Sixty-first General Assembly

Second Committee

6^th Meeting (AM)

delegates from middle-income countries underscore need for assistance

as second committee concludes general debate

 

Radical Steps Suggested to Manage Tragedies Resulting from Migration

With only nine years before the Millennium Development Goals target year of 2015, and with some countries still struggling to develop their economies, delegates at the Second Committee (Economic and Finance) concluded their general debate today by calling on Governments to agree on more aid and innovative financing for all needy countries, not just low-income nations.

Delegates from middle-income countries stressed repeatedly that they were also needful, as Botswana’s representative noted that one third of those living below subsistence levels resided in countries classified as middle-income.  That raised the idea that debt per capita, rather than income level, would be a better criterion for determining who received aid.  Middle-income countries also faced common challenges, such as high levels of poverty, HIV/AIDS and natural disasters, which were compounded by the lack of favourable access to development assistance.

While some delegates voiced concern over aid conditionality, many others expressed their thanks to the five countries -- Denmark, Luxembourg, Netherlands, Norway and Sweden -- that had met or surpassed the targeted 0.7 per cent of gross national product (GNP) allocated to official development assistance (ODA).  Advanced industrialized countries that had not met the target were urged to act swiftly.

Meanwhile, El Salvador’s representative said his country would hold a forum for low- and middle-income countries next year to discuss mutually beneficial development strategies, and to work out a collective position on global issues.  Even so, delegates also stressed that, as the world’s main multilateral institution, the United Nations should enhance its cooperation with other international development institutions while boosting its own efficacy, so that issues affecting billions of impoverished people could be discussed in a collective manner.

Throughout the meeting, delegates said it was high time that the outcomes of Monterrey, Johannesburg, Kyoto and other major international conferences were implemented.  Many others called for the implementation of concrete, well-funded projects as Uruguay’s representative suggested the creation of new entities to monitor progress on United Nations agreements reached over the past decade.

Several delegates called for discussion on the question of migration.  The representative of Burkina Faso described it as a major concern and expressed “shock” at the scale of migration and the tragedies arising from it.  Radical steps were needed to manage migration while respecting the interests of the migrants themselves.

Others speaking today included representatives of Jamaica, United Arab Emirates, Iraq, Kenya, Mongolia, Lesotho (on behalf of the Southern African Development Community (SADC), Uruguay, Fiji, Myanmar, Nepal, Maldives, Venezuela, Lebanon and Congo.

Also making a statement was the Deputy Director of the United Nations Industrial Development Organization (UNIDO).

The Second Committee will meet again at 10 a.m. on Monday 9 October to take up its agenda item on macroeconomic policy questions.

Background

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

Statements

RAYMOND WOLFE ( Jamaica), aligning himself with the “Group of 77” developing countries and China, and the Caribbean Community (CARICOM), said the Committee was meeting amid mixed reviews of the global economic situation.  The favourable conditions of the past, which had supported developing countries’ growth, risked being reversed by uncertainty over oil prices and widening global imbalances.  But, it was heartening to see a special high-level meeting between the United Nations’ Economic and Social Council, the World Trade Organization and the United Nations Conference on Trade and Development (UNCTAD) on the special concerns of middle-income developing countries, which were sometimes not given sufficient attention by the international community as compared to lower income countries.

He said there were no systematic solutions to assist both low-and middle-income countries in dealing with heavy debt burdens.  Many of whom suffered from balance-of-payments problems due to declining terms of trade and the erosion of long-standing preferential trading arrangements.  Jamaica saw the United Nations playing a critical role in promoting international cooperation, and negotiations over the allocation of resources to the Economic and Social Council -- whose work on development had been outlined at the 2005 World Summit -- should have been concluded by now.  To provide an important platform for real dialogue on issues affecting billions of impoverished people, the United Nations should also enhance its cooperation with other international development institutions.

Development was a central goal in and of itself, he said.  Implicit in advancing the development agenda was the need for full global partnership.  Regrettably, the follow-up to the 2005 Summit Outcome simply reiterated language already contained in the Outcome Document and did not elaborate concrete proposals to deal with the lack of resources to implement the development goals of many countries.  For instance, Jamaica attached great importance to the challenges faced by Small Island developing States and, as a country prone to natural disasters, knew only too well the urgency with which climate change and environmental disasters must be addressed.  Jamaica welcomed wholeheartedly the launch of the Central Emergency Response Fund.

AAREF ABDULLA ALTENAIJI ( United Arab Emirates), reaffirming that development was one of the most important issues in today’s world, and the only way to achieve security, stability and prosperity for everyone, renewed the call to all stakeholders in the development process to move ahead and implement all resolutions adopted at various development summits.  The United Arab Emirates had advanced its social and economic development with a national strategy focusing on the efficient use of oil resources and providing infrastructure to develop other sectors, while expanding its production base and avoiding dependence on oil as its only source of income.  That had led to a non-oil sector contribution of 67 per cent of the country’s gross domestic product (GDP).

One of the main components of the country’s development strategy was achieving security and economic stability while focusing on human resources and providing education, health care and employment opportunities for all citizens, he said.  Other strategies included supporting the private sector’s role in development; applying new information and communication technology; incorporating environmental concerns into national development plans; and playing a role in international and regional partnerships for development.

MUHAMMAD SHAWKAT ( Iraq), said strategies to reduce the gap between the developed and developing worlds should be linked to greater respect for human rights.  That respect should underpin the search for justice, international security, improved status for women, and the fair sharing of resources, including technology transfer.  Domestically, Iraq was striving to limit terrorism, which was an obstacle to development.  As a start, Iraq’s leaders would embark on a national reconciliation programme to prepare the ground for political stability.  After that, the country would hopefully be free to focus on reducing unemployment among young people, for example.

He said globalization had placed many developing countries in a difficult situation and international financial institutions must enhance their efforts to provide unconditional aid and reduce the impact of falling export prices.  As for Iraq, oil revenue was being used to rebuild infrastructure, in cooperation with the International Monetary Fund (IMF) and the World Bank.  Some 80 per cent of the country’s debt had been written off by the Paris Club, and it hoped for more write-offs from creditor countries.  Iraq was thankful for the assistance provided by donour countries as part of an international contact group, comprising States and organizations, set up specifically to assist in reconstruction efforts.  The international community was called upon to respect any commitments made, in the spirit of joint partnership.

Good governance and internal security were essential ingredients for progress, he said.  Although Iraq was itself under great stress, it would, nevertheless, continue to work with others towards a Palestinian State with Jerusalem as its capital.  Iraq condemned the Israeli occupation.  In pursuing international development, it was also necessary for nations to minimize the impact of diseases such as HIV/AIDS on their economy.  That and other goals could only be achieved by creating a civil society based on justice and equality.

Z.D. MUBURI-MUITA ( Kenya), said follow-up actions had not been evolving in an encouraging manner since the conclusion of many recent summits on development.  Implementation of the Millennium Development Goals had remained uneven since the Millennium Summit in 2000 and the commitments made during the 2001 Monterrey Conference on Financing for Development had not been completed.  While the 2005 World Summit follow-up had seen progress in some areas, the slow progress in the crucial reform of the Economic and Social Council indicated wavering commitment on the development front.

Regarding global trade, he said his country wanted it to benefit everyone equitably; yet, developing countries were seriously affected by the subsidies in developed countries and other barriers.  Kenya hoped that a fair, rules-based trading system would emerge from open discussions.  The country also attached great value to sustainable development, and the environment had emerged as a critical imperative for development.  Member States should uphold the importance of environmental activities within the United Nations system and the broader framework of sustainable development.  As part of its commitment to global cooperation on the environment, Kenya would host in Nairobi the twelfth Conference of Parties of the United Nations Framework Convention on Climate Change from 6 to 17 November, and the eighth Conference of Parties to the Convention on Biological Diversity form 27 November to 1 December.

VANESSA INTERIANO ( El Salvador), said low-income countries like her own faced challenges in raising funds for poverty eradication programmes.  Since middle- and low- income countries had less access to official development assistance (ODA), developed countries should be more active in partnering with them in the areas of health and education, for example, as well as providing debt relief.  El Salvador would hold a forum for low- and middle-income countries next year to discuss mutually beneficial development strategies, and to work out a collective position on global issues.

She said a major goal of many nations was to create jobs for their people.  But, unemployment was a structural problem and developed countries must do their part to help generate more job opportunities by providing access to their markets as well as investment.  They should also create policies to facilitate knowledge and technology transfer and close the digital divide through education.  North-South cooperation must be boosted, including in mitigating the negative effects of migration, which was a social -- not just economic -- problem.  El Salvador awaited the outcome of the United Nations High-Level Panel on System-Wide Coherence.  With enough political will, the world could implement new strategies for development and promote better exchanges of experiences among countries.

OCHIR ENKHTSETSEG (Mongolia), associating herself with the Group of 77 and China, said Global interdependence had made it imperative for Member States, collectively, to identify adequate resources to respond to the threats and challenges of the twenty-first century.  There was a compelling need to honour the political commitments made by world leaders during recent development conferences.  Mongolia anticipated a summary from the President of the General Assembly of the practical actions emanating from the initiatives announced during the recently concluded general debate on a global partnership for development.

She said that Millennium Development Goals 8 on a global partnership for development included specific targets to address the special needs of the landlocked developing countries.  Leaders from landlocked developing countries had met in Havana, Cuba, last month to reaffirm the timely implementation of the Almaty Programme of Action and the Sao Paulo Consensus.  Mongolia had striven actively to promote the special interests of landlocked developing countries at international forums and had offered to host the meeting of trade ministers in Ulaanbaatar.

LEBOHANG F. MAEMA (Lesotho), speaking on behalf of the Southern African Development Community (SADC) and associating that group with the Group of 77 and China, asked all stakeholders to make a concerted effort toward timely implementation of the 2005 World Summit Outcome Document and subsequent resolutions.  Despite disparities amongst its members, the SADC had experienced overall growth in real GDP of 5 per cent in 2005, up from 4.1 per cent in 2004.  The GDP was expected to grow by 6 per cent in 2006, but that rate remained below the target set for the attainment of the Millennium Development Goals.

Poverty continued to be the greatest challenge for SADC and an obstacle to achieving the various internationally agreed development goals, he said.  A recent SADC summit had created a task force -– comprising ministers from the various finance, investment, economic development, and trade and industry ministries -- to work with the SADC Secretariat and define a road map to the elimination of poverty.  That task force would report to an extraordinary summit to be held no later than October 2006.  The SADC could not overemphasize the importance of agriculture and rural development to the eradication of poverty in the region.  It was important that the Committee consider the agenda item “agriculture and rural development” since that issue had not received the attention it deserved during previous Committee deliberations.

He said the SADC region continued to be ravaged by HIV/AIDS, malaria, tuberculosis and other communicable diseases and had put measures in place to combat them.  While appreciating past support, the SADC appealed to multilateral institutions, the United Nations system and bilateral donours to support its efforts in that area.  Regarding trade, it called on all key players to resume the Doha Round talks without further delay and negotiate in good faith.  The SADC called for immediate reform of the international trading system to allow poor countries to benefit.  A reformed World Trade Organization should be democratic, transparent, non-discriminatory and inclusive.

ELBIO ROSSELLI ( Uruguay), aligning himself with the “Group of 77” and China and the Rio Group, said sustainable development was a long-term goal requiring harmony between domestic and international policies.

The efficacy of the United Nations and its many bodies should be boosted so that the agreements reached over the past decade could be carried out.  Developed countries should contribute resources to establish new entities to monitor progress.

He said the United Nations should assist countries that had made structural adjustments to their economies in an effort to recover from crises.  Indeed, Uruguay appealed to the international community to re-examine the situation of middle-income countries that were excluded from receiving ODA on the basis of criteria that did not reflect the social situations in those countries.  Some 90 per cent of poor Latin Americans lived not in Heavily Indebted Poor Countries but in middle-income ones.  Perhaps debt per capita would be a better criterion for determining who got aid.

Uruguay had established a social emergency plan to meet the basic needs of people in extreme poverty, but jobs were now needed to make that strategy more sustainable, he said.  In terms of regional and international policies to help alleviate poverty, Uruguay wished to see an elimination of subsidies, greater access to markets in both developed and developing countries, resumption of the Doha trade talks and more innovative financing.  The link between the United Nations and other multilateral organizations should be strengthened, so that issues of importance to developing countries could be better voiced.  Each State had a role to play in preserving the environment and the condition of international waters while keeping the welfare of future generations in mind.

FILIMONE KAU (Fiji), associating himself with the Group of 77 and China, said that as a small island and a developing economy, his country attached great importance to the work of the Second Committee, which should provide the political leadership needed to promote strong consensus and multilateralism on international economic issues.  It should address immediately the disparity between rich and poor countries in terms of information and communications technology, which was a powerful tool for development.  In Fiji and the wider Pacific region, information and communication technology was the key to ending the “tyranny of distance”.

As a Small Island Developing State, Fiji had a highly vulnerable economy that depended heavily on its export trade for foreign exchange to meet its development needs, he said, reiterating that current international trade rules favoured and supported the interests of developed countries that were established traders.  Fiji did not advocate the removal of the multilateral trading arrangement, but called for a friendlier system.  International efforts must be directed to resume the Doha talks.

He urged the international community to support the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States.  That blueprint for sustainable development in the Small Island Developing States must be implemented.

MICHEL KAFANDO (Burkina Faso), aligning himself with the Group of 77 and China, said that the Monterrey Conference on financing for development had highlighted the need for better understanding of development resource needs.  It was essential to continue discussions in that field and the Second Committee could provide the forum to do so, in addition to such meeting grounds as Qatar, which had agreed to host a meeting on that very topic some time soon.  In light of worsening terms of trade, Burkina Faso also shared the concerns of other countries on the collapse of the Doha trade talks.  Developing countries needed better prices for their agricultural products, particularly cotton, and called upon developed countries to end their domestic agricultural subsidies in agriculture.

Describing migration as another major concern, he expressed “shock” at the scale of the phenomenon and the tragedies arising from it.  Radical steps must be taken to manage migration while respecting the interest of the migrants themselves.  Countries that had participated in the Africa-Europe dialogue in Rabat deserved congratulations, as did the General Assembly for organizing a high-level meeting on the subject.

In addition, the least developed countries were severely affected by rising oil prices because of which, Burkina Faso and other landlocked countries faced high transport prices, he said.  It was clear that those countries needed special treatment, within the World Trade Organization framework and the Almaty Programme.  In March 2007, Burkina Faso would host a meeting of landlocked developing countries to discuss international trade issues pertinent to them.

Burkina Faso reiterated its faith in the United Nations as a just vehicle for dealing with international economic issues, for which the Economic and Social Council needed resources.

WUNNA MAUNG LWIN (Myanmar) associating himself with the Group of 77 and the Association of Southeast Asian Nations (ASEAN), said developing countries needed an equitable and balanced trading system that benefited all countries, removed market access barriers, and promoted financial stability and steady capital flows.  The suspension of the Doha Round in July jeopardized the emergence of a multilateral trading system that was more equitable and development-oriented.  The failure to conclude those talks could lead to protectionism and the pursuit of bilateral and regional trade pacts that undermined the position of developing nations.

Myanmar was striving for economic development primarily by relying on its own resources without help from international financial institutions, he said.  Under its short-term five-year plan, the country had achieved an average annual growth rate of 12.5 per cent from 2001 to 2002 and from 2004 to 2005.  Foreign investors had sunk about $7.5 billion into more than 400 projects in the country and the foreign direct investment (FDI) had been enhanced by domestic investment.  With 90 per cent arable land and 80 per cent of its 54 million people living in rural areas, Myanmar gave priority to improving infrastructure that supported agriculture, including irrigation systems, major roads, bridges and railroads, clean water supplies and power plants.  Myanmar would have achieved greater economic and social development successes with international encouragement and support.

SAMUEL OSTILE OUTLULE (Botswana), aligning himself with the Group of 77 and the Southern African Development Community, said his country had ranked among the poorest at independence in 1966, but due to prudent management of revenues from diamond sales, it had achieved much progress.  Yet, Botswana still needed international assistance to continue developing.  Indeed, there were indications that middle-income developing countries were in danger of failing to achieve the Millennium Development Goals, and yet, a third of people living on less than a dollar a day were from those countries.  Though the middle-income countries were a diverse group, they faced common challenges, such as high levels of poverty, HIV/AIDS and natural disasters, which were compounded by the lack of favourable access to development assistance.

He said that in the absence of a framework within which middle-income countries could articulate their needs, the United Nations remained the only forum to stimulate international understanding of their predicament.  What was needed, was not more development conferences, but the will to translate existing agreements into concrete, well-funded and well-executed programmes.  With nine years left before 2015, the target year for attaining the Millennium Development Goals, Africa was glaringly behind and needed greater support from the international community to bolster efforts already undertaken through the New Partnership for Africa’s Development (NEPAD).  The “blame game” surrounding the Doha Round should also stop and the talks resume.

SUSHILA SWAR ( Nepal), said poor countries were marginalized and had not benefited from the development agenda as the notion of a global partnership for development had evolved.  While market access for goods from the least developed countries had improved over the years, the objective of ensuring duty-free, quota-free and unhindered market access remained unfulfilled.

She said the least developed countries deserved special attention and the recent mid-term review of the Brussels Programme of Action showed they would not meet their development objectives without concerted efforts by themselves and their development partners.  They also needed access to technology and all-inclusive debt relief.  The situation of poor countries emerging from conflict was precarious and needed special attention to sustain post-conflict peacemaking efforts through massive reconstruction programmes.  The least developed countries needed special treatment to help reduce transit costs.  It was necessary to expedite implementation of the Almaty Programme of Action.

Nepal was undergoing an important political transformation and the Government was committed to creating a foundation for inclusive development through high economic growth, she said.  The Government’s economic policies were meant to improve the investment climate and attain broad growth that included the poor.  Nepal was continuing economic reforms meant to encourage the private sector and its immediate tasks were to reconstruct the infrastructure, implement rehabilitation programmes and create jobs.

MOHAMED LATHEEF (Maldives), noting that natural disasters were occurring more frequently, said the Indian Ocean tsunami of 2004 had caused nationwide destruction in his country, leaving 62 per cent of the GDP destroyed on the spot and 300,000 people homeless.  To rebuild the country, the Government was trying to develop a stronger and more diversified economy, provide improved water and sanitation systems and become more resilient to disaster.  In order to generate resources for those endeavours, the Maldives had opened up 35 islands for resort development, but needed help from the international community to fill a funding gap of $100 million.

He said the main challenge for his country was its environmental vulnerability, its small size and its geographic and demographic fragmentation.  Unchecked emissions of greenhouse gases and the prospect of global warming might have catastrophic consequences for Small Island Developing Countries, and the Maldives was deeply concerned about the international community’s failure to take decisive and speedy action to halt environmental deterioration.  It appealed for global adherence to the Kyoto Protocol as well as implementation of Agenda 21, the Johannesburg Plan of Implementation and the Mauritius Strategy.

Unbalanced economic, financial and trade regimes were also a major roadblock to the achievement of development targets, he said.  The Maldives regretted that the Doha negotiations had not made much forward movement and considered it vital that the United Nations renew its efforts to address inequality in the international finance and trade regimes.  However, initiatives by developed countries to meet their ODA target were welcomed, and those that had not yet met those targets were urged to do so.

FRANCISCO JAVIER ARIAS CÁRDENAS (Venezuela), aligning himself with the Group of 77 and China, said the breakdown of the Doha Round showed a lack of political will by the developed countries, which had failed to meet their commitments under the global trade pact.  There was no single model of development and that fact should be reflected in the strategies and programmes that fostered development and in the decisions of the Committee.  Broad and balanced debate of the issues was essential.

Affirming the rights of countries to determine their own development priorities and strategies, he rejected any conditions attached to development assistance.  Venezuela advocated that the Bretton Woods institutions be made more democratic to correct their systemic problems and urged more active South-South cooperation.  Protection of the rights of ownership and the rights of citizens should be a priority.

He said his country backed a new concept of diplomacy and the consolidation of regional blocs that adopted a position against hegemony.  That would lead to a new economic order based on democracy, equality and cooperation.  Venezuela advocated inter-regional initiatives on financial assistance to reduce developing countries’ vulnerability to international markets, and regional development strategies that would promote infrastructure growth and integration.  The creation of a Bank of the South was one way to meet financial commitments to developing countries.

HASSAN SALEH (Lebanon), aligning himself with the Group of 77 and China, called for full implementation of all the outcomes of the major conferences and summits in the economic and social fields, including the Millennium Summit.  Regarding unemployment, 45 million jobs must be created in the Middle East between 2005 and 2012 if current employment rates were to be maintained.  Reducing poverty and hunger, protecting the environment, reducing the technology divide, giving more say to developing countries in the Bretton Woods institutions, migration, debt relief and promoting foreign direct investment were other issues requiring attention.

He said developed countries were the real driving force in creating a more balanced international trade system.  They could provide technical assistance to help developing countries make their economies more appealing to investors and manage the flow of foreign direct investment by encouraging private economic operators to invest in developing countries and transfer their know-how.  Their agricultural subsidies could be revised to allow more equitable trade in that sector, while tariffs and quotas could be reduced in others.  Their support in reducing debt was also important as was the need for shared work in addressing brain drain and reducing the cost of remittances.  On other matters, Lebanon also supported the permanent sovereignty of the Palestinian people in the Occupied Palestinian Territory, including East Jerusalem, and of the Arab population in the Syrian Golan over their natural resources.  Lebanon also stressed its inalienable right to its water resources.

JEAN-PIERRE NDINGA ( Congo), aligning himself with the Group of 77 and China, said the Committee must work to translate commitments made at recent international development conferences into political will.  Resolution 60/184, adopted during the sixtieth session, signalled alarm that trade talks were not progressing well and the suspension of the Doha Round this year was of particular concern for developing nations.  Issues surrounding commodities, the only goods sold by the developing countries, were not resolved and the Congo considered cooperation in talks on sensitive products such as oil very important in ensuring less volatility.

He urged the Committee to discuss vital issues, including new technology, debt, reduction of poverty and preservation of the environment.  As it discussed measures needed to deal with growing poverty around the world, it should bear in mind that Africa was among the weakest in that area and required the greatest attention.  The Congo was also very concerned about the implementation of NEPAD, which was necessary for the attainment of the Millennium Development Goals.

YOUSSEF SABRI, Deputy Director, United Nations Industrial Development Organization (UNIDO), said the Agency’s work focused on poverty reduction, trade capacity-building as well as energy and the environment.  It ran programmes to assist in entrepreneurship development with a particular emphasis on women; development of small enterprises, micro-enterprises and business in agro-industry; and assistance in the diffusion and transfer of technology.  UNIDO was also helping developing countries to conform to the market requirements of developed countries and had agreed to intensify cooperation with the World Trade Organization.

Regarding energy and the environment, he said UNIDO worked closely with Governments and such bodies as the Global Environment Facility, UNEP and the Montreal Protocol Fund.  In September, it had co-hosted a ministerial meeting on energy security in Latin America and the Caribbean with the Ibero-American General Secretariat.  That meeting had produced an agreement on first steps towards a regional observatory to facilitate information-sharing on renewable energy technologies in Latin America.  UNIDO had also hosted a panel on country-level coherence of United Nations activities in development, humanitarian assistance and the environment including consultations of the panel in May.  In pursuing its goals, UNIDO attached great importance to South-South cooperation, the NEPAD African Productive Capacity Initiative and other technical cooperation programmes.

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For information media • not an official record