GA/EF/2914

CALLS FOR REFORM OF INTERNATIONAL TRADE SYSTEM MADE AS SECOND COMMITTEE CONCLUDES GENERAL DEBATE

It was utopian to believe that, under the current rules of international trade, developing countries would be able to contribute in a significant way to world economic growth, the representative of Angola told the Second Committee (Economic and Financial), as it concluded its general debate.

It was inconceivable, he said, that two unequal groups could participate under the same terms in any given process. In that sense, it was crucial that the rules governing the current economic relations between States be redefined.

The representative of Togo said that the need for the establishment of a just international trade system was increasingly apparent. The imbalance of the system was extremely harmful for developing countries. He stressed the urgent need for private capital flows to countries in the South. The year 2001 would be a decisive year for the least developed countries.

Jordan�s representative agreed that the international trade system must be reformed. The system currently benefited the exports of the most developed countries. The debt of poor countries should be cancelled, reduced or partially repurchased. There also had to be better access to the markets of developed countries for the developing countries, especially in agriculture and textiles.

The creation of a fair and equitable trading system was an issue of deep concern, the representative of El Salvador said. Other issues of concern included development, the eradication of poverty, the preservation of the environment and the reduction of the impact of natural disasters.

Singapore�s representative said that the protesters in rich countries, who opposed globalization and trade liberalization, had missed the point completely. Developing countries did not want globalization to be halted. That would only marginalize them further and make it impossible for them to lift themselves out of poverty. Those countries wanted to be full participants in globalization.

Statements were also made this afternoon by the representatives of Algeria, Myanmar, Sudan, Madagascar, Tunisia, Syria, Turkey, Kyrgyzstan, Republic of Korea, Mongolia, Bhutan, Dominican Republic and Cameroon.

The Committee will meet again tomorrow morning at 10 a.m. to consider macroeconomic policy questions: financing of development, including net transfer of resources between developing and developed countries.

Second Committee - 2 - Press Release GA/EF/2914 7th Meeting (PM) 5 October 2000

Committee Work Programme

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

Statements

MARGARIDA ROSA DA SILVA IZATA (Angola) said that her Government recognized the positive aspects of globalization and what it represented for the development of the world economy. It was worrying, however, that developing countries were not able to benefit from the process as they should. Angola shared the recommendations that came out of the Havana Programme of Action, in the sense that it called for an adoption of a new architecture for the international financial system. It was utopian to believe that under the current rules of international trade, developing countries would be able to contribute in a significant way to world economic growth and development.

It was inconceivable that two unequal groups could participate under the same terms in any given process. In this sense, Angola felt that it was crucial that the rules governing current economic relations between States be redefined. There was a need for a reassessment of the international trade system. Distortions in the current system had caused developing countries to increasingly lose their capability to compete in the international market. The proliferation of tariff barriers had drastically reduced their resources.

With regard to the foreign debt of the developing countries, Angola was hopeful that the future discussions on innovative mechanisms would make a clear assessment of the root cause of the current situation. The poor continued to be poor, and the rich continued to disregard the difficulties that were inherent in underdevelopment. Her delegation looked forward to the High-Level Meeting on Financing for Development to be held next year.

ABDALLAH BAALI (Algeria) said that the Millennium Declaration was the road map to be followed to achieve development goals. It was an important time to stress the importance of strengthening the United Nations to enable it to better meet the challenges of the new millennium. Globalization continued to dominate debates both at the United Nations and elsewhere in the world. It had to be acknowledged that very little had been done to regulate globalization or to direct it towards the service of all countries, particularly the less advantaged. Its opportunities were still part of a virtual reality for many countries, especially those of the South. Its negative effects and dangers were felt increasingly in many parts of the world.

The international community could not continue to call for globalization with a human face and poverty reduction just to have a clear conscience, he said. What was needed was the clear identification of the causes of the increase in poverty in developing countries. Strong and sustainable economic growth in developing countries must play a fundamental role in their development. In that regard, he could not stress enough the specific situation of Africa and the need to give it particular attention.

Globalization, he said, was often accompanied by a revolution in information and communication technologies. However, the digital revolution had added a new dimension to the gap between the North and the South and placed the threat of further marginalization on the countries of the South. He hoped the countries in the North would be able to provide the necessary support to their neighbours in the South.

U TIN WINN (Myanmar) said that, to achieve higher economic growth, mobilization of resources -- domestic or otherwise -- was essential. Trade and foreign direct investment (FDI) were critical in promoting sustainable economic growth and reducing poverty. However, not every country benefited from trade and FDI. For those countries which were not able to benefit from FDI, official development assistance (ODA) remained an essential element in the fight against poverty and the achievement of sustainable development. Official development assistance financed much needed basic physical infrastructure and capacity- building in developing countries, especially least developed countries.

His Government had embarked on a policy of increasing agricultural production and food security as a basic step to further develop its economy, he said. Private sector participation was highly encouraged and welcomed in promoting agricultural production. In addition to the promotion of private investments in newly established industrial zones, private entrepreneurs were encouraged to invest in large-scale farming and plantations to improve agricultural productivity.

At the same time, he continued, the Government was concentrating on the provision of infrastructure, which would be conducive to economic development, such as roads, bridges, irrigation systems, dams and reservoirs. Development of infrastructure would not only facilitate economic growth but, at the same time, consolidate national unity, encourage greater participation of the majority of the population in economic activities and increase employment opportunities. In order to bring minority and ethnic areas into the mainstream of national economy, the Government had introduced the Border Areas and National Races Development Programme, which emphasized basic health and education services, and constructing bridges and access roads to major cities.

MUBARAK HUSSEIN RAHMTALLA (Sudan) said the Millennium Summit had defined the challenges of the twenty-first century. The Sudan believed that in order to achieve the goals of the Millennium Declaration, both the countries of the North and the South had to work together in a spirit of mutual respect. Within the context of the challenges of this century, Africa stood out as a priority. Large investments for basic education and health care should be secured. On top of that, food security and an environmental policy that was based on sustainable development were needed.

The activities of civil society could play a great role in the development process in Africa, he said. There was also a need to enable developing countries to play a role in the economic field. The countries of Africa needed to work with their partners to find suitable solutions to foreign debt and free trade. To ensure the flow of ODA, there was a need for cooperation between donor countries and developing countries.

The failure to meet the challenges of Africa would be morally unacceptable. In that regard, the development role of the United Nations had to be strengthened. The relation between the South and the North took place under a serious imbalance of power. The Member States should work hard in order to regain an acceptable balance in the world. JEAN DELACROIX BAKONIARIVO (Madagascar) said development was increasingly escaping many States, while clinging to a handful of countries that already held 80 per cent of the world�s wealth. The recent increase in oil prices could exacerbate that situation. Some countries had sensed that they had been rejected by the international community because they were not effectively participating in the global economy. Migration to the North and numerous conflicts in the impoverished South called for urgent action in order to put an end to unequal development. The United Nations should play a decisive role in reversing the current trend and ensuring that globalization benefited all.

On the threshold of a new millennium, the international community must be prepared to repair the international financial and trade structure to create an environment conducive to development, he said. Only with the effective transfer of technological resources and protection and management of the environment could true development take place. The burden of debt damaged prospects for true sustainable development for most in Africa. Out of the 40 States eligible for the Heavily Indebted Poor Countries (HIPC) Debt Initiative, only five had received a green light from financial institutions. Broader measures -- particularly, cancelling the debt -- ought to be taken urgently if poverty was to be cut in half.

The poorest countries, he continued, would be able to devote enough of their budgets to reducing poverty only when they were released from their debt burden. No region was marginalized in economic terms as much as Africa. In 1998, Africa�s share in world trade had only been 2.8 per cent. At the same time, cancelling bilateral debt could not replace ODA, an indispensable component in any development strategy -- particularly for the least developed countries.

SAID BEN MUSTAPHA (Tunisia) said that the Millennium Declaration was of historic importance and should provide a source of inspiration for the work of the Second Committee. Continued poverty and depravation was an incompatible paradox when compared with the scientific advances of mankind. Many countries were plagued by overwhelming debt burdens. Tunisia believed that debt should be recycled so that poor countries might reinvest in new projects.

Last year, during the fifty-fourth General Assembly session, Tunisia had proposed a world solidarity fund. His country believed that solidarity could be a supplement to the tools that already existed. Over the past year, various regional organizations and international conferences had supported the initiative. In order to ensure that the project would make headway, there had been a series of working meetings to prepare a text that would explain the parameters of the fund. His delegation planned to put forward a draft resolution to that end and hoped that it would be adopted.

Tunisia felt that globalization should help all people, he said. His delegation hoped that the upcoming conference on development would adopt conclusions that took into account the individual concerns of developing countries. Medium-income countries should be acknowledged as well. Worldwide action in development assistance was necessary, particularly in Africa. In that continent, a country�s external debt was often higher than its gross national product (GNP).

The recent financial crises made it clear that financial institutions had to take action to ensure that developing countries could be protected from such crises. Globalization made it impossible for trade policies to be harmonized unless cooperation and coordination was improved. This cooperation would be a benefit to sustainable development. He hoped that financial institutions would adopt special provisions for developing countries.

TAN YEE WOAN (Singapore) said that the momentum of the Millennium Summit had to be seized now -- before interest and commitment trickled away. The situation was unquestionably bad. According to the latest World Bank report on poverty, at a time of unprecedented wealth for many, 2.8 billion people lived on less than two dollars a day. Furthermore, this was not a static situation. The population of the world would grow by some 2 billion in the next 25 years, with 97 per cent of that increase in developing countries.

There were strong moral reasons why the developed world had the obligation to help developing countries overcome poverty, she said. Poor countries suffered most of the internal and cross-border conflicts occurring today. While some of those conflicts might also have ethnic or religious aspects, the root of almost all of them was the ferocious competition for survival in circumstances of scarce resources. The rich countries had already seen other consequences of conflict and poverty in poorer countries. The twentieth century had seen some of the largest movements of human beings in history -- most of them, the consequence of war or economic catastrophe.

Among the best things that rich countries could do to reduce poverty in the developing world would be to open their markets. At the same time, free trade was not enough. Development assistance directed towards capacity-building and training was still vitally necessary. Attempts to link both trade and development assistance to utopian standards of environment and labour protection should be strongly resisted. The protesters in rich countries, who opposed globalization and trade liberalization, had missed the point completely. Developing countries did not want globalization to be halted. That would only marginalize them further and make it impossible for them to lift themselves out of poverty. Those countries wanted to be full participants in globalization, and enjoy its benefits.

HUSSAM-EDIM A�ALA (Syria) said that the world economic growth rate had slowed down with a particularly adverse effect on developing countries, leading to their marginalization. Many developing countries were still far from benefiting from the opportunities promised with globalization. Globalization had left profound effects on various areas of international relations. Its effects might even threaten international peace and security. With the current international economic order, the strongest and richest were protected, and the assistance given to poor countries was decreasing.

His country would like to see the preparations for the upcoming conference on financing for development concluded as soon as possible, he said. He supported the holding of the conference in a member State of the �Group of 77� developing countries and China. Concerned with the dwindling amount of ODA, he called on developed countries to respect their commitments, keeping in mind the development needs of developing countries. He was also concerned with the worsening debt problem. Developing countries were now in a vicious cycle of debt and underdevelopment. The problem must be solved collectively, and the debt of the poorest countries cancelled.

Syria, a developing country that experienced drought, had to take into account the importance of water resources and their management, he said. He would like the Committee to study that problem in light of the results of the Commission on Sustainable Development, which had studied the adoption of an overall strategy to manage drinking water. He was also concerned about the decline in financial resources given to the implementation of the United Nations Convention to Combat Desertification in Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa, which was important due to the negative ecological and economic effects of desertification in many developing countries.

YAVUZ SELIM CUBUKCU (Turkey) said that, during the last decade of the twentieth century, the world had witnessed an ever-growing abundance of intellectual and material resources due to staggering developments in technology. That abundance ought to provide not only a larger integration of opportunities, but also help raise living standards in a global framework. The international community, however, had fallen short in rising to the occasion and capturing the momentum, which could have been instrumental in laying down the groundwork to help pull 1.5 billion people out of abject poverty.

He said that providing developing countries with external financial and technical assistance, and sustained efforts to integrate the least developed countries into the global financial and trade system were imperative in today�s international economy. The international community should take the needs of developing countries into account in order to reverse the growing marginalization of the poor and achieve progress towards realistic goals of human development.

In the meantime, he continued, the problems of landlocked and transit countries should not be overlooked. Those countries were being increasingly marginalized despite their efforts to build enabling national environments. They were experiencing the further deterioration of their economies and even lower living standards than in previous years. Turkey would continue to provide support to those countries to help them overcome their economic problems.

SIMBAWA AWESSO (Togo) said that the Millennium Summit had taken place at a crucial time. On the eve of the third millennium, the economy and social situation of the world was still not satisfactory. In Africa, 44 per cent of the population lived well below the poverty line. In that context, the goal to halve the number of poor people in the world by 2015 seemed difficult to achieve. Globalization was a world phenomenon that had not created wealth for all. It had seriously hampered the development of some countries and made it difficult to integrate them into the world economy. That should not make the international community indifferent.

In order to meet the specific needs of Africa, the international community had to work together to provide effective and substantial remedies. In that regard, Togo felt that the High-Level Meeting, scheduled for 2001, would be a good opportunity to adopt measures to eradicate poverty in the least developed countries. The agenda should bear in mind the specific needs of developing countries as well as their external debt. It was more pressing than ever to find a solution to global poverty by adopting bold and sustainable measures.

The need for the establishment of a just international trade system was apparent, he said. The system�s imbalance was extremely harmful to developing countries. There was an urgent need for private capital flows to countries in the South. The year 2001 would be a decisive year for the least developed countries. Information and communication technology was an area where the gap was widening. The high-level debate in the Economic and Social Council had pointed out the potential for new technologies in development. However, the digital divide had only worsened.

ELMIRA IBRAIMOVA (Kyrgyzstan) said that landlocked developing countries faced difficulties in international competition due to their geographic locations. Prices for transportation of their goods were much higher than for the countries located near seashores. Collective and constructive action at the United Nations and other relevant forums should be undertaken for unimpeded access of landlocked developing countries to the sea, reduction of transit transport costs and the development of adequate transit transport infrastructure. Action should also be taken to seek international and regional cooperation for fair competitiveness, sustainable development and positive integration of those countries into the globalizing world economy.

The establishment of a uniform transport system was especially important for Central Asia, which was located far from large sea routes, she continued. Kyrgyzstan was working for the creation of a uniform transport system with access to external markets and the creation of modern communication systems. That would not only reduce the distance and time of transportation, but would also become a powerful impetus for economic development. Such projects as TRACEKA (transport corridor Europe-Caucasus-Asia) had already begun to be developed and realized.

She urged all States and the United Nations system to take advantage of the International Year of Mountains to ensure the present and future well-being of mountain communities by promoting conservation and sustainable development in mountain areas. The end of the Year should be the beginning of consistent and forward-looking development of mountain regions. Hoping that its realization would promote mobilization of economic, technical and financial resources for the sustainable development of mountain areas, Kyrgyzstan offered to host, in 2002, the International Conference on Mountains under the auspices of the United Nations.

SUH DAE-WON (Republic of Korea) said that it was quite clear that unless proper action was taken, economic disparities and information poverty would be further aggravated. Given the financial difficulties of most developing countries, it was not possible for them to tap into the benefits accruing from globalization. Faced with that new environment, the United Nations should take the lead in the pursuit of sustainable development and poverty eradication in developing countries.

Partnerships among major stakeholders were essential to adequately address the multifaceted and interrelated challenges, he said. In that context, the United Nations should strengthen its partnership with major development stakeholders, such as the Bretton Woods institutions and the World Trade Oraganization (WTO). United Nations development strategies needed to be overhauled, and the Organization should redouble its efforts to promote greater coherence and efficiency in its activities.

Turning to the subject of the environment and sustainable development, he stressed the importance of implementing Agenda 21. �Rio+10� would serve as another landmark event for renewing the international community�s commitment to sustainable development. In an effort to facilitate the transfer of environmentally sound technologies, the Republic of Korea had hosted a high-level forum on South-South cooperation in science and technology transfer earlier this year. Confronted with the widening gap among and within nations, it was all the more necessary to forge a genuine global partnership.

OCHIR ENKHTSETSEG, Director, Department of Multilateral Cooperation, Ministry of Foreign Affairs of Mongolia, said that most developing countries had yet to see the benefits of increasing trade liberalization. Too often the simple reason was lack of resources. Although ODA remained an important factor in the development endeavours of developing countries, its per-capita flow had been on the decline. The rationale behind the cut could, by and large, be described as a �trade, not aid� approach, which needed to be reviewed. Aid, investment and trade did not necessarily exclude each other. On the contrary, their complementarity and mutual reinforcement were critical for promoting sustainable economic growth and reducing poverty.

In that regard, she drew the Committee�s attention to the relevant decisions taken by the South Summit held in April on: the formulation of a comprehensive international strategy to reverse the decline in ODA and achieve its 0.7 per cent target by 2010; the outright cancellation of unsustainable debt of developing countries; the creation of an enabling international economic environment conducive to full implementation of the Uruguay Round agreements; and reforms for a new financial architecture, that ensured the full participation of the developing countries in international economic decision-making.

Mongolia strongly favoured the holding of an International Ministerial Meeting on transit transport issues in 2003 to assess the progress achieved in implementing the Global Framework for Transit Transport Cooperation and to chart future collective action, she said. New measures for duty-and-quota-free access for goods and services from landlocked developing countries ought to be considered in the context of multilateral trade negotiations and other preferential arrangements.

WALID AL-HADID (Jordan) said that the deliberations of the Second Committee were particularly important this year in light of the work of the Millennium Summit. While the world had moved into the twenty-first century, there remained a large gap between rich and poor. Twenty per cent of the inhabitants of the world consumed 80 per cent of the resources, while many lived on less than one dollar a day. The challenge was to distribute the benefits of globalization in an equitable way. For many poor countries, the debt problem impeded development efforts. A speedy response must be made to make the economies of developing countries more liberal.

The international monetary system must be reformed, he said. The system currently benefited the exports of the most developed countries. The debt of poor countries should be cancelled, reduced or partially repurchased. There needed to be a transfer of technology to developing countries. There must also be better access to the markets of developed countries for the developing countries, especially in agriculture and textiles. He hoped that the upcoming High-Level Meeting would help to solve the problem of the availability of resources.

His delegation reaffirmed the central role of the United Nations, which was the most democratic body of nations in the world. He hoped that any resolutions adopted in this Committee would represent the hopes of all countries.

LYONPO OM PRADHAN (Bhutan) said that ODA was vital in the efforts of the international community to tackle the problems of poverty and in promoting environmentally sensitive sustainable development. While foreign development in the years to come would hopefully play a greater role in a larger number of developing countries, it could not be expected to replace ODA. It would be na�ve to think that the majority of developing countries, especially the least developed countries, would be able to establish the right national conditions to make private investments forthcoming. That was why Bhutan placed emphasis on the importance of ODA flows.

His delegation was aware that while the developed countries had to extend their cooperation to reduce poverty, the developing countries must do their best to provide stability and good governance. In Bhutan, there was a people-centered policy of socio-economic development. The Government had also worked on preserving the national environment, which not only benefited Bhutan but also other countries in the region. As a result, nearly three fourths of Bhutan�s land was under mostly pristine forests.

In the report of the Secretary-General on the work of the Organization, it was estimated that the world population would expand to 10 billion by the year 2030. This was alarming because of the tremendous efforts being put in to contain population. Population explosion and consequent migration could very often wreak havoc in the economic policies and development efforts of neighbouring countries and regions. The international community should pay closer attention to this phenomenon while considering issues of peace and security, poverty and development.

JOSE ROBERTO ANDINO SALAZAR (El Salvador) said that the vast majority of leaders at the Millennium Summit had pointed to an increasingly interdependent world. The benefits of globalization had not reached all countries equally. The countries with small economies and vulnerable populations were still left out of the benefits of globalization. Developed countries should create policies to open up their markets to developing countries, facilitate the transfer of technology and respect the commitments made towards assistance to developing countries.

Among the issues of deep concern to his delegation were development, the eradication of poverty, the creation of a fair and equitable trading system, the preservation of the environment and the reduction of the impact of natural disasters, he said. In an era of globalization and market liberalization, the role of trade and investment became increasingly important for developing countries. The fact was that private capital flows from developed countries were not evenly distributed.

Also of concern, he said, was the steady decline in ODA. For many countries, such as El Salvador, ODA was an important resource for carrying out human development programmes. El Salvador felt that it was important to convene the upcoming intergovernmental High-Level Meeting on Financing for Development and hoped that everyone would participate in it, including the Bretton Woods institutions and the WTO.

JOSE PIMENTEL PACHECO (Dominican Republic) said that globalization was excluding more and more people. In his address at the Millennium Summit, the Dominican Republic�s President had said that effective and transparent institutions were necessary if globalization was to benefit all countries. He also stated that it was important to have a strong investment in education, food, and protecting and enhancing the environment. The dynamic forces that made up civil society could help to guarantee the kind of development that benefited all people.

As the Secretary-General had stated in his Millennium Report, the great volume of external debt constituted an extreme burden for developing countries. Therefore, alleviating the debt burden must be a priority for the most developed countries. The Dominican Republic was committed to protecting the environment. In that regard, it was of the utmost importance to follow through on the recommendations made in Rio in 1992. His delegation hoped that tangible results could be reached at �Rio+10�.

MARTIN BELINGA-EBOUTOU (Cameroon) said that the Millennium Summit had led to a great deal of hope that the statements delivered would actually be implemented. The main thrust of the Summit required the international community to fully take into account the phenomenon of globalization. No country stood alone -- they all shared the same environment and breathed the same air. By polluting the environment in one country, the global environment was polluted. Education was another global problem: There were stifled geniuses in many developing countries because they were deprived of the conditions which would have helped them blossom.

The decade drawing to a close had seen a greater awareness of the global nature of problems, he said. The United Nations had held many global conferences on a number of issues, including education, development, human rights and social development. While the global nature of problems was not new, what was new was the awareness of them. There was a realization that the world needed a shared approach to and common assessment of the difficulties faced, as well as ways to solve them.

Integrating the African continent into the global economy required urgent joint action so that Africa could become an equal partner in relation to the many sources of wealth which existed, he said. For that to take place, three things had to happen: The first was the elimination of poverty, based on cancellation of debt, improvement of market access and increase in direct private investment. Also important was access to information and communication technology, for which Africa urgently needed infrastructure. Urgent action was also needed to address the HIV/AIDS epidemic. Africa was waiting for the United Nations to take the lead in the crusade for Africa�s integration into the global economy. United Nations bodies, including the General Assembly and the Economic and Social Council, had major roles to play in that respect.

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