Sixty-third General Assembly

Second Committee

6^th Meeting (AM)

as second committee concludes general debate, speakers stress need to redefine

development strategies in light of global challenges

 

In light of the myriad challenges facing the world today, there was a necessity to redefine strategies to achieve internationally agreed development targets, particularly those of most benefit to developing countries, which were in danger of seeing the gains they had made reversed, several speakers said this morning as the Second Committee (Economic and Financial) concluded its general debate.

The representative of the United Republic of Tanzania said the challenge of all developing countries was to survive in the current adverse environment, by seeking to maintain economic growth and stabilize inflationary pressures.  If poverty reduction was to be effective in real terms, equity measures to reduce the gap between rich and poor should accompany gross economic growth.  Pro-poor policies should deliberately be introduced to spread incomes and services to those at the bottom of the social ladder.

Malawi’s representative expressed concern over the opposition of multilateral and bilateral aid agencies to subsidies for agriculture and food production in the least developed countries, despite overwhelming evidence that poor farmers in those countries were unable to feed themselves due to the high cost of inputs such as fertilizer and hybrid seeds.  The World Bank and other multilateral and bilateral aid agencies should seriously consider making agricultural subsidies an integral part of global development and aid policy.  Malawi’s agricultural input-subsidy programme had produced outstanding results in the last three years.  The country had been able to produce its own food, demonstrating that a well-managed programme could greatly help poor farmers produce their own food and achieve food security.

Sri Lanka’s representative said rising food prices could make the more than 1 billion people suffering from chronic hunger even more vulnerable.  More arable land was needed for use in growing food crops, rather than biofuel production.  Sounding a similar note, Mongolia’s delegate pointed out that the consequences and economic challenges posed by higher food prices made it even harder for poor countries to achieve development targets within the agreed time frame.  Food price increases in many developing countries had pushed millions more people into destitution, causing social instability and unrest.  Pledges and commitments were good in their own right, but developing countries urgently needed actual deeds, and delivery of them, during the current hard times.

The representative of the Maldives said the current global financial and economic turmoil would undoubtedly hinder the progress made by developing countries, especially the least developed countries, landlocked developing countries and small island developing States, towards achieving development targets.  The United Nations must renew its efforts to conceive a global economy that addressed inequality and redressed the global imbalances in the international finance and trade regimes.

Tonga’s delegate said that, as a small island developing State, her country faced development challenges it could not solve on its own.  The adverse effects of climate change had depleted Tonga’s limited resources and delayed its attainment of the Millennium Development Goals.  Much of the country’s rural population was subjected to greater hardship caused by more frequent and intense tropical cyclones.  The effects of climate change endangered the people’s health, the economy, infrastructure, and the most vulnerable groups.

Other speakers today were the representatives of Iraq, Venezuela, San Marino, Afghanistan, Kuwait, Nauru and Armenia.

The Second Committee will meet again at 10 a.m. on Monday, 13 October, to begin its consideration of macroeconomic policy questions.

Background

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

Statements

FALAH MUSTAFA BAKIR (Iraq), noting that political dialogue, national reconciliation, reconstruction and economic development went hand-in-hand, said his country was in a transitional phase, whereby a constitution and the concepts of democracy, federalism and opportunity had replaced the horrors of dictatorship.  The Kurdistan Regional Government was a shining example of how well regional and local governments could operate within a federal Iraq, having proven its ability to provide security and economic development by working closely with constituencies and local leaders to promote growth for Arabs, Kurds, Turkmen, Chaldeans and Assyrians alike.

He said Iraq’s seven northern governorates had recently held an economic development conference in Erbil, co-chaired by the Kurdish Regional Prime Minister, who had lauded the International Compact with Iraq and some nations’ forgiveness of Iraqi debts and contribution to national reconstruction.  The Kurdish Regional Government had reached out to neighbouring countries, particularly Arab neighbours, to attract investment in Iraq.

The United Nations Assistance Mission in Iraq (UNAMI) had conducted workshops and training initiatives to help build national capacity, he said.  The Iraqi and Kurdish Regional Prime Ministers had worked tirelessly to maintain security, encourage development and promote democracy.  An emphasis on foreign and national investment, agricultural reconstruction and attention to society’s immediate needs had created new opportunities.  The Kurdish Regional Government was striving to develop its human resource capacity, maintain a transparent and accountable administration, develop infrastructure, improve public-service delivery, empower women, and protect the environment.  Iraq was also playing close attention to the needs of its citizens in terms of electricity, health care, equal opportunity and social justice.  Improving basic infrastructure would promote stability and a better standard of living.

MAHE U. S. TUPOUNIUA ( Tonga) said that, as a small island developing State, his nation faced development challenges it could not solve on its own.  As much as it strove towards self-sufficiency, it was aware that progress must incorporate the assistance of long-term and emerging development partners.  Tonga relied on the goodwill of donor countries and partners to strengthen its capacity to develop its economy.  One of the Government’s key concerns was agricultural and rural development, in light of agriculture’s role as a major player in the national economy.  Several development partners, as well as regional and international financial institutions, had embarked on programmes to improve access to basic services and resilience to natural calamities, while promoting equitable access to productive natural resources and technology.

Describing climate change as a cross-cutting issue with an enormous impact on his country’s sustainable development, he said its adverse effects had depleted Tonga’s limited resources and delayed its achievement of the Millennium Development Goals.  Much of the rural population was subjected to greater hardship caused by more frequent and intense tropical cyclones.  The effects of climate change also endangered people’s health, the economy, infrastructure, and the most vulnerable groups.

Stressing that the continued existence of the country’s land and the survival of its people were central to the study of the relationship between climate change and sustainable development, he said the underlying assumption underpinning the very concept of sustainable development was no longer a certainty for small island developing States.  It was a well-known fact that the islands were sinking, and without land, a nation would be non-existent.

HEWA PALIHAKKARA ( Sri Lanka), emphasizing that biofuel production could not take place at the expense of arable land, said there was no point in looking for stopgap solutions to energy problems.  Arable land must be used for crop production, and there was a need to provide improved seeds, a timely supply of fertilizer, more investment in agricultural research, and better infrastructure.  Leaders had worked to do just that at the recent South Asian Association for Regional Cooperation Summit in Colombo.

Noting that international migration had far-reaching socio-economic consequences, he said it should be included in the consideration of international development strategies, adding that the welfare of migrants and their families should be addressed as a matter of priority.  Sri Lanka supported calls for increased commitment to and compliance with international regimes to protect and promote migrants’ rights, including the right to decent work and enhanced welfare.

He said the increasing magnitude and frequency of climate-related disasters revealed the need to review recent economic development policies and strategies.  Climate change aggravated the food and energy crises, and a more balanced, careful approach to economic and environmental policies was needed at the local and global levels.  Enhanced international cooperation on disaster risk reduction and management was essential in helping disaster-prone countries prepare for, and respond to them.  Sri Lanka called for an internationally agreed trade-off for the forest cover and biodiversity of developing countries, both critical buffers in reducing greenhouse gas emissions and combating desertification.

AUGUSTINE P. MAHIGA (United Republic of Tanzania) said his delegation was concerned with the slowdown of global growth, and with high inflation following more than four years of strong performance.  The slow growth, coupled with the current financial crisis and the impact of high commodity prices, had further weakened the global economy.  The challenge to Tanzania –- like all other developing countries –- was to survive in that adverse environment by seeking to maintain economic growth and by stabilizing the inflation pressures arising from the global crisis.  In light of the new challenges, it was necessary to rethink and redefine the approaches and strategies to achieve the Millennium Development Goals.  The high-level meeting on the millennium targets was a call to renewed political commitment and action to mobilize additional domestic and international resources against the prevailing adversities in combating poverty and achieving the other goals.

Economic growth in gross terms should also be accompanied by equity measures to reduce the gap between the rich and the poor, if poverty reduction was to be effective in real terms.  Pro-poor policies should deliberately be put in place to spread incomes and services to those at the bottom of the social ladder.  Globalization had widened the technology gap between the developed and developing countries, thereby exacerbating inequalities that already existed.  Science and technology had a crucial role to play in the quest by countries to achieve the millennium targets, as well as other internationally agreed goals.  Support was, therefore, needed in the form of technology transfer, in a way that encouraged the diffusion of appropriate technology in developing countries.  In the area of the environment and climate change, he urged for strict adherence to international conventions and appropriate responses to adaptation and mitigation measures.

JORGE VALERO ( Venezuela) said the global crisis of capitalism had led to a multidimensional crisis, making other options necessary as it affected the deepest foundations of the capitalist system.  The world would never be the same.  The crisis must lead to a new, multipolar world and a new sovereignty of the people.  Lack of state regulation and the implementation of neoliberal policies that had emerged in the context of the Washington Consensus were to blame.

Those policies had transferred wealth from the workers and the middle class to the wealthy, in the belief that prosperity would trickle down from the most powerful to the rest of society, he said.  But that had not happened.  Instead, there had been economic growth without well-being, and poverty had spread, gradually affecting all of humankind.  Climate change was evident, as was the degradation of the planet’s ecosystems.  Rivers, seas, jungles and glaciers had been destroyed, and there was widespread physical and spiritual poverty.

Those who had led the global community to the present failure could not lead the world, he emphasized, saying they lacked the moral authority to do so.  The Bretton Woods institutions and the hegemonic Governments of the world must acknowledge their responsibility in the current crisis.  The United States had a particular responsibility not to conceal any circumstances.  Venezuela warned against transferring the burden to countries in the South, and called on the United Nations to take an active role.

CHOISUREN. BAATAR ( Mongolia) said the failure of multilateral trade negotiations in the Doha Round was a major setback in efforts to forge a genuine global partnership for development.  Moreover, the enormous consequences and economic challenges posed by higher food prices made it even harder for poor countries to achieve internationally agreed development targets within the agreed time frame.  Rising food prices in many developing countries had led to food security crises, and pushed millions more people into destitution, causing social instability and unrest.  Developing countries had legitimate concerns that the current financial crisis had spill-over effects that might cause economic decline around the world, with developing countries possibly having to bear the burden.

A major source of concern was the uneven progress in implementing the Millennium Development Goals, as well as persistent wide disparities within and among regions, he said.  Pledges and commitments were good in their own right, but actual deeds and delivery of them were urgent for developing countries during the present hard time.  Out of 24 measurable Mongolia-specific Millennium Goals, about 60 per cent had been achieved, or were likely to be achieved by 2015, as a result of coordinated policies and actions mainstreaming the Millennium Development Goals into national development policy documents and programmes.  To achieve all the targets, national efforts must be complemented by active support on the part of the international community.

STEVE MATENJE (Malawi) expressed hope that the Committee would turn the outcomes of the recent high-level meetings on Africa’s development needs, the Millennium Development Goals and the Almaty Programme of Action into practical, tangible and measurable decisions to reduce poverty further, particularly in the least developed countries like his own.  Malawi was ready to support the Committee’s approval of action-oriented decisions that had a direct and visible impact on poverty eradication in the least developed countries.

For least developed countries with agro-based economies like Malawi, agricultural production was the key to food security, he said.  It was a matter of concern that multilateral and bilateral aid agencies continued to oppose subsidies for agriculture and food production in the least developed countries, despite overwhelming evidence that poor farmers in those countries were unable to feed themselves due to the high cost of agricultural inputs such as fertilizer and hybrid seeds.  The World Bank and other multilateral and bilateral aid agencies should seriously consider making agricultural subsidies an integral part of global development and aid policy for developing countries.

Malawi’s agricultural input-subsidy programme had produced outstanding results in the last three years, he said.  The country had been able to produce its own food, and had demonstrated that a well-managed programme could greatly help poor farmers produce their own food and achieve food security.  The current marginalization of developing countries in international trade meant that most of them, especially in Africa, would not able to achieve the millennium targets.  Industrialized nations should demonstrate a strong spirit of compromise and steadfast political will to ensure the resumption and successful conclusion of the Doha talks.

DANIELE D. BODINI ( San Marino) said today’s financial crisis was unfortunately becoming, for everyone, a “global tsunami” whose repercussions were yet to be defined.  San Marino was a small country, like the majority of other United Nations Member States, and lacked the ability and tools to protect itself from the consequences of such devastation.  As had been pointed out by many delegates, the financial turmoil would impact efforts towards achieving the Millennium Development Goals, as well as other crucial targets.  There was a need to redouble efforts to ensure that the expectations of the billions of people in need were fulfilled.

Calling for the General Assembly to be the focal point for new and universal ideas for dealing with the financial crisis, he said Member States should not wait until the World Economic Forum in Davos or other meetings to learn from the media how to solve common problems.  The Assembly was the most qualified and representative place to discuss those very important issues in a fair and effective way.  Member States should consider dealing with global challenges during the current session.

AHMED KHALEEL ( Maldives) said the current global financial and economic turmoil would undoubtedly hinder the progress made by developing countries, especially the least developed countries, landlocked developing countries and small island developing States, towards achieving internationally agreed development targets.  The United Nations must renew its efforts to conceive a global economy that addressed inequality and redressed the imbalances in the international finance and trade regimes.  The early and successful completion of the Doha Development Round and the constructive outcome of the Review Conference on Financing for Development were crucial.

He said his country had made remarkable socio-economic progress in the last three decades by pursuing a people-centred path towards sustainable development based on social equity, poverty eradication, economic growth, environmental protection and good governance.  The Millennium Development Goals were now fully incorporated into national development priorities, and the Maldives was on track to achieve most of them by 2015.

Calling climate change a daily reality for his country, he said it had forced the Maldives to divert its limited resources from strategic development to recovery and reconstruction.  The Maldives and other small island developing States contributed the least to global warming, which nonetheless fundamentally threatened their development and very existence.  The international community was obligated to address the injustices of climate change through a comprehensive rights-based approach to sustainable and just development based on common but differentiated responsibilities.

WALI NAEEMI ( Afghanistan) said the current problems posed additional challenges for developing countries, specifically the least developed and post-conflict countries.  The situation clearly called for intensified efforts to highlight further the inextricable link between security and development.  Afghanistan called on the United Nations to take the lead in advancing a pervasive development agenda and promoting a genuine and enhanced global partnership for development.

He said the Organization had a three-dimensional role in the promotion of economic and social development:  policy formulation and negotiation of international norms, agreements, goals and commitments; development cooperation to facilitate the realization of policy goals and commitments; and monitoring the implementation of those commitments.  Internationally agreed development targets, including the Millennium Goals, had been identified, and progress towards attaining them could be readily monitored and pursued further.  There was a need for further analysis and policy formulation in the areas of finance, trade, technology, energy, climate change, the food crisis and global economic growth.  It was also necessary to strengthen the machinery for monitoring and implementing the Millennium Goals and other internationally agreed development targets.

JARRAH JABER AL AHMAD AL JABER AL SABAH (Kuwait) said the effects of the recent increases in food, basic commodities and energy prices, as well as climate change, went beyond national borders, and no barriers or artificial restraints could deter them.  Africa, which had already begun to witness their negative impacts, had not made any significant progress in eradicating poverty and hunger, or in fighting dangerous infectious diseases such as HIV/AIDS and malaria.  The recent crises had only exacerbated the continent’s suffering, especially sub-Saharan Africa.

He said his country continued to work on economic and social development and on promoting the progress of Kuwaiti citizens, while providing them with decent living standards.  Kuwait had made good progress in implementing the commitments and resolutions of the 2005 World Summit, and it had attained all the Millennium Development Goals, including those concerning education and health.  It had also enhanced the role of women in society.  The Kuwaiti Government had adopted policies and strategies to restructure the national economy and create a friendly investment climate to attract capital for energy, infrastructure and other vital economic sectors.

Kuwait spared no effort to provide development assistance to developing countries and least developed countries through its official and non-official institutions, he said.  In December, the Government had decided to give 10 per cent of its total contributions for disaster-afflicted countries to specialized agencies working in that field.  It had set up the Decent Life Fund with $100 million to develop and improve agricultural production in developing countries.  Kuwait had also donated $150 million to the fund set up during the last Organization of Petroleum Exporting Countries (OPEC) Summit, held in Saudi Arabia, which had focused on research in energy, the environment and climate change.

ALISON HEIMER ( Nauru) underscored the necessity of addressing the current global problems as quickly and efficiently as possible, and coming up with consensus resolutions that were less concerned with budgetary implications and more concerned with helping those who needed immediate assistance.  As a Pacific island country, much of Nauru’s sustenance came from the ocean, but that which brought up life might bring about the country’s demise, as rising tides consumed its shores.  There was a need to take up that issue in the Committee, as refugees from those regions would cause security threats to those not directly affected.

The food and economic crises were two areas in which States should act with haste, but not hastily, she said.  When looking at how to manage the economic crisis, States should not act so quickly that they failed to realize fully the consequences of their actions.  The core responsibility of each nation was to its own citizens, and, while the crises affected all populations, the poor shared an unequal burden with the rich, who would somehow manage to survive.  Additionally, it was through the cooperation of sharing technology, information, ideas and resources that a country’s continued existence was possible, not only in the case of small island States, but for all nations that enjoyed their way of life and sought to improve their living standards.

ARMEN MARTIROSYAN ( Armenia) said that, in the past year, his country had continued with aggressive economic reform, sustained double-digit economic growth, continued its poverty reduction efforts and strengthened security.  Many of its objectives were based on the millennium targets, which Armenia was committed to achieving by 2015.  Poverty reduction, particularly in rural areas, continued to be the most urgent issue, commanding daily attention from the Government and the private sector.  The Government had implemented socio-economic reforms in cooperation with international financial institutions, and through non-conventional methods, such as the creation of the All-Armenian Bank and Investment Fund, formed from remittances and expertise from Armenians living abroad.  Its policies focused on sustaining economic growth, the primary tool for poverty reduction.

Strengthening market institutions and attracting more foreign direct investment had improved the business environment, curbed unemployment, increased wages, and made improved health care and education more accessible, he said.  According to the latest Human Development Index of the United Nations Development Programme (UNDP), Armenia ranked among the highest of countries in the region in that regard.  However, the recent drop in the global stock markets could lead to a global recession.  Emerging economies had little to do with the subprime mortgagecrisis, but they were vulnerable to the sudden halt in international capital flows.

He expressed hope that donor countries could maintain the appropriate level of assistance and show more flexibility in debt restructuring.  Energy diversification and access to energy transit routes would also remain high on the global development agenda.  In recent years, energy supplies to landlocked Armenia had been interrupted on many occasions during periods of civil unrest and military conflict in neighbouring countries.  Armenia supported Turkmenistan’s introduction of a draft resolution on the safety of energy transit.

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For information media • not an official record