UNDER-SECRETARY-GENERAL WARNS THAT WIDENING GLOBAL IMBALANCES COULD DEPRESS WORLD ECONOMY, AS SECOND COMMITTEE BEGINS GENERAL DEBATE
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Department of Public Information • News and Media Division • New York |
Sixty-first General Assembly
Second Committee
2nd & 3rd Meetings (AM & PM)
Under-Secretary-General warns that Widening global imbalances could
depress world economy, As Second Committee Begins general debate
Echoing his Partnership Call, Delegates Urge More
Than ‘Lip Service’ to Development Goals; Rue Collapse of Doha Trade Talks
Addressing the Second Committee (Economic and Financial) at the start of its three-day annual general debate this morning, José Antonio Ocampo, Under-Secretary-General for Economic and Social Affairs, warned that widening global imbalances could have a depressing impact on the world economy, and that partnership was needed among Member States to stave off a marked deceleration in growth during 2007.
He said that even with the robust 2006 growth rate of 3.6 per cent, it was apparent that not all countries had benefited equally from that growth. The 2006 World Economic and Social Survey, produced by the United Nations Department of Economic and Social Affairs, showed a widening of the income gap between developing and developed countries, and a growing divergence in wealth among developing countries themselves.
Meanwhile, imbalances brought about by important economies with large external deficits, primarily the United States, also posed risks, Mr. Ocampo said. “The longer and the deeper the imbalances are allowed to develop, the higher the risk of a sudden and sharp disorderly adjustment, including a United States recession and a large devaluation of the dollar,” he added, noting that such an adjustment would have a particularly large impact on developing countries.
Given that backdrop, Mr. Ocampo emphasized the need to transform the United Nations into a better tool for development while preserving what many world leaders had described during the 2005 World Summit as the central role of its Economic and Social Council.
Many subsequent speakers agreed with the Under-Secretary-General’s thinking, stating repeatedly that the United Nations was the preferred, if not the best, forum for discussing the global economy, and emphasizing that it should be strengthened through reform. “The United Nations is the best forum for developing social and economic policies, and all energy must be focused on reforming the Organization,” Algeria’s representative said, pointing out that the international financial system did not allow developing countries to get out of debt, and that the global trade system blocked their access to HIV/AIDS medicine through an over- strict system of intellectual property rights.
Other speakers echoed the Under-Secretary-General’s call for partnership among nations in underscoring the need for common but differentiated responsibilities among countries in pursuit of internationally agreed development goals. South Africa’s representative, speaking on behalf of the “Group of 77” developing countries and China, added that countries must not just pay lip service to the creation of an equitable and balanced financial, economic and social global order, but also, implement agreements made at the 2005 World Summit and elsewhere.
Many delegates expressed regret over the collapse of the World Trade Organization’s Doha Round of negotiations, saying trade was as important as aid, if not more so, in promoting development. Indonesia’s representative, speaking on behalf of the Association of Southeast Asian Nations (ASEAN), said that despite a positive showing, world economic growth was still not strong enough to support the halving of poverty by 2015, in line with the Millennium Development Goals. That situation could become worse, if oil prices rose and uncertainties over the Doha Round persisted.
However, when asked directly by several delegates whether he thought the Doha talks would resume, Mr. Ocampo replied only that he was “cautiously optimistic”.
As the general debate got under way today, the Committee faced a broad agenda, including poverty eradication, sustainable development and security and humanitarian assistance, among other topics. Committee Chairperson Tiina Entelmann of Estonia recalled, in her opening remarks, that world leaders had challenged the Committee last year to produce timely results on the Global Partnership for Development, and urged members to redouble their efforts to improve the body’s working methods.
A few representatives urged fellow Committee members to adopt a more disciplined approach to its work. The United States delegate said it must do better in 2006 to deepen its discussion of how development occurred, which factors spurred economic growth, and which held it back. In the past, discussions had sometimes unleashed “unhealthy emotions”, such as defensiveness, envy and pride.
Other speakers included representatives of Finland (on behalf of the European Union), Pakistan, the Russian Federation, Viet Nam, Philippines, Colombia, Senegal, Tunisia, Egypt, Guyana (on behalf of the Rio Group), Japan, the Republic of Korea, Bangladesh, India, Brazil and Morocco.
Also speaking today was the Secretary-General of the Eurasian Economic Community.
The Second Committee will meet again at 10 a.m. tomorrow, Tuesday, 3 October, to continue its general debate.
Background
The Second Committee (Economic and Financial) met this morning to begin its general debate for the sixty-first session of the General Assembly.
Opening Statement by Chairperson
TIINA INTELMANN ( Estonia), Committee Chairperson, said the session was taking place at a time of renewal for the United Nations and had much to accomplish in delivering on the agenda agreed upon during the 2005 World Summit. World leaders at the Summit had challenged the Committee, with its focus on globalization and development, to devote as much energy as possible to implementing the Global Partnership for Development within the set time frame.
The unprecedented scale and pace of global interdependence created a challenge for policymakers and global institutions to ensure that globalization became a positive force for all, she said. The failure of the Doha Round of trade talks showed the difficulty of managing globalization. There was a need to redouble efforts to relaunch the process and not lose the opportunity to integrate more vulnerable economies into international trade. Other issues that required special attention were financing for development, migration, and the growing gulf in technological and scientific capabilities between countries and regions.
She said the Committee should redouble its efforts to improve its working methods so as to maximize its individual contributions to the implementation of development goals. Another Committee aim was finding ways to integrate agenda items and avoid duplication. For example, the Second and Third Committees could streamline the respective reporting of items like poverty eradication and globalization. Committee members were asked to make the session focused, meaningful and productive.
Statement by Under-Secretary-General
JOSÉ ANTONIO OCAMPO, Under-Secretary-General for Economic and Social Affairs, said that according to the latest United Nations assessment, the world could expect a robust growth rate of 3.6 per cent in 2006, but a deceleration in growth, projected at 3 per cent, was expected in 2007. A number of downside risks could reduce that projection even further; a decline in the housing market, for example, was a real threat in the United States and could have strong ripple effects. Since that country was suffering from large external deficits, a sharp fall in housing prices could trigger a disorderly adjustment of global imbalances.
He went on to say that the impact of oil prices on global growth remained uncertain, noting that increases lately had been due to stronger-than-expected growth in world demand, a tight capacity for oil production and refining, natural disasters and geopolitical concerns. Though worries about supply shocks were likely to dominate market movements, higher oil prices had not resulted in major recessionary effects, unlike those of the 1970s and 1980s. However, if a supply disruption were to happen, implications to the world economy would be greater and it was, therefore, crucial to increase investments to safeguard the world economy against such a disruption. The heightened volatility in oil prices and other primary commodities was also a vivid reminder for commodity-exporting developing countries that their economic growth was vulnerable to the vicissitudes of commodity prices.
Widening global imbalances continued to pose a major risk to the world economy, he said. So too did the United States external deficit, which had occurred at the same time that many developing countries had begun experiencing a strengthening of the external sector and reduced debt ratios. Indeed, the longer and deeper those imbalances were allowed to develop, the higher the risk of a sudden and sharp disorderly adjustment. For instance, a United States recession and devaluation of the dollar could, in turn, have a depressing effect on the world economy as a whole, with a particularly large impact on developing countries. Policies to redress global imbalances, therefore, should be urgently pursued by the international community, and activities undertaken by the International Monetary Fund (IMF) in that area would be welcomed.
As for the outlook for developing countries, he said an increasing income gap between them and the developed world -- a “dual divergence” -- could be seen, alongside a “growth divergence” among the developing countries. Their limited capacities to smooth business cycles through macroeconomic policies and institutional reforms played a contributing role in creating those divergences. Indeed, institutional reforms in such countries should encompass more than simply creating markets and guaranteeing property rights -- they should also include the creation of regulatory frameworks to ensure the proper running of markets, the provision of public goods and ensuring the fairness of rules. The 2006 World Economic and Social Survey seemed to show that gradual institutional change, rather than “big bangs”, could have a more positive impact on growth.
The suspension of the World Trade Organization’s Doha Development Round of trade talks had been a major setback in 2006, he said. The least developed countries were the most adversely affected by trends in global disparities, and as such, development partners -- including other developing countries -- should continue to increase their support through the contribution of official development assistance (ODA), debt reduction and the provision of market access. Meanwhile, international migration coupled with the need to respect human rights as a necessary foundation for the beneficial effects of migration needed strengthening. The world should also look more carefully at a fuller use of science and technology to achieve international development goals, and intellectual property rights must be flexible enough to guarantee the adequate transfer of technology to developing countries.
He said world leaders had placed the Economic and Social Council at the centre of efforts to monitor and advance implementation of the United Nations development agenda, as the framework for multilateral cooperation for development had come to be called. Hopefully, consultations on the Economic and Social Council reform would be completed soon. Indeed, it was important to make the United Nations a better tool for development at the country, regional and global levels, so as to enable the scaling up of the Organization’s development efforts. To that end, the Department of Economic and Social Affairs looked forward to the report of the high-level panel on ways to increase system-wide coherence.
Discussion
The representative of the Dominican Republic outlined some of the crucial issues facing developing countries, including the need for a solution to the oil crisis and high energy prices; global commitment to the development of agriculture in rural areas; and the Doha Round.
Mr. Ocampo said it was clear that high oil prices had different impacts on different countries, noting that, recent meetings of international organizations touched on the possibility of international cooperation to reduce the volatility of oil prices. Market trends and prices were determined by a complex set of factors that affected the demand and supply of oil and other energy sources. Oil prices had fallen over the past several weeks, and had been volatile for the past two to three years. Any international cooperation would be needed during periods of both high and low oil prices. Many financial institutions were willing to cooperate through normal channels with countries facing high oil prices.
Speakers also asked about poverty, the possibility of resuming the Doha Round and the work of the Global Alliance for Information and Communication Technology and Development.
Mr. Ocampo said he looked forward to working with the Committee on the eradication of poverty, which was the first Millennium Development Goal, and he was cautiously optimistic that the Doha Round could be resumed even though such remaining issues as agricultural subsidies were difficult to resolve. The Global Alliance was a multi-stakeholder partnership that would serve as a “network of networks” and a follow-up to the World Summit on Technology. The Global Alliance had met for the first time several months ago in Malaysia and some of its priorities were education, health and governance. It would begin initiatives in those areas and encourage actors to take action.
Statements
DUMISANI S. KUMALO (South Africa), speaking on behalf of the “Group of 77” developing countries and China, said international development targets were off track, particularly in Africa. It was necessary to address the three pillars of sustainable development in an integrated manner, underpinned by the Rio Principle of “common but differentiated responsibility”. Indeed, to achieve the eradication of poverty, ways must be found to change unsustainable patterns of production and consumption with developed countries taking the lead, as well as protecting and managing the natural resource base of economic and social development.
He said the Bali Strategic Plan for Technology Support and Capacity-Building must be fully implemented, while sparing no effort to meet the needs of developing countries in terms of technology, financial resources, education and training, capacity-building and the promotion of human resources. The idea of further dialogue on migration should also be actively pursued within the United Nations to ensure its positive impact on development. All countries should promote policies consistent with the commitments made at major United Nations conferences and summits, including the need to consider establishing effective mechanisms to monitor progress. Strengthening the United Nations should take place in cooperation with other multilateral, financial, trade and development institutions.
The “Group of 77” developing countries and China, he said, insisted on the necessity for concrete action by developed countries to implement their commitments on trade, agricultural subsidies and the transfer of vitally needed resources to developing countries. The United Nations must display the political will to operationalize the commitments undertaken in writing and not just display perfunctory lip service to the implementation of an equitable and balanced financial, economic and social global order.
JARL-HAKAN ROSENGREN ( Finland), speaking on behalf of the European Union, said the Second Committee played an important role in building a global consensus on action for sustainable development and poverty eradication. For its part, the European Union had adopted a timetable for its members to achieve 0.7 per cent of gross national income by 2015, and would also implement and monitor commitments on aid effectiveness according to the Paris Declaration, whose core principles were national ownership, donour coordination and harmonization, and alignment to recipient country systems. Developing countries, in turn, had the responsibility to create an enabling domestic environment, so as to better mobilize domestic resources and attract foreign direct investment and to strengthen good governance, among other things. The European Union also welcomed discussions to strengthen the debt sustainability framework.
He went on to say that the European Union was fully committed to the Doha Development Agenda and to the case for open markets, trade liberalization and strong multilateral rules. The offers already on the table must be retained and comparable offers made with the European Union aiming to deliver real cuts in tariffs and subsidies as well as to realize new trade flows. Indeed, since 2001, the European Union had already been implementing duty-free and quota-free access for all goods originating from least developed countries, except arms, and supported the “Aid for Trade” initiative.
Further discussions by the Second Committee should focus on migration, as well as implementation of the Programme of Action for least developed countries and the outcomes of the World Summit for Sustainable Development, he said. With regard to environmental issues, the European Union was pleased with the results of the eleventh session of the Conference of the Parties to the Convention on Climate Change. Indeed, the United Nations needed to reform itself in order to respond better to the immediate challenges of ensuring sustainable living conditions for future generations. In that regard, the European Union called for a resumption of the discussion on environmental governance in the framework of the General Assembly. In addition, it planned to address the question of sustained and unhindered access for humanitarian personnel and the pursuit of humanitarian reform.
RICHARD TERRELL MILLER ( United States), said there had been many changes since he last served on the Committee in 1983, but the agendas’ items were remarkably similar. In 1983, there was talk about a new international economic order and the debates were similar as the “Group of 77” wanted more power and a transfer of resources. The former Soviet bloc had disappeared and countries in that region had experienced economic growth. Other trends, over the past two decades, included the liberalization of world trade and impressive economic gains by the African countries. Yet, some nations were locked in a time warp and their citizens were paying the price.
Overall, the record of the Second Committee in 1983 had had little impact on the economic and social changes of the twentieth century, he said. It must do better in 2006 and deepen its discussion on how development occurred, which factors spurred economic growth, and which held it back. The economic philosophy of the United States supported such factors as economic freedom and capitalism. There was plenty of empirical evidence to show that prosperity and economic growth depended on such factors as open markets, efficient regulatory environments and enforcement of the rule of law. The Committee should discuss practical ways to help empower citizens to improve their standards of living. Small businesses needed a streamlined regulatory environment in which to operate a policy that would especially affect women. The United Nations had a role to play in helping Governments simplify their regulatory environments and produce a healthier environment for businesses where entrepreneurs could flourish.
Turning to ODA, he said aid flows were useful vehicles to spur economic development, but the international dialogue surrounding ODA could be harmful as it unleashed unhealthy emotions, such as defensiveness, envy and pride. The discussion also diverted attention from more practical economic issues that could help improve economies. Talks should focus on those practical issues. President Bush had made the eradication of poverty and widespread economic prosperity goals of his Administration. Those were the Committee’s fundamental goals and the United States looked forward to working with others on them.
MUNIR AKRAM (Pakistan), associating himself with the “Group of 77” developing countries and China, said world economic growth was welcomed, given raging regional conflicts, acts of terrorism, high energy prices and major macroeconomic imbalances. However, threats of a “global meltdown” -- due to macroeconomic imbalances, higher energy prices and other factors -- had generated protectionist tendencies in the major economies; the Doha Trade Round had stalled, and investment flows were virtually non-existent in the economies that needed it most. Meanwhile, the majority of the world’s people who remained outside the circle of prosperity suffered as a result of corruption, bad governance and political turbulence leading, in turn, to their further marginalization, the rise of extremism and civil wars.
Unfortunately, the development focus of last year’s World Summit had been crowded out by the security agenda of the major Powers, leaving much to be desired by way of implementation, he said. Assertions had surfaced after the Summit that the role of the United Nations in overseeing implementation was not “direct” -- manifested in the protracted negotiation of a follow-up resolution and the failure to adopt a resolution on the revitalization of the Economic and Social Council. Pakistan attached special importance to the development of indicators to assess progress towards international development goals. The Department of Economic and Social Affairs (DESA) and the United Nations Development Programme (UNDP) should develop a matrix to monitor that progress. The Department should then prepare an annual scorecard of progress, to be reviewed by a robust monitoring mechanism, perhaps under the Economic and Social Council. Such ideas should be examined during the Council’s Annual Ministerial Policy Review.
The report of the High-level Panel on System-wide Coherence, co-chaired by Pakistan’s Prime Minister, Shaukat Aziz, was highly awaited, he said, because the impact of the United Nations could only be meaningful if its processes were streamlined and coordinated. Indeed, there were five global goals that must be simultaneously pursued: ensuring adequate financing for development, reviving trade talks, increasing knowledge in the knowledge-based world economy, promoting sustainable development, and creating a unified approach to migration issues. In addition, the rich countries could not continue to determine the policies and parameters of global finance and trade policies. There was a need, therefore, to promote a system of global economic governance located at the United Nations. A new United Nations summit should be held in 2010 devoted exclusively to development.
VITALY I. CHURKIN ( Russian Federation), said the 2005 World Summit had given Member States the ambitious task of reforming the United Nations and numerous negotiations were in progress that hopefully would yield results. The Second Committee should take that into account and make sure it complemented, rather than duplicated the reform process.
The Russian Federation attached great importance to ensuring stable and predictable development financing, with a view to achieving the Millennium Development Goals, he said. The difficult social and economic situation in many developing countries, as well as new challenges such as globalization, called for decisive measures and the efforts of the global community. As Russia improved its financial and economic situation, it needed to play a more active role in providing international assistance for development. The country was third among those that had cancelled the debts of the less developed countries. However, increased volumes of aid were not a cure and a key development issue was to focus on domestic factors, including the mobilization of resources, the creation of a favourable climate for investment, good governance, increased transparency and fighting corruption.
He said the creation of a fairer basis for international trade opened greater possibilities for developing countries to reach the Millennium Development Goals. The Russian Federation regretted that the Doha Round had stalled and was concerned by the delays in agreeing to the terms of its own accession to the World Trade Organization. Special attention should also be paid to the crucial global problems of climate change, deforestation, protection of biodiversity and sustainable development of human settlements.
REZLAN ISHAR JENIE (Indonesia), speaking on behalf of the Association of Southeast Asian Nations (ASEAN) and aligning himself with the “Group of 77” developing countries and China, said the economies of developing countries, including the least developed, had expanded by more than the expected growth rate in 2006. ASEAN countries, meanwhile, had grown at an average of 5.5 per cent, while foreign direct investment (FDI) had reached $38 billion and trade $646 billion in 2005. Despite that positive showing, however, growth was still not strong enough to support the halving of poverty by 2015, and the situation could become worse if oil prices rose and uncertainties over the Doha Round persisted.
Given that backdrop, implementing a global partnership for development was as important as ever, he stressed. The world needed fair trade policies that responded to the needs of developing countries, including greater access to markets in developed countries, quickly finalizing accession for the least developed countries to the World Trade Organization and helping with them with capacity-building using United Nations support. Less conditional aid and more debt relief for developing countries was also needed, as was a broadening of participation by developing countries in international economic decision-making and norm-setting. Of equal importance was a global partnership addressing sustainable development issues, especially natural disasters.
He said ASEAN was exploring the creation by 2005 of an integrated, seamless market that would serve as an international production base. There were currently 107 projects under the ASEAN integration work plan, with secured funding for a majority of the projects and some 58 had already been completed. ASEAN was also seeking to allow more free flow of goods and services between members. As such, it was contributing to the growth of the Asia-Pacific region, which was home to the majority of the world’s impoverished people. It was also enhancing cooperation between developing countries within the South-South cooperation framework.
NGUYEN TAT THANH ( Viet Nam), said the suspension of the Doha Round talks had created great disappointment. Under the existing global trade system, rich countries benefited disproportionately while small and poor countries remained marginalized. That was because developed countries used trade-distorting mechanisms, such as enormous export subsidies and domestic supports, unjustifiable anti-dumping duties, high tariffs, and excessive sanitary, environmental and labour standards. All that made products from developing countries much less competitive than they truly were.
He said ODA continued to fall far short of the 0.7 per cent target set by the Monterrey Consensus and FDI flows remained unevenly distributed. It was important to take account of the international commitments on financing for development and move forward with urgency. Viet Nam welcomed efforts to explore innovative sources of financing for development, such as those recommended by the Technical Group on Innovative Financing Mechanism, which should be untied and serve as a direct budgetary support.
Stressing the importance of efforts by the Second Committee to place development at the centre of the United Nations agenda and move toward greater partnership with obligations agreed upon in the 2005 Outcome Document, he said his country attached great importance to the restructuring and revitalization of the economic and social systems of the United Nations. Viet Nam supported initiatives to strengthen the Organization’s role and its link with other multinational institutions.
JIMMY D. BLAS (Philippines), aligning himself with the “Group of 77” developing countries and China as well as ASEAN, reiterated his country’s proposal to provide fiscal breathing room from its debt burdens. The “Debt-for-Equity in Millennium Development Goals Projects” initiative would complement the agreement of the Group of Eight (G-8) to write off multilateral debt owed by the heavily indebted countries. Under it, creditors would help indebted countries on a voluntary basis, and give them a choice of which projects should receive support. It was neither debt forgiveness or cancellation programme, nor a call for debt moratorium or discounts. Rather, creditors were invited to plough back, into the economies of debtor countries, 50 per cent of debt-service payments in the form of equities, and channel it to projects in mass housing, safe water systems, hospitals, microfinancing, infrastructure or reforestation.
Turning to migration, he said his country was committed to protecting the rights of migrant workers, whether documented or otherwise, and to strengthening measures to prevent, combat and eliminate all forms of trafficking in persons; building partnerships to manage migration in a balanced way; reducing the costs of transferring remittances; and minimizing brain drain and migration’s other negative impacts. To deal with those issues, the Philippines strongly supported the proposed creation of a Global Forum on Migration and Development. Attention was also drawn to an oil spill off the Philippine province of Guimaras that had occurred on 11 August. The Philippines planned to introduce a resolution to appeal to the international community to help its clean-up drive at a Committee meeting soon, and thanked Australia, the UNDP, the United Nations Children’s Fund and the International Maritime Organization for their assistance with that environmental disaster.
CLAUDIA BLUM (Colombia), associating herself with the “Group of 77” developing countries and China, said that the report, The Millennium Development Goals: a Latin American and Caribbean Perspective, showed that one of the greatest challenges facing the region was reducing the current degree of inequity among nations. Colombia stressed the importance that should be given to sustainable development and its three pillars -- sustainable economic growth, social development and environmental protection -- as the main priority on the agenda of the United Nations.
Reiterating the importance of meeting ODA goals and setting specific timetables to that end, she said adequate attention also must be given to the needs of middle-income countries, which faced problems like poverty and structural conditions that limited the attainment of the Millennium Development Goals. On the issue of trade, Colombia shared the disappointment resulting from the suspension of the Doha Round and reiterated the need to redouble efforts to revive the talks. The United Nations was the most appropriate setting for the continuous discussion of the global migration issue, she said, noting that the recent High-level Dialogue on International Migration and Development was a valuable opportunity to discuss that economic and social phenomenon. On natural disasters, Colombia supported the Hyogo Declaration and Framework for Action as well as efforts to integrate the activities of the many groups participating in the development of an early-warning process.
YOUCEF YOUSFI ( Algeria), associating himself with the “Group of 77” developing countries and China, said the persistence of extreme poverty demonstrated the unequal effects of globalization. Such asymmetric globalization was exacerbated by an international trade regime that hindered development, a financial system that did not allow developing countries to get out of debt and an intellectual property rights system that blocked access to medicines at a time when many developing countries struggled with AIDS and other diseases. More solidarity was needed among nations, not so that successful countries would lose their advantages, but rather that developing countries would be rid of structural obstacles that hindered development. The IMF, World Bank and World Trade Organization had important roles to play in correcting asymmetrical globalization, while the South needed to apply policies that truly met the needs of its countries.
While welcoming debt relief initiatives by developed countries, as well as their helpful efforts in combating disease, he noted that countries should show more solidarity in other areas, in particular strengthening financing for development agreements and being mindful of the needs of the least developed countries in trade negotiations. Unequal development also led to migration in alarming proportions. The recent high-level meeting on that subject was welcomed since it provided a forum to discuss ways to create a balanced approach to migration. International rules were needed to strengthen the rights of migrants so they could be free to create wealth for the benefit of everybody.
He said the United Nations was the best forum for developing social and economic policies, and all energy must be focused on reforming the Organization. Regarding the Economic and Social Council, effort must be made to preserve its central role in coordinating the world’s economic and social development. It must also be given all the resources needed to carry out its work. Natural disasters also burdened developing countries, but preventing them was a challenge for all -- countries must incorporate risk management into their development plans and work together to achieve the goals of Agenda 21 and the Rio and Johannesburg Summits. Efficient machinery for allocating funds and transferring clean technology was needed towards those ends.
PAUL BADJI (Senegal), associating himself with the “Group of 77” developing countries and China, noted that the events of the past 18 months, including the cancellation of developing-country debt and the creation of a tax on airplane tickets, were helping developing countries meet the Millennium Development Goals by 2015. But, much more work needed to be done, particularly in Africa, even though the region was receiving more attention from the international community. It continued to suffer from debt, imbalanced trade, technological deficiencies and the exodus of its elites. The solution was to develop viable mechanisms to deal with the root causes of those problems.
He said the excitement that had surrounded the creation of the New Partnership for Africa’s Development (NEPAD) had declined. The international community could not shirk its commitment to provide support for the development of Africa and to fight all forms of deprivation. Senegal was legitimately concerned about the deadlock in the Doha Round of trade talks and the danger it implied for poor nations, especially the least developed countries. Those nations were also concerned about the dizzying rise in the price of oil on world markets, which State resources could not sustain. The positive impact of debt cancellation could be cancelled by rising oil prices.
Yet, despite the economic and financial turbulence of recent years, Senegal had succeeded economically and had registered an average growth rate of 5 per cent over the past five years, he said. The Government had worked to reduce poverty and create a positive business environment. That had meant simplifying administrative procedures, reducing corporate taxation, developing basic infrastructure, promoting good governance, and fighting corruption. The country had set a path to accelerated growth for the period from 2006 to 2015 with an economic growth rate of 7 per cent.
ALI HACHANI ( Tunisia), associating himself with the “Group of 77” developing countries and China, said the United Nations had adopted many instruments for development. The General Assembly’s resolution on development was a compromise text, achieved by the collective membership and its full implementation was the responsibility of each Member State. Poor economic environments were the main source of instability and political tensions and progress on a proposed resolution to strengthen the Economic and Social Council remained stalled; yet, progress was important in allowing the organ to carry out its older as well as new tasks.
The multilateral trading system should be redesigned to make it more balanced and open, he said, urging help for indebted developing countries. The international community could identify productive debt-relief measures that did not hurt the global economy. The results of the recent high-level meetings on migration and the least developed countries had been very important for the agenda of the United Nations and the Second Committee. While Africa needed special attention, at the same time, the middle-income countries remained vulnerable as they dealt with poverty and development issues. Their stability was important to the international community and they also had special needs.
He said the digital divide was an example of the global economic and social divide. Technology was not benefiting all countries equally. The results achieved at the World Summit on the Information Society, held in Tunis last November, should be implemented. An open, balanced and fair information society should be part of the United Nations process.
MOHAMED EDREES ( Egypt), said a major challenge during the current General Assembly session lay in restoring confidence in the international economic setting, especially in terms of North-South relations. But, despite that loss of confidence, the Assembly’s development follow-up resolution had reaffirmed the essential role of the United Nations in promoting international cooperation. It did not, however, meet the aspirations of the developing world, nor reflect the momentum generated by the 2005 World Summit in implementing commitments in security, human rights and institutional reform areas. New follow-up mechanisms were needed. Furthermore, no progress had been made on strengthening the Economic and Social Council, which required added effort in order to reach agreement on a draft resolution to that end. Egypt also looked forward to the Secretary-General’s report on system-wide coherence within the United Nations.
As a middle-income country with a large population, Egypt attached special importance to the commitment by developed countries to provide 0.7 per cent of gross national product as ODA, he said. It placed similar importance on increasing the voice of developing countries in the Bretton Woods institutions, and to enhancing access for middle-income countries to soft loans and credit facilities from international and regional financial institutions. Migration was another issue of concern for Egypt, a country at the crossroads between East and West, as was the integration of the least developed countries into the world economy.
He expressed concern over the suspended Doha Round, and emphasized the necessity of directing sufficient interest to the African continent, including through cooperation with NEPAD. The debt problem of both middle- and lower-income countries also needed attention. Regarding the environment, Egypt was continuously pursuing its obligations under Agenda 21 and the Johannesburg Plan. It was irresponsible to have a narrow perspective on environmental issues, as in the case of some countries with regard to the Kyoto Protocol. Increasing demand for energy in the present decade called for new global energy policies, including projects on renewable energy in developing countries. Egypt was also concerned about the situation of the Palestinian people, which would later be a subject of discussion by the Second Committee.
GEORGE TALBOT (Guyana), speaking on behalf of the Rio Group, said the recent general debate on globalization and the need for cooperation was an opportunity for the Committee to advance its work. Goal 8 of the Millennium Development Goals called for the creation of a global partnership for development while the Outcome Document of the 2005 World Summit devoted a section to the need for such a partnership. Yet, the global partnership for development set out in the Millennium Declaration, the Monterrey Consensus and the Johannesburg Plan of Implementation was far from being truly implemented. Global inequality continued to increase and was a challenge to international prospects for peace and prosperity.
The recent High-level Meeting on International Migration and Development had highlighted the need for a comprehensive treatment of migration issues. The Rio Group recognized the need for concerted efforts to entrench and protect the rights of migrants. Trade could be a positive and dynamic force for promoting development and reducing poverty, and achieving the Millennium Development Goals. The developed countries had a special responsibility to ensure the success of the Doha Round and the Rio Group urged them to honour their commitments to agreed reforms. Efforts must be made to address the problem of implementation, which was at the heart of the difficulty hindering a global partnership. To that end, the Economic and Social Council should be strengthened to function as a holistic and effective sponsor of global development.
He said the Rio Group also supported the identification, promotion and implementation of innovative sources of financing for development. The Committee had the responsibility to advance collaboration on economic and financial issues to implement the much-needed global partnership for development.
JIRO KODERA ( Japan) said that with a full agenda before it, the Committee could not afford to waste time. Indeed, many of the commitments contained in the 2005 World Summit Outcome had not yet been carried through, and the Committee must dedicate itself to completing the unfinished business relating to the Millennium Development Goals and United Nations reform. In that regard, human security was key to reforming the United Nations system, since increased capacity was meaningless unless individuals had an enabling environment in which they could demonstrate it. Water and sanitation -- a fundamental underpinning for poverty reduction, child survival, disease control, education and gender equality -- was a good starting point for socio-economic development, and Japan planned to table a draft resolution on declaring an International Year of Sanitation during the current session.
He said the second area of attention for his country was the United Nations University, which had made major intellectual contributions to the United Nations in the 30 years of its existence. As such, Japan called for a review of the University’s role, since, to enhance its function and status, it must have a clear grasp of what other United Nations bodies expected of it. It must also strive to engage in more practical and timely research, to put that research to better use and to improve its public relations.
CHO HYUN ( Republic of Korea) said his country would double its ODA by 2009 and triple it to around $3 billion by 2015. As part of that effort, it would substantially increase its assistance to Africa under its “Initiative for Africa’s Development”. Meanwhile, innovative sources of financing, such as air-ticket solidarity funds, should be explored. The Republic of Korea welcomed recent launch of UNITAID, an international drug purchasing facility aimed at scaling up access for the poor in developing countries to diagnostic kits and treatments for AIDS, malaria and tuberculosis, and the Government was presently taking legislative steps to enable it to begin contributing to that facility.
He went on to say that aid alone could not ensure sustainable development in the long run; trade far outweighed aid and debt relief in promoting development, and the Republic of Korea supported the early resumption of the Doha talks as well as the “Aid for Trade” initiative for least developed countries. It would also expand duty- and quota-free access for those countries and expand its training programmes for least developed countries on the rules and regulations of the World Trade Organization. Since effective implementation of the development agenda was not possible without full recognition of the crucial role of women in all social and economic areas, mainstreaming the gender perspective into policymaking should be central to the efforts of all countries.
Migration, reforming the international financial institutions and sustainable development were other areas worth considering, he said. Recent ad hoc quota increases by the IMF for the four most underrepresented economies, including that of the Republic of Korea, were steps on the right track, but much still needed to be done. A new quota formula should be established based on the consensus of all members. A fruitful fourteenth session of the Commission on Sustainable Development had been concluded and it was hoped that the fifteenth session in 2007 would pave the way for substantial improvements to sustainable development approaches. The upcoming Conference of the Parties to the United Nations Framework Convention on Climate Change was also expected to produce substantive results.
IFTEKHAR AHMED CHOWDHURY (Bangladesh), aligning himself with the “Group of 77” developing countries and China, noted that, while the world economy had experienced broad-based growth over the past year, the income gap between developed and developing countries had widened. The least developed countries remained trapped at the bottom of the economic ladder and many were being marginalized further. The collapse of the Doha Round had been a shock for developing countries.
He offered nearly a dozen measures that could help the international community achieve the economic goals outlined at the Millennium Summit, including the reversal of the trading mechanisms used by industrialized countries, such as harmful subsidies and non-tariff restrictions that had created a trading system heavily biased against developing countries. The United Nations system also must lead efforts to reform a global reserve system that forced developing countries to borrow at very high interest rates. Other measures included the immediate write-off of all outstanding multilateral and bilateral debt owed by the least developed countries; developed-country fulfilment of official development assistance commitments; foreign direct investment to produce jobs and diversify products; access to credit; more democratic decision-making in the international financial situations; and the introduction of weather insurance and other financial mechanisms to mitigate the risks of natural disasters.
C.K. CHANDRAPPAN (India), aligning himself with the “Group of 77” developing countries and China, said global economic growth had slowed noticeably in 2005 and was expected to reach 3 per cent this year. Yet, net transfers of resources from developed to developing countries was declining and had reached $2 billion in 2005, down from $7.5 billion in 1997. The growth of international income inequality could have wide-ranging consequences for human development. The mobilization of additional financial resources to help developing countries achieve the Millennium Development Goals was a major challenge, and the Doha Round impasse was a cause of concern.
The international community must strengthen existing mechanisms and create new vehicles to track ODA flows, especially as proposals for innovative financing sources reached maturity and in light of the recent debt-relief initiatives, he said. On the issue of trade, it was imperative that the development elements of the Doha Development Agenda succeed. Without the elimination of trade-distorting subsidies and restricted market access, import liberalization by developing countries would lead only to domestic demand constraints and industrial recession. The 2005 World Summit had reaffirmed the fundamental role of the United Nations in promoting international cooperation in development and system-wide coordination of the Organization’s policies. The United Nations should encourage the Bretton Woods institutions to take additional steps to initiate the second stage of IMF quota reform.
RONALDO MOTA SARDENBERG (Brazil), aligning himself with the “Group of 77” developing countries and China, and the Rio Group, said he was encouraged to see Member States realizing the importance of migration, which was tightly linked to human rights. No country should be exempt for violating migrant rights and, Brazil looked forward to discussing that issue further at the Global Forum on Migration. As for the Millennium Development Goals, Brazil saw them as a covenant of mutual support but, many countries, especially in Africa, had not fared well and there was an urgent need to scale up action among developing countries regardless of their level of development.
On preventing global macroeconomic volatility, he said policies in developed countries should foster robust growth in the world economy, as well as adequate coordination of their macroeconomic policies. Trade, meanwhile, was not a stand-alone issue. Indeed, it was more important than aid in promoting development and the removal of trade barriers was needed in that respect. Agriculture was the main unfinished business in the effort to create a truly multilateral, rule-based trading system, and large numbers of people in developing countries depended on it. Key developed-country players were expected to accept cuts in their domestic subsidies, thus removing the main stumbling block to resumption of the Doha Round.
He said that progress in achieving international development goals depended on aid from developed countries being immediately delivered to the developing world. Following that, urgent discussions should be held on the remaining needs of developing countries. Aid modalities should be adjusted so that donours could no longer act in an isolated manner, risking the duplication of their efforts. Debt cancellation, reducing aid conditionality, and innovative financial mechanisms -- such as the drug purchasing facility, UNITAID -- should also be explored. Brazil had high expectations regarding improvement of the United Nations system, since only that Organization could ensure neutrality in a multilateral and, at the same time country-driven perspective.
HAMID CHABAR ( Morocco) noted that the Committee’s session followed international meetings that focused on its own issues of concern, including the General Assembly’s high-level debates on migration and the least developed countries, and the annual meeting of the World Bank and IMF held in Singapore. Everyone recognized that the United Nations had a role to play in shaping a global partnership in development. The Committee should ensure that the outcome of the United Nations meetings was turned into concrete decisions. A fourth international event of concern was the suspension of the Doha Round. The failure to reach a compromise could open up the escalation of protectionism against developing countries. It was the duty of all countries to redouble their efforts to resume the talks.
Noting that the General Assembly was taking up the reform efforts launched at the 2005 World Summit, he said they included coherence in the environment, development and humanitarian assistance fields. The reform process should not mean weakening the mandates of any bodies, such as United Nations Conference on Trade and Development (UNCTAD), which should be preserved and strengthened. Morocco supported continued efforts to create innovative financing vehicles for development and welcomed the launching of UNITAID, the international drug purchase facility that would help save the lives of those facing extreme poverty and pandemics, especially in Africa. Morocco was grateful to Qatar for its offer to host a follow-up conference on finance and development in 2008 or 2009.
G.A. RAPOTA, Secretary-General of the Eurasian Economic Community (EURASEC), said the organization had been established in 2000 and comprised Belarus, Kazakhstan, Kyrgyz Republic, the Russian Federation, Tajikistan and Uzbekistan. A long-term goal was to establish an economic and currency union. Traditional suppliers of energy to many countries of Europe and Asia, EURASEC members had agreed to implement projects to create a common electric energy market and to construct hydroelectric plants in Kyrgyzstan and Tajikistan. Joint exploration of hydroelectric resources was important for managing water, energy and environmental problems in Central Asia, and the United Nations Special Programme for Central Asia was of great assistance in that regard.
He said that since complex environmental problems were also among EURASEC items of focus -- such as dealing with the consequences of the Chernobyl disaster, eliminating uranium mining waste dumping landfills in Kyrgyzstan and Tajikistan, and solving the problem of the Aral Sea and former nuclear testing grounds at Semipalatinsk in Kazakhstan -- it also interacted closely with the UNDP. Support had also been given to initiatives by the United Nations Economic Commission for Europe on developing clean coal technologies and its efforts to rehabilitate uranium tailings dumps in Central Asian countries. In fulfilment of decisions under the Almaty Programme for Landlocked Countries, EURASEC had also written proposals to establish a common transportation space to facilitate the movement of goods among the Community’s member countries.
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