GA/EF/2921

SECOND COMMITTEE CONCLUDES ITS DISCUSSION ON SUSTAINABLE DEVELOPMENT AND INTERNATIONAL ECONOMIC COOPERATION

Stronger international cooperation as well as financial and technical cooperation were needed if the Agenda of the United Nations Conference on Human Settlements (Habitat II) was to be fully implemented, the representative of Peru told the Second Committee (Economic and Financial) as it concluded its discussion on sustainable development and international economic cooperation.

The role played by the private sector in the implementation of the 1996 Habitat Agenda was extremely important, he said. He also highlighted the importance of the United Nations and, especially, the Cities without Slums Initiative recently launched by the World Bank. The special session of the General Assembly in June 2001 to review the Habitat Agenda should renew commitments to the right of housing for all. Peru had worked for years to ensure adequate housing for its citizens. His delegation would cooperate to ensure that the special session would be successful.

The representative of Turkey said that as host of the Habitat II Conference, his country attached great importance to the success of the Habitat Agenda. The Habitat Forum of Turkey had been convened from 7 to 8 September in Ankara to prepare for the �Istanbul+5� review session. The Forum had been established as a permanent platform of information exchange and follow-up activities for the Habitat Agenda. The conclusions of the workshop were summarized in a final declaration, under the headings of shelter, social development and eradication of poverty, environmental management, economic development, governance, international relations and development of partnerships and disaster management.

Kenya�s representative said that the Habitat Agenda called for the strengthening of the Centre so that it could fulfil its expanded mandate. However, dependency on voluntary funding had proved unsustainable. Kenya appreciated the efforts of those countries whose contributions had continued to sustain Habitat over the years, and it called on the Secretary-General to increase the regular budget allocation to the Centre. The question of availability of adequate, predictable funding for Habitat was the next crucial issue in the process of revitalization, reforming and strengthening the Centre.

Lithuania�s representative said that the main responsibility for the implementation and follow-up of the Habitat Agenda lay with the Member States. In Lithuania, a number of measures were under way in relation to the Agenda.

Second Committee - 1a - Press Release GA/EF/2921 14th Meeting (AM) 16 October 2000

Renovation of existing housing and establishment of homeowners� associations were being promoted. The World Bank was financing an energy efficiency project, and as a result, a network of advisory centres had been created. Lithuania was an active participant in the work of the Habitat Office in Budapest and was on its way to full implementation of the Habitat Agenda.

Statements were also made by the representatives of India, Republic of Moldova, speaking also on behalf of Georgia, Ukraine, Uzbekistan and Azerbaijan, Armenia, Azerbaijan, Belarus and Canada.

The Committee will meet again on Tuesday, 17 October, at 10 a.m. to begin its consideration of the permanent sovereignty of the Palestinian people in the occupied Palestinian territory, including Jerusalem, and the Arab population in the occupied Syrian Golan over their natural resources.

Second Committee - 3 - Press Release GA/EF/2921 14th Meeting (AM) 16 October 2000

Committee Work Programme

The Second Committee (Economic and Financial) met this morning to conclude its consideration of sustainable development and international economic cooperation. (For a summary of the reports before the Committee, see Press Release GA/EF/2919 issued on Thursday, 12 October.)

Statements

M. M. SANKHDHER (India) said that, in terms of achieving equitable and sustained development of developing countries, the record of the decade had been woefully inadequate. In the coming years, international performance in the development field would need to improve dramatically in order to ensure that future generations were freed from hunger, disease, illiteracy and poverty. India fully understood that sustained economic growth presupposed vigorous national efforts. It had overhauled economic policies, ushered in investment and liberalized trade. With a growth rate of 6.1 per cent, India was among the 10 fastest growing economies in the world.

National efforts, however, required an enabling international environment, he said. He called on the international community to fulfil its commitments undertaken in the various United Nations conferences of the 1990s. The decline in official development assistance (ODA) and long-term capital flows to developing countries had not only impacted negatively on their development activities but had also considerably affected their fight against poverty. While simple growth was no panacea for poverty eradication, it was clear that efforts aimed at poverty reduction in the absence of growth were doomed to fail. The development strategy to be formulated should move away from a one-size-fits-all approach, and be better targeted to the diverse and multidimensional needs of development, and backed by assurances of the availability of required resources.

GEDIMINAS SERKSNYS (Lithuania) said that the report on coordinated implementation by the United Nations system of the Habitat Agenda contained proposals and recommendations for improving the current system. The main responsibility for the implementation and follow-up of the Agenda lay with the Member States and the Commission on Human Settlements. In Lithuania, a number of measures were under way in relation to the Agenda. Renovation of existing housing and establishment of homeowners� associations were being promoted. The World Bank was financing an energy efficiency project, and as a result, a network of advisory centres had been created.

After the fifty-ninth session of the Human Settlements Committee of the Economic Commission for Europe (ECE), a country profile on the Lithuanian housing sector had been published. Aspects of the profile related to social and economic transformation, trends and challenges for urban and rural development, and new housing constructions. A law of homeowners associations had also been reviewed and adopted by the Lithuanian Parliament. Recently, the Lithuania Energy Consultants� Association had been formed and a loan insurance system developed. Lithuania was an active participant in the work of the Habitat Office in Budapest and was on its way to full implementation of the Habitat Agenda.

VITALIE ROBU (Republic of Moldova), speaking also on behalf of Georgia, Ukraine, Uzbekistan and Azerbaijan, said that the process of transition was not merely an economic one. It involved reforms of the political and social system carried out by both, government and civil society. It also involved a large spectrum of concrete reconstruction measures, which covered new monetary and fiscal policies, among other things. Unfortunately, the negative effects of globalization still persisted in some countries with economies in transition, especially in the newly independent States. Under such circumstances, the integration of those countries into the world economy became even more pressing.

Enabling countries with economies in transition to effectively integrate in the world economy was in everyone�s interest, he continued. While unable to solve all problems, regional cooperation played an important role in the economic and social development of the countries with economies in transition. In order to achieve sustainable economic development and eliminate barriers and discriminatory policies in international trade, improvement was needed in the system of partnership and multilateral trade relations among countries in transition, developed countries and international organizations. The United Nations should play a key role in supporting and coordinating efforts in that direction.

At present, he said, the members of the GUUAM -� Georgia, Ukraine, Uzbekistan, Azerbaijan and the Republic of Moldova -� were trying to solve their problems together as partners. Among the major cooperation priorities within the group were to foster favourable conditions conducive to economic growth, further develop a safe and efficient �Europe-Caucasus-Asia� Transport and Communication Corridor, and to intensify mutually beneficial trade relations on the basis of the principle of free trade.

FARES M. KUINDWA (Kenya) said that it had been four years since the adoption of the Habitat Agenda. Despite efforts made in shelter delivery in Africa, a number of factors had reduced the impact of the programmes and activities. The last few years witnessed global economic changes that led to cutting down on public spending, which had resulted in increased unemployment and widespread poverty. The ongoing preparatory process and upcoming special session would give the international community an opportunity to review achievements, identify challenges and develop forward-looking strategies. Her delegation commended the Habitat secretariat for steering preparations for the special session and emphasized full participation by partners.

The Habitat Agenda called for the strengthening of the Centre in order to fulfil its added mandate, she said. However, dependency on voluntary funding had proved unsustainable. Kenya appreciated the efforts of those countries whose contributions had continued to sustain Habitat over the years, and called upon the Secretary-General to increase the regular budget allocation to the Centre. The question of availability of adequate, predictable funding for Habitat was the next crucial issue in the process of revitalization, reforming and strengthening the Centre. Her delegation welcomed the partnership between Habitat and the World Bank through the Cities Alliance and its plan of action, Cities without Slums. The collaborative mechanisms should allow Habitat to continue playing a normative role while utilizing the expertise available at the Centre.

MARCO BALAREZO (Peru) said it was important to acknowledge the role played by the private sector in the implementation of the Habitat Agenda. Peru had worked for years to ensure adequate housing for its citizens. Its basic urban and housing policies belonged to the Government. He highlighted the importance of the United Nations, and especially the Cities without Slums Initiative recently launched by the World Bank. The special session of the General Assembly in June 2001 to review the Habitat Agenda should renew commitments to the right of housing for all. Stronger international cooperation, as well as financial and technical cooperation, were needed. Peru would cooperate to ensure that the special session would be successful.

PARUYR HOVHANNISYAN (Armenia) said that globalization had opened societies to unprecedented levels and was expected to drive economic development around the world. Information technologies had become the locomotive for economic growth and had allowed even small landlocked countries to take advantage of global access. Today, the major task for governments of all countries was the pursuit of coherent policies and appropriate structural adjustments to meet the challenges that globalization presented without falling victim to its possible negative impacts. Armenia believed that success was dependent upon the cooperative involvement of all parties. Any attempts to ignore any of the interested sides would have negative effects.

Armenia had a relatively good record in transition and had made a strong effort to create a favourable macroeconomic climate, he said. The Armenian economy was now experiencing gradual growth, and high inflation rates were no longer a concern for the Government. However, both the budget deficit and the current account deficit remained high. The trade balance suffered mainly from poor transport and communication links, as well as Armenia�s relative remoteness as a landlocked country. His delegation was confident that regional economic cooperation and the ability to transfer differences in national economies into unity would help Armenia transcend numerous problems that were common for the transition period.

ASHRAF SHIKHALIYEV (Azerbaijan) said that he appreciated the assistance given to countries in transition by the United Nations, including the improvement of elections and the prevention of economic crises. The problems and difficulties of the economies in transition did not always receive adequate attention from the international community. Their difficulties were the result of the collapse of a command economy and the transition to an open market economy. Today�s world, characterized by globalization and new opportunities, also contained serious negative consequences. The United Nations must continue to give assistance in forecasting and preventing the negative effects of globalization.

An important area with regard to the provision of advisory services, he said, was in the attraction of foreign investment, which was needed to strengthen financial and trade relations. Azerbaijan attached great importance to the creation of a favourable environment conducive to attracting foreign capital, and was also in the process of structural reforms. At the same time, the failure to settle the Nagorny Karabakh conflict was an impediment to achieving economic development for his country. He stressed the key role played by the United Nations and its specialized agencies in ensuring the speedy integration of economies in transition into the world economy. He particularly noted the active work of the United Nations Development Programme (UNDP) in developing small businesses.

ANDREI POPOV (Belarus) thanked the Secretary-General for his report on economies in transition. Belarus was also grateful to the Bretton Woods institutions for their addition to the report. His delegation was pleased that the international community recognized the special needs of the economies in transition.

One of the fundamental principles of the present stage of the economies in transition was the variety of the levels of economic development, he said. Despite certain progress, the social costs of economic reforms persisted at a high level. At the present stage, Belarus was carrying out its national model of development in a planned manner. At the same time, if the positive macroeconomic changes were to be sustained, a big role would have to be played by the special economic agencies in order to help carry out structural market reforms.

It should be noted that the United Nations had undertaken important efforts on behalf of economies in transition, he said. Belarus took note of the work of the UNDP and the United Nations Conference on Trade and Development (UNCTAD). The positive extension of the cooperation between the United Nations and the Bretton Woods institutions was extremely important, as was their development work.

The creation of external and internal conditions for economic growth was the key question, he said. The consolidation of the tasks being carried out by the United Nations and the long-term goals of the international community were important elements for solving those problems.

FEZA OZTURK (Turkey) said that his country, as host of the United Nations Conference on Human Settlements (Habitat II), attached great importance to the success of the Habitat Agenda. The Habitat Forum of Turkey had been convened from 7 to 8 September in Ankara to prepare for the �Istanbul+5� review session. The Forum had been established as a permanent platform of information exchange and follow-up activities for the Habitat Agenda and Turkey�s Habitat Plan of Action. In seven thematic workshops and two plenary sessions, the participants from government organizations, local administrations, academia, the private sector and non-governmental organizations had reviewed the key issues of the Habitat Agenda at the national level, underlined problem areas and ongoing constraints and highlighted successful practices across the country.

The conclusions of the workshop, he said, were summarized in a final declaration, under the headings of shelter, social development and eradication of poverty, environmental management, economic development, governance, international relations and development of partnerships and disaster management. Due to the devastating effects of the two major earthquakes in 1999 in Turkey, the Forum had decided to organize a workshop on disaster management, although it was not included in the country reporting format as specified by Habitat.

KIM GIRTEL (Canada) said that as a bilingual, multicultural country, Canada had a strong commitment to cultural diversity, which was reflected in its policies and in its efforts at the international level. In October 1999, the Canadian Government had committed to developing a new approach for supporting cultural diversity and its expression internationally. A key element of that approach was

the pursuit of an international instrument on cultural diversity, in line with the Stockholm Action Plan idea that cultural goods and services should not be treated like other forms of merchandise.

Canada was not alone in that pursuit, she continued. Three weeks ago in Santorini, Greece, ministers of culture of various countries participating in the informal policy discussions of the International Network on Cultural Policy, had decided to focus on an international instrument on cultural diversity as a focal point for considering new ways to promote diversity of cultural expression and identity. That Network was one of the first initiatives to come out of the Stockholm Action Plan. The Network Working Group on Cultural Diversity and Globalization, chaired by Canada, would continue to work on the framework and scope of a cultural diversity instrument.

Canada, she added, was also actively involved in the recent efforts of the United Nations Educational, Scientific and Cultural Organization (UNESCO) to create an international network of observatories on cultural policy. Such a network would facilitate the production and dissemination of information on cultural policies and support local and international efforts to promote culture as a key element of development.

* *** *

United Nations