LACK OF DEVELOPMENT THWARTING CREATION OF DEMOCRACY, ECONOMIC WELL-BEING, SAY SPEAKERS AS SECOND COMMITTEE CONTINUES GENERAL DEBATE

Fifty-eighth General Assembly

Second Committee

3^rd & 4^th Meetings (AM & PM)

LACK OF DEVELOPMENT THWARTING CREATION OF DEMOCRACY, ECONOMIC WELL-BEING,

SAY SPEAKERS AS SECOND COMMITTEE CONTINUES GENERAL DEBATE

Delegates Stress Need for Responsible Servicing as Crippling Debt Is Deplored

The lack of development in poor countries was thwarting their best efforts to create legitimate democracies and socio-economic well-being, representatives of several nations told the Second Committee (Economic and Financial) as it continued its general debate this afternoon.

They said that everything from intractable debt-servicing burdens to shortfalls in official development assistance (ODA) to declining foreign direct investment (FDI) flows to unfair trade practices continued to hamstring the developing world’s ability to make desperately needed improvements to education, health, infrastructure, institutional management and social services.

Cuba’s representative noted that this year, wealthy nations would give developing economies $53 billion in ODA, but also charge them more than $350 billion in interest on external debt payments.  Despite promises to earmark 0.7 per cent of gross domestic product for ODA, wealthy countries had thus far thrown in just 0.2 per cent.

Peru’s representative, speaking on behalf of the Rio Group, said that an estimated 43.3 per cent of Latin Americans lived below the poverty line, including 18.8 per cent of the region’s indigenous populations.  The future was uncertain as foreign investment declined and governments forked out $15 billion annually in debt-servicing interest, utility payments and repatriated profits.  Debt servicing must be dealt with responsibly, he said, by linking innovative debt instruments and private funding for regional infrastructure to economic growth, making it easier for developing nations to weather tough economic times and build democratic institutions.

Similarly, India’s representative called for a more durable solution to the severe debt crises of many developing countries, as well as new measures to make trade work as an engine for growth and development.  Moreover, developing countries must have a greater role in global trade and financial decision-making at the highest level, he said, urging the inclusion of institutional reform on the agenda of the High-Level Dialogue on Financing for Development to be held on 29 and 30 October.

Kenya’s representative echoed that sentiment and called for a level playing field in which developing nations would have better market access and infrastructure.  She added that poverty reduction was key to prosperity in sub-Saharan Africa, but the eradication of poverty would require extensive financing.  Development partners and international organizations should finance such programmes and contribute to the recently created World Solidarity Fund.

Several speakers stressed the need to support the New Partnership for Africa’s Development (NEPAD), and to focus on uneven development, poverty, hunger and disease, particularly HIV/AIDS, in nations of the South.  Natural catastrophes, they noted, exacerbated the HIV/AIDS pandemic, making increased funding necessary to fight the deadly virus.

Also speaking this morning were the representatives of Algeria, Namibia, Croatia, Bangladesh, Yemen, Canada, Indonesia, Myanmar, South Africa, Ecuador, Lebanon and Colombia.

Speaking this afternoon were the representatives of Singapore, United States, Suriname (on behalf of the Caribbean Community), Iran, Democratic People’s Republic of Korea, Viet Nam, Belarus, Libya, Lao People’s Democratic Republic (on behalf of the Group of Landlocked Developing Countries), Ghana, Venezuela, United Republic of Tanzania, Mongolia, Democratic Republic of Congo, Nigeria, Tajikistan, Kazakhstan and Ethiopia.

Representatives of the Food and Agriculture Organization (FAO) and the World Conservation Union (IUCN) also made statements.

The Second Committee will meet again Wednesday, 8 October, at 10 a.m. to continue its general debate.

Background

The Second Committee (Economic and Financial) met this morning to continue its general debate.

Statements

ABDALLAH BAALI (Algeria), saying that the repercussions of the recent failure of trade talks at Cancun would be felt in the Second Committee’s work, noted, however, the international community’s growing determination to take on various challenges facing it by strengthening international cooperation.  Major United Nations conferences held over the past two years, such as those at Monterrey and Johannesburg, as well as the Millennium Summit, had created a global context conducive to collective action.

He said that 2003 had ushered in a new era of enactment with respect to the implementation and follow up to major conferences and summits in the economic and social arenas, which would demand coordination and consistency at all levels.  It was essential to strengthen international cooperation for economic development by promoting a renewed North-South partnership, increasing official development assistance, dealing with the debt burden, increasing foreign direct investment and reforming the international financial architecture.

The International community must also take stock of progress made in implementing the New Partnership for Africa’s Development (NEPAD), which must be supported by the United Nations system.

MARTIN ANDJABA (Namibia) said the Cancun talks had failed to reach agreement on issues essential for development, notably trade, aid, debt, market access, agricultural subsidies and other trade-distorting policies.  Notwithstanding those shortcomings, the Second Committee must address economic and development issues of concern to people in developing countries.  The agreements reached during the Doha round were still valid and should serve as lessons learned to guide the decision-making in preparation for the June meeting in Brazil of the United Nations Conference on Trade and Development (UNCTAD).

He called on the Committee to pay sufficient attention to the predicament of countries of the South with respect to uneven development, poverty, hunger and disease, particularly HIV/AIDS.  Natural catastrophes such as drought and floods exacerbated the HIV/AIDS pandemic, making increased funding necessary to fight the deadly virus.  Recent data showed that Namibia’s chances to achieve the millennium goal of halving extreme poverty by 2015 were slim.  The international community should deliver on promises to support Africa’s development priorities in the context of NEPAD. 

VLADIMIR DROBNJAK (Croatia) said the Second Committee’s work took into account the World Trade Organization (WTO) development agenda, the International Conference on Financing for Development and the World Summit on Sustainable Development, and should stay on track to give political impetus to support for new partnerships.  In that regard, the Committee should approach forthcoming discussions in a holistic manner, avoiding repetitive and sterile debates and decisions that commanded little or no attention beyond the General Assembly chamber.

He cited the findings of the Secretary-General’s report that several developing and transition economies had stepped up efforts to strengthen governance by including civil society, the private sector and local communities in decision-making.  While private international capital flows were a vital addition to national efforts to mobilize financing for development, foreign direct investment (FDI) was not a substitute for official development assistance (ODA) to developing countries.  Both were needed for a balanced development process.

ORLANDO REQUEIJO GUAL (Cuba) said that despite promises made at Monterrey, developed countries continued to grant just 0.2 per cent of gross domestic product for ODA.  In 2003, wealthy nations would grant $53 billion in assistance but also charge interest on developing nations’ external debt amounting to more than $350 billion dollars, causing that external debt to grow.  External debt servicing was a formidable obstacle to development.

The most serious challenge, he said, concerned the failure of the recent trade round at Cancun to comply with the demands of developing nations for more just and equitable world trade patterns; an end to subsidies on their vital exports, at present $274 million annually; and implementation of preferential tariff schedules.  The Second Committee would continue to be an important forum to debate economic and development issues, particularly concerning developing countries.  Future Committee meetings should focus on follow-up to Doha and implementation of decisions made at the Johannesburg World Summit on Sustainable Development.

KHONDKER TALHA (Bangladesh) said that while globalization was perhaps the most potent force shaping economic relations among countries today, due to structural and systemic constraints, most of the developing world had not been able to fully integrate with the process and could not benefit from it.  What was needed was an international environment conducive to development, a more transparent and participatory international financial architecture and a predictable flow of financial resources to developing countries that would reduce their vulnerability to financial crises.

Noting that the setback at Cancun warranted an early resumption of trade negotiations, he said that a breakthrough in those negotiations would require courageous decisions and significant compromises.  Today’s global economic situation dictated the equitable policies and fair trade practices that had been sought in the Doha round.  That round should be further negotiated and the developed world should fulfil its commitments before taking up new issues.  Bangladesh was concerned by the high incidence of tariff and non-tariff barriers that were restricting market access for the products of developing countries to the markets of developed nations.

AMINA MOHAMED (Kenya) associated herself with Morocco’s statement on behalf of the "Group of 77" developing countries and China, calling on the international community to work toward alleviating the external debt crisis in developing countries and enabling them to re-channel debt-servicing funds into socio-economic development programmes.  Moreover, ODA had declined in real terms in recent years and wealthy nations should fulfil their pledge to earmark 0.7 per cent of gross domestic product (GDP) for development assistance.  Developing countries also needed a greater say in decision-making on global trade, she said, urging the upcoming high-level dialogue on financing for development to include that concern on its agenda.  The developing world’s current share of world trade was negligible and a level playing field was required in which developing countries would have better market access and infrastructure.

Underscoring the need to provide sub-Saharan Africa with the tools to implement partnerships in the fight against HIV/AIDS, she said the Kenya Government was doing its part to combat the pandemic through treatment, prevention and education initiatives, funded in part by international partners.  Turning to poverty reduction, she said it was key to prosperity in sub-Saharan Africa.  Kenyan officials had launched a strategy in June to maintain a stable macroeconomic framework, strengthen governance, expand infrastructure and develop the human resource capacity of the poor.  Poverty-eradication, however, would require extensive financing, she said, urging development partners and other international organizations to finance such programmes and contribute to the recently created World Solidarity Fund.

AHMED AL-HADDAD (Yemen) said that economic indicators had shown an increase in economic activity in some countries that would have a positive global fallout.  However, such optimism should not be exaggerated, since several developmental weaknesses were also evident.  Those were due to events in the industrialized economies and to geopolitical uncertainties that had effects on economies worldwide.

Economic recovery required reform of the international financial architecture, he said, calling for solutions to the contradictions occurring in international trade negotiations.  From the point of view of developing countries, the problem was not simply one of agricultural subsidies, but violations of the rules governing global trade negotiations and the very spirit of multilateralism.

OSWALDO DE RIVERO (Peru), speaking on behalf of the Rio Group, noted that Latin America’s economy had expanded just 1.5 per cent this year and that an estimated 43.3 per cent of Latin Americans, including 18.8 per cent of the indigenous population, lived in poverty, according to the 2003 Human Development Report and the Economic Commission for Latin America and the Caribbean.  Latin America’s future was uncertain as foreign investment was declining, making the region a net exporter of financial resources to the tune of $15 billion annually in interest and utility payments and repatriated profits.  That was contrary to the poverty-reduction and economic growth goals set forth by the Monterrey Consensus.

Recalling a summit meeting in Cusco, Peru, in May, he said heads of State of 19 Rio Group members had called for the creation of financial mechanisms such as private funding for regional infrastructure that would help build democracy, eradicate poverty, spur productive investment and create jobs.  The leaders had also stressed the need to explore new debt instruments linked to economic growth, such as indexed bonds, so that in times of recession the payment schedules of Latin American nations would be smaller.  The United Nations, the Group of Eight, the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank (IADB) should make a collective effort to support those proposals without delay, he concluded.

V.K. NAMBIAR (India) said global trade and FDI flows lacked dynamism, contributing to the overall weak world economy.  No durable solution had been found to the severe debt crisis of many developing countries and increased protectionist measures against their exports continued to characterize international trade.  Moreover, a 2002 World Bank study estimated that developing nations would need another $50 billion annually in ODA to achieve national poverty-eradication targets by 2015 as set forth in the Millennium Development Goals.  Enhanced cooperation was imperative in order to win the fight against poverty, disease and illiteracy, he added.

Effective measures were also needed to make trade work as an engine for growth and development, he said.  In that regard, a top priority should be achieving greater equity in international economic relations and giving a greater voice to developing countries in the decision-making structures and processes of international trade, monetary and financial institutions.  Those goals should be on the agenda of the High-level Dialogue on Financing for Development to be held on 29 and 30 October.

GILBERT LAURIN (Canada) said that the delegations of Andorra, Australia, Canada, Iceland, Liechtenstein, Norway and San Marino had decided to intervene during debates under individual items, rather than during the general debate, in the spirit of United Nations reform, which called for better focus in the Second Committee’s work.  Given the importance of issues addressed by the Second Committee, that approach should lead to a more focussed and coherent discussion of each topic.

DARMANSJAH DJUMALA (Indonesia) recalled that the international community had acknowledged at Monterrey the potential of trade as an engine for development and agreed to place the needs of developing countries at the heart of the WTO’s work.  There was widespread agreement that promoting an open, equitable and non-discriminatory multilateral trading system was imperative.  For that to happen, however, there must be greater access for products from developing countries to developed-world markets, as well as special and differential treatment and a phase-out of harmful agricultural subsidies.

Stressing that the absence of political will to accommodate the ambitions of developing countries at Cancun was a recipe for failure, he said the WTO’s future depended on its ability to make the Doha round rest on a development platform.  In addition to the Cancun meeting, several conferences and summits had been convened over the past few years and now was the time to translate the words of those conferences into deeds.  The coming years should be fully dedicated to implementing those solemn commitments.  Indonesia hoped that deliberations in the Second Committee would be guided primarily by contributions towards and review of progress made in achieving those goals.

U WIN MRA (Myanmar) said his country attached great importance to achieving sustainable development and was fully committed to implementing Agenda 21.  Myanmar was party to international environment conventions on biodiversity, desertification and climate change and had acceded to the Kyoto Protocol in August.  Grassroots or rural development was paramount to Myanmar’s largely agriculture-based economy and its ability to fulfil the Millennium Development Goals.

A 30-year national road network and clean water development plan, including 24 regional mega-projects had already begun to raise living standards in rural communities, he said.  While lauding the grassroots work of the Human Development Initiative Programme of the United Nations Development Programme (UNDP), he said the Programme addressed just 3 per cent of the rural population.  Investment must be stepped up to have a real impact on rural development.

JEANETTE NDHLOVU (South Africa) said the recent WTO meeting in Cancun was expected to lay down the building blocks of the Doha development agenda.  Regrettably, the talks had been unable to take the agenda forward, which was a setback for the entire development community.  At Cancun, developing countries had come together for the first time to advance the development agenda.  The Group of 21 had presented balanced proposals to further the trade agenda for developing countries, which had marked a new chapter in WTO dynamics.  In future negotiations, advantaged nations must make sacrifices in the interest of creating a more just and equitable world.

Stressing that a new economic environment was needed to expand opportunities for developing countries, she said trade could contribute to poverty eradication.  Agricultural subsidies in developed countries were detrimental to development efforts in the developing world, offsetting the benefits of other forms of international cooperation.  Expenditure on agricultural subsidies, for example, far outreached that of ODA.

Efforts to reform international financial and trade institutions must be enhanced, she said, adding that the involvement of developing countries in the agendas and decision-making processes of such institutions would help to increase the ownership of policies laid down -- a prerequisite for their success.

LUIS GALLEGOS (Ecuador), aligning himself with the Group of 77 and China and the Rio Group, said that despite economic reforms, the structural vulnerabilities of developing countries had worsened.  Larger and longer negative fluctuations of international markets had forced more and more people worldwide to migrate in search of better economic opportunities.  Large percentages of undocumented immigrants were exploited and denied basic needs.  The international community must come to grips with that phenomenon, he stressed, describing protection of migrants’ rights as a shared responsibility.

The servicing of external debt devoured huge chunks of the national budgets of developing countries, hamstringing their ability to implement much-needed social development and infrastructure projects, he said.  The international community must stop dealing with external debt as merely an economic or statistical issue for it was a social and human problem.  Reducing the burden of external debts on developing countries was in the best interests of debtors and creditors alike.

MAJDI RAMADAN (Lebanon) said that an environment that was conducive to development required an international trading system free of agricultural subsidies, trade barriers and measures against manufactured goods from developing countries, specifically those exporting commodities.  The momentum created by the Monterrey Consensus, which was partly built on the commitments made by development partners at the International Conference on Financing for Development, should be strengthened and maintained.

He expressed regret that ODA levels were much less than had been expected and would not be sufficient to meet the millennium goals by 2015. In addition, no improvement had been noted in the areas of FDI and external debt, which was a heavy burden constraining the efforts of developing countries to achieve economic growth.  Noting that globalization had created challenges and new opportunities, he said it had also brought about inequitable distribution of benefits and widened the gap between the haves and the have-nots.  Concrete steps were necessary to create just international economic and financial systems, foremost of which was reform of international financial institutions to increase the effective participation of developing countries in all their decision-making processes.

Ms. DAVILA (Colombia) said the drop in FDI in Latin America had turned the region into a net exporter of financial resources.  Coffee production and sales was the livelihood of millions of farmers in Latin America, as well as Africa and Asia, but falling prices of coffee and other basic raw materials on world markets had pushed many poor people further into poverty.  Forty per cent of Latin Americans now lived in poverty, according to recent estimates of the Economic Commission for Latin America and the Caribbean.  Low demand for alternative agriculture products seriously impeded the ability of their governments to stem illicit drug production and the migration of rural communities to the cities.

Despite those obstacles, she said Colombia had slashed illicit drug production by 30 per cent, implementing environment and sustainable development programmes to remove illegal crop production from large swaths of forests according to the United Nations Office on Drugs and Crime.  The international community must redouble its efforts to reduce drug use, control production and intensify cooperation to end drug-money laundering in the global banking system.  A drug-free world was, without doubt, a more secure and economically prosperous world.

FLORENCE CHENOWETH, Food and Agriculture Organization (FAO), noted that hunger, whether caused by war, drought, natural disasters or poverty, had continued to cause widespread suffering.  Poverty was one cause of hunger, but also a consequence of it.  In countries where hunger was widespread, overall growth was also compromised by a yearly decline of almost 1 per cent in economic growth.  Where hunger was prevalent, alleviating it was necessary for sustainable poverty reduction.  At the current pace of progress in fighting hunger, the goal adopted by the World Food Summit of halving the number of the world’s hungry people by 2015 would be met 100 years later than that.

Turning to the issue of HIV/AIDS, she said it was perceived by FAO as a problem of vital importance for development in general rather than simply as a health issue.  The pandemic complicated existing labour bottlenecks in agriculture and increased widespread malnutrition.  It also aggravated the problems of rural women, especially in female-headed farm households, which came about through the gender division of labour and land rights, as well as resources, particularly in Africa.

NICHOLAS ROBINSON, Chairman of the World Conservation Union (IUCN), said the organization was concerned that the understanding of poverty as revealed by recent research, as well as public statements by donors and recipients alike, was inadequately reflected in current development policy and practice.  Most of the current poverty-alleviation strategies emphasized enhancing market opportunities available for the poor, a goal that, however important, was insufficient since it did not guarantee the full range of conditions needed to achieve lasting well-being.  It was necessary to widen the focus from economic opportunity and social services to a broader range of objectives, including empowerment, effective participation in decision-making, enhancement of the ability to exercise control over lives and resources, and assurance of an environment that tangibly contributed to human welfare.

International trade widely affected sustainable development, particularly the conservation of biological diversity and social equity, he said.  The need to achieve mutual supportiveness between trade and sustainable development had been affirmed steadily since the United Nations Conference on Environment and Development in 1992 and most recently affirmed by the Johannesburg World Summit on Sustainable Development.  Much remained to be done, however, as shown recently at Cancun.  The achievement of international policy and legal coherence between sustainable development and trade was urgently needed and the United Nations system had a key role to play.  The IUCN urged the United Nations to engage more strategically and proactively in ensuring a successful outcome of the Doha agenda.

TAN YORK CHOR (Singapore) said the World Bank report on Global Economic Prospects 2002, stated that a good WTO agreement that reduced tariffs and agricultural subsidies would have generated $500 billion in income gains worldwide and lifted 144 million people out of poverty by 2015.  That would have strengthened significantly the international community’s ability to achieve the Millennium Development Goal of halving the number of the world’s people living on less than a dollar a day to 15 per cent by 2015.

The consequences of delaying the completion of the Doha agenda could lead to the formation of divisive trading blocs and self-defeating protectionism, with developing countries as the main losers, he continued.  Singapore would continue to work with like-minded countries towards a rapid, successful conclusion of the agenda to avert such an outcome.  Underscoring the importance of the Monterrey Consensus in monitoring and aiding developing and transition economies to mobilize critical development resources, he said the High-level Dialogue on Financing for Development should build on the momentum and coherence of development initiatives under way to advance that process.

SICHAN SIV (United States) said that in the spirit of United Nations reform, which called for a better focus in Second Committee work, his delegation had decided not to make a statement during the general debate.  Instead, the United States would offer its views at appropriate moments, which would streamline the Committee’s work and align its activities with the priorities of the Millennium Declaration and other global conferences of the past decade.

EWALD LIMON (Suriname), speaking on behalf of the Caribbean Community (CARICOM), said the United Nations Development Programme’s (UNDP) Human Development Report 2003 outlined the real story of globalization in the 1990s, revealing that about one third of developing-country living standards had deteriorated to the point where one in three children died before the age of five.  The Human Development Index in 21 developing countries had dramatically declined since 1990 and the UNDP assessment underscored that economic liberalization and market-oriented policies dictated by major donors and international financial institutions had had a limited impact on the economic growth potential and prosperity of developing countries, particularly CARICOM economies.

Calling for renewed commitment to help developing nations alleviate their debt burdens, mobilize resources and strengthen their capacity to effectively compete globally, he said priority must be given to the full inclusion of developing countries in global policy decision-making and to their development concerns in international trade negotiations.  The CARICOM nations had been adversely affected by recent measures to dismantle trade and financial barriers, particularly the end of preferential market access for major income-generating export products like bananas.  The group called on the WTO to pay special attention to the small island developing States work programme, particularly concerning differential trade access, which was crucial to their survival.

JAVAD ZARIF (Iran) said the complex, multidimensional and uneven globalization process was related to almost all spheres of United Nations work.  Links between globalization and such vital issues as trade, investment, finance, technology, the digital divide, information and communications technologies, migration, international law and international politics made it imperative for the General Assembly to give guidance on continuing international deliberations to deepen the debate on globalization.  Discussion on those aspects could promote and bring about greater coordination and cooperation among relevant international organizations at the multilateral level.

Welcoming the adoption of the new programme of work and organizational modalities by the Commission on Sustainable Development at its eleventh session, he expressed the hope that the programme would further advance implementation of Agenda 21 and the Johannesburg Plan of Implementation.  Next year would be the beginning of a new experience in the Commission’s work, when countries would review the success of their individual and collective efforts in implementing Agenda 21 and the Johannesburg Plan in the areas of water sanitation and habitat.  The Commission’s next meeting would identify constraints in implementing those commitments, and proper preparation was needed for that session to ensure a realistic outcome.

RIM SONG CHOL (Democratic People’s Republic of Korea) said extreme poverty and the debt crisis were the main obstacles to the efforts of developing countries to eradicate poverty and achieve sustainable development.  Only countries in the North had benefited from globalization while sanctions and military threats thwarted efforts towards world economic development and improvements in human welfare.

He said the industrialized countries must sincerely implement their commitments to provide developing nations with 0.7 per cent of their gross domestic product in ODA and reduce or cancel heavy debt loads.  Moreover, they should actively promote the creation and operation of a world solidarity fund for developing countries.  The international community should ensure close cooperation to enable those countries to develop information and communication technology capacity.

NGUYEN THANH CHAU (Viet Nam) noted that ODA had risen for the first time by 4.8 per cent in real terms to $57 billion in 2002.  However, that amount still fell far short of the $100 billion required to meet the Millennium Goals, as estimated by the World Bank.  Developed countries should fulfil the target of 0.7 per cent of gross domestic product for ODA, as well as and the 0.15 per cent to 0.2 per cent target for the least developed countries.  They should also mobilize new and additional financial resources to speed up global poverty reduction.

Trade was also a powerful engine for economic growth in developing countries, he said.  Without increased trade, their economic growth could be significantly reduced.  While market access was key for developing countries, protectionist policies in developed countries were hindering developing countries’ products, especially agricultural ones.  Developing countries had suffered dearly from unfair tariffs and non-tariff barriers blocking their export products.  There was an urgent need to ensure more equality, transparency, and a rules-based framework in the multilateral trading system, so that all nations could exploit the benefits of globalization and trade liberalization.

ALEG IVANOU (Belarus) expressed the hope that next month’s High-level Dialogue on Financing for Development would offer new prospects for cooperation on financing much-needed socio-economic advancement in the developing world.  The dialogue must focus on continuing structural reform of international financial institutions to ensure greater participation by developing nations and transition countries.  Such reform should include a more balanced, asymmetrical approach to applying standards, codes and regulations.  Moreover, international financial institutions must more actively support developing countries through technology transfer and sponsorship of information and communication technology development.

Talks to determine accession to the WTO must have a timetable, he said, adding that full integration into the world economy, including WTO membership, was a top priority of his country’s foreign policy.  Belarus had granted unilateral trade preferences to a broad range of States and had created a national centre for technology transfer to developing nations.  However, it opposed the creation of a rift in Europe concerning trade and economic policies that would threaten transboundary cooperation.  European Union member nations should facilitate greater regional cooperation, he stressed.

JABER ALI RAMADAN (Libya) said that developing countries, particularly the least developed countries, faced such grave problems as debt burden, scarcity of commodities and lack of access to the markets of developed countries.  Globalization, which had offered scant prospects for the prosperity all had hoped for, had marginalized developing countries.  Developed countries should meet their ODA commitments and increase the flow of investments to developing countries.  Indebtedness should be forgiven and markets should be opened up to the commodities of developing countries.

Libya was attempting to enhance international economic cooperation through bilateral and multilateral partnerships, he said.  It was creating companies and banks and implementing various projects for education, health and infrastructure.  Appealing to the international community not to implement United Nations resolutions against his country, he said Libya wished to overcome its developmental difficulties, enhance its relations with the WTO, various regional development banks and United Nations bodies in order to implement programmes and policies adopted by the General Assembly, the Economic and Social Council and various global conferences and summits.

ALOUNKEO KITTIKHOUN (Lao People’s Democratic Republic), speaking on behalf of the Group of Landlocked Developing Countries, said the delayed recovery of the world economy had hindered the efforts of developing countries, particularly landlocked ones that had not reaped the benefits of the technology and information revolutions, to raise their living standards and economic performance.  Financing for development was indispensable for economic growth in landlocked developing countries with scarce resources and declining levels of FDI, he said, appealing to donor countries and agencies to increase ODA and investment.

He pointed out that landlocked developing countries grappled with the lack of direct access to seas, inadequate transport infrastructure, burdensome transit procedures, and prohibitive import and export transaction costs.  The transport and insurance costs, as a share of their total export earnings, were double those of developing countries overall and triple those of developed economies.  While the Almaty Programme of Action adopted last month by the International Ministerial Conference of Landlocked and Transit Developing Countries outlined specific steps to address those needs, those proposals could only be implemented with sufficient financial and technical assistance.  In that regard, all stakeholders, particularly the Donor Community on Transit Transport Cooperation, should honour their financial commitments.

NANA EFFAH-APENTENG (Ghana) said globalization had created some opportunities for developing countries, but had excluded a significant proportion of people and countries.  Yet, there was currently unprecedented agreement among the international community on the urgent need for a concerted and coordinated effort in the fight against poverty, and greater consensus on the means to obtain that goal.  The architecture of that mutual responsibility was supposedly based on a two-pillar approach; developing countries would implement policies, improve governance and strengthen institutional capacity to speed up growth and reduce poverty, while the international community would buttress those efforts with substantial, better-coordinated and more comprehensive support through development assistance, market access, debt relief and technical assistance.

Multilateral trade negotiations had always been characterized by a conflict of interests and dogged by several issues, he noted.  Those included the inflexible positions of industrialized countries on agricultural issues; and huge capacity disparities as it related to opening markets among developed, developing, and least developed countries with regard to the opening of the markets.  The pertinent question was whether the Doha development round of negotiations guaranteed a development-friendly outcome.  The jury was still out on that issue, but the resurgence of divergent positions undermining the compromises reached at Doha, which had led to the collapse of the Cancun talks, was anything but a good omen.  The world trading system must be rebalanced, not only on the basis of justice and equity but also on that of sound economics.

MILOS ALCALAY (Venezuela) stressed the need to create adequate external conditions to allow for greater flows of FDI to the developing world.  Developing economies could only grow if the donor community honoured its commitments to provide sufficient financial, technological and human resources.  Socio-economic development was feasible as a priority with the proper funds.  However, that was not the case in most developing countries, which could barely cover the costs of necessary imports or outside financing due to high interest rates and commissions.  Heavy external debt loads made sustainable development impossible for many.

United Nations reform, he said, could create conditions in which the developed world would channel financial resources and technological know-how to developing countries, enabling them to significantly raise living standards.  ODA was still at the pledging stage, but while many countries had made good on their pledges, many more must follow suit.  Wealthy nations spent generously on subsidies and should do the same with ODA.

AUGUSTINE MAHIGA (United Republic of Tanzania) said the servicing of external debt had continued to eat up a sizeable share of the national incomes of many developing countries.  Partial debt reductions could not address the problem and measures for the total cancellation of all debts must be taken to remedy the vicious cycle.  Noting that his country had been one of the few to benefit from the Highly Indebted Poor Countries (HIPC) initiative, he said it was inadequate.  Not only had the non-Paris Club members been reluctant to release much-needed relief, but even among Paris Club members, negotiations for relief had not yielded the expected outcomes.  In order for the HIPC and other initiatives to realize positive and sustainable gains, a viable and durable solution must look beyond the HIPC.

Trade had been repeatedly cited as an engine for economic growth and development, he said, but it was truer to say that the global trading system had not been fair and equitable to all players, particularly developing countries still experiencing serious marginalization.  With the signing of the Uruguay round on agriculture in 1994, it was envisaged that international trade in agricultural products would be carried out under the strong aegis of the multilateral trading system.  Unfortunately, that had not happened and many industrialized countries had instead substantially increased agricultural subsidies to their farmers at the expense of farmers in developing countries.  Trade should be conducted on level ground, backed by free markets operating under the forces of supply and demand, but the current situation was seriously flawed.  While developing countries left their markets open to goods from developed countries, there had been no reciprocal action from developed countries.

CHOISUREN BAATAR (Mongolia) said international trade had remained the most important pillar for promoting global growth and eradicating poverty.  The recent Cancun meeting of the WTO had revealed the complexity of that process.  A successful conclusion of the Doha round was vital for every nation to reap the benefits of global trade integration.

Some progress had been made in raising ODA levels since Monterrey, he said, but it was vital to further explore innovative ways of increasing development aid and speeding up progress towards meeting the Millennium Goals.  Better aid coordination and multi-year commitments were key steps in making assistance more effective.  In addition, the debt crisis had persisted as one of the main constraints for developing countries.  The international community, particularly donor countries and international financial institutions, must adopt an effective, comprehensive and equitable solution to that challenge.

ATOKI ILEKA (Democratic Republic of the Congo) described an emergency sectoral programme in his country that was based on a market economy, security for investment, and legal and judicial security for employment and business.  Productive activities were left to the private sector, while the State strengthened its normative and legislative roles.  The country had launched major rehabilitation projects to build up its infrastructure, strengthen human and institutional capacities, develop major political centres, set up a financing system for urban and rural infrastructure, establish conditions for national or foreign investment, and promote sustained economic growth.  Implementation of the emergency sectoral programme would allow the country to rebuild infrastructure destroyed during its many years of conflict.

He said the Democratic Republic of the Congo shared borders with nine other States in the Central African subregion.  It possessed soil, water and agricultural resources that could contribute to overall economic development and that potential should be put to better use in ensuring the well-being of the country’s entire population.  Providing safeguards for investment was the key to the development of the country, which continued to watch huge flows of financing pass it by.  In an attempt to attract more investment, the Democratic Republic of the Congo was establishing trade courts and carrying out a national study to fight corruption.

O.O. GEORGE (Nigeria) said that after disbursing tens of billions of dollars in debt payments, his country still owed $32 billion due to the complications and penalties associated with debt repayment and servicing obligations.  External debt was unsustainable and unmanageable, coming at the expense or direly needed socio-economic projects and services in education, health, infrastructure and poverty eradication.  Measures thus far to address the external debt crisis were grossly inadequate and ineffective, making it impossible for heavily indebted poor nations to meet the millennium targets.  Nigeria called upon the Economic and Social Council to expand its spring dialogue with the Bretton Woods institutions on the external debt crisis to include the London and Paris Clubs.

Pointing to the Economic Commission of Africa’s recent report to the Economic and Social Council, he said Africa’s economic growth prospects were dismal, with five countries having recorded negative growth in 2002.  Capital flight from Africa was on the rise and the volume and quality of ODA to the region had fallen below the minimum needed to achieve the millennium targets.  Africa’s problems –- HIV/AIDS, armed conflicts, desertification and sustainable development –- must be tackled vigorously, he said, welcoming the creation of the Office of the Special Adviser on Africa and urging development partners to commit more resources to NEPAD.

RASHID ALIMOV (Tajikistan) said that coherent policies in international trade and financial relations were needed to improve global trade and economic performance.  Tajikistan was preparing for WTO membership and had tremendous hopes that the recent failed Cancun talks would not end efforts to forge globally beneficial trade arrangements.  Tajikistan’s priority was to have clear and non-discriminatory access to world markets, making it competitive internationally and better prepared to weather economic crises.

In its post-civil-conflict phase, he said, Tajikistan was posting sustained economic growth, creating the basis for a stable, market-based economy.  Its gross domestic product had expanded 42.2 per cent in the 1997-2002 period.  Last year, its exports -- mainly aluminium, cotton and fibre products -- had grown 13 per cent and entrepreneurial activities were on the rise.  In December, the Government had created an economic reform programme as part of an overall poverty-reduction strategy, involving sweeping changes to tax, budgetary, financial, credit and loan management policies.  The persistent problem of poverty was a challenge for democracy, he said, noting that the growing gap between rich and poor impeded harmonious development worldwide.

YERZHAN KAZYKHANOV (Kazakhstan) expressed serious concern about the increasing marginalization of several developing and transition countries, which was aggravated by worsening economic conditions for countries with poorly diversified economies.  A new international trade policy should open new avenues to support those countries in their efforts to access world markets and join the WTO.  Regrettably, the fifth WTO Ministerial meeting at Cancun had failed to arrive at a mutually acceptable solution of the most pressing international trade policy issues, but it was hoped there would be an early resumption of negotiations for the benefit of all parties concerned.

He said environmental protection in the context of sustainable development should continue to be considered priority items of the Second Committee’s agenda.  Kazakhstan’s initiative to establish a United Nations Register of Environmental Problems, put forward at Johannesburg in 2002 with specific recommendations to attract significant financial and technical resources, was still highly relevant.  Such a register would provide an opportunity to ensure a continuous exchange of information about trends in the global environment.  The tragic fate of the Aral Sea should be regarded as one such problem and current United Nations efforts to rehabilitate the social, economic and environmental situation there were inadequate.  The international community should provide more effective assistance to the affected region through multilateral and bilateral channels.

TERUNEH ZENNA (Ethiopia) noted that African economies must grow an average of 7 per cent per annum to achieve the Millennium Goal of reducing poverty by half by 2015, according to the Economic Commission for Africa (ECA).  That, in turn, required that those economies receive about 18 per cent of gross domestic product from external sources in the form of debt relief, ODA and FDI.  Since adopting the Millennium Declaration, however, Africa’s progress towards achieving the Millennium Goals had not been encouraging.  The region’s per capita income over the past three years had grown by a meagre 0.7 per cent and it was the only continent where poverty was estimated to increase.

Trade remained the engine for growth and development, he said.  However, commodity-dependent countries were seriously concerned that little had been done to tackle the impact of international price fluctuations and continued declines in the prices of the key commodities of most least developed countries.  That had continued to compromise not only the growth of their economies and their efforts to reduce poverty, but also the sustainability of their debt burdens.

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*     Reissued to reflect the statement by the representative of Lebanon, which

was inadvertently omitted.