Background
The Second Committee (Economic and Financial) met this morning to conclude its consideration of operational activities for development, focusing on economic and technical cooperation among developing countries. (For background information, see Press Release GA/EF/3049 of 21 October.) It was also expected to take up macroeconomic policy questions and the report of the Economic and Social Council.
Before the Committee was the report of the Committee for Programme and Coordination on its forty-third session (9 June to 3 July and 9 July 2003) (document A/58/16, chap. III, sect. C.3), which contains the triennial review of the implementation of recommendations during the Committee’s fortieth session on the in-depth evaluation of global development trends, issues and policies, global approaches to social and microeconomic issues and policies, and the corresponding subprogrammes in the regional commissions.
The Committee felt the importance of the World Economic and Social Survey was not fully evaluated in the triennial review, and recommended that the relevant departments consider further ways of enhancing its role as a reference tool. Regional commissions should redouble their efforts to establish strong links with regional and national institutions that are end-users of the outputs of the commissions’ work on regional socio-economic analysis to ensure that the findings of such studies could be taken into account at the country and regional levels.
Also before the Committee was the report of the Committee for Programme and Coordination (document A/58/16, chap. II, programme 7) on its forty-third session, which took place from 9 June to 3 July 2003. According to a section on “proposed revisions to the medium-term plan for the period 2002-2005”, the Committee stressed the need for urgent measures to ensure the implementation of Agenda 21 (United Nations Conference on Environment and Development, Rio de Janeiro, 1992) and the Johannesburg Plan of Implementation (World Summit on Sustainable Development, Johannesburg, 2002).
The Committee further emphasized the need for adequate support for the Commission on Sustainable Development as a high-level United Nations body concerned with sustainable development, considering also its role in implementing Agenda 21 and the Johannesburg Plan.
Also before the Committee was a note by the Secretary-General on proposed revisions to the medium-term plan for the period 2002-2005 in the area of economic and social affairs (document A/58/84), which are to reflect the General Assembly’s review of the outcome of the International Conference on Financing for Development (Monterrey, 2002) and the World Summit on Sustainable Development.
The revisions aim to support follow-up to and implementation of the outcomes of the World Summit, in line with the responsibilities of the Commission on Sustainable Development, and additional mandates emanating from the Johannesburg Plan of Implementation. They would also support a secretariat for United Nations follow-up to agreements and commitments included in the Monterrey Consensus, which emerged from the International Conference on Financing for Development.
Later today, the Committee had before it a report of the Secretary-General on the
impact of new biotechnologies, with particular attention to sustainable development, including food security, health and economic productivity (document A/58/76), which provides information on sectors and countries where biotechnology is significantly contributing to economic productivity and human welfare.
The report identifies steps needed to build biotechnology know-how; addresses the impact of new technologies, particularly concerning sustainable development, food security, health and economic productivity; and proposes transferring such technologies to developing countries and economies in transition, while considering the need to protect intellectual property rights.
Developing countries are home to an estimated 95 per cent of the 840 million malnourished people worldwide, the report states. With more than half their populations depending on agriculture, agribusiness development would lift many of them out of poverty. Currently, the biotechnology revolution largely benefits developed countries, with the United States, Canada and Europe accounting for
97 per cent of global biotechnology revenues and 96 per cent of related employment.
The report identifies ways to develop biotechnology and transfer technology, including national biotechnology programmes pooling the resources of industry, government and academia, as well as incubators or facilities to help young firms become strong and independent. It also suggests creating an integrated framework for biotechnology development, based on policy development, private-sector involvement and training. Using the biosafety programme of the United Nations Environment Programme’s Global Environment Facility (UNEP-GEF) as a model, such a framework would focus on industry, health and environment and serve as an advisory unit for developing countries on biotechnology innovations, policy and trade.
Also before the Committee was a report of the Secretary-General on the
external debt crisis and development (document A/58/290), which analyses capital flows to developing countries and economies in transition in light of the current overall state of the global economy. It assesses the continuing reserve accumulation and the causes and implications of the net transfer of resources from developing countries, and provides a long-term analysis of private capital flows to those countries. It also focuses on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and agreements made at the Paris Club, and comments on recent developments regarding new mechanisms for sovereign debt restructuring.
The report complements the Secretary-General’s report on the High-level Dialogue on Financing for Development (document A/58/216), which recommends expediting a durable solution to the debt problems of developing and transition economies.
Also before the Committee was a note by the Secretary-General transmitting the report of the Secretary-General of the International Telecommunications Union on preparations for the World Summit on the Information Society (document A/58/74-E/2003/58). It states that, in three meetings, the Preparatory Committee will set the framework for the first phase of the Summit, to take place in Geneva in December, while the second phase is scheduled for November 2005 in Tunis. Both phases will cost an estimated 6 million Swiss francs, to be funded by the host countries.
The draft declaration of principles laid down during the Preparatory Committee’s second meeting in February identifies 10 requirements for developing an equitable information society. These include ensuring universal, ubiquitous and affordable access to information and communication technologies; the right to communicate and access information; multi-stakeholder involvement in information and communications development; and human and institutional capacity-building. The principles also call for confidence and security in using information communication technologies; the creation of an enabling environment; technology applications benefiting all aspects of daily life; respect for and enjoyment of cultural diversity and multilingualism; the upholding of ethical dimensions; and international and regional cooperation.
Much progress has been made in organizing preparations for the first phase of the Summit, according to the report. Stakeholders and United Nations agencies could continue to galvanize the support needed for policies and actions that capitalize on opportunities created by the information and communication technologies revolution. The Summit should serve as a strategic occasion for world leaders to agree on how to use information and communication technologies for development, and to achieve the Millennium Development Goals.
Another note by the Secretary-General transmits the report of the Secretary-General of the United Nations Conference on Trade and Development on the transit environment in the landlocked States in Central Asia and their transit developing neighbours (document A/58/209).
According to the report, the transit environment in those countries has poor infrastructure and several non-physical bottlenecks. To some extent, the density of existing road and rail networks meets the region's transit transport needs, but infrastructure quality is lacking, mainly due to lack of maintenance.
The report states that the inadequacy of bogie change facilities (to accommodate different rail gauges) at border points between landlocked States and their non-Commonwealth of Independent States (CIS) neighbours, and insufficient cooperation between national railway companies increase bottlenecks on some rail corridors. Capacity is also reduced by the age and poor quality of the rolling stock for both road and rail transport. The density of the pipeline network is also inadequate, with pipeline links to Iran, China, the Caucasus and Turkey lacking, and trans-Caspian waterway links to the Caucasus needing improvement. The efficiency of the transit environment is also hindered by high transport costs, which are generally three times greater in landlocked developing countries than in developed countries, exceeding 50 per cent of the value of imported merchandise.
Transit costs are pushed up considerably by border-crossing formalities and transit fees, which vary from one country to another, the report notes. In addition, informal payments are charged both at the borders and along the corridors. According to some studies, unofficial fees paid by a trucker between Kyrgyzstan and Siberia can exceed $1,500.
The report says that the transit environment in the region is helped by economic recovery in landlocked States, positive cooperation between them and their transit neighbours and the region's resolve to open up to international trade. China, which has a 3,300-kilometre border with the Central Asian landlocked developing countries, increased its share of trade with those countries from 2.4 per cent in 1995 to 4.7 per cent in 2000.
In conclusion, the report notes that transit initiatives under way in the region include efforts by landlocked States and their transit neighbours to improve the infrastructure and reduce the non-physical barriers to transit transport through national laws and increased regional and international cooperation. However, actions are also needed to further harmonize and simplify transit procedures and documentation, increase the use of information technology to speed up border-crossing procedures, and reduce barriers to trade and transit transport.
The report also points to the weak private sector in the CIS countries, noting that railways, airways, waterways and inland ports in all five Central Asian landlocked developing countries are State-operated. The private sector is active in road transport, but the companies and operators are mainly foreign (predominantly Russian and Azerbaijani). The private sector could play a greater role not only in freight operation, but in providing support services for railways, airways and inland water transport subsectors.
Also before the Committee were reports of the Secretary-General on the international financial system and development (document A/58/369), and the outcome of the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation (document A/58/388).
The Committee began today’s meeting by concluding its agenda item on implementation of Agenda 21 and the outcomes of the World Summit on Sustainable Development, the United Nations Decade of Education for Sustainable Development, the environment and sustainable development, and the Programme of Action for the Sustainable Development of Small Island Developing States.
Statements
YASHAR ALIYEV (Azerbaijan), speaking on behalf of GUUAM, (Georgia, Ukraine, Uzbekistan and Moldova), said that United Nations regional commissions played an important role in advancing the agenda of the Commission for Sustainable Development. For example, during its ministerial conference last May, the Economic Commission for Europe had adopted for signature several protocols on environmental impact assessments on transboundary commerce and civil liability on transboundary water accidents, among other environmental matters.
The new structures of the United Nations Centre for Human Settlements
(UN-HABITAT) would help meet environmental and sustainable development goals, he said. Greater promotion and development of renewable energy was also necessary. Noting that all the GUUAM States had become parties to the Kyoto Protocol, he called for greater support for the important work of strengthening capacities in the field of early disaster warning, and in combating desertification.
DJISMUN KASRI (Indonesia), noting that the international debt of developing countries had more than trebled since the 1998 Buenos Aires Conference, said that by 2000 it had already reached $1.25 trillion, inhibiting economic growth and poverty-reduction. The developing world urgently needed new debt-management strategies, he said, urging the Special Unit for Technical Cooperation among Developing Countries to work in close cooperation with other United Nations agencies, the Bretton Woods institutions and the United Nations Conference on Trade and Development (UNCTAD) to ensure debt sustainability in the developing world.
Noting that great strides had been made in South-South cooperation, he recalled that during the Asian-African Sub-Regional Organizations Conference last July in Indonesia, Asian and African nations had agreed to a strategic partnership to overcome development problems and promote peace and prosperity. Regarding triangular cooperation among countries of the South and international organizations, last year Indonesia had teamed with Japan, the Japan International Cooperation Agency and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) to create joint technical training programmes.
JOSEPH SALANG GANDUM (Malaysia) affirmed that the success of South-South cooperation required the collective efforts of all development partners and the entire multilateral system. South-South cooperation was more important than ever in the era of globalization with its unpredictable changes in the economy, including the devastating effects of external factors such as the recent outbreak of SARS or the impasse at the Cancún World Trade Organization (WTO) talks. South-South cooperation had promoted participation of developing countries in the international economic system, diversified and expanded their development options, and provided them with better opportunities and partnerships while strengthening them, both individually and collectively.
He said that more focused planning and coordination by United Nations agencies would further promote success, as would more cooperation and solidarity among the countries involved. In addition to subregional and regional cooperation, developing countries had emerged as net providers of technical assistance. The New Directions Strategy would capitalize on that aspect among developing countries to focus on priority issues to maximize development impact. The circle of actors in South-South cooperation could be widened to include the private sector and civil society organizations. Malaysia called for the proclamation of 12 September as the United Nations day for South-South cooperation and for an international decade on the issue to start in 2005.
SHAHID HUSAIN, Observer for the Organization of the Islamic Conference, recalled that the biennium 2001-2002 had offered a stark contrast to the previous decade due to the bursting of the information and technology bubble in combination with the events of 11 September 2001. The sum effect had been the rapid deceleration of the global economy, which had affected all developing countries. The fall-out from those and other global events could have been controlled in the developing countries by better South-South trade and production activity. A lingering attitudinal, institutional, informational and financial set of barriers had prevented it, despite the attention that regional groups had devoted to promoting economic and technical cooperation among developing countries as a necessary adjunct to North-South cooperation.
The Millennium Development Goals could be achieved by drawing on the expertise and resources of the South, he said. Countries that had recently realized rapid economic and social development could be major providers. Public awareness of South-South cooperation could be raised by declaring a United Nations day for it, as well as a decade. The Special Unit for South-South Cooperation was the pillar for intensifying that thrust in a more effectively cooperative direction.
JABER ALI RAMADAN (Libya), noting that there were several international and regional initiatives to support South-South cooperation, said that such cooperation was vital in strengthening the feeling of international solidarity. Libya welcomed the participation of donors in South-South cooperation as well as the roles played by United Nations bodies, particularly the United Nations Development Programme (UNDP), and stressed the need to increase such programmes.
Libya had participated actively in economic and technical cooperation for the South, he said. Its banks financed development projects, provided loans and supported poverty eradication in developing countries. It also supported the activities of the International Development Bank, the Islamic Bank and the Development Bank of Kuwait.
MAJDI RAMADAN (Lebanon) said the increase in technical cooperation among developing countries was due to trends in regional and subregional integration. However, although many issues were covered, the question of debt and debt sustainability continued to hinder the efforts of developing countries. Pivotal developing countries as well as donors should assist in that regard. At the global level, South-South monetary and financial cooperation was an aspect of technical cooperation among developing countries and initiatives in that regard included the Intergovernmental Group of 24, which Lebanon chaired and which promoted strengthened cooperation among members in negotiations with the International Monetary Fund (IMF), the World Bank and other bodies. The Arab Monetary Fund of the League of Arab States was another. Among other actions, it had signed a memorandum of understanding with the WTO to provide capacity-building and technical assistance to Arab countries in trade negotiations.
He said technical and other kinds of assistance provided by pivotal developing countries was much needed and valued. Donor countries within the European Union also played an important role in technical cooperation among developing countries. An example was the Euro-Mediterranean partnership, which aimed to establish a free trade area by 2010 that would include Lebanon. However, government-government cooperation was not enough to enhance technical cooperation among developing countries. New partnerships with civil society institutions and the private sector should be the focus in the future.
CLAUDIO ROJAS (Chile) underscored the importance of technical cooperation in helping developing nations strengthen their economies and meet the millennium targets. Triangular cooperation was an important complement to South-South partnerships, and Chile urged the international community to promote and participate in such joint efforts among governments and intergovernmental bodies.
Chile was active in triangular arrangements in several areas, particularly agriculture, he said. For example, Chilean and Norwegian agriculture experts were working with the Food and Agricultural Organization (FAO) on Afghanistan’s
post-war reconstruction. Also, under an FAO-sponsored South-South programme in Central America, Chile was providing technical assistance to farmers in Honduras and Guatemala seeking to market their agriculture products. In addition, Chilean agriculturalists were helping Iraq rebuild its agriculture sector. Iraq should become part of the General System of Preferences that gave favoured trading status to developing countries.
MEHDI MIRAFZAL (Iran) said that declaring an international decade for South-South cooperation should provide immediate opportunities to initiate a more action-oriented agenda for South-South cooperation. In that respect, the High- level Conference on South-South cooperation to be held at Marrakesh would be an opportune occasion not only for advancing such an objective, but also for enhancing the programme of action of the Havana South Summit.
He stressed that stronger support and enhanced donor contributions to the funds allocated for South-South cooperation were also vital.
Iran hoped that the much-emphasized negative approach of developed partners towards participation in pledging conferences did not imply their unwillingness to contribute.
GARFIELD BARNWELL (Guyana), speaking on behalf of the Caribbean Community (CARICOM), said the grouping viewed South-South cooperation as a critical aspect of creating an equitable and inclusive global system for development cooperation. The Secretary-General’s report on South-South technical and economic cooperation, which highlighted the developing countries’ efforts to expedite such cooperation, particularly through interregional and triangular arrangements, was encouraging.
He recalled that during its recent regional preparatory meeting to review the Programme of Action for Sustainable Development of Small Island Developing States, CARICOM had underscored the value of and its commitment to best-practice sharing. CARICOM members also supported the Secretary-General’s proposal to declare an annual United Nations day for South-South cooperation and an international decade on South-South cooperation.
The Committee then took up its item on macroeconomic policy questions.
JOANNE DISANO, Director, Division for Sustainable Development in the Department of Economic and Social Affairs, concurred with the recommendations contained in the report of the Committee on Programme and Coordination since they reflected the Johannesburg Plan and the eleventh session of the Commission on Sustainable Development. The proposed revision to subprogramme 4, which focused on the analysis of implementation as well as lessons learned, amply reflected the Commission’s programme of work.
OSCAR DE ROJAS, Executive Coordinator, Financing for Development Office, said the Financing for Development Programme would appear for the first time in the new budget, as mandated by the Monterrey Conference itself. The Committee for Programme and Coordination appeared satisfied with the medium-term plan proposal, apart from a few minor editorial changes.
MOULAY LAHCEN ABOUTAHIR (Morocco), speaking on behalf of the Group of 77 and China, noted that DESA’s proposal and the medium-term plan reflected mandates of the Johannesburg Summit and the eleventh session of the Commission on Sustainable Development, and had been properly reflected in the CPC report. He also noted that Subprogramme 10 on Financing for Development supported the secretariat that would be following up implementation of the Monterrey conference.
However, he continued, General Assembly resolution 57/270b, which set out mandates for DESA and the Economic and Social Council (ECOSOC), did not appear in the medium-term plan, and his Group thought the resolution should be mentioned.
IAN KINNIBURGH, Director, Development Policy and Planning Office in the Department of Economic and Social Affairs, said the recommendations made were under review in the context of the Secretary-General’s reform, particularly those concerning changes in the publications programme and within the framework of the Secretariat’s Executive Committee for Economic and Social Affairs (EC-ESA). The World Economic and Social Survey continued to be among the United Nations’
best-selling publications, if not the top seller. Efforts were continuing to strengthen the working relationships among EC-ESA entities, particularly between the regional commissions and the Department.
