GA/EF/2919

WORK OF INTERNATIONAL COMMUNITY REGARDING INTEGRATION OF TRANSITION ECONOMIES FAR FROM COMPLETE, SECOND COMMITTEE TOLD

The tasks facing the international community regarding the integration of economies in transition remained far from complete, the Director of the Development Policy Analysis Division, Department of Economic and Social Affairs, told the Second Committee (Economic and Financial) as it began its consideration of sustainable development and international economic cooperation.

Introducing the report on the integration of economies in transition into the world economy, Ian Kinniburgh said that most transition economies had been severely affected by the Russian financial crisis of August 1998. As a result, there had been a contraction of over 3 per cent in the Commonwealth of Independent States. There were widespread concerns that this general setback would persist. The experience of overcoming the effects of the Russian crisis suggested that the resilience of transition economies was related to the depth and extent of their economic reforms.

Poland was at the end of a transition from a centrally-planned economy towards an open, market-oriented system, that country�s representative said. The depth of that structural change and the resulting resilience of Poland�s economy testified to a successful transition strategy pursued in the 1990s. The consistency in introducing the necessary reforms had been an important engine of change throughout that period. He added that he remained concerned by institutional and structural disparities among the transitional economies.

The representative of the Russian Federation said that in the case of most of the economies in transition, there were many tasks that remained pending, such as increasing direct foreign investment and promoting good governance. At present a number of countries in transition were at the point of overcoming that situation. The length of the transition would depend on the efficiency of the international community�s support.

Croatia�s representative said that the countries in transition were a diverse group that had progressed at various rates over the past decade. Therefore, assistance could not be in the form of a general panacea. The main goal of transition should be to put the countries on the path of sustainable growth. For a number of reasons, all transition countries, before achieving growth, had experienced a severe contraction.

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The liberalization of trade and financial flows, he continued, had brought the economies in transition closer to the markets and capital they required. The end goal of the process was clear -- full integration into the world economy, including global and regional institutions. That was a substantial challenge, which would require continued investment, technology transfers and the open markets of the developed countries. The role of the United Nations in continuing to provide advice and assistance would continue to be vital.

Statements were also made this morning by the representatives of Nigeria (for the �Group of 77� developing countries and China), France (for the European Union and associated States), Norway, Ghana, Indonesia, Kyrgyzstan, Uruguay and Guyana (for the Carribean Community).

Also this morning, reports were introduced by Anna K. Tibaijuka, Executive Director of the United Nations Center for Human Settlements (HABITAT); Sarbuland Khan, Director, Division for Economic and Social Council Support and Coordination, Department of Economic and Social Affairs; Frederick Weibgen, of the Food and Agriculture Organization (FAO); A. Hamad, a representative of the United Nations Educational, Scientific and Cultural Organization (UNESCO); and Andrew Radolf, UNESCO Regional Communications Advisor for the United Nations and North America.

The Committee will meet again at 4 p.m. to continue its consideration of sustainable development and international economic cooperation.

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Committee Work Programme

The Second Committee (Economic and Financial) met this morning to begin its consideration of sustainable development and international economic cooperation.

It had before it the report of the Secretary-General on status of preparations for the International Year of Mountains, 2002 (document A/55/218). It describes the activities taken at national, regional and international levels in preparation for the International Year of Mountains in 2002. Such activities include building institutional arrangements, fostering strong collaboration and information exchange, and developing promotional and informational materials.

Initiatives at the national and regional levels, the report states, are particularly important in the preparations for the observance of the Year. In all regions and in a number of countries intensive preparations for the Year have started at different levels. A number of countries had already established national committees or similar mechanisms. The report provides details of activities undertaken in Africa, Asia and the Pacific, Europe, Latin America and North America. It also includes details on the country-led efforts of Morocco, China, Kyrgyzstan, Italy, Switzerland, Germany, Peru and Ecuador.

There are certain areas that might require further or special consideration, the report states. Areas in need of renewed attention include the development of criteria and indicators for sustainable mountain development, mechanisms for more equitable sharing of benefits, and conservation of biological diversity in mountain areas. A much broader base of bilateral, multilateral and private sector funding and financing than has so far existed is required. Overall, although significant progress has been achieved in preparation for the Year, much remains to be done in the short time remaining, especially at the country level.

Also before the Committee is the report of the Secretary-General containing a draft text of an international development strategy for the first decade of the new millennium (document A/55/89). The report highlights a number of goals, policies and implementation measures for the draft strategy, such as consolidating peace, economic development, social development, environmental protection and sustainable development, human settlements, human rights and governance and culture and development.

The report details the major challenges of the new international development strategy. Chief among the challenges was the eradication of poverty and hunger. Extreme poverty continued to afflict some 1.2 billion people (over one fifth of the world's population) in the late 1990s; almost 800 million people were chronically undernourished during 1995 to 1997. Other challenges include ensuring sustainable development, promoting gender equality, democracy and good governance, and addressing critical situations, among others.

The report recommends an integrated implementation and follow-up of the commitments of the global conferences and of other major agreements on development. Governments have the primary responsibility for implementing these outcomes. In addition to political will, it is necessary to identify and mobilize the financial and human resources that will be required to implement the present strategy. The organs, organizations and bodies of the United Nations system have a special responsibility for pursuing the goals of the present strategy and keeping progress under review, in particular the General Assembly and the Economic and Social Council.

The Committee also had before it the report of the Secretary-General on update on the Declaration on International Economic Cooperation, in particular the revitalization of economic growth and development of the developing countries, and implementation of the International Development Strategy for the Fourth United Nations Development Decade (A/55/209). The General Assembly proclaimed the Fourth United Nations Development Decade, starting on 1 January 1991, and adopted the International Development Strategy for the Decade. The principles stated in the Declaration on International Economic Cooperation were recognized as the basis for the Strategy.

The report highlights the progress towards the goals and objectives of the Strategy and the Declaration. The principle aim of the Strategy and the Declaration is to ensure accelerated development in the developing countries. The strategy states that six interrelated goals must be met to achieve these fundamental aims: economic growth in developing countries; social development; improvement in the international systems of money, finance and trade; sound macroeconomic management; strengthening of the international development cooperation; and special efforts on behalf of the least developed countries. The report includes in-depth analysis on each of those goals.

In conclusion, the report states that in the 1990s the developing countries as a whole improved their rate of growth over that of the 1980s, while keeping short-term fluctuations less volatile. At the same time, however, the globalization and liberalization of economic activities revealed economic and social problems that the international community would have to face in years to come. The 1980s provided valuable lessons for the 1990s in designing and implementing economic and social development policies. In this respect, the global conferences organized by the United Nations in the 1990s would be beneficial in the design of a new strategy for the new decade.

The Committee would also be considering the report of the Secretary-General on integration of the economies in transition into the world economy (document A/55/188). The Assembly had called on the United Nations system to continue conducting analytical activities and providing policy advice and technical cooperation to economies in transition for economic reforms, particularly for attracting foreign investment.

Within the Secretariat, the report states, the Division for the Advancement of Women, for example, has been acting as a focal point and assisting these countries in meeting their reporting obligations to the Committee on the Elimination of Discrimination against Women. For instance, it provided training and advisory services to Kyrgyzstan in the preparation and writing of their reports. Also, the United Nations Conference on Trade and Development (UNCTAD) secretariat provides support in the areas of trade efficiency, customs reform and modernization, trade and transport facilitation, and cooperation.

The United Nations Population Fund (UNFPA), the report continues, has used a two-pronged approach to the difficulties of the economies in transition �- the first aimed at responding to urgent needs in the area of reproductive health and the second focused on long-term capacity-building. Further, there was a major reorientation of World Bank activities in transitional economies as new operations were prepared in response to emergency situations.

There is also a note by the Secretary-General transmitting the report of the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) on cultural development (document A/55/339). The Assembly, in its resolution 53/184, invited all States, intergovernmental bodies, the United Nations system and non-governmental organizations to implement the recommendations of the Action Plan adopted by Intergovernmental Conference on Cultural Policies for Development (Stockholm, March-April 1998).

They were also invited to cooperate with UNESCO to ensure effective follow- up to the Action Plan, and to intensify their efforts to integrate cultural factors into their development programmes and projects, the report states. The UNESCO was also encouraged to continue promoting awareness of the crucial relationship between culture and development, taking into account the diversity of cultures and the need to apply the Stockholm recommendations.

Actions taken, according to the report, include the creation by the World Bank of a lending programme for cultural projects; the organization by the Bank and the Italian Government, in cooperation with UNESCO, of the �Culture Counts� Conference (Florence, October 1999) on the financing and economics of culture in sustainable development; and the establishment of a special culture and development page on the Bank�s Global Development Gateway (www.worldbank.org).

The report of the Secretary-General on renewal of the dialogue on strengthening international economic cooperation for development through partnership (A/55/314) provides information on the date, modalities, nature of the outcome and focus of the discussions of the second high-level dialogue, as well as the involvement of the United Nations in that process.

According to the report, the Assembly decided that the theme of the second high-level dialogue would be: "Responding to globalization: facilitating the integration of developing countries into the world economy in the twenty-first century". It also decided to defer the holding of the second high-level dialogue to its fifty-sixth session, without changing the biannual nature of the high-level dialogue. The first high-level dialogue of the Assembly was held on 17 and 18 September 1998 on the social and economic impact of globalization and interdependence and their policy implications.

The report states that preparations for the dialogue would be taken by the Secretary-General, in close cooperation with governments, with all relevant parts of the United Nations system, relevant organizations and other development agencies. Several entities of the United Nations system have provided substantive inputs and background material relevant to the theme of the dialogue. It has been emphasized that preparations for the dialogue should take into account the results of major United Nations conferences and summits. The report concludes with a list of steps that should be undertaken by the Assembly at its current session to advance preparations for the dialogue.

Also before the Committee was the report of the Secretary-General on coordinated implementation by the United Nations system of the Habitat Agenda (document A/55/83-E/2000/62). Among other things, it includes the views and recommendations of the preparatory committee for the Assembly�s special session for an overall review and appraisal of the implementation of the Habitat Agenda, which held its first substantive session in Nairobi from 8 to 12 May.

According to the report, the objectives of the Habitat Agenda and strategies for their implementation revolve around two major themes: adequate shelter for all; and sustainable human settlements in an urbanizing world. By adopting the Agenda at the United Nations Conference on Human Settlements (Habitat II) (Istanbul, 1996), the international community endorsed the key principles of enablement, participation, partnership, capacity-building, monitoring and evaluation and international cooperation, as well as specific commitments and strategies.

The special session should review implementation of 20 key commitments and strategies, which have been grouped into the following six themes: adequate shelter; social development and poverty eradication; environmental management; economic development; governance; and international cooperation.

The report makes a number of recommendations to strengthen implementation of the Habitat Agenda. For example, the Economic and Social Council could invite the international community and the United Nations system to actively provide support to developing countries in implementing the commitments made at Istanbul, particularly in regard to urban poverty reduction and reconstruction programmes in post-conflict situations. It could also call on Member States to make voluntary financial contributions to assist developing countries in participating fully in the review and its preparatory process.

The Committee also had before it the report of the Commission on Human Settlements acting as the preparatory committee for the General Assembly special session for an overall review and appraisal of the implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II) on its first substantive session (8 to 12 May) (document A/55/121). Annexed to the report are the resolutions adopted at the session, as well as one referred to its second session, to be held from 19 to 23 February 2001. The list of documents before the Committee, summaries by the Chairman of the session�s high-level segment, the report of the Committee of the Whole, summaries of opening statements, and the statements made by the representatives of China and the Holy See following the adoption of resolutions are also annexed to the report.

Statements

IAN KINNIBURGH, Director, Development Policy Analysis Division, Department of Economic and Social Affairs, introducing the report on an international development strategy for the first decade of the new millennium (document A/55/89), said that in the aggregate, the developing countries as a group did register growth. The variability in growth rates declined in the 1990s, which might come as a surprise. As indicated in the present report, many social indicators improved in the 1990s, but many goals of the strategies had not been reached. The increase in the growth of HIV/AIDS had not been foreseen. The surge in conflict had also not been imagined. To the contrary, there had been much talk about a peace dividend as a contribution to development.

If there was to be an overall pass-fail test, the developing world was a good indicator, he continued. Poverty remained a tremendous problem. The word globalization did not even appear in the development strategy of ten years ago, which made it clear that the challenges of the next decade were of a different nature. However, the problems of the past remained. Official development assistance (ODA) remained too low. Furthermore, the debt crisis of the developing countries had still not been resolved. The draft international development strategy was intended to be comprehensive. It was an effort to consolidate the key outcomes of the global conferences of the past decade.

Introducing the report on the integration of economies in transition into the world economy (document A/55/188) he said that it would be useful to view the report within the operational activities of the United Nations system. Most of the transition economies had been severely affected by the Russian and Asian financial crisis. Most of the governments of those countries had been able to maintain macroeconomic stability, despite renewed pressures, and the reform process had been sustained. External balances had improved, first with the sharp declines in imports and most recently with the increase of exports.

The transition countries in Central and Eastern Europe and the Baltic region had progressively reintegrated themselves into the world economy over the last two years, he said. More importantly, the prospect of accession to the European Union provided them with a concrete goal. The experience of overcoming the effects of the Russian crisis suggested that the resilience of transition economies in dealing with adversities was related to the depth and extent of their economic reforms. The tasks facing the international community regarding the integration of the economies in transition remained far from complete.

SARBULAND KHAN, Director, Division for Economic and Social Council Support and Coordination, Department of Economic and Social Affairs, introduced the report outlining the present status of the second high-level dialogue on strengthening international economic cooperation for development through partnership. The report also suggested some steps the Committee might take during the current session to further those preparations. The major purpose of the dialogue was to support the ongoing implementation of the Agenda for Development. It was recognized that such a dialogue was an important mechanism for intergovernmental follow-up and an opportunity to discuss new and emerging issues.

The dialogue, he continued, was intended to provide impetus for international economic cooperation and result in stimulating and productive discussions. The first dialogue in 1998 was on the social and economic impact of globalization and interdependence. At that time, the Assembly had decided to hold such a dialogue on a biennial basis. However, due to the Millennium Assembly, the dialogue was deferred to the fifty-sixth session.

ANNA KAJUMULO TIBAIJUKA, Executive Director of the United Nations Centre for Human Settlements (Habitat), introduced the item on the implementation of the outcome of the United Nations Conference on Human Settlements (Habitat II). She said that a century ago, only one in 10 people lived in cities. Today, about 3 billion people �- half of humanity �- were urban dwellers. Cities were engines of growth and crossroads of ideas -- places of great intellectual innovation. They could also be models of democracy and multicultural coexistence. But the same cities could also be places of exploitation, disease, crime, unemployment and extreme poverty.

Habitat II was more than just a conference, she said. It was an opportunity to make the world understand that, with proper guidance, the process of urbanization could be a positive force for development. Four years after Istanbul, one of the main outcomes of the Committee�s present session should be to better coordinate the review of shelter and sustainable urban development policies. It was time to take stock of progress made on: action at the national and local levels; partnership and the role of civil society; monitoring and assessment; and international cooperation.

FREDERICK WEIBGEN, Senior Liason Officer of the New York Office of the Food and Drug Organization (FAO), introducing the report of the Secretary-General on the status of preparations for the International Year of Mountains 2002, said that observing such a year provided a major opportunity for increasing awareness about the global importance of mountain ecosystems, and for promoting action. It was expected to play an important role in the ongoing implementation of Agenda 21 Chapter 13 on �Sustainable Mountain Development�. The report had been prepared by the FAO in its capacity as lead agency for the Year, in close cooperation with governments, relevant organizations of the United Nations system and non- governmental organizations (NGOs).

ALFATIH HAMAD, Officer-in-Charge of the New York Office of United Nations Educational, Scientific and Cultural Organization (UNESCO), introducing the note of the Secretary-General on culture and development, said that the note was compact and succinct. It was significant that in the draft text on the new development strategy, the Secretary-General had highlighted the link between culture and the other aspects of development. Macroeconomic aspects of development largely overshadow the cultural aspects of development. More than ever before it was necessary for the international community to work to create a sustainable path to development that allowed for aspects of cultural diversity.

He expanded on the layout and structure of the three sections of the report on cultural development. Following that, he said that globalization, with its immense challenges and opportunities, was gradually occupying centre stage in the deliberations of the United Nations system. However, macroeconomic, monetary and trade-related aspects of globalization largely overshadowed its more subtle impact on the cultural life of nations. More than ever, attention should be paid by the international community to the need to preserve a sustainable pattern of cultural development as a key component of sustainable development.

ANDREW RADOLF, Regional Communication Adviser, New York Office of UNESCO, said that resolution 51/172 mandated the Secretary-General, in consultation with the Director-General of UNESCO, to submit a biannual report to the Assembly on communication for development programmes in the United Nations system. It was not possible to compile sufficient material from the various agencies of the United Nations to allow for the preparation of a comprehensive report on the implementation of the resolution. Therefore, it was agreed that UNESCO would update members of the Committee through an interim oral report.

The document in preparation, he said, would be a consolidated inter-agency report on the subject and present the results of the seventh Round Table on Communication for Development, organized by the United Nations Children's Fund in Salvador de Bahia, Brazil, from 10 to 13 November, 1998. The objectives of the Round Table were to share information, experiences and training to develop common strategies and approaches to identify mechanisms of cooperation between the participants. The participants considered the idea of a task force, which would identify particular weaknesses of the programmes and provide the necessary data and propose models. It also examined ways to reinforce cooperation between United Nations agencies, donors, NGOs and universities.

One possibility they discussed, he added, would be the creation of a Web site, that would collect results of the applied research and methodologies of communication for development programmes. The Round Table recommended that an institutional mechanism be developed to evaluate projects and facilitate the conception of programmes and policies for the coming years. The meeting also recognized the strategic role of community media and proposed an inventory of best practices and empirical models to facilitate training in communication. He also highlighted some of the United Nations Population Fund�s and UNICEF�s communication for development activities.

OSITADINMA ANAEDU (Nigeria), speaking on behalf of the �Group of 77� developing countries and China, said that the development strategy for the coming decade of the new millennium must address the issue of a supportive external economic environment for developing countries. It should focus on tackling the central problem of inadequate financial resources, at both domestic and external levels, as a priority condition for economic growth and social development. It should also significantly improve the flow of financing for development, including fulfilling commitments made by developed countries in all United Nations conferences and summits.

There must be decisive action to cancel outright the debts of developing countries, he continued. The new strategy should also create the conditions for an open and fair international trading system and bring the Uruguay Round of multilateral trade negotiations to a conclusion that was balanced and provided market access to products of interest to developing countries.

Without adequate resources, he said, it would be impossible for developing countries to address the crisis situation of HIV/AIDS, environmental degradation and problems of socio-economic development. While he agreed on the need for the mobilization of domestic resources as part of any development strategy, it must be recognized that the lack of external financing remained central to the ability of developing countries to face old and new challenges. The design of a new strategy would benefit from the Third United Nations Conference on Least Developed Countries and the High-Level International Intergovernmental Event on Financing for Development to be held in 2001.

CATHERINE GRAS (France), spoke on behalf of the European Union, Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Czech Republic, Romania, Slovakia, Slovenia, Cyprus, Malta and Turkey. She said that although it accounted for just under one third of world gross domestic product (GDP), the Union provided more than half of overall ODA, and 58 per cent of contributions to the Heavily Indebted Poor Countries (HIPC) Trust Fund. Official development assistance must be in addition to the mobilization of national resources and must act as a catalyst for mobilizing direct international private investment in developing countries.

She stressed the importance of making aid more effective by better managing programmes on the field and by consolidating partnerships between the United Nations system, international financial institutions and multilateral and bilateral players. Also, accelerated implementation of the enhanced HIPC Initiative was essential to allow recipient countries to mobilize new resources for poverty alleviation.

As far as good governance was concerned, she said that the sound management of public affairs by transparent and accountable institutions, the strengthening of the rule of law and the involvement of citizens in decisions which affected them, all provided a vital preliminary framework for ensuring that the resources allocated to development were used properly and efficiently. Further, respect for human rights made a major contribution to equitable development for all sectors, particularly the most vulnerable. In addition, the importance of gender and social development in achieving sustainable development could not be overestimated.

OLE PETER KOLBY (Norway) expressed his best wishes to the new Executive Director of HABITAT, Anna Tibaijuka. Norway felt that it was especially important for the Centre to play an active role in the accelerating process of urbanization in developing countries. HABITAT�s normative role in its partnership with the World Bank was an important foundation for the work of the Cities Alliance and its action plan, Cities without Slums. One important milestone in the implementation of the HABITAT Agenda was the upcoming HABITAT II + 5 session next year. Although the first preparatory meeting had not reached agreement, important preliminary discussions had taken place. Norway was looking forward to the discussions at the second session.

Commenting on the report on renewal of the dialogue on strengthening international economic cooperation, he said that the first high-level dialogue had been a successful event. The theme of the second dialogue allowed the participants the opportunity to take into account and build on output from related initiatives such as the Financing for Development Process and the Third United Nations Conference of Least Developed Countries. With regard to the modalities of the meeting, his delegation supported the recommendation to combine plenary meetings, ministerial roundtables and informal panels.

YURIY ISAKOV (Russian Federation) said that the draft text on an international development strategy was an important step forward. Despite clear progress that had been achieved, the problems of the 1990s remained. It was important to take into consideration the mistakes of the past when developing a new international development strategy. The strategy referred to a number of complex situations in the world economy that required a joint effort by the international community if they were to be addressed effectively.

When it came to the integration of economies in transition into the world economy, his delegation commended the Secretary-General on his report. In the case of most of the economies in transition, there were many tasks that remained pending, such as increasing direct foreign investment and promoting good governance, among other things. At present a number of countries in transition were at the point of overcoming that state. The length of the transitional state would depend on the efficiency of the support of the international community.

His delegation believed that the topics for the second high-level meeting were very timely. It was important to take into consideration the interest of all countries. It was also important to make the process transparent. His delegation appreciated the work of the Secretary-General on the International Year of Mountains, as it was a very important and useful initiative.

KWABENA OSEI-DANQUAH (Ghana) said that the time had come for a concerted approach synchronizing actions on macroeconomic reform in developing countries with those on debt, market access, the further reform and strengthening of financial architecture and the enhanced use of public-private partnerships to leverage private capital flows. Official development assistance was critical in that respect as well as in providing support for capacity-building and good governance policies. The most appropriate environment for development would require a balance between economic efficiency and social progress.

Developing countries, in the light of the harsh realities facing their people, must still pursue the necessary policies to ensure economic efficiency and competitiveness, and attract local and foreign private sector investments. Without good governance, political and economic management would suffer and the gains made would not be sustained. The separate and joint responsibilities of developing countries and the international community in international economic cooperation should be reflected concretely in the process of financing for development, in the Third Conference on Least Developed Countries and in the follow-ups to global conferences. Success in achieving direct linkages among the policy measures to be pursued nationally and globally would provide the missing link in the international development strategy.

DJAUHARI ORATMANGUN (Indonesia) thanked the Secretary-General for his report on the implementation of HABITAT II. The central challenge faced by the international community was to implement the twin goals of providing adequate shelter for all and of developing sustainable human settlements. Rapid urbanization, the concentration of the urban population in large cities, urban sprawl and the growth of mega cities were among the most significant trends in human settlements today. Particularly in Asia, rapid economic development and soaring population growth had resulted in burgeoning urbanization. In consequence, slums and squatter settlements had mushroomed and outpaced normal growth rates.

In response to those challenges, the Habitat Agenda provided the international community with a number of key principles, such as participation, partnership, capacity-building and international cooperation. Those efforts should be supported by continuing action to revitalize the Habitat Center as a focal point for the implementation of the global plan of action of the Habitat Agenda. The provision of adequate financial resources from governments, particularly in donor countries for effective implementation of the Centre�s work programme should also be strengthened.

Regarding the report on strengthening international economic cooperation for development, his delegation said that this initiative was more imperative than ever if the majority of developing countries were to effectively integrate into the new global economy. In that vein, his delegation was pleased to have worked very closely with the Group of 77 and China to adopt a resolution in which the Assembly decided that the theme for the second high-level dialogue would be responding to globalization. His delegation stood ready to work very closely with the other delegations in preparing and organizing the high-level meeting.

ELMIRA IBRAIMOVA (Kyrgyzstan) said it was time to assess preparations for the Year of Mountains in terms of what would be effective and what should be done for its successful implementation. According to the concept paper, which had been circulated by the FAO earlier today, sustainable approaches to development deserved particular attention in mountain areas. The basic requirements for sustainable development should involve equal attention to ecological, economical and social considerations. The Year would be successful if there was considerable follow-up at different levels, translated into effective action in the field.

Several positive outcomes had been achieved at the international level, she said. Kyrgyzstan welcomed the United Nations University�s recent announcement on the launch of a new project on the sustainable development of mountain systems. His delegation was also encouraged by initiatives at the national and regional levels, which were particularly important in the preparatory process. With a view to laying the foundation for the sustainable development of Kyrgyzstan�s mountain regions, the National Center for Development of Mountain Areas had been established in January 1999.

On the threshold of the new millennium, it was vitally important to adopt a new approach to the understanding of and attitudes towards mountain regions and to change public awareness. The real challenge lay in being able to focus the observance on action-oriented activities that aimed at long-term and sustained efforts to improve the quality of life of these inherently fragile areas. Concerted action was needed to build and strengthen institutional and human capacity to carry on with sustainable mountain development efforts far beyond 2002.

IVAN NIMAC (Croatia) said that the countries in transition were a diverse group that had progressed at various rates over the past decade. Therefore, assistance could not be in the form of a general panacea. The main goal of transition should be to put the countries on the path of sustainable growth. It had once been assumed that a mere shift in property rights from State to private hands and the shift of the allocation mechanism to the free market would soon enhance savings rates and capital formation. That had, unfortunately, not proven to be the case. For a number of reasons, all transition countries, before achieving growth, had experienced a severe contraction.

Small economies in transition faced particular difficulties in obtaining access to foreign markets, he continued. Nevertheless, they had little choice but to base their future development on an open and export-oriented trade policy. For Croatia, its accession to membership in the World Trade Organization (WTO) would enhance that process. The liberalization of trade and financial flows had brought the economies in transition closer to the markets and capital they required. It had also made more present the dangers associated with short-term, speculative capital flows. Policy-making in such an environment presented a particular challenge, which had further amplified the importance of the role of the United Nations in continuing to provide its expertise in the economic and social fields.

He said the end goal of the process of transition was clear -- full integration into the world economy, including global and regional institutions. That was a substantial challenge, which would require continued investment, technology transfers and the open markets of the developed countries. The role of the United Nations in continuing to provide advice and assistance during that process would continue to be vital.

CONSEJERO BORIS SVETOGORSKY (Uruguay) said his delegation had decided to focus on the Secretary-General�s report on culture and development. The international community must become truly aware of the need to integrate the cultural aspect of development into the overall process of development. While the Committee was studying the effects of globalization, the evolution of societies had not been focused on. It was important to foster a constructive pluralism in the future.

Uruguay welcomed the coming year as the Year of Dialogue Among Civilizations, he said. There was no doubt that culture had to play a decisive role in the future of international cooperation. His delegation had submitted a proposal that a year be devoted to the relationship between culture and poverty. The major challenge before the international community was to acquire the necessary knowledge and train young generations to enable them to face the challenges of globalization. He stressed the importance of preserving cultural diversity in the world.

GEORGE TALBOT (Guyana), speaking on behalf of the Caribbean Community (CARICOM), said that now more than ever, it was important that the United Nations maintain a strategic approach to development. As declared during the South Summit, development was the best contribution to peace and the two �- peace and development -- were built together. The promise of the 1990s as the decade of �accelerated development in the developing countries and strengthened international cooperation� had largely evaporated, leaving in its wake many countries afflicted by increasing poverty and economic marginalization.

In light of the agreement reached on specific output targets and timeframes, such as those contained in the Millennium Declaration, the time had come for the international community to seriously consider the need for time-bound commitments on the provision of necessary resources, he continued. The long-established ODA target should be placed once again within a time-bound framework, and similar frameworks should be established for technology transfer and capacity-building.

Turning to the implementation of the Habitat Agenda, he said that CARICOM was conscious of the need to bridge the gap between policy formulated at the international level and its implementation at the national and local levels. He called for immediate and intensified action, particularly with respect to increased funding for programmes related to human settlement development. At the same time, he underscored the need to ensure that the rural dimension of the Agenda not be neglected.

ARTUR KLOPOTOWSKI (Poland) said that today, after over a decade of structural reforms, Poland was at the end of transition from a centrally-planned economy towards an open, market-oriented system, with a vibrant and competitive private sector. The depth of that structural change and the resulting strength and resilience of Poland�s economy testified to a successful transition strategy pursued in the 1990s. The consistency in introducing the necessary reforms and the continuity of commitment to principles of a free market economy and financial stability had been an important engine of change throughout that period. Although the Polish economy was not immune to adverse external conditions, it had proved its maturity by withstanding, with relative ease, the global economic turbulence of recent years.

He remained concerned at the widening gap of economic performance, as well as of institutional and structural disparities among the transitional economies, he said. The reforms in order to overcome the heavy burden of the past had been accompanied in practically all transition economies by an unprecedented degree of

social deprivation, which afflicted the weakest groups of the population most painfully. One of the best examples of analytical work conducted by an international organization to capture the specific character of difficulties experienced by the countries in transition was the recently launched World Bank report �Making Transition Work for Everyone: Poverty and Inequality in Europe and Central Asia�.

Austin Peter Etanomare Osio (Nigeria) then provided updates on some draft resolutions. Later today, a draft on financing for development would be discussed. He requested a extension of the deadline for the submission of the draft text on science and technology until Monday, 16 October, which the Committee subsequently granted.

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