unemployment rates reached an all-time high of 8.9 per cent, despite a considerable increase in informal employment.  Social conditions deteriorated concomitantly and 7 million people across Latin America and the Caribbean fell below the poverty line.  The adverse external environment was a determining factor in the region’s poor economic performance and three factors were particularly influential; the deterioration in financing conditions; the loss of common momentum in the United States economy; and the worsening terms of trade for non-oil-exporting countries.  Even though the average GDP growth for 2002 was weak, it picked up pace as the year progressed, with a positive rate being posted for the final quarter.  The continuation of this trend based projections of a 2 per cent growth for the region in 2003.

There is a summary of the economic and social developments in the ESCWA region, 2002-2003 (E/2003/20) which states that in 2002, gross domestic product (GDP) in the region of the Economic Commission for Western Asia had grown by 1.88 per cent, even less that the meagre 2.46 per cent by which it had grown in 2001.  The region’s feeble economic performance reflects a slowdown in the performance of the oil sector, low rates of economic activity through the world and the negative impact on the private sector of heightened political tensions in the region.  While inflation rates remained low, developments in the labour market and with respect to employment remained unfavourable.  The potential benefits of regional integration remained largely untapped.  Social problems in the ESCWA region have persisted.  Unemployment among youth and women has reached alarming proportions in the region.  Education policies have not responded to the needs of labour markets, and illiteracy rates are alarmingly high, reaching some 30 and 16 per cent for women and men, respectively, in 2000.  Although nutrition is currently comparable with levels in developed countries, poverty continues to be a serious social problem in several parts of the region.

There is also a note of the Secretary-General on the project for a Europe-Africa permanent link through the Strait of Gibraltar (E/2003/45) transmitting a report by the executive secretaries of the Economic Commission for Europe and the Economic Commission for Africa on the work that has been done in connection with the project to establish a Europe-Africa permanent link through the Straits of Gibraltar.  It describes work undertaken by two research companies on work which had taken place in the areas of topographic mapping and related activities; geographical mapping; oceanography; geographical tests; and traffic monitoring.  Offshore drilling surveys may resume in the near future, after which an exploratory gallery may be dug so that remaining doubts as to the technical feasibility of a drilled rail tunnel can be clarified.

Statements by Executive Secretaries of Regional Commissions

BRIGITA SCHMOGNEROVA, Executive Secretary of the Economic Commission for Europe (ECE), said that regional cooperation in the UNECE region was very advanced.  Trade arrangements had increased the prosperity of member countries and their integration within the world economy.  As such, the enlargement of the European Union (EU) next year would bring further progress in regional trade and represented an act of global strategic importance in increasing prosperity and security in Europe.  Commending the timeliness of today’s topic -– given the focus on multilateral trade negotiations for the forthcoming World Trade Organization (WTO) Ministerial Meeting in Cancun, she also noted that the process of WTO accession concerned many countries in the ECE region –- particularly Bosnia and Herzegovina, Serbia and Montenegro, Kazakhstan, Russian Federation, Ukraine, Azerbaijan, Belarus, Uzbekistan and Tajikistan, which were in the process of accession.  The regional commission had a role to play in facilitating transition economies to progress in transforming their economies.

Among the issues specifically affecting ECE members during the accession process, three special factors were of particular importance, she said.  First, the formerly centrally planned economies had virtually no markets for goods and services and their regulatory structures were underdeveloped.  Second, none of the ECE transition economies had benefited from the status of developing country.  Third, as WTO accession was considered an engine for reform and transformation, they had had to adjust the speed of their accession and negotiate transition periods.

Turning to the issue of EU enlargement, she said that the implications thereof for the countries of the ECE region depended largely on whether they benefited from a trade-creating effect or suffered from trade diversion.  Overall, the EU common external tariff was generally lower that the individual tariffs of the accession countries, although some countries had to raise their market access tariffs on fisheries.  Moreover, existing bilateral preferential trade arrangements had to be terminated and the introduction of the EU visa regime would disrupt cross-border trade in a number of cases.  These implications should not, however, have negative consequences for non-acceding countries.

KIM HAK-SU, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), raised issues related to Severe Acute Respiratory Syndrome (SARS), renewed terrorist threats, rapid currency fluctuations, anti-retroviral medicines, and globalization protests.  In an interdependent globalized world, what happened in one part of the world affected each and every corner of the world.  Nevertheless, the Asia and Pacific region was known for its resilience, industriousness and long-term development strategies.  Trade was an ancient activity of the region and its countries had always been dynamic traders.  The region was, thus, keenly aware that amid the many immediate challenges of globalization one must seize the more enduring and enormous opportunities that might otherwise fall into oblivion –- the current World Trade Organization (WTO) negotiations presented the region with such an opportunity.

Unfortunately, one WTO deadline after the other had been missed.  This eroded confidence in and credibility of the negotiating process.  The deadline had been missed for special and differential treatment, as had new dates thereafter.  Making special and differential treatment more precise, effective and operational was crucial in integrating a development dimension into the multilateral trading system, and in the development strategies of developing countries.  A breakthrough in this area was sorely needed.  Similarly, few implementation-related issues had been resolved.  Implementation issues in the areas of textiles and clothes had been particularly difficult to discuss, let alone resolve.  It was also difficult to see how negotiations, particularly in services and industrial produces, could move forward if there was no breakthrough in agriculture.  With three quarters of the region’s poorest living in rural areas, agriculture was at the core of giving concrete expression to the development objectives of the Doha work programme.  Reducing, with a view to eliminating, trade-distortion subsidies, was a key component of this impasse.

In the face of these problems, there was a need to continue to promote on a regional cooperative basis, the sharing of these experiences.  The more advanced WTO developing countries and developed countries that had acquired a mature WTO experience should examine ways in which a close cooperation among all members of UNESCAP could facilitate the accession process of these countries.  In conclusion, he said that a rules-based multilateral trading system was the developing countries’ best hope of keeping economies open and trading with each other -– and when countries cooperated on trade matters they were more likely to have peaceful relations.

JOSE ANTONIO OCAMPO, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), said that the main function of the international trading system should be to ensure that the high productivity of the developed world was transferred to the developing world.  This meant that standardized technologies should be transferred to the developing world in an effective manner.  However, the transfer of agricultural and mining technologies, which had achieved a high level of standardization, was complicated as these were traditionally highly protected sectors.  Thus, in the 1960s, there had been an attempt to accelerate this process through incorporating principles of special and differentiated treatment for developing countries –- although this principle was greatly damaged during the Uruguay Round.

The Latin American and Caribbean countries, while having experienced large increases in external trade, had not benefited from generalized growth and increased gross domestic product (GDP).  Thus, the gap between export growth and GDP growth needed to be addressed by the international community.  The experience of ECLAC showed that many exports, particularly in the area of agriculture, had seen a great price drop accompany increases in trade.

ECLAC had been active in the negotiations begun at Doha, but the slight progress made therein was cause for concern, he said, particularly in reference to agriculture.  The proposed changes to agricultural policy in the European Union were encouraging, but insufficient.  The international community must commit to a total reduction in subsidies, not just a reduction of those that were production oriented.  The complexity of the international trading system needed to be studied on a multilateral basis, particularly in regard of the erosion of the “Most Favoured Nation” effect.  It now appeared that a return to the era of the 1930s in protective trade policy was afoot.  The General Agreement on Tariffs and Trade (GATT) and the WTO had been formed to combat such an environment.

MERVAT TALLAWY, Under-Secretary-General of the United Nations Economic and Social Commission for Western Asia (ESCWA), said it was evident that the Arab countries faced a dramatically different international economic environment in the new millennium than the one that was in place in the 1980s and 1990s.  The noticeable and relatively rapid increase in the number of Arab countries joining the World Trade Organization (WTO) signified a radical new regional approach to work in economic developments.  Eleven of the 22 Arab countries had already joined WTO and five were preparing to join the organization.  Intra-regional trade, excluding oil, was quite high and almost equivalent to that of MERCOSUR countries.  In fact, non-oil intra-regional trade increased at an annual rate of 11 per cent through the 1990’s, which was double the rate recorded in the 1980s.

The fact that the cooperation agreements with Europe in the 1970’s had more recently been transformed into partnership agreements was another trend that might strengthen efforts to speed up regional integration and again facilitate smoother integration into the world economy.  Arab countries were critically and overtly aware of the need to devise a broad-based agreement regarding methods of success in the global economy.  Therefore, Arab countries must develop a common sense of purpose to raise productivity; improve competitiveness; build efficient and sustainable structures and institutions; raise the overall standard of living of the population at large; and protect their value and specificity.  Individual action by each Arab country was necessary but not sufficient in the context of contemporary global markets, which were characterized by colossal trading blocs, giant multinational corporations and strong pursuit of interests by dominant powers.

She stressed that there were growing fears that bilateral trading arrangements with Europe and the United States, though beneficial in general, might create the unintended hub-spoke phenomenon, whereby hub countries had more freedom and trade access in each trading partner market than the Arab partners had with each other.  Encouraging and promoting greater Arab economic integration and coordination was a means of correcting this situation.  The Arab countries however, had suffered long and profoundly from political instability and were vulnerable to global difficulties, slow downs and a feeble international macroeconomic system.  Some of the instability was a result of the situation between Palestinians and Israelis, the war in Iraq and the fact that some countries in the region were subjected to strict sanctions.

CORNELIUS MWALWANDA, reading out a statement on behalf of K.Y. AMOAKO, Executive Secretary of the Economic Commission for Africa (ECA), said that trade had the potential to provide African countries with much needed foreign exchange to fund imports of capital equipment, allow them to reap the benefits of economies of scale, boost domestic productivity through competition in the global market and spur foreign direct investment.  Since 1995, there had been a policy shift in the region in favour of more open trade policies, as it was now generally understood that the perceived benefits of trade were not automatic and only accrued to countries taking the steps necessary to exploit them.  However, Africa’s participation in international trade had been constrained by both internal and external factors.  Internally, these included the negative effects of the domestic economic policies adopted by African countries and the lack of progress in regional integration efforts, which limited the region’s ability to reduce transaction costs through economies of scale in the development of infrastructure.  Externally, they included the unfortunate and costly barriers to trade imposed by developed countries.  Tariff and non-tariff barriers and agricultural subsidies cost developing countries more than the $57 billion received annually in foreign aid.

Although there had been attempts to address some of these problems, he acknowledged, there had been little progress in the four key areas of agriculture, trade-related intellectual property rights (TRIPS), implementation concerns, and special and differentiated treatment.  African countries needed technical assistance and capacity-building to adjust to new trade rules, implement obligations and exercise the rights of membership in the World Trade Organization (WTO).  Subsequent to a high-level brainstorming meeting of African trade negotiators, WTO had been called upon to inject momentum into negotiations on agriculture, TRIPS and public health, special and differentiated treatment and implementation-related issues and concerns.  Deep concern over the failure to meet the deadline for the establishment of the modalities for further commitments in agriculture was also expressed, as well as concern about the lack of transparency and inclusiveness in WTO negotiations and decision-making processes.

Interactive Segment

A representative of Peru began the first round of questions and comments by highlighting the need to ensure greater national independence in current international trade negotiations so that autonomy in the formation of national development policies was maintained, and bilateral and multilateral trading arrangements were not at cross purposes -– as suggested by Mr. Ocampo in recalling the trade policies of the 1930s.  What was the panel’s impression of the likelihood that Cancun would be successful?

Among other responses to the question on the Cancun conference, Mr. Ocampo said that there was one primary concern of the international community:  the build-up to Cancun in terms of negotiating agreements had not been completed.  Going to Cancun without prior agreements would place a large burden on the negotiators there.  Moreover, the situation in which negotiations became focused around a limited number of players should be avoided.  This would leave developing countries marginalized.  Developing countries should, thus, make a concerted effort to achieve agreements ahead of time.  He also addressed the second concern raised by the representative of Peru on preferential policies, saying that both GATT and WTO had instituted an exception for Most Favoured Nation status, which had subsequently been exploited.  The international community thus needed to ask itself how many exceptions should be allowed in this regard.

Mr. Hak-Su, commenting on sub-regional free trade agreements, said there were several such agreements in the Asian region, and they were viewed as the building blocks of global integration.  However, there had also been a rise in bilateral free trade agreements and the question thus arose:  would these agreements also form the building blocks of future global integration?  On the subject of Cancun, he noted that in Geneva there was cautious optimism about Cancun’s role as a follow-up conference to Doha.  There would be full participation of the Doha countries and while some deadlines had been missed, the chance to build up previous agreements would be offered.

Ms. Tallawy said that after the failure of Seattle, Doha had provided an agenda for development.  Now, two years later, if the Cancun Conference did not bear fruit, there would be further disappointment.  As there had been slow progress in the implementation of Doha, she was worried that many would approach Cancun with a bitter taste in their mouths.  Thus, it was important to use the time remaining before Cancun to concentrate on key issues and to ensure the consolidated nature of negotiating groups.

In response to a request from the representative of Argentina for further elaboration of the causes of the slow economic growth witnessed in the ECLAC region, Mr. Ocampo recalled that the original interruption of capital flows to the region had followed upon the Asian financial crises.  Prior to this, the countries of the region had moved to have positive capital transfer, but after the crises, they reverted back to negative capital transfer ratios.  This had been particularly important in the case of Argentina, which had experienced an enormous positive capital transfer trend quickly replaced by an equally large negative one.  In terms of redressing the situation, he emphasized the importance of promoting private capital flows within the multilateral trading system.  For countries like Argentina, normalizing the debt process was an indispensable prerequisite to reverse the trend of negative capital transfers.

Raising the issue of capacity-building, the representative of Jamaica asked for further elaboration on programmes undertaken in each region that sought to build legal knowledge and training within the context of the World Trade Organization (WTO).

Ms. Tallawy said that a training programme had been held in Beirut, which had benefited from a positive response from its participants, while Mr. Hak-Su detailed the formation of a training programme, in conjunction with the WTO, in Bangkok and Ms. Schmognerova stressed that UNECE’s mandate did not cover the provision of technical assistance for trade policy.

Continuing on the same subject, Mr. Mwalwanda said a lot of effort had been expended to try and build a capacity in the African continent, in cooperation with the United Nations Conference on Trade and Development (UNCTAD) and WTO.  As indicated before, Africa needed more than short-term capacity-building, but a more medium- and long-term capacity, including the capacity to negotiate on trade.

Mr. Ocampo, said that in the area of training, they had started this year a joint programme with UNCTAD.  He added that aside from the regular trade analysis provided through the report, they had made strategic alliances with the trade development network in the Latin American and Caribbean region, in order to mutually support each other for the negotiation processes.  They were currently undertaking a major analysis on what sort of production analysis strategies had been adopted on the national level in order to determine success and failure.

A representative of Colombia said the panellists had made important contributions as to the difficulties faced in achieving development.  She had noted that there had been no reference to the migratory phenomenon as a factor in development.  Migration must be viewed from a positive view as a process that promoted development.  What was the opinion of the panellists on this issue, she asked.

Responding, Mr. Ocampo said that in the document “Globalization and Development” presented at an ECLAC seminar in Brazil, there was an analysis of the process of migration, macroeconomic policies, and the asymmetry in factors of production, and restrictions of manpower.  This document consisted of an entire chapter on migration in the ECLAC region, stressing that migratory agreements must be promoted internationally to enable the more appropriate management of migration flows.  It was added that in countries of the region that were closer to the United States, migration and remittances had become a major factor in the development process.  Migration, however, also reduced human capital from the originating countries.  This could be a problem since it could amount to a brain drain.  It would therefore be necessary to establish mechanisms that managed migration.  There were already some agreements between recipient and originating countries in intra-regional migration, however, such agreements needed to be widened and made international.

Mr. Hak-Su said there were two types of migration -- international and internal.  Internally, in Asia, it was projected that in the next 20 years, over 50 per cent of populations would move to urban areas.  With regards to international migration, he said that in Asia, the Philippines, Indonesia, and Pakistan were exporters of labour, whereas countries such as Japan and South Korea were importers of labour.

Ms. Schmognerova said that labour was an important factor in the development process, including factors to do with the geographical mobility of labour, which often faced restrictions.  She added that it was important to differentiate between the effect of migration on the country of origin and destination.  In general, the positive impact was felt more in the country of destination than in the country of origin, which often faced fiscal implications, brain drain and labour market implications.

Mr. Mwalwanda said one issue being discussed regionally and internationally was whether Africa could engineer a “green revolution”.  Migration between African countries could sometimes be a burden on the recipient countries and there was, therefore, a need to ensure better management of migration.

Ms. Tallawy said migration was a complex issue since it could be both internal and external.  In her region there were many reasons for external migration, particularly unemployment among the young.  There had also been regional migration during the 1970’s oil boom, when there had been an influx to Gulf countries from other Arab States.  However, if Europe would open its markets to agricultural products from the Arab countries, maybe the flow of migration would change.  If there were a changed flow of investment -- increased investment -- in the region creating job opportunities, migration flows would also change.

Statements on Issue of African Countries Emerging from Conflict

ABDELLAH BENMELLOUK (Morocco), speaking on behalf of the Group of 77 and China, said that the Government of Guinea-Bissau must be determined and must show political will in order to consolidate stability and encourage development.  In this connection, he welcomed the cooperation between the Security Council and ECOSOC on this issue and stressed its importance.  The international community and the donor community must increase their assistance to the people of Guinea-Bissau to ensure the success of their development process.  He appreciated the draft resolution that had been put before the ECOSOC on the Ad Hoc Advisory Group on Burundi since the peace process needed to be consolidated.  The Government had made several important efforts to establish and consolidate peace in the country.  Without substantial financial support, however, Burundi would have difficulties in sustaining the developments under way.

Burundi was the third poorest country in the world, both a least developed country and a landlocked country, and both deserved and needed the help of the international community.  The international community and donor countries were, therefore, called upon to implement the commitments made and accelerate and increase their assistance.  The Group of 77 and China hoped that the international financial institutions would participate fully in this regard.  However, there must be no political conditionalities involved when addressing the situation in Burundi.  Assistance must be based on the specific needs of Burundi and must not aim to destabilize the country economically or socially.  The Group of 77 and China were committed to the consolidation of peace and development in Burundi and would, therefore, present a draft resolution on this topic.

PAOLO BRUNI (Italy), speaking on behalf of the European Union (EU), said that the report of the Ad Hoc Group on Guinea-Bissau had led the EU to recognize the value of establishing this innovative mechanism to address the multiple needs of African countries emerging from conflict in a coherent manner.  However, the EU was greatly concerned by the growing political, social and economic instability of Guinea-Bissau, which had given rise to political tensions, an increasingly fragile human rights situation, and the stalling of constitutional and electoral processes.  Thus, the EU attached special importance to the timely, orderly and democratic conduct of the elections that were originally scheduled for July 2003 and called on the Guinea-Bissau authorities to take all necessary measures to organize the forthcoming elections –- which had been postponed to October –- in a democratic manner, in accordance with internationally recognized legal procedures and principles.  The EU continued its willingness to cooperate in this process.  In view of the exceptional present situation, the provision of assistance and support to the Government’s efforts was supported, and the EU favoured the extension of the Ad Hoc Group’s mandate to continue to monitor the humanitarian and recovery situation of the country.

On the situation of Burundi, he said that the EU considered Burundi an important test case for the capacity of the international community to address post-conflict situations.  While welcoming the second phase of the transitional period and the handover of the presidency, the EU remained deeply concerned about recent fighting in the Burundian capital of Bujumbura.  All parties should resume negotiations for a comprehensive ceasefire.  The Government of Burundi also needed to tackle the rehabilitation and development issues faced by the country.  For these reasons, the EU welcomed the establishment of an Ad Hoc Advisory Group on Burundi.

OMAR BASHIR MANIS (Sudan) said that during the informal consultations held yesterday, the Council had considered establishing an Ad Hoc Advisory Group on Burundi as a country coming out of conflict.  Burundi was indeed coming out of a situation of war, but it was important to recognize the efforts being made, including the signing of a peace agreement.  The war in Burundi had destroyed the country from an economic and social point of view, without even mentioning the impact of HIV/AIDS and the destruction of infrastructure.  Sudan was, therefore, pleased that the Council was considering the establishing such an Ad Hoc Advisory Group on Burundi, and hoped that lessons would be drawn from the experience of the Group on Guinea-Bissau.  He called on the international community to provide all necessary support and welcomed the upcoming round table, under the auspices of the United Nations Development Programme, in cooperation with the Government of Burundi.  Unfortunately there were some people, peace-destroyers, who were not interested in peace in Burundi.  It was hoped that the international community would not be influenced, nor distracted, by these peace-destroyers.

KIYOSHI WADA (Japan) said that his country had made every possible effort to improve the situation of Africa, particularly from a security point of view.  Thus, Japan supported fully the establishment of an Ad Hoc Advisory Group on Burundi.  Japan would support the work of this group.

VASSILY NEBENZIA (Russian Federation) said that the Ad Hoc Advisory Groups constituted a useful instrument with which to deal effectively with questions of reconstruction and recovery.  They aimed at avoiding the repetition of conflict through resolving priority tasks related to re-establishing normal life in affected countries and developing long-term development programmes.  The partnership approach, approved by the Security Council and ECOSOC, should make it possible to break the vicious cycle of low development in affected countries.  At the same time it was essential for national authorities to do their utmost to respect democratic processes and human rights as a prerequisite for the reestablishment of donors’ trust.  It would also be useful to establish a mechanism for feedback between the Security Council and ECOSOC in the area of the Working Groups.  The Russian Federation supported the establishment of an Ad Hoc Advisory Group for Burundi.

LUIS DE MATOS MONTEIRO DA FONSECA (Cape Verde) said his nation highly valued the action taken by the United Nations to help the people of Guinea-Bissau and had pioneered an important experience in the consolidation of democracy, peace and rule of law.  Cape Verde supported the work of the international community to help the Government of Guinea-Bissau to address the needs of the people and consolidate peace.  The Government must ensure good governance, foster a strong civil society and ensure poverty eradication.  Cape Verde supported the idea of establishing a similar Ad Hoc Group on Burundi.

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