GA/EF/2911

SECOND COMMITTEE DISCUSSES GLOBALIZATION, INCOME INEQUALITY, DEBT-RELATED ISSUES, AS GENERAL DEBATE CONTINUES

The representative of the Russian Federation compared globalization to a rolling train that one could safely board only from the right platform at the right time, as the Second Committee (Economic and Financial) continued its general debate this afternoon.

The United Nations, he said, should complement national efforts to build such platforms as soon as possible. He stressed the importance of, among other things, national plans of action for the establishment of relevant institutions and the establishment of new technology-friendly legal and regulatory frameworks. Today, there was a historic chance to �skip� several traditional stages of development by implementing information and communication technology.

Morocco�s representative said that inequality in income continued to worsen. The three richest people in the world had an income that exceeded the gross national product of the world�s 49 poorest countries. Twenty per cent of the richest people held over 80 per cent of the world�s wealth, while 20 per cent of the poorest only held 1 per cent. Should the international community allow that situation to deteriorate? he asked, or should it work together to find solutions that would protect the dignity of human beings?

Ecuador was undergoing a difficult moment, that country�s representative said. The debt problem and the fight against poverty were, without a doubt, some of the main obstacles for development. Ecuador�s debt service consumed more than 50 per cent of the national budget. That prevented the execution of health programmes, education, employment, and the well-being of the population�s poor sectors. A solution based on the principles of justice, responsibility and solidarity must be found.

Speaking on behalf of the Southern African Development Community (SADC), the representative of Namibia said that SADC�s vision was to create a strong regional economic structure. It was implementing far-reaching reforms in pursuit of creating a single economic space in which the parameters of economic integration and political interaction would be fully realized. The group hoped to establish a Free Trade Area in the SADC region by 2008.

The representative of the United States said globalization, like any process of change, would bring about some degree of dislocation. Benefits to any country would depend on that country�s economic, political and legal environment. The

Second Committee - 1a - Press Release GA/EF/2911 4th Meeting (PM) 2 October 2000

challenge for every country was to position itself so as to maximize the benefits of globalization for all citizens.

Statements during the general debate were also made by the representatives of Ukraine, Belarus, United Arab Emirates, Nepal and the Philippines.

Under other matters, the Committee also discussed the theme and modalities for its upcoming video-link session with the Trade and Development Board of the United Nations Conference on Trade and Development (UNCTAD) in Geneva.

The Committee will meet again at 10 a.m. tomorrow to continue its general debate.

Second Committee - 3 - Press Release GA/EF/2911 4th Meeting (PM) 2 October 2000

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to continue its general debate.

Statements

VOLODYMYR KROKHMAL (Ukraine) said that today�s challenges were quite different from those of the past, since the balance of risks in the global economy had changed. There were a number of areas of concern regarding the economy�s recent developments. Among them was a lack of a new financial architecture to prevent a possible financial crisis. It was becoming increasingly apparent that an appropriate mechanism had to be in place to strengthen national and international frameworks based on global partnership and improved quality of governance.

Although the world economy had registered strong rates of growth since the autumn of 1998, he said many transitional economies remained highly vulnerable to the impact of independent developments affecting the world economy. The situation in his country had shown clear signs of macroeconomic stabilization and increased industrial production. The economic reforms under way in Ukraine were also evidence that closer international cooperation was imperative in promoting a fair multilateral trading system and a favourable economic environment. The regional component of the global economy was indispensable. In that regard, he expressed his country�s gratitude to the member States of the European Union.

The new level of global partnership achieved in the environment protection area at the Rio Summit offered opportunities for wider international cooperation, he said. Ukraine fully understood its responsibility for protection of the environment, in both the national and global context, and would spare no effort to achieve the aims of Agenda 21.

HIV/AIDS was among other challenges of the new century, he said. AIDS had become an epidemic of global scope with enormous human and social ramifications. The time had come for the United Nations to elaborate a comprehensive agenda for action against the disease.

SERGEY LAVROV (Russian Federation) said that the depth and scale of the socio-economic and environmental problems facing humanity required innovative approaches. What was really needed was the creation of conditions that would not only ensure sustainable development, but also exclude the emergence of hotbeds of social and economic tension fraught with threats to international peace and security.

He said that it was accurate to compare globalization to a rolling train that one could safely board only from the right platform at the right time. The United Nations should complement national efforts to build such platforms as soon as possible. He stressed the need for intensification of efforts to solve socio- economic problems, particularly the digital divide; national plans of action for the establishment of relevant institutions; the establishment of new technology- friendly legal and regulatory frameworks; and the comprehensive development of human potential. Today, there was a historic chance to �skip� several traditional stages of development by implementing information and communication technology.

The theme of information and communication technology, with a focus on ensuring equitable access to its fruits, should find its due place among the priorities of the United Nations, he continued. Equally important was the task of making the advantages of globalization accessible for everyone and neutralizing its negative impact. In that context, the imperative of the United Nations to reduce poverty, which was the main obstacle to sustainable development, was particularly relevant.

Humanitarian issues, he said, remained one of the priorities of the United Nations. The underlying principles of such activities were neutrality, impartiality and humanity. The idea of �humanitarian intervention� was in conflict with those universally accepted principles. The Millennium Summit had once again confirmed that the concept of humanitarian intervention, which was destructive for the entire system of international relations, was rejected by the overwhelming majority of the international community.

FERNANDO YEPEZ LASSO (Ecuador) said that globalization was a reality that developing countries must face. The South Summit, which had taken place in Havana last April, marked a favourable occasion for developing countries to examine -- in an objective and realistic manner -- the challenges and opportunities of globalization. Developing countries had not benefited in a fair manner from globalization. On the contrary, they had been impacted with its negative effects. The Millennium Summit had constituted a unique opportunity to reaffirm the principles and purposes of the Organization. Ecuador believed in multilateralism and would foster its growing efficiency.

Ecuador was undergoing a difficult moment, he said. The grave crisis, worsened by international and external factors, had caused instability in the process of democratic consolidation and had increased macroeconomic imbalances. The debt problem and the fight against poverty were, without a doubt, some of the main obstacles for proper development. Ecuador�s debt service consumed more than 50 per cent of the national budget. That prevented the execution of health programmes, education, employment, and the well-being of the population�s poor sectors. A final solution, based on the principles of justice, responsibility and solidarity, must be found.

Ecuador had a strong integrationist vocation that supported the strengthening of the Andean community of nations, he said. His country promoted a new round of multilateral negotiations that would include all sectors and contribute to the elimination of protectionism. Ecuador was fully committed to the protection of the environment. His country would work to achieve the implementation of the purposes stated at the Rio Summit. The United Nations had a great role to play in the prevention, mitigation and reduction of the effect of natural disasters -- among them, the El Ni�o phenomenon. Ecuador had taken the necessary measures to proceed with the establishment of an international centre for the investigation of that phenomenon in the city of Guayaquil.

SERGEI LING (Belarus) said that every country was vulnerable to the imperfection of a globalizing economy. He, therefore, supported the further strengthening of the international financial system. That was key for the successful integration of developing countries and countries with economies in transition into the global economic system. He welcomed what had been said in Prague by the Executive Director of the International Monetary Fund (IMF) in terms of carrying out structural reforms in such a way as to ensure that globalization would work for all.

Reducing the risks of globalization, ensuring sustainable development and reducing the digital divide were just some of the priorities that should be integrated into a programme of action for the entire United Nations system, he said. A test of the new political will would be the readiness of countries to achieve consensus on the nature of the new international financial architecture. He looked forward to the next year�s High-Level Intergovernmental Event on Financing for Development, and supported the appeal for greater participation by all countries within the Bretton Woods institutions and the World Trade Organization (WTO).

AHMED AMAZIANE (Morocco) said that, with the technological revolution, the process of globalization was becoming more universal and global. While he commended this, the community of wealthy nations should not be content with a narrow view of globalization. The objective that must be pursued was none other than peace for all peoples and countries of the planet. That could only take place with the eradication of poverty.

Inequality in income continued to worsen, he said. The three richest people in the world had an income that exceeded the gross national product (GNP) of the world�s 49 poorest countries. Twenty per cent of the richest people held over 80 per cent of the world�s wealth, while 20 per cent of the poorest held only 1 per cent.

Should the international community allow that situation to deteriorate? he asked. Or should it work together to find solutions that would protect the dignity of human beings, wherever they might be? The case of Africa was the most tragic. The Secretary-General had noted in his Millennium Report that half of the inhabitants of Africa lived in abject poverty. The urgent question was to know what had to be done to alleviate the poverty of the planet.

Morocco�s contribution was in saying that the path to follow was the establishment of an economic system based on good governance and solidarity, he said. Nothing else would contribute more than the establishment of a culture that valued work, the refusal of impunity and the rule of law. Nothing should allow the international community to be indifferent. That could only be achieved through dialogue.

RASHED AL DHAHERI (United Arab Emirates) said that the agenda of the Second Committee showed the increased importance of economic and financial issues within the United Nations. Economic security was the basis on which to build a stable world. The international community must find a new economic strategy, which took into account the needs of each and every country. With the ever-growing disparity between developed and developing countries, the Committee must focus on the elaboration of a framework for sustainable development. It must also limit the debt burden of developing countries, strengthen aid for development to those countries and eliminate obstacles to the acquisition of technologies for development.

The United Arab Emirates renewed its support for the ongoing efforts to restructure all spheres of the United Nations system, he said. He appealed to the World Bank, IMF, WTO, the United Nations Conference on Trade and Development (UNCTAD) and others to play an effective role in achieving sustainable development.

His country was also concerned about the social and economic consequences of the violations of the rights of the Palestinian people by the illegal Israeli occupation. He asked the international community to increase pressure on Israel to abandon its illegal practices and comply with international agreements and United Nations resolutions. It was the wish of his country that the world be governed by more just and equitable international relations.

TJI-TJAI UANIVI (Namibia), speaking on behalf of the Southern African Development Community (SADC), said that there was no doubt that the agenda of the Second Committee was an urgent one. The Millennium Summit had set ambitious goals on economic and financial priorities and had made several specific commitments for poverty eradication, sustainable development and special assistance for Africa. It was the obligation of this Committee to ensure that these commitments were now translated into concrete action. The challenge was to pursue globalization in ways that would carry the basket of economic growth and social benefits to all corners of the world.

The vision of the SADC was to create a strong regional economic structure. The SADC member States were implementing far-reaching reforms in pursuit of the shared vision of creating a single economic space in which the parameters of economic integration and political interaction would be fully realized. The integration of the Trade Protocol should lead to the establishment of a Free Trade Area in the SADC region by 2008. He called on governments and relevant private sectors in developed countries to increase the flow of foreign direct investment to the region.

The external debt remained a major problem for SADC countries, he said. While the cancellation of debt and other forms of bilateral debt relief was appreciated, it had not been very effective in reducing the overall debt burden of SADC countries since much of their debt was due to multilateral institutions. The SADC urgently called upon the developed countries to cancel the debt of the developing world, particularly the least developed countries (LDCs). The SADC region welcomed South Africa�s offer to hold the �Rio+10� conference. His delegation looked forward to participating vigorously on specific agenda items for the duration of the Committee�s work.

BETTY E. KING (United States) said that there were things in the world today -- such as war, poverty and ignorance -- which were incompatible with the word �civilization�. Countries gathered at the United Nations to try and figure out how best to combat those affronts to human dignity and advance the lives of their citizens. If there were easy solutions, they would have already been found. If there was anything on which everyone could agree, it was that rapid and urgent change was needed.

A subject of some controversy was globalization, a process primarily driven by technological advances, she said. People now lived in a world of greater potential than past generations. There were more opportunities to escape the bad and embrace the good. Globalization, like any process of change, would bring about some degree of dislocation. Benefits to any country would depend on that country�s economic, political and legal environment. The challenge for every country was to position itself to maximize the benefits of globalization for all their people.

One exciting aspect of the globalization era, she said, had been the rapid spread of technology around the world. With regard to biotechnology, the United States supported the Group of Eight industrialized countries� communiqu� which called for the sharing of biotechnology with developing countries. Another exciting aspect of globalization was the use of the Internet. Her country also planned to work with developing countries in the Digital Opportunities Task Force, announced by the G-8 in July. Access to digital opportunities must be open to all in order to effectively bridge the digital divide.

She strongly supported the preparations for the Third Conference on Least Developed Countries to be held in Brussels in May 2001. That event would provide an opportunity for all stakeholders to assess the successes and failures of past policies. Her country also supported the preparations for the 2001 High-Level Intergovernmental Event on Financing for Development, which she hoped would produce a concrete and comprehensive framework for financing development activities. Finally, the United States was firmly committed to sustainable development and believed that the �Rio+10� conference, to be held in 2002, would provide an opportunity to consider ways to advance those areas of Agenda 21 where progress had been slow.

TEK BAHADUR CHOKHLA (Nepal) said many developing States were in deep conflict and the majority of humanity lived in absolute poverty, illiteracy and disease. Although poverty reduction and development were primarily responsibilities of the developing countries, they could not do it alone. Developing countries needed better terms of trade, as well as improved access to the developed country markets for their products and services. They must also have access to technology in the rich countries for their modernization.

Nepal appreciated the goal set by the Millennium Summit to halve poverty by 2015. His delegation hoped that the international community would rise to the occasion, and do its best to mobilize necessary resources and create a favourable external climate to achieve that goal. The debt problem of low-income countries had strained their internal resources. He urged the rich countries to expedite and expand the implementation of debt-relief provisions. The LDCs must be provided with quotas and duty-free access to the markets of the developed countries if they were to catch up with the rest of the world.

The growing environmental problem was a common concern for people around the world, he said. Agenda 21 remained largely unimplemented. Nepal hoped that the global community would redouble its efforts to implement Agenda 21 as well as the Kyoto Protocol. Reform of the Bretton Woods institutions was another important subject. His delegation welcomed the response the World Bank and the IMF had begun to show, and urged deeper reforms in the international financial architecture so that developing countries would have a greater voice in shaping their destiny. South-South cooperation was vital for the progress of poorer countries. He welcomed the South Summit and hoped that concerted efforts would be made by all concerned to implement its decisions.

FELIPE MABILANGAN (Philippines) said the international community must work towards a new international trading and financial architecture to make it more oriented to the needs of development and the developing world, particularly by

ensuring that free trade was equated with fair trade. In that regard, he welcomed the Secretary-General�s proposal to, in effect, eliminate duties on the exports of the LDCs.

Least developed countries could not be expected to make significant progress in social and economic development if they were encumbered by an unmanageable debt burden, he said. Therefore, more resources must be devoted to the Heavily Indebted Poor Countries (HIPC) Debt Initiative to keep progress on track. Also, the momentum generated by the Millennium Summit must be built on to ensure that participation at the High-Level Intergovernmental Event on Financing for Development would be at the highest level possible. He hoped that all stakeholders, particularly the Bretton Woods institutions and the WTO, would develop a sense of ownership and participate in the event.

As the work of the Committee progressed, he said, it must take a closer look at the process of globalization and how to mitigate its less attractive effects, including the growing digital divide. It was premature to talk of improving Internet access for the developing world when the majority of mankind had not heard a dial tone. Therefore, what needed to be addressed was the lack of infrastructure, the need for education, as well as capacity-building, investment and connectivity.

Other Matters

The Chairman of the Committee, Alexandru Niculescu (Romania) then raised the issue of finalizing a topic for the upcoming video-link session between the Committee and the UNCTAD Board in Geneva.

During the discussion that followed, the representative of France, on behalf of the European Union, proposed the topic of the Third Least Developed Countries Conference, and the representative of Nigeria, on behalf of the �Group of 77� developing countries and China, proposed the topic of integrating LDCs into the global economy. A representative of UNCTAD, however, informed the Committee that the topic of regional integration had already been decided upon well in advance by his colleagues in Geneva and was not subject to change.

Concerning the modalities of the discussion, the Chairman said that it would last two hours, from 10 a.m. to 12 p.m. New York time. It was best to have further consultations on that issue.

The representative of the Sudan asked if Geneva could provide some background on what exactly was to be discussed under the topic.

The representative of Guyana mentioned that such a discussion had taken place at least twice in the past. Therefore, the Secretariat might be able to shed some light on the modalities of such an event.

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