STATEMENTS TO TODAY'S SECOND COMMITTEE

FOLLOWING ARE SUMMARIES OF STATEMENTS MADE TO TODAY’S SECOND COMMITTEE (ECONOMIC AND FINANCIAL).  A COMPLETE SUMMARY OF TODAY’S MEETING WILL APPEAR AFTER THE MEETING’S CONCLUSION AS PRESS RELEASE GA/EF/3061.

Background

The Second Committee (Economic and Financial) met this morning to conclude its discussion on trade and development.  (For background information, see Press Release GA/EF/3057 of 3 November).  It was also expected to consider implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and of the twenty-fifth special session of the General Assembly.

In addition, the Committee was also expected to hear introductions of draft resolutions relating to sustainable development and international economic cooperation, and environment and sustainable development.

Before the Committee was a report of the Secretary-General on the special session of the General Assembly for an overall review and appraisal of the implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and the strengthening of the United Nations Human Settlements Programme (UN-Habitat).

The report (document A/58/178) reviews progress made in implementing General Assembly resolution 57/275 (December, 2002), which emphasized steps that governments should take to implement the Habitat Agenda, and underlined commitments to improve significantly the lives of at least 100 million slum-dwellers by 2020, as per the Millennium Declaration.  It also underscored commitments made at the World Summit on Sustainable Development (Johannesburg 2002), particularly the goal to halve the proportion of people with no safe drinking water or access to basic sanitation by 2015.

The report highlights the UN-Habitat proposal to set up a global shelter facility to combat urban poverty, as well as increased contributions from Member States for UN-Habitat, particularly from the Netherlands, Norway and Sweden.  It also outlines cooperation between UN-Habitat and international financial institutions, such as the Cities Alliance partnership with the World Bank, bilateral donors and the Asian Development Bank, which has been helping with pro-poor city development strategies and slum-upgrading programmes.

In addition, it examines steps that UN-Habitat has taken to strengthen partnerships with local authorities, non-governmental organizations, community-based organizations, the private sector, parliamentarians, and the World Urban Forum.  It also highlights UN-Habitat’s partnership with the Environmental Sciences Research Institute, which will provide up to 1,000 cities in developing countries with Geographic Information Systems software packages and training at no cost.

Other developments outlined in the report include cooperative efforts with international bodies, agencies and organizations.  For instance, UN-Habitat recently signed a memorandum of understanding with the United Nations Development Programme (UNDP), and has begun to set up Habitat programme managers as focal points in UNDP country offices.  In cooperation with the New Partnership for Africa’s Development (NEPAD), UN-Habitat has been setting up a second phase of the Managing Water for African Cities Programme, which will promote increased investment, improved sanitation and pro-poor governance in several cities.

The report encourages governments to increase their contributions to UN-Habitat; support partnerships with the Programme at the national and local levels; and to set up national urban observatories to generate, collect, organize, analyze and report information on urban conditions and trends.  It also urges them to sponsor representatives of the poor and vulnerable to attend the second World Urban Forum in Barcelona in September 2004.

Also before the Committee was the report of the Governing Council of the United Nations Human Settlements Programme (document A/58/8, Supplement N. 8).

Introduction of Draft Resolutions

HASSAN ABOUTAHIR (Morocco) introduced a draft resolution on women in development (document A/C.2/58/L.27), noting that the text recognized women’s special contribution to economic development, especially in agriculture, industry and services.  It also underscored the importance of an international environment that was conducive to the integration of women into development.

MOHAMMED ARROUCHI (Morocco) introducing a draft resolution on natural disasters and vulnerability (document A/C.2/58/L.25), said it highlighted the negative effects of climate change and urged the international community to continue addressing the best means of reducing the adverse effects of natural disasters, especially in developing countries.

Statements

TERUNEH ZENNA (Ethiopia) said trade was a key source of foreign exchange savings and investment for his country and many other developing countries.  Ethiopia supported the European Union’s “Everything But Arms” initiative, the United States’ Africa Growth and Opportunity Act and other initiatives that benefited the least developed countries, but the narrow scope of products covered and supply-side constraints, prevented the least developed countries from taking full advantage of them.  Development partners should increase market access and trade-related technical assistance and capacity-building.

He called for the timely conclusion of the Doha round of negotiations and for the speedy implementation of rules governing textiles, clothing and leather products.  Regarding commodities, Member States should translate the short, medium-term and long-term recommendations of the Panel of Eminent Persons into concrete actions, as that would help commodity-dependent countries reduce poverty and promote socio-economic development.

P R DASMUNSI (India) called for the elimination of agricultural trade distortions in order to provide food and livelihood security for developing countries.  In the multilateral trading environment, the developing world’s concerns must be addressed effectively.  In the post-Cancun phase, the World Trade Organization (WTO) members must pay more attention to developing countries’ need for special and differential treatment and for provisions governing implementation.  The coming days were crucial for moving ahead with the Doha work programme to ensure a fair, balanced outcome.

He said the issue of commodities was vital to the survival of several developing countries whose export-oriented economies depended largely on this resource, particularly in sub-Saharan Africa.  Diversification and value addition could not happen, as long as developed countries kept high-tariff structures for commodities.  Developing countries needed lasting solutions to the negative impact that volatile prices and declining trade had on their economies, if they were to achieve the Millennium Development Goals.

CARLOS VALERA (Mexico) said the WTO meeting at Cancun had achieved some positive results, including access to medicines for developing countries.  There had also been flexible, progressive discussions on agriculture, the Singapore issues and access to non-agricultural markets.  No one would benefit from any delay in negotiations, which must be put back on track so that the Doha development agenda could be completed.  Members of the WTO were currently in Geneva working on agricultural issues, access to non-agricultural products and the cotton initiative.

The WTO members must give political impetus to the upcoming trade negotiations in Geneva, he said, appealing to all countries to support free trade and renew their commitments to the WTO programme.  Progress with the Doha agenda would contribute to achieving the Millennium Development Goals.

JAGDISH KOONJUL (Mauritius), speaking on behalf of the Alliance of Small Island States (AOSIS), said the group’s members were often price takers, not price fixers.  Many formerly self-sufficient AOSIS members had been forced into dependency during the colonial era, and their populations were used as slave labour.  The economic over-reliance of small island developing States on single-commodity exports was being replaced by over reliance on a single sector -- tourism.

In the WTO negotiations, he said, small islands had always remained on the sidelines due to their lack of critical mass in the organization; limited capacity and financial resources; and lack of permanent representation in Geneva.  The WTO rules were a daunting challenge for small-island States, whose preferential treatment and market access arrangements must be protected.  Such treatment fuelled private investment and economic growth. 

OROBOLA FASEHUN, World Intellectual Property Organization (WIPO), said the key to exploiting the intellectual property (IP) system for wealth creation was a strong national IP system.  Such a system nurtured skilled personnel in such fields, as research and development, law and marketing, and had a positive effect on innovative activities.  There were strong indications that such activities were accelerating in developing countries, and WIPO was recording those leading to developmental benefits.

He noted that Kenyan scientists, for example, had collaborated with their British counterparts in developing a potential vaccine against HIV, based on the consistent immunity shown by a high-risk segment of the population to an HIV strain dominant in Kenya.  The vaccine’s patent was held jointly by Kenyan and British scientists, who had agreed to use their ownership to help ensure that the vaccine, if it proved effective, would be made available to developing countries at reasonable prices.

MEHDI MIRAFZAL (Iran) said developing countries had been united on the importance of development issues in fostering socio-economic growth and well-being, as well as achievement of the millennium targets of sustainable development and poverty eradication.  They also agreed on the need for a fair and equitable multilateral trading system, in which all countries would have a voice and a role in decision-making on policy matters.

While, all nations had the right to accede to the WTO, almost 50 countries were presently not members, he said.  The WTO membership would enable many non-members to boost trade and attract much-needed private investment.  Just and transparent policies governing the WTO membership were necessary to ensure accession for interested nations.

The Committee then took up the agenda item on implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) and of the twenty-fifth session of the General Assembly.

Introductory Statement

ANNA KAJUMULO TIBAIJUKA, Under-Secretary-General and Executive Director of the United Nations Human Settlements Programme (UN-Habitat), said cities had been moving to the forefront of socio-economic change and sustainable development, since the beginning of the new millennium.  Half of the world’s population was now living in cities and urban settlements, while the other half was increasingly dependent on cities and towns for their economic survival and livelihood.  The UN-Habitat had demonstrated that cities were centres of innovation and engines of development.  Over the last decade, the role of local governments as the catalysts for development and community leadership had also evolved, with a strong emphasis on partnership with business and civil society.

She said UN-Habitat had recently published the 2003 Global Report on Human Settlements -– “The Challenge of Slums”, whose most dramatic finding was that the world’s slum population may expand from the present level of nearly

1 billion, out of a world population of 6 billion, to about 2 billion, out of a world population of 8 billion in 2030.  Without immediate and resolute action at the local, national and international levels, that urban challenge could turn into a “time bomb”.  In fact, the millennium target of improving the lives of at least 100 million slum dwellers by 2020 was modest, and a more ambitious one might be needed to achieve the Millennium Summit principle of cities without slums.

Statements

ABDELLAH BENMELLOUK (Morocco), speaking on behalf of the “Group of 77” developing countries and China, noted that mushrooming slums were severely taxing water and sanitation systems and social services.  In Africa, more than half the urban populace lived in slums, a situation that would soon become critical.

Last year, seven countries had provided 85 per cent of the voluntary funds for United Nations Habitat and the Human Settlements Foundation, he said.  The “Group of 77” developing countries urged all Governments and Habitat Agenda partners to increase their donations to the Foundation and to the Water and Sanitation Trust Fund, which was intended to develop much-needed water and sanitation services for the poor, the Water for African Cities Programme and the Water for Asian Cities Programme.  The Group supported a fully functioning Habitat Task Manager System and the inclusion of sustainable human settlements issues in common country assessments and the United Nations Development Assistance Framework (UNDAF).

JOHAN LOVALD (Norway) noted that almost a billion people currently lived in slums and their number of slum-dwellers worldwide was projected to rise to

2 billion over the next 30 years.  The battle against poverty could not be won without attacking urban poverty and UN-Habitat’s work in assisting countries to identify effective policies, and methods to improve life for slum-dwellers were welcome.  Norway was pleased with the Programme’s efforts, in following-up the Johannesburg Declaration of the World Summit on Sustainable Development, particularly the establishment of the Water and Sanitation Trust Fund, and its targeting of the poorest of the poor. 

It was vital that UN-Habitat be provided with the necessary resources, especially non-earmarked funds, so that it could fulfil its mandate, he said.  The Programme’s practice of partnerships within, and outside the United Nations, was one of its greatest assets, and new partnerships should be forged.  Norway strongly supported increased cooperation between the United Nations and the Bretton Woods institutions, and commended the collaboration between UN-Habitat and the World Bank in the Cities Alliance. 

LU MEI (China) said her country had always attached great importance to the development of sustainable human settlements and the implementation of the Habitat Agenda.  China had made much progress thanks to increased funding, as well as integrated urban environmental management and the development of rural and urban infrastructure.

She said UN-Habitat should give priority to the implementation of the Habitat Agenda, particularly its two main themes:  “Adequate shelter for all” and “Sustainable human settlements development in an urbanizing world”.  China called for the strengthening of capacity-building, as well as technical and financial assistance for developing countries, greater cooperation between UN-Habitat and the Commission on Sustainable Development to ensure a fruitful outcome of the upcoming sessions on water, sanitation and human settlements negotiations.

E. A. STANISLAVOV (Russian Federation) said that UN-Habitat’s effectiveness should be further increased through more productive use of resources and better coordination with other international organizations.  In addition, attention should be paid to countries with economies in transition within the framework of UN-Habitat.

The Russian Federation’s voluntary contribution to UN-Habitat would double beginning in 2004, he said, adding that his country had signed a Programme of Cooperation for 2004-2005 with UN-Habitat, which included several joint projects.  The Russian Federation was also implementing policy and practical measures to ensure the sustainable development of human settlements and providing decent housing to all its residents.  A relevant regulatory and legal framework had been established through more than 230 laws and other legal acts governing housing construction and sustainable urban development.

EWALD LIMON (Suriname), speaking on behalf of the Caribbean Community (CARICOM), called for a collective approach and urgent steps, particularly in developing countries, to meet the water, sanitation and housing targets of the Habitat Agenda and the Millennium Declaration.  That called for significant improvement in the lives of at least 100 million slum-dwellers by 2020 and for halving the proportion of people lacking access to potable water and adequate sanitation services.

He expressed support for future cooperation based on the recent memorandum on understanding between UN-Habitat and the Inter-American Development Bank.  CARICOM called for comprehensive land use policies to address the inequitable distribution of land, housing and basic services, as well as the high percentage of illegal settlements and lack of secure tenure in the Caribbean.

SOLOMON KARANJA (Kenya) said his country was committed to implementing the Habitat Agenda, the Declaration on Cities and Other Human Settlements in the New Millennium Foundation.  However, the implementation of those programmes was hampered by inadequate funds and further compounded by the large proportion of earmarked funds.  The Programme needed, increased and predictable non-earmarked funding, preferably on a multi-year basis, to give the Executive Director flexibility in implementing work programmes.

He said Kenya was collaborating with UN-Habitat, with support from the Cities Alliance and other partners, in the Kenya Slum Upgrading Programme, which was improving life for people living and working in slums and informal settlements by providing infrastructure, services, housing and income-generating activities.  The local programme welcomed the full participation of communities and other stakeholders, while using their comparative advantages to achieve maximum results.  To that end, the Government had signed a memorandum of understanding with UN-Habitat in January 2003 to guide its implementation.

IRENA ZEBCEVIC (Croatia) recalled that last year the Croatian Government had adopted a work programme to implement the Habitat Agenda at the national and local levels, based on Habitat methodology.  It had launched pilot programmes in Zagreb, two mid-sized inland cities and one mid-sized coastal city, and initiated a public-awareness campaign on national urban settlement goals and commitments.

She said her country also supported UN-Habitat’s international work, co-chairing a roundtable on urban and rural interfacing during the Economic and Social Council’s (ECOSOC) substantive session this year.  Croatia called for the strengthening of the Global Urban Observatory to help countries collect, analyse and use urban indicators.  Pro-poor urban policies should be incorporated into national economic development strategies and promoted by major international institutions.

REZLAN ISHAR JENIE (Indonesia) said it was vital for policy makers to understand the power of the city to function, as an organizing agent for national development.  The pace of urbanization was rapidly increasing in countries worldwide, exerting considerable pressure on land, housing and infrastructure.  The economic, social and political forces behind urban poverty could cause slums to multiply so quickly that eliminating them completely would become virtually impossible.  For towns to play a central role in poverty reduction, they must be well organized and developed, and the forces giving rise to slums must be challenged.  Urban poverty and slums would not be eliminated by quick-fix local improvement, but would require sound region-wide development policies. 

Safe water and basic sanitation were central to achieving sustainable urbanization and reducing poverty, he said.  The international community must create an environment that was conducive to increasing pro-poor investments in water and sanitation.  Such an environment would also facilitate capacity-building, increase educational opportunities, provide access to information and lead to gender mainstreaming for enhanced effectiveness, in water and sanitation management, in the developing world. 

RAHEL KUMELA (Ethiopia) said that UN-Habitat’s proposal for a global shelter facility or similar mechanism was worth exploring.  New ways were needed to mobilize domestic financial resources for sustainable urbanization in developing countries.  The Water and Sanitation Trust Fund of the Habitat and Human Settlements Foundation served as a vehicle to improve the volume and effectiveness of official development assistance.

Ethiopia’s urban cities were growing at an annual rate of 6 per cent, she said.  The urbanization level, 17 per cent in 2002, would increase to an estimated 30 per cent by 2020.  Rapid urbanization due to population growth and migration from drought-stricken rural areas, coupled with a slow-growing economy and lacklustre investment had fuelled unemployment.  In addition, cities were grappling with a lack of infrastructure, inadequate service delivery and poor urban management.

RAIMOND DUIJSENS, Adviser to the International Federation of Red Cross and Red Crescent Societies, said the organization had a good working relationship with governments, United Nations agencies and non-governmental organizations, in protecting people from, and addressing, urban risks and disasters.  The Agenda for Humanitarian Action, the anticipated outcome of the Federation’s international conference in December, would commit stakeholders to jointly protect lives and livelihoods by fully integrating risk reduction into policy and planning.

He emphasized the need for national and local Governments to accept the Federation in their cities, as natural interlocutors on all issues relating to vulnerability.  Governments and the wider donor community must also be aware of the importance of building an enabling environment for volunteers.