Second Committee

Although once well regarded as a powerful tool for strengthening cooperation and accelerating growth, globalization had resulted in disastrous consequences for developing countries, speakers stressed today as the Second Committee (Economic and Financial) took up its agenda item on globalization and interdependence.

Given the myriad challenges still facing least developed countries, small island developing States, and landlocked developing countries due to multi-dimensional global crises, the international community must work to establish a new, targeted and action-oriented programme of action at the Fourth United Nations Conference on Least Developed Countries next May, several speakers stressed today.

After the 2015 target year for realizing the Millennium Development Goals, global policymakers should consider replacing the current economic categories of countries by classifying them in a manner more appropriately reflecting their socio-economic situations and challenges, the Minister for Foreign Affairs of Bangladesh told the Second Committee (Economic and Financial) today.

Despite encouraging progress in strengthening the financing for development follow-up process, more must be done to ensure full implementation of the Monterrey Consensus and the Doha Declaration, delegates in the Second Committee (Economic and Financial) emphasized today.

Concerned that the recent increase in funding for United Nations development activities could taper off or even reverse course this year because of the global economic crisis, several delegates in the Second Committee called today for a steady incoming flow of cash, as well as greater balance between the funding of core and non-core activities.

With developing countries having unfairly borne the brunt of the global economic and financial crisis while experiencing an effective worsening of their vulnerabilities, the international community must consider establishing a mechanism to help them overcome debt distress and achieve debt sustainability, several representatives stressed today, as the Second Committee (Economic and Financial) began its consideration of macroeconomic policy questions.

The Second Committee (Economic and Financial) met this morning to consider whether to impose limits on speaking time during its discussions, set one-time deadlines for submitting draft proposals, and whether to eliminate its general debate altogether, among other ideas proposed for improving its working methods.

As developing countries struggled to gain economic traction, there was an increasingly urgent need to set up systems to relieve their external debt, bolster their clout in international financial institutions and prevent a recurrence of the reckless speculative developed-world financial practices that had wreaked havoc on their economies, several speakers told the Second Committee as it concluded its general debate today.

With global crises and the destructive effects of climate change continuing to threaten not only global socio-economic development, but also the world’s very existence, developed countries must assume their “historic responsibility” to help their developing counterpart bridge existing imbalances and gaps, many speakers said today, as the Second Committee continued its general debate.

With the global economy fragile and on an uneven path to recovery, the world’s development needs, especially those of its most vulnerable people, must take centre stage in all fiscal policies and stimulus plans, Sha Zukang, Under-Secretary-General for Economic and Social Affairs, told the Second Committee today, as it began its annual general debate.