DELEGATES UNDERLINE DUAL NATURE OF MIGRATION AS SECOND COMMITTEE CONTINUES DEBATE ON GLOBALIZATION, INTERDEPENDENCE

Fifty-Ninth General Assembly

Second Committee

21^st Meeting (AM & PM)

DELEGATES UNDERLINE DUAL NATURE OF MIGRATION AS SECOND COMMITTEE

CONTINUES DEBATE ON GLOBALIZATION, INTERDEPENDENCE

In Morning Session, Committee Holds

Dialogue on 2004 Triennial Comprehensive Policy Review

(Issued on 2 November 2004)

As the Second Committee (Economic and Financial) continued its debate on globalization and interdependence today, speakers stressed the dual nature of international migration, which could boost development and reduce poverty through migrant remittances, or drain developing countries of needed skills.

The representative of Bangladesh said that last year’s annual flow of remittances, about $93 billion from an estimated 175 migrants worldwide, could significantly contribute to poverty alleviation.  The United Nations could play a vital role in setting up legal norms and standards on migration to ensure maximum benefits for senders, recipients and transit countries.  Bangladesh called for the full protection of migrant rights as well as regulations that would ease the flow of funds to their countries of origin, substantially cutting remittance costs.

Similarly, Ecuador’s representative said that migrant remittances to her country had played a key role in creating jobs and boosting production in various economic sectors.  But migrants had to pay high money-transfer fees, which ate up funds meant for investment and savings in their countries of origin.  In addition, the migrants were often underpaid and denied access to social services.  The High-Level Dialogue on International Migration, to be held in 2006, would contribute greatly to ensuring that migrants’ rights and issues were effectively addressed.

Algeria’s delegate, addressing the negative effects of international migration, said it had deprived economies in the South of competent workers, increasing marginalization and jeopardizing economic integration.  Such high stakes underscored the need for a global conference to push forward efforts to set up an international legal framework.  Furthering that point, the representative of Saint Kitts and Nevis, speaking on behalf of the Caribbean Community (CARICOM), said migration had brought about a huge brain drain that continued the cycle of underdevelopment but allowed developed countries to thrive.

Speakers also discussed the need for a fair and transparent international financial and trade system to give the poor and marginalized a greater share of globalization’s benefits.  They noted that trade, investment and financial flows were concentrated in developed countries, with little transfer of resources to those that needed them most in the developing world.  Delegates also addressed the importance of anti-money-laundering legislation at the national and regional levels, and of treaties and conventions aimed at combating corruption and the illicit transfer of funds.

Earlier today, the Committee held a dialogue on the 2004 Triennial Comprehensive Policy Review of Operational Activities for Development of the United Nations system on the theme “United Nations development cooperation:  Reforms, resources, results”.

In introductory remarks, Mark Malloch Brown, Administrator of the United Nations Development Programme (UNDP) and Chair of the United Nations Development Group (UNDG), noted that development spending had increased in 2002, but the role of the United Nations in development had weakened.  While the Organization could not compete with the Bretton Woods institutions in providing funds, it was nevertheless indispensable in providing advice and boosting technical assistance and capacity-building.

Echoing that point, Kul Gautam, Deputy Executive Director of the United Nations Children’s Fund (UNICEF), warned that if current trends continued, the United Nations would become more of a humanitarian organization while development became the domain of the Bretton Woods institutions.  For example, many donors had reduced funding for such bodies as UNICEF and the World Health Organization (WHO) in supporting the Global Fund to Fight AIDS, Tuberculosis and Malaria.  Ironically, many developing nations looked to the country offices of UNICEF and WHO to help them implement the Global Fund’s proposals.

Other panellists emphasized the need to increase coordination among United Nations agencies at the country level, and strengthen the position of resident coordinators.  Such coordination was often aggravated by stiff competition for budgetary resources, Anna Kajumulo Tibaijuka, Executive Director of the United Nations Human Settlements Programme (UN-Habitat), pointed out.  Moreover, many bilateral donors were now bypassing multilateral organizations and directly funding individual countries, posing additional challenges for United Nations agencies.

Le Van Bang, Deputy Minister for Foreign Affairs of Viet Nam, agreed on the need for more multilateral aid, saying that United Nations agencies in his country competed for programmes and funding, and that many projects were duplicated.  A resident coordinator for agencies and programmes was desperately needed to give advice on development policies, industrialization, environmental problems and HIV/AIDS.  The United Nations had a unique role to play in coordinating policy advice and working with governments to review programmes, which country donors could not do.

In the ensuing discussion period, speakers stressed that predictable and long-term funding was needed to make United Nations agencies more effective.  A skewed perception of effectiveness and the voluntary nature of contributions had contributed to a decrease in resources.  Other speakers emphasized the need to increase coherence among country-level programmes and to ensure national ownership of the United Nations Development Assistance Framework (UNDAF).

During the debate on globalization and interdependence, the Committee also heard statements by representatives of Switzerland; Kenya; Azerbaijan; Saint Vincent and the Grenadines (on behalf of CARICOM); Morocco; Malaysia; Brazil (on behalf of the Rio Group); Zambia; Nepal; Libya; Peru; Burkina Faso; Thailand; Oman; Pakistan; Jordan; United States; Indonesia; and Croatia.

Speakers during this morning’s dialogue also included Leonor Calderon, Minister for Social Development of Panama; Jean-Michel Severino, Chief Executive Officer of the French Development Agency (AFD); Ruth Jacoby, Director-General for International Development Cooperation of the Ministry of Foreign Affairs of Sweden; and Lennart Bage, President of the International Fund for Agricultural Development (IFAD) and Chair of the High-Level Committee on Programmes (HLCP)of the United Nations system Chiefs Executive Board on Coordination (CEB).

Also speaking were Thoraya Obaid, Executive Director of the United Nations Population Fund (UNFPA); Noeleen Heyzer, Executive Director of the United Nations Development Fund for Women (UNIFEM); and Carlos Fortin, Officer-in-Charge of the United Nations Conference on Trade and Development (UNCTAD).

The Second Committee will meet again at 9:30 a.m. tomorrow, Tuesday 2 November, to conclude its discussion on globalization and interdependence.  It is also expected to begin its consideration of trade and development.

Background

The Second Committee (Economic and Financial) met today for a dialogue on the 2004 Triennial Comprehensive Policy Review of Operational Activities for Development of the United Nations System on the theme “United Nations development cooperation:  Reforms, resources, results”.  It was also expected to continue its discussion on globalization and interdependence.  (For background information, see Press Release GA/EF/3086).

Before the Committee was a report of the Secretary-General on the triennial comprehensive policy review of operational activities for development of the United Nations system (document A/59/85-E/2004/68), which provides the Economic and Social Council with an analysis of operational activities upon which it can base suggestions for the General Assembly’s triennial policy review.

According to the report, the United Nations has made significant progress in unifying country-level activities, and aligning its operations with the development aims of major United Nations conferences, especially the Millennium Development Goals.  Organization reforms have strongly encouraged various groups to work together and the resident coordinator system is becoming a vibrant instrument in many countries.  Joint programmes have actually been developed in such areas as HIV/AIDS, protection of children and advancement of women.

The report notes that United Nations development cooperation in the transition from crisis to development is being examined, and stresses that integrating reconstruction, rehabilitation and long-term development within a single strategic framework for peace-building and development is critical in such situations.  Substantial progress had been made in increasing cooperation in the area, as seen in the system-wide response to recent crisis situations, such as those in Afghanistan and Liberia.

Yet, the pace of change is slower than desired, the report states.  The United Nations Development Group (UNDG) has drawn up a new work programme to simplify and harmonize the Organization’s activities, but implementing it will depend greatly on further institutional change and funding.  The system as a whole is hampered by a lack of incentives and institutional rewards to encourage various entities to make knowledge and expertise available to the resident coordinators.  Above all, a stronger commitment by all bodies of the United Nations system involved in operational activities for development to system-wide collaboration and the effective participation of all, including entities with no country offices, are key requirements for progress.

Second, the need for stable, predictable funding for development activities cannot be overstated, the report says.  Member States limit fragmentation, inconsistency and unnecessary competition for scarce resources, so that the United Nations system can fully play its vital role in advancing comprehensive, durable development, rooted in national and international consensus.  The triennial comprehensive policy review should focus on preserving recent progress and examining new funding approaches.  The current mismatch between funding levels and mechanisms and the sustained efforts required in supporting countries to implement the Millennium Development Goals needs to be addressed.

The Committee also had before it a report of the Secretary-General on comprehensive statistical data on operational activities for development for 2002 (document A/59/84-E/2004/53).

Introductory Remarks

MARK MALLOCH BROWN, Administrator of the United Nations Development Programme (UNDP) and Chair of UNDG, expressed hope that there would be enhanced development cooperation next year.  Since development spending had increased in 2002, the role of the United Nations in the development process had weakened, and while the Organization could not compete with the Bretton Woods institutions in terms of the volume of financing, it was indispensable in providing an advisory role, technical assistance and capacity-building.

In meetings over the weekend with the Prime Minister of Mozambique and the Minister of Development of Norway, he said, participants had addressed the need for greater coherence in the United Nations system, noting that there were too many small offices and too many country offices.  They had agreed on the need for a stronger role and greater authority for the United Nations Resident Coordinator authority, stronger country-level offices, and for single development strategies that met the specific needs of each country.  Competition among United Nations agencies for development funding and projects must be addressed and United Nations agencies must work together, rather than as competitors.

Statements by Panellists

LENNART BAGE, President of the International Fund for Agricultural Development (IFAD) and Chair of the High-Level Committee on Programmes of the United Nations System Chief Executive Board for Coordination, said that, while the strength of the United Nations was its broad range of mandates, it needed much more coherence and consistency to perform its various functions effectively.  Coherence was needed inside the Organization, as well as among Member States.

The IFAD took guidance from national development strategies, working within the framework of the Millennium Development Goals, he said.  As a lending institution, it funded government programmes and non-governmental organizations to implement development programmes.  It was necessary to integrate donors and national actors into developing strategies at the country level.  The IFAD generally worked within the UNDP framework, but had also linked up with the Food and Agriculture Organization (FAO).  Resident coordinators to really catch the synergies of various organizations working at the national level, he continued.

LEONOR CALDERON, Minister of Social Development of Panama, stressed the importance of coordination by and among all agencies.  It would be beneficial to assess whether the United Nations Resident Coordinator had been sufficiently effective in advancing each and every part of the system.  The United Nations enjoyed credibility as the leader of the coordination process and could provide greater support to receiving countries, be it technical assistance from the United Nations or resources from the Bretton Woods institutions.

Developing countries were concerned with the need for greater coordination and guidance, she said.  For example, in many cases they had received loans for health care and other areas that had not been properly negotiated and channelled, which had actually done more harm than good.  Greater internal coordination was needed so that United Nations agencies were not fighting over resources.  The United Nations Resident Coordinator indeed needed greater authority.  It was important to have an integrated approach with a single system with shared objectives.  Panama and other countries with a United Nations House, in which all United Nations entities operated under the same roof, were a good example of that.

RUTH JACOBY, Director-General for International Development Cooperation of Sweden, questioning how the United Nations system could maximize its contribution to the achievement of the Millennium Development Goals, said it was necessary to look at the Organization’s impact at the country level.  The world was moving forward, and the United Nations system could not lag behind.  It must attempt to benefit from increasing donor flows and ensure that its principles were translated at the country level.

The United Nations must bring its expertise into play to support the ambitions, goals and plans of developing countries themselves, she stressed.  It was necessary to harmonize the various agencies, so that countries did not have to deal with an unwieldy number of agencies and institutions.  The deployment of resources must also be effectively evaluated.  If funding was not working, the Organization should move towards a more sensible and predictable multi-year funding framework.

THORAYA OBAID, Executive Director of the United Nations Population Fund (UNFPA), said the capacity-development focus should be on institutions and people in both developed and developing countries.  During the weekend retreat, questions had been raised as to where countries were willing to invest and whether they were willing to learn new methods.  The workload of the United Nations Resident Coordinator was huge and the Coordinator did not know the mandates of all organizations within the system.  The Coordinator needed orientation and training to know what the shared vision would be.

Fragmentation and competition within the United Nations system were, in part, to blame for the inadequate flow of official development assistance (ODA) into the United Nations, she said.  The question that needed to be addressed was what countries wanted from the United Nations system and how assessments in that regard were made.

JEAN-MICHEL SEVERINO, Chief Executive Officer of the French Development Agency (AFD), stressed the need for greater coherence among United Nations agencies, a stronger role for the United Nations Resident Coordinator and better visibility of development strategies.  The medium-term strategies of United Nations agencies had not been mentioned.  There must be greater focus on coordination, implementation and progress monitoring of the United Nations Development Assistance Framework (UNDAF).

There might be a change in perception in the next three or four years based on the Triennial Comprehensive Policy Review, he said.  Agencies could find it more difficult to justify why Member States should put money into the United Nations aid pool rather than into bilateral programmes.  In that case, United Nations agencies would end up with whatever the Bretton Woods institutions would give them.  The Bretton Woods institutions had always shied away from tackling thorny political problems and the role of the United Nations was essential in ensuring that such areas were not neglected.  United Nations’ agencies should continue efforts to establish greater neutrality and added value in the development process.

ANNA KAJUMULO TIBAIJUKA, Executive Director of the United Nations Human Settlements Programme (UN-HABITAT), said cooperation among United Nations agencies was made difficult by competition for budgetary resources.  Without reform in that area, agencies would not be likely to proceed far on their own.  Most bilateral donor agencies were decentralizing their support and going to the country level, which posed an additional challenge for individual agencies.

As the head of a United Nations agency, she said she had realized that no coordination was possible without representation at the country level.  The UNDP had been helpful, but UN-HABITAT needed funding to place officials in UNDP offices.  United Nations agencies should act as brokers between the people with money and governments wanting to develop their countries, but they must have a direct link to the people in need.

LE VAN BANG, Deputy Minister for Foreign Affairs of Viet Nam, said the world situation had altered and the United Nations must change, too.  One potential problem was the increasing trend to send bilateral aid to individual countries, rather than multilateral agencies.  In Viet Nam, United Nations agencies competed for programmes and funding, and many projects were duplicated.  A resident coordinator for agencies and programmes was needed in each country to give advice on development policies, industrialization, environmental problems and HIV/AIDS.  The United Nations had a unique role to play in coordinating policy advice and working with governments to review programmes, which country donors could not do.

NOELEEN HEYZER, Executive Director of the United Nations Fund for the Advancement of Women (UNIFEM), noted the progress made in mainstreaming gender issues into national development strategies.  Thus far, 120 countries had developed plans to promote gender equity.  Of that, 42 had programmes to combat violence against women.  The legal framework was in place and the challenge ahead was how to implement those plans.  Many government ministers had approach UNIFEM for advice on doing just that, but when gender issues were not mainstreamed they fell off governments’ priority lists and were not viewed as technical issues when, in fact, they were.

There were more than 1,000 focal points for gender issues, she said.  However, many of those experts were working part time.  The approach to gender mainstreaming was too fragmented and there was a need for a clear and coherent set of indicators on gender mainstreaming, a coordinated United Nations country-team approach and adequate resources for gender experts.  At present, approximately 50 countries had thematic gender groups, which proved effective in improving implementation of national action plans and in drawing on the knowledge and expertise of the United Nations, governments and civil society to support implementation of Poverty Reduction Strategy Papers and the Millennium Development Goals.  United Nations resident coordinators and senior staff members of agencies must have resources, not just United Nations focal points.

CARLOS FORTIN, Officer-in Charge of the United Nations Conference on Trade and Development (UNCTAD), said that a coherent view of development priorities must be obtained from recipient countries.  The Millennium Development Goals and other development goals should serve as frameworks for national governments and all such tools should be collected together into a single, coherent instrument.  Governments should abide by that instrument as a bible, using it as a blueprint for agencies to work in the field.

KUL GAUTAM, Deputy Executive Director of the United Nations Children’s Fund (UNICEF), said United Nations agencies had been deeply involved in strengthening the role of the Resident Coordinator and played a meaningful role in development.  The UNICEF was highly decentralized with 80 per cent of its staff based in the field and with a substantial presence in capitals and smaller cities and regions.  Most UNICEF professionals were national citizens, but only 42 per cent of its total income was from core resources.  The rest, non-core resources, were used largely for humanitarian crisis situations.

If current trends continued, the United Nations could increasingly become a humanitarian organization, while the development aspect of international affairs became the domain of the Bretton Woods institutions, he said.  For example, in supporting the Global Fund to Fight AIDS, Tuberculosis and Malaria, many donors had, at the same time, reduced funding for other United Nations bodies such as UNICEF and the World Health Organization (WHO).  Many developing countries looked to the UNICEF and WHO offices to provide support to implement the Global Fund’s proposals.  National capacity-building was essential to ensure a high level of service coverage and sustainability.

Calling for more coordinated procurement, he said that, by combining several countries’ orders for vaccines, malaria bed nets and ACTs (artemisinin-combination therapies), UNICEF had been able to buy essential medicines at lower cost to developing countries.  Similarly, the Pan-American Health Organization (PAHO) used a revolving fund for immunization programmes throughout Latin America.

Questions and Answers

Several speakers stressed that the United Nations system must become more effective, but noted that predictable and long-term funding was needed for that to occur.  To that end, the United Kingdom’s representative said his country planned to increase its funding to UNDP by 50 per cent over the next four years.

The representative of the Netherlands, agreeing that the United Nations deserved more predictable funding, as well as better institutions, outlined factors contributing to the lack of resources.  One was the perception of effectiveness, which in turn depended on resources.  Another factor was the voluntary nature of contributions and the time wasted attracting resources.

Other speakers stressed the need for increased coherence among country programmes, noting that the potential was there, with many common agendas and platforms to work on. They also emphasized that cooperation must occur at the country level, with the United Nations playing a leading role.  For that to occur, however, it was necessary to improve cooperation within the United Nations system.

Iran’s delegate questioned what had actually been achieved in coordinating agencies in furthering development.  Where was the beef, he asked?  He also stressed the need to make better use of agencies not represented at field level, to ensure national ownership of the UNDAF and that governments were capable of evaluating the UNDAF.

Ms. TIBAIJUKA said that UN-HABITAT lost credibility when it was unable to fulfil its mandate of providing the poor with land and property rights due to lack of funds.  Applying for resources for certain programmes could take up to two years.  Coordination was needed within the United Nations system, as well as within the environment within in which it worked.

Resumption of General Debate

ABDUL ALIM (Bangladesh) said his country supported all moves toward trade liberalization and had reduced tariff and non-tariff barriers, dismantled quantitative restrictions on imports and streamlined import procedures.  Its economy was one of the most liberal in the world.  Developed countries should fulfil their commitments to support developing countries’ efforts through enhanced market access, long-term debt relief and increased ODA.  However, little progress had been made in that regard.  The Secretary-General’s report correctly pointed out that some current trade policies in developed countries had undermined or nullified development assistance.  Greater coherence was needed, including greater policy space and full autonomy for developing countries.

International migration to developed countries had increased significantly in the 1990s, he said.  An estimated 175 million people, or 3 per cent of the world population, lived outside their country of birth.  The annual official flow of migrant remittances had topped $93 billion last year and, if properly utilized, that money could significantly contribute to poverty alleviation.  The United Nations could play an important role in establishing legal norms and standards relating to migration so that sender, receiver and transit countries alike benefited as much as possible from migration.  Bangladesh called for full protection of international migrants’ human rights access to official channels for poor and undocumented workers, easier regulations to facilitate the flow of funds to countries of origin, and reduced remittance costs.

ANDREAS BAUM (Switzerland) said the international community should work together in maximizing the advantages of migration while minimizing its drawbacks.  The Bern Initiative launched by Switzerland aimed to establish a non-binding set of guidelines to more effectively manage migration at the national, regional and global levels.  It would draw up effective practices to strengthen cooperation on migration among origin, transit and destination countries.  It could also help emphasize the social benefits of migration and immigrants, and fight the negative effects of clandestine migration by stepping up preventive measures in the struggle against human trafficking.

He said that another initiative, the Geneva-based Global Commission on International Migration created by interested Member States, including Switzerland and Sweden, had been charged with considering migration on the global level.  The Commission aimed to prepare a detailed, coherent, global analysis of migration to be used by the international community, multilateral institutions, and civil society.

P.R.O. OWADE (Kenya) said that, while trade liberalization had led to major successes in Asia, it had not produced similar results in sub-Saharan African, where most countries grappled with the shocks resulting from opening their economies to foreign competition.  Satisfactorily concluding the negotiations of the World Trade Organization (WTO) was critical to easing the pain of that adjustment and fostering positive results.  Kenya was encouraged by the resumed negotiations and progress being made on agricultural subsidies and market access.

He stressed the importance of discussing the link between macroeconomic policies and social development, noting that budget deficit and money-supply targets had been imposed on developing countries.  Governments had to control expenditures to achieve fiscal discipline and monetary stability.  However, cuts in social spending were often the result.  Prudent macroeconomic management to maintain stable currencies and adequate foreign exchange reserves was important.  However, that must be accompanied by national welfare programmes to protect the vulnerable against the vagaries of the market.  Kenya had had positive results with the Economic Recovery Strategy Policy and continued pursuing stable macroeconomic fundamentals alongside trade liberalization.

HUSNIYYA MAMMADOVA (Azerbaijan) said that capital flows were essential components of globalization, as were the transfer of technology on concessional terms and combating the illicit flow of assets.  Economic reforms in Azerbaijan, with particularly emphasis on property rights and fiscal consolidation, had remained on track.  Public allocations had been increased through the State Oil Fund to increase job growth and facilitate the flow of exports.  The Fund, however, had remained a stabilization mechanism to deal with such irregularities as fluctuating inflation.  Integrating into the multilateral trading system had remained a vital means of development for all economies in transition, and the international community should support their efforts.

LENNOX DANIEL (Saint Vincent and the Grenadines), speaking on behalf of the Caribbean Community (CARICOM), said globalization had fostered a net transfer of financial resources several times greater than aid flows to developing countries.  That phenomenon had seriously undermined developing countries’ economic growth and development, exacerbating poverty, crime and terrorism.  In the fight against corruption, the CARICOM nations had adopted far-reaching measures for financial governance despite the financial burden to their economies.  They had created national, regional and international anti-money-laundering legislation and become parties to, or indicated interest in acceding to, significant treaties, conventions, agreements and protocols on the fight against corruption and criminal activities.  The CARICOM was also working closely with the United States and the United Kingdom on drug interdiction programmes.

Financial Intelligence Units in the region had increased the level of reporting suspicious activities and implementation of anti-money-laundering legislation, he said.  The financial investigations and intelligence sharing of Financial Intelligence Units had led to a significant increase in the registration of new business entities and renewed the registration of existing companies.  None of the CARICOM member States were on the list of Non-Cooperative Countries and Territories of the Financial Action Task Force, nor were they considered havens for corporate tax evasion and the laundering of terrorist assets.

ABDELLAH BENMELLOUK (Morocco) said globalization was a complex phenomenon that had led to various unacceptable conditions, including environmental deterioration, social exclusion, the exploitation of women and children, and the expansion of organized crime.  The implementation of international commitments would contribute to national and international environments that fostered growth and integration into the world economy.  The major challenge was to manage the unequal impact of globalization and create conditions for all nations to benefit and attain the Millennium Development Goals.

Countries could not benefit from globalization without functioning democracies, sound economic environments, and the full integration of women into economic and political decision-making, he said.  But the countries of the South could not strengthen those systems in unfavourable international and national environments.  The main obstacles were the absence of consistent national, regional and international policies.  Capital flows must meet the needs of poor countries and ODA commitments must be respected.

RADZI RAHMAN (Malaysia) said his country had benefited in many ways from trade liberalization and foreign direct investment.  It was among the world’s top 15 most globalized countries, according to the World’s Market Research Centre Globalization Index.  However, the world still lacked a fair international trading system that would enable the global community to reasonably share globalization’s benefits.  The stalemate in the international trade negotiations in Seattle and Cancun did not help developing countries.  Rules and regulations were needed to promote their exports, investments and steady economic growth.  The agreement reached by the General Council of the WTO on key areas under the Doha Development Agenda was encouraging.

He said that, in promoting institutional and policy coherence, more efforts were needed in crisis anticipation and prevention, particularly concerning the international financial system’s role in monitoring and detecting crises that could undermine national and regional economies.  International financial institutions, including the International Monetary Fund (IMF), while maintaining surveillance on developing countries, should more closely scrutinize the policies of major developed countries that greatly impacted global economics.  It was also important to improve information and transparency through greater participation by developing countries in policy formulation.

FEDERICO DUQUE ESTRADE MEYER (Brazil), speaking on behalf of the Rio Group, said globalization provided opportunities for development, but could also lead to financial instability or exclusion.  The international community needed more consistency between national and international trade and development.  The responsibility of developing countries in setting up national strategies for development could not be disputed, but it must also be ensured that they did not suffer from international pressures leading to economic chaos.

Overcoming the challenges of globalization and achieving the Millennium Development Goals required a global strategy, he said.  Policies adopted by developed countries must not cancel out those in other areas, such as ODA.  Successful development in developing countries required compliance with ODA commitments, debt relief, trade liberalization, and new sources of funding to achieve the Millennium Development Goals.

Stressing the contribution that could be made to development by migration, he said it had become a phenomenon of growing concern to countries of origin and destination.  Private earnings were transferred to the countries of origin, where they could contribute significantly to development and reduce large-scale poverty.  However, fund transfer costs must be reduced and programmes and incentives set up for productive investments.

MARISOL NIETO (Ecuador) stressed the need for active cooperation on international migration issues among countries of origin, recipient countries and international agencies.  Migrants’ rights must be protected as they were, in many cases, underpaid and not given access to social services.  Governments and civil society, particularly in developed countries, must be more receptive to migrant workers in a non-discriminatory manner and combat human trafficking.  Ecuador was doing its part in strengthening mechanisms of coordination, training officials and adopting laws against human trafficking.

Migrants sent home only 7 per cent of their total income, she said.  In the case of Ecuador, remittances had been instrumental in creating jobs and boosting production in some economic sectors, such as construction.  Migrants, however, had to pay high money-transfer fees, which took away from funds meant for investment and savings in their countries of origin.  The High-Level Dialogue on International Migration in 2006 would contribute greatly to ensuring migrants’ rights.

MUSAMBA CHINE (Zambia) said globalization had brought certain advantages, but also unsustainable global consumption patterns and environmental degradation.  Due to different levels of economic development at the national, regional and global levels, its benefits had been uneven.

In addressing the adverse effects of globalization, there was an urgent need to strengthen global partnerships for development, he said.  Partnerships should ensure that commitments were fulfilled and offer support for enhanced market access, long-term debt relief and increased ODA to developing countries.  In embracing globalization, the international community should consider different levels of economic development in different regions, so that developing economies could be assisted in competing favourably with developed ones.

DURGA SUBEDI (Nepal) said that, while some progress had been achieved in integrating economies in transition into the world economy, more must be done.  The macroeconomic policies of developing countries had helped push that process forward, but their transformation from planned economies to market economies had been difficult.  Market liberalization, improved infrastructure, institution and capacity-building and industrial and commercial upgrades were still not encouraging.  Their increasing dependence on trade partners and their lack of technology and basic infrastructure continued to thwart the integration process.  Nepal urged developed countries and international financial institutions to pave a “smooth and efficient path” of integration for economies in transition.

Migration had contributed in many ways to globalization as it was a movement of persons, capital and services, he said.  It had created jobs and brought foreign currency to developing countries.  Promoting competitiveness and providing skilled and unskilled labourers with fair, open access to global market must be a priority.  Developed countries must be more receptive to migrant workers from developing countries as an effective solution to developed countries’ labour shortages and developing nations’ labour surplus.

MOHAMED AL-KONI (Libya) said coherence was needed in national sectoral plans and subprogrammes in order to achieve development goals.  Libya had taken a series of important measures to raise its national economic level, promote participation in the labour force, and change the national economic structure.

Noting that international migration was playing an increasing role in national development, he said the international community should focus on the need to strike a balance between the aspirations of origin and destination countries and the need to limit illegal migration.

CLAUDIA ALEMAN (Peru) said that current migrant flows were due to the growing globalization of information, capital, goods and services; economic differences between developed and developing countries; differences of labour markets; violence and conflict; natural disasters; environmental degradation; population growth and the search for better life.  At present, one of every 35 people in the world was a migrant.  The economic downturn and increased unemployment of developed countries made those nations less receptive to migrants.  However, migration could help resolve their shortage of labour.  Migrants’ remittances could significantly contribute to the economies of their countries of origin.

In the past several years, many countries had taken steps to create multilateral cooperation systems aimed at improving the management of international migration, she continued.  For example, Central and South American countries had begun the Puebla Process, or regional consultations on international migration and development.  In Asia, countries had launched the Manila Process, while South American nations had adopted the Action Plan for Integration Management.  Developing countries with substantial international migration flows would converge at the ministerial level early next year during the Special International Conference of Lima to discuss migrants’ legal and social rights in countries of destination, migrants’ contribution to the destination countries’ economic development, remittances to their countries of origin, and trafficking of migrants, particularly women and children.

DER KOGDA (Burkina Faso) said the management of migration was of growing concern for the international community.  Migrants were attracted to receiving regions from an economic point of view, with many qualified people seeking better remuneration and profiting from a fall-off in human capital.  It was now necessary to coordinate global migration strategies to facilitate migratory movements.  Governments should use incentives to channel resources into small- and medium-sized firms.

He said corruption slowed development, affecting markets and services.  Governments were reluctant to create anti-corruption measures since they might be used against them when they were no longer in power.  The United Nations Convention against Corruption was an important step in the fight against corrupt practices.

LAXANACHANTORN LAOHAPHAN (Thailand) said economic migrants were the fastest growing category of migrants.  A total of 163 million people voluntarily crossed borders annually.  In search of better economic and social opportunity, they were encouraged by easy access to information about life and work abroad, fast communications with diaspora family members and low-cost travel.  While traditionally migration had been seen in terms of people from the South heading to the North, South-South migration levels, particularly among migrants seeking better opportunities in neighbouring countries with faster-growing economies was on the rise.  Many nations, including Thailand, had become countries of both origin and destination.

She said the Thai Government recognized the need to effectively meet the challenges resulting from globalization and had made every effort to pull Thailand out of a severe crisis and onto firm economic ground through internal restructuring and reform.  Priority had been given to capacity-building and research and development in science and technology.  Officials were committed to enhancing the skills and productivity of local communities and the competitiveness of small- and medium-sized enterprises to maximize globalization’s benefits.  Thailand was also helping other developing countries.  In close cooperation with the UNCTAD, it had set up the International Institute for Trade and Development in Bangkok.

BELKACEM SMAILI (Algeria) said that the growing phenomenon of international migration was linked to global interdependence, affecting the economic, social, legal and security sectors.  Almost 175 million people, or almost 3 per cent of today’s world population, were living outside their countries of birth.  Economic and social differences were often the reason people migrated from countries of the South to those in the North, depriving Southern economies of competent people needed for development, increasing their marginalization and jeopardizing their integration into the world economy.

The high-level segment on migration to be held in 2006 reflected the interest of the United Nations in that crucial issue, he said.  The importance and extent of migration in globalization underlined the need to convene an international conference for a deeper analysis within the perspective of setting up an international legal framework.  The United Nations could and should play a central role regarding international migration and development.

AHLAM AL-HARTHY (Oman) said the impact of globalization was of growing concern to many developing countries.  The new world order and the creation of the WTO had increased expectations for greater international cooperation.  While it was essential to create a favourable environment for national development strategies, countries that applied pressure to others to adopt trade liberalization policies should not then create obstacles to trade.  Many least developed countries were not benefiting adequately from globalization and the gap in economic prosperity between Northern and Southern countries was a matter for concern.

All countries must commit to the Millennium Development Goals, as well as suitable mechanisms in areas of cooperation and trade, she said.  Oman was working toward that end.  Since joining the WTO in 2000, it had opened the parts of its service sector to foreign investment and, in 2003, it had joined the Gulf Customs Union, which had put into effect investment rules and regulations in compliance with international standards.  Oman was also working with the Gulf Cooperation Council to set up a common market by 2007.  Global efforts should focus on the creation of a free economic order in the interests of all.

CARLISLE RICHARDSON (Saint Kitts and Nevis), speaking on behalf of the Caribbean Community (CARICOM), said his region had experienced economic, social, environmental and cultural problems with the rise of globalization and had become far more vulnerable to global shocks.  The agricultural sector, especially the banana and sugar industries, had suffered significant setbacks as well-established agreements had been withdrawn without any coherent adjustment mechanisms being put in place.  Being small, open economies, initially unprepared for globalization, they had limited capacity to compete with more developed countries.

In addition, he said, globalization had reduced wages and poverty had encouraged qualified nationals to migrate in search for opportunities in the developed world.  As a result, there had been a brain drain, and the cycle of underdevelopment had continued, while developed countries continued to thrive.

Developing countries needed policy flexibility and space to manage their integration into the world economy, he said.  There was also a need for facilities to provide greater market information, greater market transparency, and regulations to reduce international transaction costs.  Moreover, information and technology shared alongside with technical and financial assistance were imperative if Member States were to operate on a level playing field under the spectre of globalization.

MAKHDOOM SYED ALI HASSAN GILANI (Pakistan) said globalization had widened the income inequalities between the rich and poor due to several factors.  In recent years, increased trade and investment flows had bypassed the majority of developing countries because liberalization had favoured developed countries.  Globalization had increased the volatility of financial resource flows to developing countries.  The growing income disparity among and within countries had threatened their stability and ability to contribute to global peace and development.  Developing countries were finding it difficult to manage globalization due to the high cost of integrating into the global economy.  Moreover, trade, investment and financial flows were concentrated in developed blocs, with no transfer of resources from developed to developing countries. 

In forging a new global development consensus during the 2005 high-level review of implementation of the Millennium Development Goals, Member States must give priority to strengthening the capacity of multilateral institutions to address trade, finance and development issues in an integrated manner, he said.  Rule-making institutions such as the IMF, WTO and the World Bank should be made more democratic, transparent and inclusive.  There must be a serious effort to address the perennial issues of debt, access to technology and development finance.  Developing countries must accept the principle of non-reciprocity in view of their limited ability to incur more obligations under global trade rules.

BASEL AL-KAYED (Jordan) said that globalization had offered opportunities to enhance economic growth, which had been unequally distributed among developed and developing countries.  The major challenge was to create appropriate conditions to enable all countries to benefit from globalization in achieving national development goals.  Jordan called upon developed countries to fulfil their commitments to support developing countries, so that they could integrate into the world economy.

The country was currently restructuring and revitalizing its economy, making the environment more attractive to foreign investors, he said.  Economic growth and social welfare, which were at the top of the national agenda, could only be sustained in an environment based on sold partnerships between the public and private sectors.  The Government had aggressively pursued trade liberalization and taken serious steps towards integration into the global economy.  Between 1997 and 2004, it had signed free trade agreements with the European Union and the United States, and was a member of the Arab Free Trade Agreement.

Mr. GHAFARI (United States) said the World Bank had shown that by improving its governance indicators -- namely, democratic voice and accountability, political instability, violence, crime and terror, regulatory burden, government effectiveness, corruption and the rule of law -- by one standard deviation a country could achieve a 400 per cent increase in per capita income.  Improving governance involved difficult political challenges but the benefits were too important to ignore and the cost of inaction was one that no government should choose.  The United States lauded the efforts of New Partnership for Africa’s Development (NEPAD) to improve governance through its peer review process.

He said that a World Bank study, published in the Doing Business in 2005 report, had examined business environments in 145 countries and found that better business regulations had an enormous impact on growth and directly helped the poorest, most marginalized members of society.  More companies entered the formal sector in environments that made it easy for them to start businesses, benefiting both the government, through tax revenue; society, through legitimacy; and workers, though formal contracts and benefits.  Similarly, making it easier for companies to hire and fire workers made businesses more willing to hire youth and women.  The United Nations Commission on the Private Sector and Development, the World Summit on Sustainable Development and the International Conference on Financing for Development recognized the important role of the private sector in promoting economic growth and the role of partnerships in poverty alleviation and sustainable development.

PRAYONO ATIYANTO (Indonesia) noted that international migration and development was becoming a subject on global debate due to its scale and complexity.  The movement of people across international borders was an inevitable result of the population increase worldwide, especially prevalent in today’s era of globalization and interdependence.  The related aspects of international migration required the concerted efforts of governments and other stakeholders at the national, regional and international levels.  As a transit, origin and destination country for migrants, Indonesia had been working with other countries in the region as well as international organizations to address migration so that all could derive meaningful solutions.

Pointing to the important contribution of migrant remittances to development resources and poverty reduction in countries of origin, he said that in recent years they had reached unprecedented levels, surpassing the amount of ODA.  It was vitally important to consider the various dimensions of the issue, recognizing that the remittances were aimed at providing migrants and their families with better standards of living.  Indonesia welcomed the upcoming General Assembly high-level dialogue on international migration and development, to be held in 2006, which would aim to identify appropriate ways to maximize development benefits and minimize the negative impacts of international migration.

IRENA ZUBČEVIĆ (Croatia) said her country’s economy was among the strongest and most developed market economies in South-Eastern Europe and it would begin negotiations in 2005 for European Union membership.  Croatia’s priority was to build a stable, strong and internationally competitive market economy.  It was taking steps to reduce government expenditures, boost the business sector and strengthen the role of science and new technologies in order to increase production, create jobs and fuel export growth.  Croatia was constantly working to improve its creditworthiness, trade balance and investment climate.  Its credit rating among all major credit agencies had improved from stable to positive.

The country was firmly committed to creating further conditions for the growth of foreign direct investment and national economic reform.

She said that regional integration was also crucial, noting that Croatia had made significant headway in fostering political stability and economic ties with its neighbours as peace and security were essential for sustainable development.  South-Eastern European countries had forged several agreements on free trade and the free movement of capital and labour in line with WTO provisions.  European Union assistance to Croatia through the Community Assistance for Reconstruction, Development and Stabilisation (CARDS) Programme was expected to total 228 million euro by the end of 2004, and would go primarily towards capacity building and regional cooperation.

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