Fifty-ninth General Assembly

Second Committee

38^th Meeting (PM)

text approved in second committee stresses debt relief role in freeing resources

for poverty eradication, economic growth, sustainable development

Draft Resolution on External Debt,

Six Others, Oral Decision Win Consensus Approval by Delegates

Concerned that continuing debt and debt-servicing obligations could hinder the efforts of several developing countries to attain internationally agreed development goals, the General Assembly would stress that debt relief could play a key role in liberating resources for poverty eradication, economic growth and sustainable development, according to one of six draft resolutions approved without a vote today by the Second Committee (Economic and Financial).

By other terms of that draft, on external debt crisis and development (document A/C.2/59/L.53), the Assembly would stress the importance of promoting responsible lending and borrowing, as well as the need to help countries that had reached the completion point of the Heavily Indebted Poor Countries (HIPC) Debt Initiative, but failed to achieve lasting debt sustainability, to avoid a build-up of unsustainable debt.  It would further stress the importance of continued flexibility in eligibility criteria for the HIPC Initiative and encourage the exploration of mechanisms to address the debt problems of those countries, such as debt-for-sustainable development swaps, or multicreditor debt swap arrangements.

Also by the text, approved as orally amended, the Assembly would call on heavily indebted poor countries to improve their domestic policies and economic management, and create a domestic environment conducive to private-sector development, economic growth and poverty reduction.  It would also stress the need for the World Bank and International Monetary Fund (IMF) to keep the overall implications of the framework for low-income countries under review, and call for transparency in the computation of country policy and institutional assessment.

Further by that draft, the Assembly would stress the need to continue assisting post-conflict countries to achieve initial reconstruction for economic and social development.  It would also strongly encourage leading bond issuing countries and the private sector to make substantial progress in preparing an effective code of conduct, bearing in mind the need to include emergency financing in times of crisis, promote fair burden-sharing and minimize moral hazard.

By other terms of the text, which was introduced by Committee Vice-Chair Majdi Ramadan (Lebanon), the Assembly would stress the dependence of debt sustainability on various international and national factors, underscoring that no single indicator should be used to make definitive judgements about debt sustainability.  It would emphasize that country-specific circumstances and the impact of external shocks should be taken into account in debt sustainability analyses, and invite the IMF and the World Bank to consider fundamental changes caused by, among other factors, natural disasters, conflicts and changes in global growth prospects or trade in assessing debt sustainability.

Another draft resolution, on specific actions related to the particular needs and problems of landlocked developing countries:  outcome of the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation (document A/C.2/59/L.60), was introduced by the Committee’s Rapporteur, Azanaw Tadesse Abreha (Ethiopia).  By its terms, the Assembly would emphasize that assistance to improve transit facilities and services should be integrated into the overall economic development strategies of landlocked developing countries, and that donors should take into account the requirements for the long-term restructuring of the economies of landlocked developing countries.  It would emphasize also that the examination of issues relating to the trade of small, vulnerable economies, and the framing of responses to those trade-related issues should be actively pursued, consistent with the Doha work programme, considering the particular needs of landlocked developing countries within a new global framework for transit transport cooperation.

Also by that text, the Assembly would invite donors, the United Nations Development Programme (UNDP) and multilateral financial and development institutions to give landlocked and transit developing countries appropriate financial and technical assistance to construct, maintain and improve their transport, storage and other transit-related facilities, including alternative routes and improved communications.  It would invite them to promote subregional, regional and interregional projects, and consider improving the availability and optimal use of different transport modes and intermodal efficiency along transport corridors.

The draft would, by other terms, have the Assembly invite the relevant United Nations bodies and other international organizations, including regional commissions, the United Nations Conference on Trade and Development (UNCTAD), the World Bank, and the World Customs Organization, to integrate the Almaty Programme of action into their work programmes, and encourage them to continue supporting landlocked and transit developing countries through well-coordinated and coherent technical assistance programmes in transit transport.  Further, it would invite donors and the international financial and development institutions to make voluntary contributions to the trust fund set up by the Secretary-General to support activities for the follow-up to the implementation of the outcome of the Almaty International Conference.

Referring to operative paragraph 2 of that text, the representative of Chile said he wished to join the consensus on the right of landlocked countries to access to and from the sea and the freedom of transit referred to in that paragraph, whereby those rights should be exercised in accordance with article 125 of the United Nations Convention on the Law of the Sea and relevant bilateral treaties.

By a draft on integration of the economies in transition into the world economy (document A/C.2/59/L.59) the Assembly would call upon organizations of the United Nations system, and invite the Bretton Woods institutions, to continue conducting analysis, and providing policy advice, as well as targeted and substantial technical assistance, to transition-country governments to strengthen their social, legal and political frameworks for completing market-oriented reforms, supporting national development priorities to sustain positive trends and reverse declines in economic and social development.

Also by that text, introduced by Committee Vice-Chair Antonio Bernardini (Italy) and approved as orally amended, the Assembly would emphasize the importance of further integrating transition economies into the world economy, taking into account the relevant provisions of the Monterrey Consensus of the International Conference on Financing for Development, the Johannesburg Declaration on Sustainable Development and the Plan of Implementation of the World Summit on Sustainable Development.  It would stress, by other terms, the need to focus international assistance on transition economies facing particular difficulties in socio-economic development, implementing market-oriented reforms and meeting internationally agreed development goals.

A draft resolution on assistance for humanitarian relief and the economic and social rehabilitation of Somalia (document A/C.2/59/L.40/Rev.1) would have the General Assembly urge the international community to provide the Somali people with humanitarian assistance and relief to alleviate the consequences of the prevailing drought.  It would call on the international community to provide continuing and increased assistance in response to the United Nations 2004 Consolidated Inter-Agency Appeal for relief, rehabilitation and reconstruction assistance.  The Assembly would also urge all concerned States and intergovernmental and non-governmental organizations to continue to implement further its resolutions aimed at helping the Somali people in rehabilitating basic social and economic services, as well as institution-building to restore civil governance structures throughout the country.

By other terms, the Assembly would urge the international community to provide political support to the new Transitional National Federal Government of Somalia; significant financial and technical support for rehabilitation and construction; and full support for peace-building measures, as well as speedy implementation of disarmament, demobilization and reintegration programmes to stabilize the country and ensure the Government’s effectiveness.  It would further urge the Transitional Federal Government, in coordination with the Intergovernmental Authority on Development (IGAD) and the African Union, to devise a strategy and timetable outlining functional priorities.

The Assembly would, by further terms, call upon the Secretary-General to continue mobilizing international humanitarian, rehabilitation and reconstruction assistance for Somalia.  It would call also upon all Somali parties to respect the security and safety of personnel of the United Nations, specialized agencies and non-governmental organizations, and to guarantee their complete freedom of movement and safe access.

A draft resolution on humanitarian and special economic assistance to Serbia and Montenegro (document A/C.2/59/L.36/Rev.1) would have the Assembly urge the relevant authorities and the international community to support development assistance for the implementation of the National Strategy for Resolving Problems of Refugees and Internally Displaced Persons, national strategies for poverty reduction and other programmes to ensure that the needs of vulnerable refugees and internationally displaced were met.  It would stress the need to create conditions that were conducive to their safe return, and emphasize the importance of regional cooperation in searching for solutions to their plight.  The Assembly would urge Government authorities in Serbia and Montenegro to develop national policies for durable solutions for internally displaced persons based on the Guiding Principles on Internal Displacement.

By other terms of the draft, which was approved as orally amended, the Assembly would call upon States, regional organizations, intergovernmental and non-governmental organizations, as well as other relevant bodies to continue to provide humanitarian assistance to alleviate the needs refugees and internally displaced persons, bearing in mind particularly the special needs of women, children, the elderly and other vulnerable groups.  It would encourage the Council of Ministers of Serbia and Montenegro in ensuring the transition from relief to long-term development, and call upon all States, regional organizations, intergovernmental and non-governmental organizations to support those efforts.

The General Assembly, by further terms, call upon the Secretary-General and development agencies to continue mobilizing timely international development assistance to Serbia and Montenegro.  It would urge development partners to assist in capacity-building, institution-building and local employment generation in their programmes and to train and employ local staff to the maximum extent possible.  Further, it would urge the country and its development partners to strengthen initiatives contributing to the enhancement of social capital in health and education, which should emphasize the development of capacity to improve the quality of and access to those services.

According to a draft resolution contained in document A/C.2/59/L.58, the Assembly would take note of the Secretary-General’s report entitled “World Survey on the Role of Women in Development”, which focuses on women and international migration, and decide to consider the report at its sixtieth session under the sub-item entitled “Women in development”.  Also by that text, introduced by Mr. Ramadan and approved as orally amended, the Assembly would request the Secretary-General to update the Survey for consideration by the General Assembly at its sixty-fourth session, noting that the document should continue to focus on selected emerging development themes, to be identified at the sixtieth session, that have an impact on women’s role in national, regional and international economies.

Also today, the Committee approved, without a vote, an oral decision to take note of the report of the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) on information and communication technologies for development (see document A/59/207).

In addition, the representative of Kyrgyzstan introduced a draft resolution on rendering assistance to the poor mountain countries to overcome obstacles in socio-economic and ecological areas (document A/C.2/59/L.61), stressing that half of the world’s 700 million mountain inhabitants were at risk of food shortages and chronic malnutrition.  Not only were mountain ecosystems fragile and ill suited for sustainable agriculture, but debt-servicing obligations also impeded their development.  The draft resolution would assist in resolving the problems of those countries, putting them on a path towards sustainable development and a better life.

Reinforcing that sentiment, the representative of Nepal noted that isolated mountain countries suffered from entrenched poverty, slow growth rates, few socio-economic services, and heavy debt loads.  In urgent need of financial and technical resources from the international community, the United Nations had a vital role to play in helping them attain the Millennium Development Goals and the draft resolution was a small but positive step in the right direction.

The Second Committee will meet again at a date and time to be announced in the Journal.

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